The Global Economic Impact of Private Equity Report 2008 - World ...

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Exhibit 7A: Income statement, 2004-2007Resilience – Profitable in an industry downturnSummary Income StatementYear ended31-Dec-04Year ended31-Dec-05Year ended31-Dec-063 monthsended31-Mar-063 months ended31-Mar-071USD = 7.66RMB (RMB’000) (RMB’000) (RMB’000) (RMB’000) (RMB’000) (USD’000)Turnover 429,738 386,494 573,136 106,760 308,624 40,290Gross profit 126,269 61,575 55,307 (12,017) 40,181 5,246EBITDA 121,516 54,557 49,464 (11,290) 35,543 4,640Interest expense (5,524) (7,739) (15,538) (3,427) (11,709) (1,529)Net profit before MI 76,709 16,102 14,605 (21,984) 32,168 4,199Net profit after MI 64,816 16,103 5,623 (21,515) 43,493 5,678Exhibit 7B: Balance sheet information, 2004-2007Summary Balance SheetYear ended31-Dec-04Year ended31-Dec-05Year ended31-Dec-063 months ended31-Mar-071USD = 7.66RMB (RMB’000) (RMB’000) (RMB’000) (RMB’000) (USD’000)Cash and cash equivalents 106,453 113,585 67,275 288,975 37,725Trade and other receivables 16,547 26,368 214,217 491,924 64,220Inventories 42,945 57,186 91,869 369,505 48,238Property, plant and equipment 256,793 494,680 843,687 1,861,582 243,026Total assets 436,851 764,272 1,361,234 3,524,671 460,140Total debt 166,000 152,189 455,367 1,046,572 136,628Trade and other payables 120,392 164,236 330,915 1,298,484 169,515Total liabilities 288,268 366,209 838,510 2,542,592 331,931Total net worth minus goodwill 148,583 383,950 508,611 967,966 126,366Tangible net worth 148,583 370,561 384,203 450,552 58,819Total liabilities/Total net worth less goodwill1.94 0.95 1.65 2.63 –Total debt/EBITDA 1.37 2.79 9.21 7.36 –Net adjusted total debt/EBITDA 0.49 0.71 7.85 5.33 –Quick ratio 0.73 0.44 0.47 0.36 –Source: Company documents.128 Case studies: Hony Capital and China Glass HoldingsThe Global Economic Impact of Private Equity Report 2008
Exhibit 8: China Glass stock price performanceChina Glass stock priceStock price (RMB)76543210Jun – 05Jul – 05Aug – 05Sep – 05Oct – 05Nov – 05Dec – 05Jan – 06Feb – 06Mar – 06Apr – 06May – 06Jun – 06Jul – 06Aug – 06Sep – 06Oct – 06Nov – 06Dec – 06Jan – 07Feb – 07Mar – 07Apr – 07May – 07Jun – 07Jul – 07Aug – 07Sep – 07Oct – 07TimeChina Glass share price performance (indexed Jun-05 = 1.0)Total return3.02.52.01.51.00.50.0Jun – 05Jul – 05Aug – 05Sep – 05Oct – 05China GlassNov – 05Dec – 05Jan – 06Feb – 06Mar – 06Apr – 06Hang Seng IndexMay – 06Jun – 06Jul – 06Aug – 06Sep – 06Oct – 06Nov – 06Dec – 06Jan – 07Feb – 07Mar – 07Apr – 07May – 07Jun – 07Jul – 07Aug – 07Sep – 07Oct – 07TimeSource: Return data obtained from Yahoo finance, October 2007.The Global Economic Impact of Private Equity Report 2008 Case studies: Hony Capital and China Glass Holdings 129
Page 2 and 3:
The Globalization of Alternative In
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ContributorsCo-editorsAnuradha Guru
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PrefaceKevin SteinbergChief Operati
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Letter on behalf of the Advisory Bo
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Executive summaryJosh lernerHarvard
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• Private equity-backed companies
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C. Indian casesThe two India cases,
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Part 1Large-sample studiesThe Globa
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The new demography of private equit
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among US publicly traded firms, it
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should be fairly complete. While th
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according to Moody’s (Hamilton et
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draining public markets of firms. I
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FIguresFigure 1A: LBO transactions
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TablesTable 1: Capital IQ 1980s cov
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Table 2: Magnitude and growth of LB
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Table 4: Exits of individual LBO tr
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Table 6: Determinants of exit succe
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Table 7: Ultimate staying power of
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Appendix 1: Imputed enterprise valu
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Private equity and long-run investm
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alternative names associated with t
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4. Finally, we explore whether firm
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When we estimate these regressions,
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cutting back on the number of filin
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Table 1: Summary statisticsPanel D:
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Table 4: Relative citation intensit
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figuresFigure 1: Number of private
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Private equity and employment*steve
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Especially when taken together, our
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centred on the transaction year ide
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and Vartia 1985.) Aggregate employm
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sectors. In Retail Trade, the cumul
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employment-weighted acquisition rat
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FIguresFigure 1: Matches of private
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Figure 6:Figure 6A: Comparison of n
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Figure 8:Figure 8A: Comparison of j
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Figure 11: Variation in impact in e
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Figure 12: Differences in impact on
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Private equity and corporate govern
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et al (2007) track the evolution of
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groups aim to improve firm performa
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distribution of the LBO sponsors, m
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the most difficult cases. This stor
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to see whether these changes of CEO
Page 95 and 96: Figure 3:This figure represents the
Page 97 and 98: TablesTable 1: Company size descrip
Page 99 and 100: Table 5: Changes in the board size,
Page 101 and 102: Table 7: Board turnoverPanel A: Siz
Page 103 and 104: Part 2Case studiesThe Global Econom
Page 105 and 106: European private equity cases: intr
Page 107 and 108: Exhibit 1: Private equity fund size
Page 109 and 110: Messer Griesheimann-kristin achleit
Page 111 and 112: ealized it was not possible to grow
Page 113 and 114: The deal with Allianz Capital partn
Page 115 and 116: the deal, the private equity invest
Page 117 and 118: Exhibit 1: The Messer Griesheim dea
Page 119 and 120: Exhibit 5: Post buyout structureMes
Page 121 and 122: New Lookann-kristin achleitnerTechn
Page 123 and 124: feet. This restricted store space w
Page 125 and 126: institutional investors why this in
Page 127 and 128: Although a public listing did not a
Page 129 and 130: Exhibit 5: Employment development a
Page 131 and 132: Chinese private equity cases: intro
Page 133 and 134: Hony Capital and China Glass Holdin
Page 135 and 136: Hony’s Chinese name means ambitio
Page 137 and 138: Establishing early agreement on pos
Page 139 and 140: Executing the IPOEach of the initia
Page 141 and 142: Exhibit 1A: Summary of Hony Capital
Page 143 and 144: Exhibit 4: Members of the China Gla
Page 145: Exhibit 6A: China Glass post‐acqu
Page 149 and 150: 3i Group plc and Little Sheep*Lily
Page 151 and 152: y an aggressive franchise strategy,
Page 153 and 154: soul” of the business. But there
Page 155 and 156: Exhibit 1: Summary information on 3
Page 157 and 158: Exhibit 6: An excerpt from the 180-
Page 159 and 160: Indian private equity cases: introd
Page 161 and 162: ICICI Venture and Subhiksha *Lily F
Page 163 and 164: investment,” recalled Deshpande.
Page 165 and 166: 2005 - 2007: Moderator, protector a
Page 167 and 168: Exhibit 3: Subhiksha’s board comp
Page 169 and 170: Warburg Pincus and Bharti Tele‐Ve
Page 171 and 172: founded two companies at this time
Page 173 and 174: By 2003 this restructuring task was
Page 175 and 176: Exhibit 1C: Private equity investme
Page 177 and 178: Exhibit 4B: Bharti cellular footpri
Page 179 and 180: Exhibit 6: Summary of Bharti’s fi
Page 181 and 182: Exhibit 7: Bharti’s board structu
Page 183 and 184: In the 1993‐94 academic year, he
Page 185 and 186: consumer products. She was also a R
Page 187 and 188: AcknowledgementsJosh LernerHarvard
Page 189: The World Economic Forum is an inde
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