2010 potential china pe investment themes

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China Consumer & Retail Private Equity

- 2010 & BeyondConsumer-Driven Investment Themes

May 2010

Presented by K.C. Yoon



In 2009: Macro-Factors Driving China’s Consumer Economy

3

Growth of ChineseMiddle-Class

Urbanization and

Growth of Cities

Growth and Impactof the Internet

> 200 Citieswith >1Mresidents

By2015,>300M lower-middle class;100M luxuryconsumers

NOW >300Musers;>RMB120B onlineconsumer sales

Demand for home-related products and

services

Demand for lifestyle &convenient services

Demand for better healthcare

Over 110 high-consumer potential

cities with 34% of GDP

Most widespreadmedia- access middle-

class consumers

Growth of B2C

IKEA continue to open 2stores/year

Sunning plans a B2C site

Korea SK Telecom toinvest RMB500M in

qingxuan its B2C site

President 7-11 to open3-7stores in Shanghai plans

for 300 stores in 3yrs

China Chain Nepstar drugstar open/acquire 700

stores 2008, plans 3000

Letao to open largest

online toy store in China

Sunning plans 500sqmstores in the rural areas

targeting 3000

Retailerscontinue toexpandnetwork



In 2009: Key Consumer Trends with Investment Potential

+ 1

Growth of ChineseMiddle-Class

Urbanization andGrowth of Cities

Growth and Impactof the Internet

Govt Stimulus

“City-Living”Consumer Services

Affordable Luxury for the Young Affluent

“Mass Market” +“Good Enough”

Products

Online Consumer Brands

“Knowledge” Services

“Health”+ “Well-being” Services

Large Market

Criteria for Investment- Luxury Brands Fit

Criteria!

High Growth

Able toSustain Good

Margins

DefensibleNiche

+“GREEN”- Increasingly

importantGlobal trend

3

2010 potential china pe investment themes

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