19 September 2018 United States

EQUITIES Holding (BABA US)

BABA US Outperform Investor Day 3: It’s all about cloud Price (at 03:00, 19 Sep 2018 GMT) US$156.65

Valuation US$ 250.00 Key points - Sum of Parts  45% average CPU utilization rate of clusters, well above <5% for others. 12-month target US$ 250.00 AliCloud processed 325k transactions per second at peak. 12-month TSR % +59.6   17% reduction in IT cost per 10k transactions on Single’s Day. GICS sector Software & Services Market cap US$m 406,066 30-day avg turnover US$m 4,352.3 Event Number shares on issue m 2,592  Alibaba’s Cloud Conference kicked off in on September 19. In our

Investment fundamentals meeting with AliCloud Chief Architect, Chief Machine Intelligent Scientist and AliCloud’s business partners, they shared insights about cloud operating Year end 31 Mar 2018A 2019E 2020E 2021E systems, , blockchain-as-a-service (BAAS) and customized Revenue bn 250.3 404.0 560.4 744.8 EBIT bn 69.3 70.3 116.4 170.3 solutions for different verticals and government. Reported profit bn 64.0 56.3 97.8 144.8 Adjusted profit bn 85.8 95.6 138.2 189.3 Impact Gross cashflow bn 99.8 115.2 166.9 228.2  Apsara: the cloud operating system. Aspara provides resource CFPS Rmb 38.23 43.77 63.01 85.64 management, storage management, overlay networking and infrastructure CFPS growth % 44.0 14.5 44.0 35.9 PGCFPS x 28.1 24.6 17.1 12.6 management. It provides higher resource utilization, faster iteration and better EPS adj Rmb 32.87 36.29 52.18 71.06 security. It also processed large-scale data as a native service. Notably, EPS adj growth % 40.1 10.4 43.8 36.2 AliCloud and AWS are the only two major cloud vendors with the elastic Bare PER adj x 32.7 29.6 20.6 15.1 Metal offering. AliCloud X-Dragon server, launched a month before AWS Nitro, Total DPS Rmb 0.00 0.00 0.00 0.00 has better functionality: Total div yield % 0.0 0.0 0.0 0.0 ROA % 14.9 13.8 16.4 18.4 ROE % 27.1 24.2 28.3 30.2 Alicloud vs AWS server comparison EV/EBITDA x 30.7 28.7 18.1 12.7 Net debt/equity % -16.8 -22.9 -26.4 -33.8 X-Dragon (with Elastic Bare AWS Nitro P/BV x 7.7 6.5 5.1 4.0 Metal offering)

BABA US vs S&P 500, & rec history Public Beta Date Oct 2017 Nov 2017 General Availability Date Mar 2018 May 2018 Block Device Throughput 300 thousand IOPS 80 thousand IOPS Networking Throughput 5 million pps 2 million pps Source: Company data, Macquarie Research, September 2018

 Alibaba Damo Academy focuses on fundamental research in five areas: machine learning, data computing, robot, financial and X (frontier projects). Since its establishment a year ago, Damo has 300 researchers in eight cities from Beijing to Sunnyvale. Alibaba also announced that it will merge the chip team from Damo Academy and microship maker C-Sky to Note: Recommendation timeline - if not a continuous line, then there was no establish a dedicated chip subsidiary named Pingtouge Semiconductors Macquarie coverage at the time or there was an embargo period. Source: FactSet, Macquarie Research, September 2018 Company. Main products in the future include AI chips and quantum chips. (all figures in Rmb unless noted, TP in USD)  Advertiser segmentation will bring more monetisation opportunities in Analysts the long term. The company reiterated in the Q&A session today that 70% of their new users came from lower-tier cities. With more targeted ads, Macquarie Capital Limited

Wendy Huang, CFA +852 3922 3378 brands can spend more on marketing higher-tier city users while small [email protected] merchants can target lower-tier city users.

Ellie Jiang +852 3922 4110 Earnings and target price revision [email protected]  No change. Marcus Yang +86 21 2412 9087 [email protected] Price catalyst

John Wang +852 3922 3578  12-month price target: US$250.00 based on a Sum of Parts methodology. [email protected]  Catalyst: 2QFY19 results in November 2018. Frank Chen +852 3922 1433 [email protected] Action and recommendation

 Maintain OP. Please refer to page 6 for important disclosures and analyst certification, or on our website www.macquarie.com/research/disclosures.

Macquarie Research Alibaba Group Holding (BABA US)

Fig 1 Alibaba Group Holdings – SOTP valuation (FY19E) Adjusted Adjusted Revenue Revenue EBITA EBITA Valuation Valuation (RMB bn) CAGR 19-22E margin (RMB bn) EV/EBITA P/S (RMB bn) (US$ bn)

Core commerce (including ) 346 30% 44% 152.26 18 8 2,741 403 25 66% -3% na 42 1,063 156 Digital media and 28 21% -35% na 2 56 8 (, UCWeb, Alisports, Ali Music, Tmall TV) Innovation initiatives and others 5 9% -50% na 2 9.87 1 (YunOS, AutoNavi, DingTalk) Ant Financial (33% of US$150bn) 50 Major minority investments* 18 Net cash 17 Total 654 Per share (US$) 250 *Note: Major minority investments include Weibo, Didi Chuxing, Koubei, Alibaba Picture, Momo, , and Sun Art. Source: Company data, Macquarie Research, September 2018

Fig 2 computing revenue

RMB m 5,000 200% 4,500 175% 180% 4,000 156% 160% 3,500 140% 128% 130% 126% 104% 3,000 115% 99% 120% 96% 103% 2,500 85% 106% 93% 100% 103% 2,000 82% 80% 1,500 60% 50% 1,000 36% 40% 500 20% - 0%

Cloup computing revenue yoy growth

Source: Company data, Macquarie Research, September 2018

19 September 2018 2 Macquarie Research Alibaba Group Holding (BABA US)

Fig 3 Alibaba Group Holdings – Financials YE March 31 FY16 FY17 FY18 FY19E FY20E FY21E 18–19E 19E–20E 20E–23E

Consolidated income statement (Rmb mn) Gross revenue 101,143 158,273 250,266 404,017 560,391 744,762 61% 39% 26% Cost of services (34,355) (59,483) (107,044) (209,843) (281,464) (377,755) 96% 34% 27% Gross profit 66,788 98,790 143,222 194,174 278,927 367,007 36% 44% 26% GP margin 66% 62% 57% 48% 50% 49% (917 bps) 171 bps (37 bps) SG&A (37,686) (50,735) (73,908) (123,874) (162,513) (196,666) 68% 31% 20% Operating profit 29,102 48,055 69,314 70,300 116,415 170,340 1% 66% 33% OP margin 29% 30% 28% 17% 21% 23% (1030 bps) 337 bps 368 bps Pre-tax income 81,468 60,029 100,403 78,958 127,523 186,588 -21% 62% 34% Income taxes (Credit) (8,449) (13,776) (18,199) (26,787) (36,278) (50,522) 47% 35% 31% 71,289 41,226 61,412 53,257 94,144 140,359 -13% 77% 35% Non-GAAP net income 42,833 60,317 85,766 101,656 138,185 189,324 19% 36% 30% Non-GAAP EBITDA 51,885 74,456 105,955 128,938 176,832 243,656 22% 37% 30% Non-GAAP EBITDA margin 51% 47% 42% 32% 32% 33% (1042 bps) (36 bps) 305 bps Balance Sheet (Rmb mn) Current Assets 134,070 181,864 256,855 330,404 408,846 547,204 29% 24% 32% Cash and cash equivalents 106,818 143,736 199,309 242,868 290,792 393,233 22% 20% 34% Short-term investments 4,700 3,011 6,086 6,390 6,710 7,045 5% 5% 5% Restricted cash and escrow 1,346 2,655 3,417 3,588 3,767 3,956 5% 5% 5% receivables Prepayment, receivables and 21,206 32,462 48,043 77,558 107,577 142,970 61% 39% 26% other assets Fixed asset 230,380 324,948 460,269 538,552 631,557 742,274 17% 17% 17% Investment in equity investees 91,461 120,368 139,700 160,655 184,753 212,466 15% 15% 15% Investment securities 29,392 31,452 38,192 42,011 46,212 50,834 10% 10% 10% Prepayments, receivables and 6,007 8,703 16,897 18,587 20,445 22,490 10% 10% 10% other assets PP&E 13,629 20,206 66,489 106,608 160,656 230,378 60% 51% 37% Land use rights 2,876 4,691 9,377 9,377 9,377 9,377 0% 0% 0% Intangible assets 5,370 14,108 27,465 39,165 47,964 54,580 43% 22% 10% Goodwill 81,645 125,420 162,149 162,149 162,149 162,149 0% 0% 0% Total asset 364,450 506,812 717,124 868,956 1,040,403 1,289,478 21% 20% 23% Current Liabilities 52,039 93,564 135,810 215,709 272,468 355,990 59% 26% 25% Current bank and secured 4,304 5,948 6,028 6,028 6,028 6,028 0% 0% 0% borrowings Accrued expenses, accounts 27,334 46,979 81,165 159,111 213,417 286,429 96% 34% 27% payable and other liabilities Other payables and merchant 9,814 25,297 26,043 26,043 26,043 33,856 0% 0% 30% deposits Deferred revenue and customer 10,297 15,052 22,297 24,527 26,979 29,677 10% 10% 10% advances Non-current liabilities 62,522 89,127 141,875 141,875 141,875 141,875 0% 0% 0% Redeemable Preference 51,596 45,876 85,372 85,372 85,372 85,372 0% 0% 0% Shares/unsecured senior notes Non-current bank borrowings 1,871 30,959 34,153 34,153 34,153 34,153 0% 0% 0% Other non-current liabilities 9,055 12,292 22,350 22,350 22,350 22,350 0% 0% 0% Total liabilities 114,561 182,691 277,685 357,584 414,343 497,865 29% 16% 18% Total mezzanine equity 350 2,992 3,001 3,001 3,001 3,001 0% 0% 0% Capital 131,319 161,139 184,171 202,847 223,391 248,584 10% 10% 10% Reserves and others 6,916 9,102 9,298 9,298 9,298 9,298 0% 0% 0% Retained earnings (Accumulated 78,752 108,558 172,353 225,610 319,754 460,113 31% 42% 41% deficits) Total liabilities, mezzanine 364,450 506,812 717,124 868,956 1,040,403 1,289,478 21% 20% 23% equity and equity Cashflow statement (RMB mn) Operating cash flow 56,836 80,326 125,171 126,202 152,803 231,280 1% 21% 32% Net income (loss) 71,289 41,226 61,412 53,257 94,144 140,359 -13% 77% 35% Depreciation and Amortisation 6,701 10,406 16,566 22,760 32,418 43,315 37% 42% 29% Change in net working capital 18,727 30,651 22,840 50,185 26,241 47,606 120% -48% 27% Investing cash flow (42,831) (78,364) (83,890) (101,043) (125,422) (154,032) 20% 24% 20% Capex (10,845) (17,539) (33,106) (53,445) (74,130) (98,520) 61% 39% 26% Purchase of intangible assets (5,407) (13,860) (21,134) (21,134) (21,134) (21,134) 0% 0% 0% Others (26,579) (46,965) (29,650) (26,464) (30,158) (34,379) -11% 14% 14% Financing cash flow (15,846) 32,914 20,359 18,676 20,544 25,192 -8% 10% 10% Capital 38,216 41,784 51,514 18,676 20,544 25,192 -64% 10% 10% Debt increase (decrease) 4,523 29,247 52,757 - - - -100% na na Net change in cash (1,841) 34,876 61,640 43,835 47,925 102,441 -29% 9% 52% Cash and cash equivalents at 106,818 143,736 199,309 242,868 290,792 393,233 22% 20% 34% the end of the year Source: Company data, Macquarie Research, September 2018

19 September 2018 3 Macquarie Research Alibaba Group Holding (BABA US)

Fig 4 Ratios YE March 31 FY16 FY17 FY18 FY19E FY2020E FY2021E 18-19E 19E-20E 20E-23E

Per ADR EPADS, basic (USD) 4.51 2.58 3.82 3.20 5.53 8.14 -16% 73% 34% EPADS, diluted (USD) 4.33 2.50 3.74 3.15 5.44 8.00 -16% 73% 34% EPADS, non-GAAP (USD) 2.59 3.46 5.02 5.34 7.67 10.45 6% 44% 29% diluted BVADS, diluted (USD) 15.11 18.39 25.52 28.39 34.62 43.55 11% 22% 26% Net cash per ADR (USD) 2.97 3.49 4.31 6.55 9.18 14.78 52% 40% 51% EV/EBITDA X 49.4x 36.2x 24.6x 21.0x 15.3x 11.1x ------P/E (diluted, non-GAAP) X 60.4x 45.3x 31.2x 29.4x 20.4x 15.0x ------P/E (diluted, non-GAAP) X 59.2x 44.3x 30.4x 28.1x 19.2x 13.6x ------ex-cash Price/ Sales X 26.1x 17.5x 10.7x 6.9x 5.0x 3.7x ------Price/ Book X 10.4x 8.5x 6.1x 5.5x 4.5x 3.6x ------Profit & loss Net revenue (USD mn) 15,686 23,326 38,192 59,414 82,410 109,524 56% 39% 26% EBITDA (USD mn) 8,047 10,973 16,169 18,961 26,005 35,832 17% 37% 30% EBIT (USD mn) 4,513 7,082 10,578 10,338 17,120 25,050 -2% 66% 33% Pretax profit (USD mn) 12,635 8,847 15,322 11,611 18,753 27,439 -24% 62% 34% Net income (USD mn) 11,083 6,437 9,764 8,286 14,390 21,295 -15% 74% 35% Non-GAAP Net Income (USD mn) 6,643 8,890 13,088 14,949 20,321 27,842 14% 36% 37% Profitability Gross margin % 66% 62% 57% 48% 50% 49% (917 bps) 171 bps (37 bps) EBITDA margin % 51% 47% 42% 32% 32% 33% (1042 bps) (36 bps) 305 bps Operating margin % 29% 30% 28% 17% 21% 23% (1030 bps) 337 bps 368 bps Net margin % 70% 26% 25% 13% 17% 19% (1136 bps) 362 bps 382 bps Non-GAAP Net margin % 42% 38% 34% 25% 25% 25% (911 bps) (50 bps) 210 bps Cash Flow Operating Cash Flow (USD mn) 8,815 11,839 19,102 18,559 22,471 34,012 -3% 21% 32% Free Cash Flow : (USD mn) 8,899 12,488 13,295 18,882 20,725 32,019 42% 10% 35% Net debt (cash) (USD mn) -7,607 -8,983 -11,256 -17,252 -24,300 -39,365 53% 41% 52% Net debt/ equity (USD mn) cash cash cash cash cash cash ------Shareholders' equity (USD mn) 38,700 47,328 66,603 74,760 91,626 115,972 12% 23% 27% Efficiency ROE (average) % 35.1% 15% 17% 12% 17% 21% (497 bps) 537 bps 364 bps ROA (average) % 23% 10% 10% 7% 10% 12% (335 bps) 314 bps 323 bps ROIC (average) % 11% 13% 14% 11% 16% 20% (255 bps) 499 bps 506 bps Source: Company data, Macquarie Research, September 2018

19 September 2018 4 Macquarie Research Alibaba Group Holding (BABA US) Macquarie Quant View The Quant View page below has been derived from models that are developed and maintained by Sales and Trading personnel at Macquarie. The models are not a product of the Macquarie Research Department.

The quant model currently holds a reasonably positive view on Alibaba Attractive Displays where the Group Holding. The strongest style exposure is Profitability, indicating this company’s ranked based on stock is efficiently converting investments to earnings; proxied by ratios like s l the fundamental consensus

a

ROE or ROA. The weakest style exposure is Quality, indicating this stock is t

n Price Target and likely to have a weaker and less stable underlying earnings stream. e Macquarie’s Quantitative

m

a Alpha model. 174/806 d

n

u Two rankings: Local market Global rank in F () and Global sector Software & Services (Software & Services) % of BUY recommendations 96% (47/49) Quant Local market rank Global sector rank Number of Price Target downgrades 15 Number of Price Target upgrades 18

Macquarie Alpha Model ranking Factors driving the Alpha Model A list of comparable companies and their Macquarie Alpha model score For the comparable firms this chart shows the key underlying styles and their (higher is better). contribution to the current overall Alpha score.

Alibaba Group Holding 0.7 Alibaba Group Holding

Amazon.com 0.3 .com

Tencent 0.3

JD.com -0.4 JD.com

Vipshop Holdings -1.2 Vipshop Holdings

-100% -80% -60% -40% -20% 0% 20% 40% 60% 80% 100% -3.0 -2.0 -1.0 0.0 1.0 2.0 3.0 Valuations Growth Profitability Earnings Price Quality Momentum Momentum

Macquarie Earnings Sentiment Indicator Drivers of Stock Return The Macquarie Sentiment Indicator is an enhanced earnings revisions Breakdown of 1 year total return (local currency) into returns from dividends, changes signal that favours analysts who have more timely and higher conviction in forward earnings estimates and the resulting change in earnings multiple. revisions. Current score shown below.

Alibaba Group Holding Alibaba Group Holding -0.2 Amazon.com Amazon.com 0.7 Tencent Tencent -0.5

JD.com JD.com -0.8

Vipshop Holdings -0.6 Vipshop Holdings

-3.0 -2.0 -1.0 0.0 1.0 2.0 3.0 -100% -50% 0% 50% 100% Dividend Return Multiple Return Earnings Outlook 1Yr Total Return

What drove this Company in the last 5 years How it looks on the Alpha model Which factor score has had the greatest correlation with the company’s A more granular view of the underlying style scores that drive the alpha (higher is returns over the last 5 years. better) and the percentile rank relative to the sector and market. ⇐ Negatives Positives ⇒ Normalized Percentile relative Percentile relative EV/EBITDA (NTM) 41% Score to sector(/806) to market(/434) Alpha Model Score 0.74 Price to Sales NTM 37% Valuation -0.23 Price to Sales LTM 36% Growth 0.30 EV/EBITDA FY1 33% Profitability 0.38 Earnings Momentum 0.18 Return on Assets FY1 -29% Price Momentum 0.32 Return on Assets NTM -30% Quality -0.61 Capital & Funding -0.32 Asset Turnover -30% Liquidity 1.82 Turnover (USD) 250 Day -32% Risk 0.05 Technicals & Trading 1.24 -60% -40% -20% 0% 20% 40% 60% 0 50 100 0 50 100 0 0 1 1

Source (all charts): FactSet, Thomson , and Macquarie Quant. For more details on the Macquarie Alpha model or for more customised analysis and screens, please contact the Macquarie Global Quantitative/Custom Products Group ([email protected])

19 September 2018 5 Macquarie Research Alibaba Group Holding (BABA US)

Important disclosures: Recommendation definitions Volatility index definition* Financial definitions Macquarie - Australia/New Zealand This is calculated from the volatility of historical All "Adjusted" data items have had the following Outperform – return >3% in excess of benchmark return price movements. adjustments made: Neutral – return within 3% of benchmark return Added back: goodwill amortisation, provision for Underperform – return >3% below benchmark return Very high–highest risk – Stock should be catastrophe reserves, IFRS derivatives & hedging, expected to move up or down 60–100% in a year IFRS impairments & IFRS interest expense Benchmark return is determined by long term nominal – investors should be aware this stock is highly Excluded: non recurring items, asset revals, property GDP growth plus 12 month forward market dividend speculative. revals, appraisal value uplift, preference dividends & yield, which is currently around 9%. minority interests Macquarie – Asia/Europe High – stock should be expected to move up or Outperform – expected return >+10% down at least 40–60% in a year – investors should EPS = adjusted net profit / efpowa* Neutral – expected return from -10% to +10% be aware this stock could be speculative. ROA = adjusted ebit / average total assets Underperform – expected return <-10% ROA Banks/Insurance = adjusted net profit /average Medium – stock should be expected to move up total assets Mazi Macquarie – South Africa or down at least 30–40% in a year. ROE = adjusted net profit / average shareholders funds Outperform – expected return >+10% Gross cashflow = adjusted net profit + depreciation Neutral – expected return from -10% to +10% Low–medium – stock should be expected to *equivalent fully paid ordinary weighted average Underperform – expected return <-10% move up or down at least 25–30% in a year. number of shares Macquarie - Canada Outperform – return >5% in excess of benchmark return Low – stock should be expected to move up or All Reported numbers for Australian/NZ listed stocks Neutral – return within 5% of benchmark return down at least 15–25% in a year. are modelled under IFRS (International Financial Underperform – return >5% below benchmark return * Applicable to Asia/Australian/NZ/Canada stocks Reporting Standards). only Macquarie - USA Outperform (Buy) – return >5% in excess of Russell Recommendations – 12 months 3000 index return Note: Quant recommendations may differ from Neutral (Hold) – return within 5% of Russell 3000 index Fundamental Analyst recommendations return Underperform (Sell)– return >5% below Russell 3000 index return

Recommendation proportions – For quarter ending 30 June 2018 AU/NZ Asia RSA USA CA EUR Outperform 52.87% 61.26% 48.86% 47.54% 69.86% 46.61% (for global coverage by Macquarie, 3.51% of stocks followed are investment banking clients) Neutral 34.10% 27.25% 36.36% 46.72% 21.92% 43.22% (for global coverage by Macquarie, 2.10% of stocks followed are investment banking clients) Underperform 13.03% 11.49% 14.77% 5.74% 8.22% 10.17% (for global coverage by Macquarie, 0.00% of stocks followed are investment banking clients)

BABA US vs S&P 500, & rec history

(all figures in USD currency unless noted)

Note: Recommendation timeline – if not a continuous line, then there was no Macquarie coverage at the time or there was an embargo period. Source: FactSet, Macquarie Research, September 2018

12-month target price methodology BABA US: US$250.00 based on a Sum of Parts methodology

Company-specific disclosures:

Important disclosure information regarding the subject companies covered in this report is available at www.macquarie.com/research/disclosures.

Date Stock Code (BBG code) Recommendation Target Price 24-Aug-2018 BABA US Outperform US$250.00 11-Aug-2018 BABA US Outperform US$247.00 05-May-2018 BABA US Outperform US$249.00 10-Jan-2018 BABA US Outperform US$259.00 17-Oct-2017 BABA US Outperform US$245.00 18-Aug-2017 BABA US Outperform US$200.00 12-Jun-2017 BABA US Outperform US$171.00 20-May-2017 BABA US Outperform US$142.00 06-Apr-2017 BABA US Outperform US$126.00 25-Jan-2017 BABA US Outperform US$123.00 03-Nov-2016 BABA US Outperform US$120.00 12-Aug-2016 BABA US Outperform US$110.00 06-May-2016 BABA US Neutral US$76.00 03-Feb-2016 BABA US Neutral US$71.00

Target price risk disclosures: BABA US: Any inability to compete successfully in their markets may harm the business. This could be a result of many factors which may include geographic mix and introduction of improved products or service offerings by competitors. The results of operations may be materially affected by global economic conditions generally, including conditions in financial markets. The company is exposed to market risks, such as changes in interest rates, foreign exchange rates and input prices. From time to time, the company will enter into transactions, including transactions in derivative instruments, to manage certain of these exposures.

Analyst certification:

19 September 2018 6 Macquarie Research Alibaba Group Holding (BABA US) We hereby certify that all of the views expressed in this report accurately reflect our personal views about the subject company or companies and its or their securities. We also certify that no part of our compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report. The Analysts responsible for preparing this report receive compensation from Macquarie that is based upon various factors including Macquarie Group Ltd total revenues, a portion of which are generated by Macquarie Group’s Investment Banking activities. 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19 September 2018 8

Equities

Asia Research Head of Equity Research Emerging Leaders Technology Jake Lynch (Asia – Head) (852) 3922 3583 Jake Lynch (Asia) (852) 3922 3583 Damian Thong (Asia, Japan) (813) 3512 7877 Hiroyuki Sakaida (Japan – Head) (813) 3512 6695 Kwang Cho (Korea) (822) 3705 4953 Allen Chang (Greater China) (852) 3922 1136 Conrad Werner (ASEAN – Head) (65) 6601 0182 Corinne Jian (Greater China) (8862) 2734 7522 Jeffrey Ohlweiler (Greater China) (8862) 2734 7512 Conrad Werner (ASEAN) (65) 6601 0182 Chris Yu (Greater China) (8621) 2412 9024 Automobiles, Auto Parts Bo Denworalak (Thailand) (662) 694 7774 Kaylin Tsai (Greater China) (8862) 2734 7523 Lynn Luo (Greater China) (8862) 2734 7534 Janet Lewis (China, Japan) (813) 3512 7856 Infrastructure, Industrials, Transportation Allen Yuan (China) (8621) 2412 9009 Patrick Liao (Greater China) (8862) 2734 7515 James Hong (Korea) (822) 3705 8661 Patrick Dai (China) (8621) 2412 9082 Verena Jeng (Greater China) (852) 3922 3766 Amit Mishra (India) (9122) 6720 4084 Eric Zong (China, Hong Kong) (852) 3922 4749 Daniel Kim (Korea) (822) 3705 8641 Kunio Sakaida (Japan) (813) 3512 7873 Abhishek Bhandari (India) (9122) 6720 4088 Banks and Financials James Hong (Korea) (822) 3705 8661 Farrah Aqlima (Malaysia) (603) 2059 8987 Scott Russell (Asia) (852) 3922 3567 Corinne Jian (Taiwan) (8862) 2734 7522 Telecoms Dexter Hsu (China, Taiwan) (8862) 2734 7530 Inderjeetsingh Bhatia (India) (9122) 6720 4087 Keisuke Moriyama (Japan) (813) 3512 7476 Azita Nazrene (ASEAN) (65) 6601 0560 Allen Chang (Greater China) (852) 3922 1136 Prem Jearajasingam (ASEAN) (603) 2059 8989 Chan Hwang (Korea) (822) 3705 8643 , Media and Software Suresh Ganapathy (India) (9122) 6720 4078 Nathania Nurhalim () (6221) 2598 8365 Jayden Vantarakis (Indonesia) (6221) 2598 8310 Wendy Huang (Asia) (852) 3922 3378 Kervin Sisayan () (632) 857 0893 Anand Pathmakanthan (Malaysia) (603) 2059 8833 Marcus Yang (Greater China) (8862) 2734 7532 Utilities, Renewables Gilbert Lopez (Philippines) (632) 857 0892 John Wang (Hong Kong) (852) 3922 3578 Ken Ang (Singapore) (65) 6601 0836 Ellie Jiang (Hong Kong) (852) 3922 4110 Hiroyuki Sakaida (Japan) (813) 3512 6695 Peach Patharavanakul (Thailand) (662) 694 7753 Alankar Garude (India) (9122) 6720 4134 Patrick Dai (China) (8621) 2412 9082 Inderjeetsingh Bhatia (India) (9122) 6720 4087 Basic Materials, Commodities Oil, Gas and Petrochemicals Karisa Magpayo (Philippines) (632) 857 0899 David Ching (China, Hong Kong) (852) 3922 1823 Aditya Suresh (Asia) (852) 3922 1265 Strategy, Country Yasuhiro Nakada (Japan) (813) 3512 7862 Anna Park (Asia) (822) 3705 8669 Anna Park (Korea) (822) 3705 8669 Yasuhiro Nakada (Japan) (813) 3512 7862 Viktor Shvets (Asia, Global) (852) 3922 3883 Sumangal Nevatia (India) (9122) 6720 4093 Corinne Jian (Taiwan) (8862) 2734 7522 David Ng (China, Hong Kong) (852) 3922 1291 Jayden Vantarakis (Indonesia) (6221) 2598 8310 Ben Shane Lim (Malaysia) (603) 2059 8868 Hiroyuki Sakaida (Japan) (813) 3512 6695 Farrah Aqlima (Malaysia) (603) 2059 8987 Yupapan Polpornprasert (Thailand) (662) 694 7729 Chan Hwang (Korea) (822) 3705 8643 Jeffrey Ohlweiler (Taiwan) (8862) 2734 7512 Conglomerates Pharmaceuticals and Healthcare Inderjeetsingh Bhatia (India) (9122) 6720 4087 David Ng (China, Hong Kong) (852) 3922 1291 David Ng (China, Hong Kong) (852) 3922 1291 Conrad Werner (ASEAN, Singapore) (65) 6601 0182 Gilbert Lopez (Philippines) (632) 857 0892 Xiang Gao (China, Hong Kong) (8621) 2412 9006 Jayden Vantarakis (Indonesia) (6221) 2598 8310 Conrad Werner (Singapore) (65) 6601 0182 Corinne Jian (China) (8862) 2734 7522 Anand Pathmakanthan (Malaysia) (603) 2059 8833 Alankar Garude (India) (9122) 6720 4134 Gilbert Lopez (Philippines) (632) 857 0892 Consumer, Gaming Richardo Walujo (Indonesia) (6221) 259 88 369 Peach Patharavanakul (Thailand) (662) 694 7753

Linda Huang (Asia) (852) 3922 4068 Property, REIT Zibo Chen (China, Hong Kong) (852) 3922 1130 Find our research at Terence Chang (China, Hong Kong) (852) 3922 3581 Tuck Yin Soong (Asia, Singapore) (65) 6601 0838 Macquarie: www.macquarieresearch.com Sunny Chow (China, Hong Kong) (852) 3922 3768 David Ng (China, Hong Kong) (852) 3922 1291 Thomson: www.thomson.com/financial Stella Li (China, Taiwan) (8862) 2734 7514 Kelvin Tam (China) (852) 3922 1181 Reuters: www.knowledge.reuters.com Leon Rapp (Japan) (813) 3512 7879 Keisuke Moriyama (Japan) (813) 3512 7476 Bloomberg: MAC GO Kwang Cho (Korea) (822) 3705 4953 Tomoyoshi Omuro (Japan) (813) 3512 7474 Factset: http://www.factset.com/home.aspx Amit Sinha (India) (9122) 6720 4085 Abhishek Bhandari (India) (9122) 6720 4088 CapitalIQ www.capitaliq.com Robert Pranata (Indonesia) (6221) 2598 8366 Richard Danusaputra (Indonesia) (6221) 2598 8368 Email [email protected] for access

Richardo Walujo (Indonesia) (6221) 2598 8369 Aiman Mohamad (Malaysia) (603) 2059 8986 Denise Soon (Malaysia) (603) 2059 8845 Kervin Sisayan (Philippines) (632) 857 0893 Karisa Magpayo (Philippines) (632) 857 0899 Bo Denworalak (Thailand) (662) 694 7774 Chalinee Congmuang (Thailand) (662) 694 7993

Asia Sales Regional Heads of Sales Regional Heads of Sales cont’d Sales Trading cont’d Miki Edelman (Global) (1 212) 231 6121 Paul Colaco () (1 415) 762 5003 Suhaida Samsudin (Malaysia) (603) 2059 8888 Amelia Mehta (Asia) (65) 6601 0211 Eric Lin (Taiwan) (8862) 2734 7590 Michael Santos (Philippines) (632) 857 0813 Alan Chen (Asia) (852) 3922 2019 Angus Kent (Thailand) (662) 694 7601 Chris Reale (New York) (1 212) 231 2555 Sandeep Bhatia (India) (9122) 6720 4101 Mothlib Miah (UK/Europe) (44 20) 3037 4893 Marc Rosa (New York) (1 212) 231 2555 Tim Huang (Indonesia) (6221) 2598 8303 Christina Lee (US) (44 20) 3037 4873 Justin Morrison (Singapore) (65) 6601 0288 Thomas Renz (Geneva) (41 22) 818 7712 Brendan Rake (Thailand) (662) 694 7707 Tomohiro Takahashi (Japan) (813) 3512 7823 Sales Trading Mike Keen (UK/Europe) (44 20) 3037 4905 John Jay Lee (Korea) (822) 3705 9988 Mark Weekes (Asia) (852) 3922 2084 Nik Hadi (Malaysia) (603) 2059 8888 Stanley Dunda (Indonesia) (6221) 515 1555 Gino C Rojas (Philippines) (632) 857 0861

This publication was disseminated on 19 September 2018 at 13:17 UTC.