13 July 2018 Hong Kong

EQUITIES China Resources Beer

291 HK Underperform Margin improvement story priced in Price (at 13:02, 12 Jul 2018 GMT) HK$36.60

Valuation HK$ 28.00 Key points - PER  Beer industry growth rate could turn to negative territory in June. 12-month target HK$ 28.00 Potential market share loss post price hike? Upside/Downside % -23.5   Adjusted profit growth is factored in the share price. 12-month TSR % -22.8 Volatility Index Low/Medium GICS sector Food, Beverage & Event Tobacco Market cap HK$m 118,737  We provide a preview for China Resources Beer (CRB) in 1H18 and reiterate Market cap US$m 15,127 our non-consensus Underperform rating. We believe CRB will benefit from price hikes in 1H18 and deliver GPM expansion. We project 1H18 revenue will Free float % 48 grow by 11%, reported profit and adjusted profit will go up by 36% and 52%, 30-day avg turnover US$m 33.1 respectively. However, this positive news has been reflected in the share Number shares on issue m 3,244 price. On the other hand, we are concerned that CRB could lose market share

Investment fundamentals due to aggressive price hikes in 1H18. Meanwhile, the June China beer production decline also triggered our concern that there is potential high Year end 31 Dec 2017A 2018E 2019E 2020E channel inventory and whether there could be higher competition in 2H18. Revenue m 29,732 32,433 33,072 34,064 EBIT m 2,683 3,495 3,555 3,905  The shares are trading at 38x adjusted FY19E PER and 19x FY19E EBIT growth % 17.1 30.3 1.7 9.9 EV/EBITDA, much higher than 18x FY19E PER and 11x FY EV/EBITDA Reported profit m 1,175 1,749 1,970 2,207 global breweries average. Our 2018/2019 reported profit is 12% and 23% Adjusted profit m 1,907 2,637 2,642 2,871 EPS rep Rmb 0.36 0.54 0.61 0.68 lower than consensus. Maintain UP with a new TP of HK$28 (from HK$27.20) EPS rep growth % 66.1 48.9 12.6 12.1 based on an unchanged 25x 2019E PER. EPS adj Rmb 0.59 0.81 0.81 0.88 EPS adj growth % 103.5 38.3 0.2 8.7 Impact PER rep x 85.8 57.7 51.2 45.7  The beer industry growth rate could turn negative in June. During Jan- PER adj x 52.9 38.2 38.2 35.1 May 2018, the domestic output volume increased 2.3% YoY. However, our Total DPS Rmb 0.14 0.21 0.23 0.26 industry checks indicated that June production growth is disappointing. Total div yield % 0.5 0.7 0.8 0.8 ROA % 6.4 8.6 8.6 9.0 Distributors do not rule out destocking in June so they can pave the way for ROE % 10.6 13.8 13.0 13.2 better growth in 3Q18. This data point could imply that real demand volume EV/EBITDA x 23.4 19.1 18.6 17.3 growth might not as promising as previously expected. Net debt/equity % -6.9 2.0 -10.7 -14.2 P/BV x 5.5 5.1 4.8 4.5  Potential market share loss post price hike? According to our proprietary staple price tracker (link), in the first five months, sales of CRB decreased by 291 HK rel HSI performance, & rec history 5% YoY, while that of Tsingtao increased 7% YoY. Thus, we are concerned that CRB could lose market share post price hike. According to distributors, CRB was the most aggressive in raising prices in 1H18, compared to Tsingtao and AB InBev. In our model, we projected low teen ASP increase (more driven by price hikes and less by product mix) and flattish volume growth in 1H18.  Adjusted profit growth is factored in the share price. Based on our sensitivity analysis, the company is able to pass over the raw material cost pressure as long as ASP hikes >4%. Therefore, we projected the company can deliver 2.6% GPM expansion and operating leverage with 2.7% adjusted OPM lift to 13.7% for 1H18, and full year to 10.8%. We see limited upside for Note: Recommendation timeline - if not a continuous line, then there was no Macquarie coverage at the time or there was an embargo period. adjusted OPM expansion as it is very similar to that of Carlsberg (14.2%). Source: FactSet, Macquarie Research, July 2018 (all figures in Rmb unless noted, TP in HKD) Earnings and target price revision

 We raise our NP forecast for FY18/19 by 6%/5% with a higher TP at HK$28. Price catalyst Analysts  12-month price target: HK$28.00 based on a PER methodology. Macquarie Capital Limited

Linda Huang, CFA +852 3922 4068  Catalyst: 1HFY18 result. [email protected] Action and recommendation Cici Yu +86 21 2412 9078 [email protected]  Maintain Underperform rating.

Please refer to page 5 for important disclosures and analyst certification, or on our website www.macquarie.com/research/disclosures.

Macquarie Research China Resources Beer

Investment thesis: Reiterate Underperform; TP changed to HK$28/sh

We maintain CRB at an Underperform rating and raise our target price to HK$28/sh based on an unchanged 25x adjusted 2019E PER. Meanwhile, we lift our NP forecasts by 6%/5% for FY18/19E as we believe CRB will be able to unlock the margin upside post price hike. We believe our 25x adjusted 2019E PER multiple is justified as the CAGR of 2017-2019 is ~25%. And this is higher than the 18x 2019E PER of global breweries.

Fig 1 CRB historical PER (excluding impairment) bands Fig 2 CRB historical EV/EBITDA bands

50 160,000

45 40.0x 140,000 40 35.0x 23.0x 35 120,000 30.0x 30 20.0x 100,000 25.0x 25 17.0x 80,000 20 20.0x 14.0x

15 60,000 11.0x

10 Jan-16 Jun-16 Nov-16 Apr-17 Sep-17 Feb-18 Jul-18 Dec-18 40,000 Jan-16 Jun-16 Nov-16 Apr-17 Sep-17 Feb-18 Jul-18 Dec-18 Source: Bloomberg, Macquarie Research, July 2018 Source: Bloomberg, Macquarie Research, July 2018

Earnings revisions

 Revenue: We lower our top-line estimates for FY18 and FY19 to factor in the aggressive price hike.  GP margin: We project the price hike will offset the raw material cost pressure and deliver 1.7ppt margin expansion in FY18.  OP margin: We increase the operating profit margin by 0.6ppt and 0.7ppt for FY18E and FY19E.

Fig 3 Earnings revision table Old Old Old New New New % chg. % chg. % chg.

(Rmb m) 2018E 2019E 2020E 2018E 2019E 2020E 2018E 2019E 2020E Revenue 33,032 34,684 35,724 32,433 33,072 34,064 (1.8%) (4.6%) (4.6%) Gross Profit 11,241 11,907 12,372 11,588 11,727 12,181 3.1% (1.5%) (1.5%) Operating Profit 2,395 2,723 3,082 2,553 2,838 3,188 6.6% 4.2% 3.4% Pre-Tax 2,317 2,685 3,074 2,475 2,801 3,181 6.8% 4.3% 3.5% Net Income 1,646 1,878 2,120 1,749 1,970 2,207 6.3% 4.9% 4.1% Adjusted Net Income 2,346 2,567 2,799 2,637 2,642 2,871 12.4% 2.9% 2.5% EPS (Rmbc) 50.7 57.9 65.3 53.9 60.7 68.0 6.3% 4.9% 4.1% Margin (%) Gross Margin 34.0% 34.3% 34.6% 35.7% 35.5% 35.8% 1.7ppt 1.1ppt 1.1ppt OP Margin 7.3% 7.8% 8.6% 7.9% 8.6% 9.4% 0.6ppt 0.7ppt 0.7ppt Net Margin 5.0% 5.4% 5.9% 5.4% 6.0% 6.5% 0.4ppt 0.5ppt 0.5ppt Adjusted Net Margin 7.1% 7.4% 7.8% 8.1% 8.0% 8.4% 1.0ppt 0.6ppt 0.6ppt Source: Company data, Macquarie Research, July 2018

13 July 2018 2 Macquarie Research China Resources Beer

Macquarie Quant View

The quant model currently holds a marginally positive view on China Attractive Displays where the Resources Beer. The strongest style exposure is Price Momentum, company’s ranked based on indicating this stock has had strong medium to long term returns which often s l the fundamental consensus

a persist into the future. The weakest style exposure is Valuations, indicating t

n Price Target and this stock is over-priced in the market relative to its peers. e Macquarie’s Quantitative

m

a Alpha model. 260/584 d

n

u Two rankings: Local market Global rank in F (Hong Kong) and Global Food Beverage & Tobacco sector (Food Beverage & % of BUY recommendations 69% (11/16) Quant Tobacco) Local market rank Global sector rank Number of Price Target downgrades 0 Number of Price Target upgrades 7

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.

Woolworths Group 1.5 Woolworths Group

Sun Art Retail Group 1.1 Sun Art Retail Group

Tesco 0.9 Tesco

China Resources Beer 0.5 China Resources Beer

Carrefour -0.7 Carrefour

-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.

Woolworths Group Woolworths Group 0.0 Sun Art Retail Group Sun Art Retail Group -2.4 Tesco Tesco 0.8

China Resources Beer China Resources Beer 1.0

Carrefour -0.9 Carrefour

-3.0 -2.0 -1.0 0.0 1.0 2.0 3.0 -90% -40% 10% 60% 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 PEG Ratio Inverted 32% Score to sector(/584) to market(/585) Alpha Model Score 0.45 Return on Assets NTM 29% Valuation -0.59 Turnover(USD) 125 Day 29% Growth -0.18 EPS Growth FY1 28% Profitability -0.46 Earnings Momentum -0.16 Sales Growth FY1 -27% Price Momentum 0.76 Quick Ratio (Worldscope) -27% Quality 0.20 Capital & Funding 0.10 Operating Margin FY0 -30% Liquidity -0.87 Dividend Cover -32% Risk -0.12 Technicals & Trading 0.05 -40% -20% 0% 20% 40% 0 50 100 0 50 100 0 0 1 1

Source (all charts): FactSet, Thomson Reuters, and Macquarie Research. 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])

13 July 2018 3 Macquarie Research China Resources Beer

China Resources Beer (291 HK, Underperform, Target Price: HK$28.00) Interim Results 2H/17A 1H/18E 2H/18E 1H/19E Profit & Loss 2017A 2018E 2019E 2020E

Revenue m 13,958 17,509 14,924 17,854 Revenue m 29,732 32,433 33,072 34,064 Gross Profit m 4,747 6,318 5,270 6,353 Gross Profit m 10,029 11,588 11,727 12,181 Cost of Goods Sold m 9,211 11,191 9,654 11,501 Cost of Goods Sold m 19,703 20,845 21,345 21,883 EBITDA m 1,731 3,246 1,955 3,292 EBITDA m 4,263 5,201 5,351 5,751 Depreciation m 779 843 843 889 Depreciation m 1,557 1,686 1,777 1,827 Amortisation of Goodwill m 0 0 0 0 Amortisation of Goodwill m 0 0 0 0 Other Amortisation m 12 10 10 10 Other Amortisation m 23 19 19 19 EBIT m 941 2,393 1,102 2,394 EBIT m 2,683 3,495 3,555 3,905 Net Interest Income m -15 -30 -30 -9 Net Interest Income m -83 -59 -18 12 Associates m 0 0 0 0 Associates m 0 0 0 0 Exceptionals m -717 -225 -717 0 Exceptionals m -739 -942 -717 -717 Forex Gains / Losses m 0 0 0 0 Forex Gains / Losses m 0 0 0 0 Other Pre-Tax Income m -12 -7 -12 -7 Other Pre-Tax Income m -45 -19 -19 -19 Pre-Tax Profit m 197 2,132 344 2,378 Pre-Tax Profit m 1,816 2,475 2,801 3,181 Tax Expense m -189 -533 -86 -595 Tax Expense m -630 -619 -700 -795 Net Profit m 8 1,599 258 1,784 Net Profit m 1,186 1,857 2,101 2,386 Minority Interests m -3 -11 -97 -12 Minority Interests m -11 -107 -131 -178

Reported Earnings m 5 1,588 161 1,771 Reported Earnings m 1,175 1,749 1,970 2,207 Adjusted Earnings m 715 1,812 825 1,771 Adjusted Earnings m 1,907 2,637 2,642 2,871

EPS (rep) 0.00 0.49 0.05 0.55 EPS (rep) 0.36 0.54 0.61 0.68 EPS (adj) 0.22 0.56 0.25 0.55 EPS (adj) 0.59 0.81 0.81 0.88 EPS Growth yoy (adj) % 180.7 52.0 15.3 -2.2 EPS Growth (adj) % 103.5 38.3 0.2 8.7 PE (rep) x 85.8 57.7 51.2 45.7 PE (adj) x 52.9 38.2 38.2 35.1

EBITDA Margin % 12.4 18.5 13.1 18.4 Total DPS 0.14 0.21 0.23 0.26 EBIT Margin % 6.7 13.7 7.4 13.4 Total Div Yield % 0.5 0.7 0.8 0.8 Earnings Split % 37.5 68.7 31.3 67.1 Basic Shares Outstanding m 3,244 3,244 3,244 3,244 Revenue Growth % 3.5 11.0 6.9 2.0 Diluted Shares Outstanding m 3,244 3,244 3,244 3,244 EBIT Growth % 56.6 37.4 17.1 0.0

Profit and Loss Ratios 2017A 2018E 2019E 2020E Cashflow Analysis 2017A 2018E 2019E 2020E

Revenue Growth % 3.6 9.1 2.0 3.0 EBITDA m 4,263 5,201 5,351 5,751 EBITDA Growth % 6.2 22.0 2.9 7.5 Tax Paid m -798 -619 -700 -795 EBIT Growth % 17.1 30.3 1.7 9.9 Chgs in Working Cap m 941 -569 1,392 -620 Gross Profit Margin % 33.7 35.7 35.5 35.8 Net Interest Paid m 0 0 0 0 EBITDA Margin % 14.3 16.0 16.2 16.9 Other m -151 -1,024 -799 -799 EBIT Margin % 9.0 10.8 10.7 11.5 Operating Cashflow m 4,255 2,989 5,244 3,536 Net Profit Margin % 6.4 8.1 8.0 8.4 Acquisitions m 0 0 0 0 Payout Ratio % 23.8 25.6 28.8 29.7 Capex m -1,915 -1,946 -1,819 -1,874 EV/EBITDA x 23.4 19.1 18.6 17.3 Asset Sales m 200 0 0 0 EV/EBIT x 37.1 28.5 28.0 25.5 Other m 552 119 119 119 Investing Cashflow m -1,163 -1,827 -1,700 -1,755 Balance Sheet Ratios Dividend (Ordinary) m -487 -454 -676 -761 ROE % 10.6 13.8 13.0 13.2 Equity Raised m 0 0 0 0 ROA % 6.4 8.6 8.6 9.0 Debt Movements m 835 2,269 114 0 ROIC % 10.2 15.2 13.1 15.4 Other m -4,518 -4,653 -301 -44 Net Debt/Equity % -6.9 2.0 -10.7 -14.2 Financing Cashflow m -4,170 -2,838 -864 -806 Interest Cover x 32.3 59.2 200.9 nmf Price/Book x 5.5 5.1 4.8 4.5 Net Chg in Cash/Debt m -1,126 -1,676 2,680 976 Book Value per Share 5.7 6.1 6.5 6.9 Free Cashflow m 2,340 1,043 3,425 1,663

Balance Sheet 2017A 2018E 2019E 2020E

Cash m 2,361 685 3,365 4,341 Receivables m 1,006 1,398 1,135 1,461 Inventories m 5,826 6,730 6,349 7,033 Investments m 0 0 0 0 Fixed Assets m 20,449 20,709 20,750 20,797 Intangibles m 8,465 8,446 8,427 8,408 Other Assets m 2,544 2,577 2,552 2,582 Total Assets m 40,651 40,544 42,578 44,622 Payables m 16,605 17,365 18,088 18,507 Short Term Debt m 0 0 0 0 Long Term Debt m 1,087 1,087 1,087 1,087 Provisions m 0 0 0 0 Other Liabilities m 4,474 2,205 2,091 2,091 Total Liabilities m 22,166 20,657 21,266 21,685 Shareholders' Funds m 18,421 19,716 21,010 22,456 Minority Interests m 64 171 303 481 Other m 0 0 0 0 Total S/H Equity m 18,485 19,887 21,312 22,936 Total Liab & S/H Funds m 40,651 40,544 42,578 44,622

All figures in Rmb unless noted. Source: Company data, Macquarie Research, July 2018

13 July 2018 4 Macquarie Research China Resources Beer 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 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 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)

291 HK vs HSI, & rec history

(all figures in HKD 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, July 2018

12-month target price methodology 291 HK: HK$28.00 based on a PER 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 22-Mar-2018 291 HK Underperform HK$27.20 22-Aug-2017 291 HK Underperform HK$12.50 24-May-2017 291 HK Underperform HK$12.60 25-Mar-2017 291 HK Underperform HK$12.40 22-Jul-2016 291 HK Underperform HK$13.50 06-Jul-2016 291 HK Underperform HK$11.64 21-Mar-2016 291 HK Underperform HK$12.01 23-Jan-2016 291 HK Underperform HK$10.36 21-Jan-2016 291 HK Underperform HK$11.73 14-Oct-2015 291 HK Neutral HK$12.19

Target price risk disclosures: 291 HK: 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: 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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13 July 2018 7

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 Internet, Media and Software Suresh Ganapathy (India) (9122) 6720 4078 Kervin Sisayan (Philippines) (632) 857 0893 Jayden Vantarakis (Indonesia) (6221) 2598 8310 Wendy Huang (Asia) (852) 3922 3378 Nathania Nurhalim (Indonesia) (6221) 2598 8365 Anand Pathmakanthan (Malaysia) (603) 2059 8833 Marcus Yang (Greater China) (8862) 2734 7532 Utilities, Renewables Gilbert Lopez (Philippines) (632) 857 0892 David Gibson (Japan) (813) 3512 7880 Ken Ang (Singapore) (65) 6601 0836 Alankar Garude (India) (9122) 6720 4134 Hiroyuki Sakaida (Japan) (813) 3512 6695 Peach Patharavanakul (Thailand) (662) 694 7753 Patrick Dai (China) (8621) 2412 9082 Oil, Gas and Petrochemicals Inderjeetsingh Bhatia (India) (9122) 6720 4087 Basic Materials Aditya Suresh (Asia) (852) 3922 1265 Karisa Magpayo (Philippines) (632) 857 0899 Yasuhiro Nakada (Japan) (813) 3512 7862 Anna Park (Asia) (822) 3705 8669 Quantitative, CPG Anna Park (Korea) (822) 3705 8669 Yasuhiro Nakada (Japan) (813) 3512 7862 Sumangal Nevatia (India) (9122) 6720 4093 Corinne Jian (Taiwan) (8862) 2734 7522 Gurvinder Brar (Global) (44 20) 3037 4036 Jayden Vantarakis (Indonesia) (6221) 2598 8310 Ben Shane Lim (Malaysia) (603) 2059 8868 John Conomos (Asia) (612) 8232 5157 Farrah Aqlima (Malaysia) (603) 2059 8987 Yupapan Polpornprasert (Thailand) (662) 694 7729 Alvin Chao (Asia) (852) 3922 1108 Tracy Chow (Asia) (852) 3922 4285 Conglomerates Pharmaceuticals and Healthcare YingYing Hou (Asia) (852) 3922 5422 David Ng (China, Hong Kong) (852) 3922 1291 Corinne Jian (China) (8862) 2734 7522 Strategy, Country Conrad Werner (Singapore) (65) 6601 0182 Alankar Garude (India) (9122) 6720 4134 Gilbert Lopez (Philippines) (632) 857 0892 Richardo Walujo (Indonesia) (6221) 259 88 369 Viktor Shvets (Asia, Global) (852) 3922 3883 David Ng (China, Hong Kong) (852) 3922 1291 Consumer, Gaming Property, REIT Hiroyuki Sakaida (Japan) (813) 3512 6695 Linda Huang (Asia) (852) 3922 4068 Tuck Yin Soong (Asia, Singapore) (65) 6601 0838 Chan Hwang (Korea) (822) 3705 8643 Zibo Chen (China, Hong Kong) (852) 3922 1130 David Ng (China, Hong Kong) (852) 3922 1291 Jeffrey Ohlweiler (Taiwan) (8862) 2734 7512 Terence Chang (China, Hong Kong) (852) 3922 3581 Kelvin Tam (China) (852) 3922 1181 Inderjeetsingh Bhatia (India) (9122) 6720 4087 Sunny Chow (China, Hong Kong) (852) 3922 3768 Keisuke Moriyama (Japan) (813) 3512 7476 Jayden Vantarakis (Indonesia) (6221) 2598 8310 Stella Li (China, Taiwan) (8862) 2734 7514 Tomoyoshi Omuro (Japan) (813) 3512 7474 Anand Pathmakanthan (Malaysia) (603) 2059 8833 Leon Rapp (Japan) (813) 3512 7879 Abhishek Bhandari (India) (9122) 6720 4088 Gilbert Lopez (Philippines) (632) 857 0892 Kwang Cho (Korea) (822) 3705 4953 Aiman Mohamad (Malaysia) (603) 2059 8986 Conrad Werner (ASEAN, Singapore) (65) 6601 0182 Amit Sinha (India) (9122) 6720 4085 Kervin Sisayan (Philippines) (632) 857 0893 Peach Patharavanakul (Thailand) (662) 694 7753 Karisa Magpayo (Philippines) (632) 857 0899 Richard Danusaputra (Indonesia) (6221) 2598 8368 Chalinee Congmuang (Thailand) (662) 694 7993 Find our research at Robert Pranata (Indonesia) (6221) 2598 8366 Macquarie: www.macquarieresearch.com Richardo Walujo (Indonesia) (6221) 2598 8369 Thomson: www.thomson.com/financial Denise Soon (Malaysia) (603) 2059 8845 Reuters: www.knowledge.reuters.com Bloomberg: MAC GO Factset: http://www.factset.com/home.aspx CapitalIQ www.capitaliq.com Email [email protected] for access

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 (San Francisco) (1 415) 762 5003 Suhaida Samsudin (Malaysia) (603) 2059 8888 Amelia Mehta (Asia) (65) 6601 0211 Angus Kent (Thailand) (662) 694 7601 Michael Santos (Philippines) (632) 857 0813 Jeffrey Shiu (China, Hong Kong) (852) 3922 2061 Ben Musgrave (UK/Europe) (44 20) 3037 4882 Chris Reale (New York) (1 212) 231 2555 Sandeep Bhatia (India) (9122) 6720 4101 Christina Lee (UK/Europe) (44 20) 3037 4873 Marc Rosa (New York) (1 212) 231 2555 Thomas Renz (Geneva) (41 22) 818 7712 Justin Morrison (Singapore) (65) 6601 0288 Tomohiro Takahashi (Japan) (813) 3512 7823 Sales Trading Daniel Clarke (Taiwan) (8862) 2734 7580 John Jay Lee (Korea) (822) 3705 9988 Adam Zaki (Asia) (852) 3922 2002 Brendan Rake (Thailand) (662) 694 7707 Nik Hadi (Malaysia) (603) 2059 8888 Stanley Dunda (Indonesia) (6221) 515 1555 Mike Keen (UK/Europe) (44 20) 3037 4905 Gino C Rojas (Philippines) (632) 857 0861

This publication was disseminated on 12 July 2018 at 17:00 UTC.