Family business in Asia-Pacific: facts and figures The importance of the top 85 The top 3 The top 3 family businesses industry sectors markets in Asia-Pacific 15 25 Consumer products 500 Generate Realize Employ US$736.9b a market more than 3 capitalization of in revenues (3.4% million employees 13 20 of Asia-Pacific’s US$862.5b (0.2% of Asia- Real estate China Mainland GDP) Pacific’s workforce) 17% 88.4% are Are, on average, 11 85 publicly listed Diversified 7 64.6 years old Taiwan companies industrial products Asia-Pacific Source: Global Family Business Index, University of St. Gallen, Center for Family Business.

Some interesting anniversaries Source: Global Family Business Index, Anniversary Company Family Industry Headquarters Market University of St. Gallen, Center for Family Business. 280 Wadia Group of Companies Wadia Conglomerate Mumbai India 200 Swire Pacific Ltd. Swire Conglomerate China 70 Cathay Pacific Airways Ltd. Lim Airline Hong Kong China 60 Linfox Pty Ltd. Fox Air transport, supply chain Essendon Australia The largest family businesses in Asia-Pacific and logistics Fields 50 Reliance Industries Ltd. Ambani Conglomerate Mumbai India The top 10 generated approximately US$387.2b of Asia-Pacific’s US$22.7t GDP in 2014 and employ more than 1.1 million people. The largest family business by revenue and number of employees is the Tata Group, with US$108.8b and 600,000 employees. Source: Global Family Business Index, University of St. Gallen, Center for Family Business.

Rank 1 2 3 4 5 Rank 6 7 8 9 10 Company name Tata Group Reliance Dalian Wanda Group CK Hutchison Lotte Shopping Company name Suntory Holdings Formosa CJ Corp. Hindalco Doosan Heavy Industries Ltd. Holdings Ltd. Petrochemical Corp. Industries Ltd. Industry & Limited Construction Co.

Revenues (2015) Revenues (2015) in US$b 108.8 62.2 44.7 40.6 25.7 in US$b 22.3 19.8 18.7 17.1 14.3

Number of employees Number of employees (2015) >600,000 24,930 130,000 270,000 26,191 (2015) 42,081 6,507 52 21,976 20,000

Family Tata Ambani Wang Li Shing Dong Family Saji Wang Lee Birla Seung-jik Park Family shareholding >32% 45.3% >50% 49.2% 69% Family shareholding 89.4% >35% 42.3% 37% 49% or voting rights or voting rights (latter indicated by *) Public listed company Yes Yes No Yes Yes Public listed company No Yes Yes Yes Yes Market India India China Mainland Hong Kong South Korea Market Japan Tawain South Korea India South Korea

Source: Global Family Business Index, University of St. Gallen, Center for Family Business. The data has been collated before 31 March 2016. Note: we define companies as family businesses when they are either public companies with a minimum shareholding or voting power of the owner family of 32%, or private companies with a minimum shareholding of the owner family of 50%. 154 | EY Family Business Yearbook 2016 EY Family Business Yearbook 2016 | 155 Changes in leadership Some recent M&A deals involving Asia-Pacific’s family businesses Heeton Holdings company’s annual shareholders’ meeting. Michael Hill International launched in 1979 with one shop in Whangarei, a small city of just First non-family CEO for Heeton — 4 January 2016 December 2015 Wipro Ltd. 54,000 people, but today, has 300 stores across Australia, New Heeton Holdings, a Singapore-based, family-run boutique Zealand and North America. The jewelry business, which is now India The listed India-based company, which provides IT services, acquired Viteos Group for US$130m in cash. Viteos developer, has, for the first time, appointed a non-family CEO. The headquartered in Australia, had revenues of AU$505.6m in 2014. is a Business Process as a Service provider for the alternative investment management industry in the US, Europe mainboard-listed group named Eric Teng Heng Chew as the CEO Emma Hill succeeded her father, company founder Michael Hill, and Asia. This was Wipro’s second acquisition in December 2015 and the third since July 2015. and an Executive Director from 4 January 2016. Prior to joining as Chairwoman of the business. Hill has worked in the business December 2015 Heeton, Mr. Teng was advisor at The Straits Trading Company for 30 years, starting as a teenager working on the shop floor in Aditya Birla Nuvo Ltd. Limited from January 2014. Whangarei. More recently, she established Michael Hill Canada, India Sun Life Financial Inc. and Aditya Birla Nuvo Ltd. (ABNL), a part of the Aditya Birla Group (ABG), increased Sun joining the Board of Directors in 2007 and becoming Deputy Chair Life’s ownership in Birla Sun Life Insurance Company Ltd. (BSLI) from 26% to 49% by purchasing additional Hong Kong Ship Owners Association in 2011. BSLI shares from ABNL for a consideration of US$250m. BSLI is one of two Indian joint ventures established Third-generation daughter becomes Chairwoman of Hong Kong between ABG and Sun Life. BSLI commenced business in 2001 and has a customer base of 1.6 million individual Shipowners Association — 30 November 2015 Lodha Group policyholders and an extensive distribution reach across 418 cities through a network of over 55,000 advisors in 489 branches. The increased stake in BSLI aligns with Sun Life’s objective of expanding its presence in markets Sabrina Chao, who took the helm of her family’s company in 2003 Indian family real estate business Lodha Group will be split into when her father suffered a stroke, was appointed Chairwoman two entities — 23 July 2015 that have strong growth opportunities. of the Hong Kong Shipowners Association (HKSOA) at the The split should ease succession planning into the second August 2015 Bharti Airtel Ltd. organization’s annual general meeting last week. The purpose of generation — a strategy that is common in India, according to India Bharti Airtel Ltd., the listed India-based telecommunications company and India’s largest mobile operator, the organization, founded in 1957, is to promote and protect the a family business academic based in the country. Lodha Group acquired Augere Wireless Broadband India, an India-based operator of wireless networks, from Orange SA, the interests of Hong Kong domiciled shipowners and ship managers. Chairman and Founder Mangal Prabhat Lodha appointed his eldest French telecommunications multinational. They also acquired New Silk Route, Vedanta Capital LP and Harbinger Wah Kwong Maritime Transport was founded by her grandfather son Abhishek, 36, to the helm of the real estate business, while Capital Partners, the US based private equity firms, for an undisclosed consideration. Tsong-Yea Chao in 1952. his younger son Abhinandan, 33, became head of a new financial services business. April 2015 New World Development Co. Ltd. Michael Hill International Hong Kong New World Development sold three of its luxury hotels for US$2.3b into a joint venture with the Abu Dhabi Daughter of Michael Hill International founder appointed Investment Authority (ADIA) in the biggest hotel deal in Asia in a decade. The developer and controlling Chairwoman — 28 August 2015 shareholder, Chow Tai Fook Enterprise — owned by the family of Cheng Yu-tung — injected the three hotels, ’s most successful jewelry chain passed to the including the flagship Grand Hyatt Hong Kong in Wan Chai, into a newly formed 50-50 joint venture with ADIA, the second generation in November 2015, following a vote at the world’s second-largest sovereign fund. The other two hotels transferred to the joint venture are the Renaissance Harbour View in Wan Chai and the Hyatt Regency Hong Kong in Tsim Sha Tsui.

April 2015 Country Garden Holdings Co. Ltd. Hong Kong Ping An Life Insurance Company of China Ltd. acquired a 9.9% stake in Country Garden Holdings Co. Ltd. for a total consideration of US$812m. Ping An Life Insurance Company of China Ltd., which is based in Shenzhen, is a subsidiary of Ping An Insurance (Group) Company of China Ltd. Some of the oldest family businesses among the top 85 in Asia-Pacific March 2015 Essar Steel Ltd. Swire Pacific Ltd. Hutchison-Whampoa Ayala Corp. Wheelock and Company Hyne & Son Pty Ltd. India Odisha Slurry Pipeline Infrastructure Limited, the India-based company that distributes iron ore through pipelines, Company Ltd. Ltd. acquired 253 kilometers of the Odisha Slurry Pipeline between Dabuna and Paradeep from Essar Steel Ltd. for a total consideration of US$628m. Founded 1816 1828 1834 1857 1882 March 2015 Suzlon Energy Ltd. India Suzlon Energy, the listed India-based wind power company headquartered in Pune, completed a 100% stake sale Family Swire Li Ayala Woo Hyne of its German arm Senvion to US-based venture capital fund Centerbridge Partners for a total cash consideration of US$878m and a future potential earn-out of up to US$44m. Suzlon had acquired Senvion (earlier known as Industry Conglomerate Conglomerate Conglomerate Financial real estate Timber REpower) in 2007. The transaction was aligned with Suzlon’s strategy to reduce debt and focus on the home Headquartered Hong Kong Hong Kong Makati City Hong Kong Maryborough market, high-growth markets such as the US, and emerging markets such as China, Brazil, South Africa, Turkey and Mexico. Country China China Philippines China Australia

Source: EY research based on Dun & Bradstreet; EMIS Intelligence; Factiva; OneSource.

Selected obituaries We take this opportunity to remember some of the famous family entrepreneurs who died in the last year.

1 November 2015 of four brothers who founded been Managing Director and 29 July 2015 business, dates back to 1884 joined the family business of that company in 1968 and a position he held until his Brijmohan Lall Munjal, the the predecessor company CEO since 2001, succeeded Sir John Todd, the former and has interests in energy, in 1945, working on the Deputy Chairman of the Todd retirement in 2011. founder of the world’s largest to Indian Hero MotoCorp in his father as Chairman in June Chairman of Todd Corporation, property development, health assembly line at Todd Corporation board of directors two-wheeler business, died aged 1954, and remained Chairman 2015. Brijmohan Lall Munjal died aged 88, following a short care, telecommunications, Motors in Wellington. He was in 1978. In 1987, he became 92, leaving behind a multibillion- Emeritus until his death. His was EY’s Entrepreneur Of The illness. Todd Corporation, technology and wine. Todd appointed Managing Director Chairman of the family empire, dollar family empire. He was one son Pawan Munjal, who has Year™ in 2001. New Zealand’s largest family 156 | EY Family Business Yearbook 2016 EY Family Business Yearbook 2016 | 157