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SINGAPORE Olam International Ltd

5 December 2008 Gaining from distress


OLAM SP Outperform Event
Stock price as of 03 Dec 08 S$ 0.88 ƒ Olam plans to repurchase up to US$150m worth of its convertible bonds
12-month target S$ 1.65 (maturing July 2013). US$300m of those CBs was issued in July 2008 (coupon
Upside/downside % +87.5 1%, yield-to-maturity of 4.5%, 6.2% dilution assuming full conversion).
Valuation S$ 1.65
- PER
Impact
GICS sector food & drug retailing
Market cap S$m 1,508
ƒ Depending on the size of the buyback, the company’s net gearing level could
30-day avg turnover S$m 13.6 be lowered slightly on gains from the cancelled CBs. In any case, falling
Market cap US$m 989 prices (prices for Olam’s weighted basket of products have declined by 27%
Number shares on issue m 1,713
QoQ), imply a reduction in working capital needs for the next 1–2 quarters.
Thus, nominal headline gearing levels could fall from the 2.7x the company
Investment fundamentals
posted in September 2008. Its net gearing adjusted for hedged/pre-sold
Year end 30 Jun 2008A 2009E 2010E 2011E
inventory receivables backed by letters of credit was 0.7x.
Total revenue m 8,152 8,731 9,626 11,272
EBIT m 334 444 536 660 ƒ The CBs were quoted at 45.6% of face value as of 3 December, with a yield-
EBIT Growth % 45.1 33.0 20.6 23.2
Reported profit m 168 187 233 326 to-put (July 2011) of about 38.4%. The yield-to-maturity of the CB (July 2013)
Adjusted profit m 168 189 235 328 is 23.2%. The tender offer opened at 9am on 4 December and will close at
EPS rep ¢ 10.5 10.9 13.6 19.0 noon on 5 December.
EPS rep growth % 52.2 4.4 24.4 40.0
EPS adj ¢ 10.5 11.1 13.7 19.2 ƒ The company will likely draw down existing banking facilities (49% in unused
EPS adj growth % 53.0 4.9 24.1 39.7 lines as of the end of September 2008) to finance the repurchase of these CBs.
PE rep x 8.4 8.0 6.5 4.6
PE adj x 8.4 8.0 6.4 4.6
ƒ Similar moves elsewhere: on 5 November, supply-chain manager Noble
Total DPS ¢ 2.5 2.8 3.4 4.8 Group (NOBL SP, S$0.94, OP, TP: S$1.35) repurchased US$20m worth of its
Total div yield % 2.8 3.1 3.9 5.4
senior notes due November 2015. Similarly, Kuok Khoon Hong, the CEO of
ROA % 7.1 7.2 8.4 9.3 edible oils processor/merchandiser Wilmar (WIL SP, S$2.60, OP, TP: S$3.00),
ROE % 31.3 26.6 26.7 29.6
EV/EBITDA x 11.0 8.1 6.8 5.6
personally bought, on 17 October, US$1.6m of Wilmar's convertible bonds
Net debt/equity % 415.0 346.9 286.9 243.3 due in 2012 (at 65.25%).
Price/book x 2.2 1.9 1.6 1.2
Earnings revision
OLAM SP rel All Singapore
performance, & rec history ƒ We expect net income gains depending on the size of the CB buyback.

Price catalyst
ƒ 12-month price target: S$1.65 based on a PER methodology.

ƒ Catalyst: Volume growth of more than 16% from new products/segments.

Action and recommendation


ƒ We expect volume growth of 16% for Olam in FY6/09, helped by share gains
and expansion into new product areas.
Source: Datastream, Macquarie Research, December ƒ Olam’s ability to scale up without relying on profits driven by commodity prices
2008 (all figures in SGD unless noted)
remains a better risk/reward proposition than commodity growers.

Analyst
Patrick Yau, CFA Please refer to the important disclosures and analyst certification on inside back cover of
65 6231 2835 patrick.yau@macquarie.com
this document, or on our website www.macquarie.com.au/research/disclosures.
Macquarie Research Equities - Flyer Olam International Ltd

Analysis
ƒ Olam will repurchase up to US$150m worth of its convertible bonds (maturing July 2013).
US$300m of those CBs was issued in July 2008 (coupon 1%, yield-to-maturity of 4.5%, 6.2%
dilution assuming full conversion).
ƒ Depending on the size of the buyback, the company’s net gearing level could be lowered slightly
on gains from equity on the cancelled CBs. In any case, falling prices (prices for Olam’s weighted
basket of products have declined by 27% QoQ), imply a reduction in working capital needs for the
next 1–2 quarters. Thus, nominal headline gearing levels could fall from the 2.7x the company
posted in September 2008. Its net gearing adjusted for hedged/pre-sold inventory receivables
backed by letters of credit was 0.7x.
ƒ The CBs were quoted at 45.6% of face value as of 3 December, with a yield-to-put (July 2011) of
about 38.4%. The yield-to-maturity of the CB (July 2013) is 23.2%. The tender offer opened at
9am on 4 December and will close at noon on 5 December.
ƒ The company will likely draw down existing banking facilities (49% in unused lines as of the end of
September 2008) to finance the repurchase of these CBs.
ƒ Olam has previously reiterated that its panel of bankers is comfortable with the borrowings
provided to the company ahead of what is now the key season for sourcing the commodities that it
deals with. In some sense, the decision to push ahead with this CB tender offer also implies that
Olam continues to receive strong support from its bankers.
ƒ We have previously stressed that, despite its high headline net gearing figures, the company’s
debt is mostly funding working capital needs rather than fixed investments or other long-duration
assets. As a result, we do not anticipate the approach of a 'Minsky' moment, nor do we expect
Olam to pay off debt by running non-current assets continuously at high utilisation rates in hopes
of achieving positive cash generation. Instead, it operates on approximately 100-day+ cash cycles
and continuously repays debt as inventories are sold to customers and receivables are collected.
ƒ Funding for working capital: Olam's net debt of S$2.7bn (with 62% as short-term loans) at the end of
FY6/08 mainly funded working capital needs as 90% of its assets (about S$6.0bn) are working-
capital related. Non-current assets amounted to S$0.6bn, or 10% of total assets. As noted, Olam
continuously repays debt as inventories are sold to customers and receivables are collected (two-
thirds of its receivables are supported by letters of credit). Olam's working capital needs in FY6/08
were S$1.8bn in inventory and S$0.7bn in receivables. Only S$0.5bn is funded by Olam's
payables/creditors; it thus needs debt of about S$2bn to fund working capital needs. On our existing
projection for 16% growth in volumes for this year, there is room for the level of working capital debt
to be lower than the S$2–2.1bn (similar to levels for FY6/08) that we expect for this year.
ƒ Similar moves elsewhere – on 5 November, supply-chain manager Noble Group (NOBL SP,
S$0.94, OP, TP: S$1.35) repurchased US$20m of its senior notes due November 2015. Similarly,
on 17 October, Kuok Khoon Hong, the CEO of edible oils processor/merchandiser Wilmar (WIL
SP, S$2.60, OP, TP: S$3.00) personally bought US$1.6m of Wilmar's convertible bonds due in
2012 (at 65.25%).
ƒ Olam’s sponsor family, the Kelwaram Group, purchased 2m shares on 16 October (stake now
26.8%); CEO Sunny Verghese added 1m shares 10 October (stake now 5.2%).
ƒ We still expect Olam to increase earnings at an average of 14% in the next two years as it boosts
volumes across its portfolio by about 16% YoY each year. Is there still room for Olam to expand
market share? Likely yes because, outside of cashews and cocoa, its global volume share is
much less than 10%

5 December 2008 2
Macquarie Research Equities - Flyer Olam International Ltd

Fig 1 Market share of agri-commodities traded volume


Olam market share <5% Olam market share between 5-10% Olam market share >10%

Rice Cotton Cocoa


Timber Coffee Cashews
Dairy
Sugar
Spice
Almonds
Peanuts
Source: Company data, Macquarie Research, December 2008

Fig 2 Revenue by segment (S$m) Fig 3 FY6/09E: Revenue growth by segment (YoY%)
(S$m)
(YoY %)
10,000
25
9,000
8,000 1,640 20
7,000 1,727
6,000 15
2,474
2,027
5,000
10
4,000
3,000 3,189 3,348 5
2,000
1,000 0
1,169 1,227
0
-5
2008 2009F
-10
Edible Nuts, Confectionery Food staples Fibre and Total
Edible Nuts, spices and pulses Confectionery & beverage ingredients spices and & beverage and packaged wood products
Food staples and packaged foods Fibre and wood products pulses ingredients foods

Source: Company data, Macquarie Research, December 2008 Source: Company data, Macquarie Research, December 2008

Fig 4 We expect volumes to grow for all divisions Fig 5 Expect overall FY6/09 volumes to grow by 16%
other than fibre and wood products in FY6/09 to 5.7m tonnes
(YoY %) (mt)
60 7.0
50 6.0
40
5.0
30
20 4.0

10 3.0
0 2.0
-10
1.0
-20
-30 0.0
2003 2004 2005 2006 2007 2008 2009F Total Edible Nuts, Confectionery Food staples Fibre and
spices and & beverage and packaged wood products
Edible Nuts, spices and pulses Confectionery & beverage ingredients pulses ingredients foods
Food staples and packaged foods Fibre and wood products
2008 2009F

* Fibre & wood products in cubic metres


Source:Company data, Macquarie Research, December 2008 Source: Company data, Macquarie Research, December 2008

ƒ Food demand is steady. The USDA Foreign Agricultural Service data for the past 30 years
indicate that, on average, there is fairly stable consumption in food items such as coffee in volume
terms. Global consumption of coffee has grown, on average, by 2% a year for the past 30 years.
Even during periods of weak economic conditions, the contraction in consumption volumes, if any,
seems small.

5 December 2008 3
Macquarie Research Equities - Flyer Olam International Ltd

Fig 6 World consumption : Coffee (volume)

(% chg)
8

-2

-4
78

80

82

84

86

88

90

92

94

96

98

00

02

04

06

08
19

19

19

19

19

19

19

19

19

19

19

20

20

20

20

20
Source: USDA, Foreign Agricultural Service, Macquarie Research, December 2008

ƒ Diversity in customers, with each transaction small. Each transaction is small, with the
average invoice value about US$250,000. Olam serves more than 6,500 customers, with the top
five in each product segment accounting for less than 10% of its revenues. For FY6/08, customers
in the Americas accounted for 13% of sales, the smallest share of its revenues compared with
revenues from other continents.

Fig 7 Well-diversified sales: markets — Sales Fig 8 Well-diversified sales: markets — Sales
turnover FY6/07 turnover FY6/08

Africa Africa
20.9% 22.0%

Asia & Middle


Asia & Middle East
East 39.1%
44.3%
Americas
12.8% Americas
13.4%

Europe
Europe
22.0%
25.5%

Source:Company data, Macquarie Research, December 2008 Source:Company data, Macquarie Research, December 2008

ƒ Decomposing its interest payments. Olam paid S$201m in interest expenses (for this exercise,
we assume this all went to service working capital-related loans) to fund the 5m tons of produce
and commodities that it sourced last year, ie, about S$40 of interest charges per average ton of
cargo. For example, this is about 1.3% of the value of a ton of cocoa, which is now about
S$3,000/ton. Ceteris paribus, if interest rates double, the interest costs may be 2.6% of the value
of a ton of cocoa, still a small cost component for managing this amount of cargo. (Olam's revenue
per ton was about S$1,600 last year because not all its volumes were cocoa). Historically, a
supply chain manager such as Olam has typically been able to pass on increases in the cost of
carry to customers or the farmers.

5 December 2008 4
Macquarie Research Equities - Flyer Olam International Ltd

ƒ Its ability to scale earnings without relying on commodity prices to drive profits is a better
risk/reward proposition than for other soft-commodity growers. Our target price of S$1.65 implies a
FY6/09 PER of 15x. Prices are not a key driver; volume is more important. Commodity prices are
not key to Olam’s earnings growth because it earns a supply-chain fee for the produce that it deals
with. Overall volume growth is much more important – we expect Olam to record volume growth of
16% in FY6/09. There is still room for volume growth via market share additions as, outside of
cocoa and cashews, Olam’s global market share is below 10% for most of the commodity groups
it sources.

Fig 9 OLAM: PER band chart

20
15
55x
8 46x
7 37x
6
5 27x
4
18x
3

2
9x

1
0.8
0.6

06 07 08 09 10 11

Source: Company data, Macquarie Research, December 2008

Fig 10 OLAM: P/BV band chart

20
15

14x
8 12x
7 10x
6
5 7x
4 5x
3

2 3x

1
0.8
0.6

06 07 08 09 10 11

Source: Company data, Macquarie Research, December 2008

5 December 2008 5
Macquarie Research Equities - Flyer Olam International Ltd

Olam International Ltd (OLAM SP, Outperform, Target price: S$1.65)


Interim Results 2H/08A 1H/09E 2H/09E 1H/10E Profit & Loss 2008A 2009E 2010E 2011E

Revenue m 4,815 3,667 5,064 4,043 Revenue m 8,152 8,731 9,626 11,272
Gross Profit m 935 880 1,084 849 Gross Profit m 1,633 1,964 2,156 2,548
Cost of Goods Sold m 3,881 2,787 3,980 3,194 Cost of Goods Sold m 6,519 6,766 7,470 8,725
EBITDA m 216 205 297 127 EBITDA m 368 502 594 719
Depreciation m 19 28 28 28 Depreciation m 34 56 56 57
Amortisation of Goodwill m 0 1 1 1 Amortisation of Goodwill m 0 2 2 2
Other Amortisation m 0 0 0 0 Other Amortisation m 0 0 0 0
EBIT m 197 176 269 98 EBIT m 334 444 536 660
Net Interest Income m -97 -121 -121 -146 Net Interest Income m -201 -241 -291 -312
Associates m 0 5 5 10 Associates m -0 10 20 22
Exceptionals m 0 0 0 0 Exceptionals m 0 0 0 0
Forex Gains / Losses m 17 0 0 0 Forex Gains / Losses m 21 0 0 0
Other Pre-Tax Income m 3 0 0 0 Other Pre-Tax Income m 11 1 1 1
Pre-Tax Profit m 120 60 153 -38 Pre-Tax Profit m 165 213 265 371
Tax Expense m 9 -7 -18 4 Tax Expense m 3 -26 -32 -45
Net Profit m 129 53 134 -33 Net Profit m 168 187 233 326
Minority Interests m -0 0 0 0 Minority Interests m 0 0 0 0

Reported Earnings m 129 53 135 -33 Reported Earnings m 168 187 233 326
Adjusted Earnings m 129 54 136 -32 Adjusted Earnings m 168 189 235 328

EPS (rep) ¢ 8.1 3.1 7.9 -1.9 EPS (rep) ¢ 10.5 10.9 13.6 19.0
EPS (adj) ¢ 8.1 3.1 7.9 -1.9 EPS (adj) ¢ 10.5 11.1 13.7 19.2
EPS Growth yoy (adj) % 61.6 31.5 -2.9 nmf EPS Growth (adj) % 53.0 4.9 24.1 39.7
PE (rep) x 8.4 8.0 6.5 4.6
PE (adj) x 8.4 8.0 6.4 4.6

EBITDA Margin % 4.5 5.6 5.9 3.1 Total DPS ¢ 2.5 2.8 3.4 4.8
EBIT Margin % 4.1 4.8 5.3 2.4 Total Div Yield % 2.8 3.1 3.9 5.4
Earnings Split % 77.0 28.4 71.6 -13.8 Weighted Average Shares m 1,600 1,713 1,713 1,713
Revenue Growth % 55.2 9.9 5.2 10.3 Period End Shares m 1,585 1,713 1,713 1,713
EBIT Growth % 61.2 27.9 36.5 -44.5

Profit and Loss Ratios 2008A 2009E 2010E 2011E Cashflow Analysis 2008A 2009E 2010E 2011E

Revenue Growth % 48.8 7.1 10.3 17.1 EBITDA m 367 447 538 663
EBITDA Growth % 48.8 36.5 18.3 21.1 Tax Paid m -12 3 -32 -32
EBIT Growth % 45.1 33.0 20.6 23.2 Chgs in Working Cap m -838 -113 -529 -529
Gross Profit Margin % 20.0 22.5 22.4 22.6 Net Interest Paid m -183 -241 -312 -312
EBITDA Margin % 4.5 5.7 6.2 6.4 Other m 0 77 228 103
EBIT Margin % 4.1 5.1 5.6 5.9 Operating Cashflow m -666 172 -107 -107
Net Profit Margin % 2.1 2.1 2.4 2.9 Acquisitions m -218 -151 0 0
Payout Ratio % 23.7 25.0 25.0 25.0 Capex m -72 -50 -65 -65
EV/EBITDA x 11.0 8.1 6.8 5.6 Asset Sales m 18 0 0 0
EV/EBIT x 12.1 9.2 7.5 6.1 Other m 0 0 0 0
Investing Cashflow m -271 -201 -65 -65
Balance Sheet Ratios Dividend (Ordinary) m -54 -43 -59 -59
ROE % 31.3 26.6 26.7 29.6 Equity Raised m 307 0 0 0
ROA % 7.1 7.2 8.4 9.3 Debt Movements m 824 461 300 300
ROIC % 16.1 11.9 13.4 15.4 Other m 0 0 0 0
Net Debt/Equity % 415.0 346.9 286.9 243.3 Financing Cashflow m 1,077 418 241 241
Interest Cover x 1.7 1.8 1.8 2.1
Price/Book x 2.2 1.9 1.6 1.2 Net Chg in Cash/Debt m 102 389 70 70
Book Value per Share 0.4 0.5 0.6 0.7

Balance Sheet 2008A 2009E 2010E 2011E

Cash m 339 727 859 927


Receivables m 724 782 863 1,011
Inventories m 1,790 1,825 2,013 2,358
Investments m 27 168 148 126
Fixed Assets m 403 398 402 409
Intangibles m 130 130 129 129
Other Assets m 2,803 2,040 2,234 2,606
Total Assets m 6,217 6,069 6,646 7,566
Payables m 520 478 527 618
Short Term Debt m 1,860 1,910 2,110 2,410
Long Term Debt m 1,129 1,540 1,540 1,540
Provisions m 25 53 59 72
Other Liabilities m 2,046 1,303 1,438 1,684
Total Liabilities m 5,579 5,284 5,674 6,324
Shareholders' Funds m 638 785 973 1,242
Minority Interests m 0 0 0 0
Other m 0 0 0 0
Total S/H Equity m 638 785 973 1,242
Total Liab & S/H Funds m 6,217 6,069 6,646 7,566

All figures in SGD unless noted.


Source: Company data, Macquarie Research, December 2008

5 December 2008 6
Macquarie Research Equities - Flyer Olam International Ltd

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 >5% in excess of benchmark return price movements. adjustments made:
Neutral – return within 5% of benchmark return Added back: goodwill amortisation, provision for
Underperform – return >5% below benchmark return Very high–highest risk – Stock should be catastrophe reserves, IFRS derivatives & hedging,
Macquarie – Asia/Europe expected to move up or down 60–100% in a year – IFRS impairments & IFRS interest expense
Outperform – expected return >+10% investors should be aware this stock is highly Excluded: non recurring items, asset revals, property
Neutral – expected return from -10% to +10% speculative. revals, appraisal value uplift, preference dividends &
Underperform – expected return <-10% minority interests
High – stock should be expected to move up or
Macquarie First South - South Africa down at least 40–60% in a year – investors should EPS = adjusted net profit / efpowa*
Outperform – expected return >+10% be aware this stock could be speculative. ROA = adjusted ebit / average total assets
Neutral – expected return from -10% to +10% ROA Banks/Insurance = adjusted net profit /average
Underperform – expected return <-10% Medium – stock should be expected to move up or total assets
Macquarie - Canada down at least 30–40% in a year. ROE = adjusted net profit / average shareholders funds
Outperform – return >5% in excess of benchmark return Gross cashflow = adjusted net profit + depreciation
Neutral – return within 5% of benchmark return Low–medium – stock should be expected to move *equivalent fully paid ordinary weighted average
Underperform – return >5% below benchmark return up or down at least 25–30% in a year. number of shares
Macquarie - USA
Low – stock should be expected to move up or All Reported numbers for Australian/NZ listed stocks
Outperform (Buy) – return >5% in excess of benchmark
down at least 15–25% in a year. are modelled under IFRS (International Financial
return
* Applicable to Australian/NZ/Canada stocks only Reporting Standards).
Neutral (Hold) – return within 5% of benchmark return
Underperform (Sell)– return >5% below benchmark
return
Recommendations – 12 months
Note: Quant recommendations may differ from
Fundamental Analyst recommendations

Recommendation proportions – For quarter ending 30 September 2008


AU/NZ Asia RSA USA CA EUR
Outperform 43.17% 61.57% 63.08% 53.60% 71.54% 43.00%
Neutral 41.37% 16.43% 30.77% 37.60% 24.61% 48.00%
Underperform 15.47% 22.00% 6.15% 8.80% 3.85% 9.00%

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5 December 2008 7
Macquarie Research Equities - Flyer Olam International Ltd

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Lead Manager to the preferential offering by Olam International Limited as announced on 28 March 2008

The Macquarie Group is acting as financial adviser to Olam International Holdings Limited (OLAM:SGX) in relation to the takeover offer of all of the
shares in Queensland Holdings Limited (QCH:ASX) as announced on 7 March 2007.

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Tel: (86 21) 6841 3355 Tel: (65) 6231 1111 Tel: (612) 8232 9555 Tel: (886 2) 2734 7500 Tel: (81 3) 3512 7900 Tel: (1 416) 848 3500 Tel: (1 212) 231 2500

Available to clients on the world wide web at www.macquarie.com/research and through Thomson Financial, FactSet, Reuters and Bloomberg.

5 December 2008 8
Asia Research
Head of Equity Research Media Transport & Infrastructure
Stephen O’Sullivan (852) 2823 3566 Jessie Qian (China, Hong Kong) (852) 2823 3568 Gary Pinge (Asia) (852) 2823 3557
Shubham Majumder (India) (9122) 6653 3049 Anderson Chow (Asia, China) (852) 2823 4773
Automobiles/Auto Parts
Prem Jearajasingam (Malaysia) (603) 2059 8989 Jonathan Windham (Asia, China) (852) 2823 5417
Kenneth Yap (Indonesia) (6221) 515 7343 Alex Pomento (Philippines) (632) 857 0899 Wei Sim (China, Hong Kong) (852) 2823 3598
Dan Lucas (Japan) (813) 3512 6050 Oil and Gas Eunsook Kwak (Korea) (822) 3705 8644
Eunsook Kwak (Korea) (822) 3705 8644 Sunaina Dhanuka (Malaysia) (603) 2059 8993
Linda Huang (Taiwan) (8862) 2734 7521 David Johnson (Asia, China) (852) 2823 4691
Scott Weaver (Taiwan) (8862) 2734 7512 Utilities
Banks and Non-Bank Financials Jal Irani (India) (9122) 6653 3040 Carol Cao (China, Hong Kong) (852) 2823 4075
Ismael Pili (Asia, Japan) (65) 6231 2840 Christina Lee (Korea) (822) 3705 8670 Adam Worthington (Indonesia) (6221) 515 7338
Nick Lord (Asia, China, Hong Kong) (852) 2823 4774 Edward Ong (Malaysia) (603) 2059 8982 Kakutoshi Ohori (Japan) (813) 3512 7296
Sarah Wu (China) (8621) 2412 9035 Sunaina Dhanuka (Malaysia) (603) 2059 8993 Prem Jearajasingam (Malaysia) (603) 2059 8989
Seshadri Sen (India) (9122) 6653 3053 Ashwin Sanketh (Singapore) (65) 6231 2830
Alex Pomento (Philippines) (632) 857 0899
Ferry Wong (Indonesia) (6221) 515 7335 Pharmaceuticals
Chin Seng Tay (Malaysia, S’pore) (65) 6231 2837 Commodities
Abhishek Singhal (India) (9122) 6653 3052
Nadine Javellana (Philippines) (632) 857 0890 Naomi Kumagai (Japan) (813) 3512 7474 Jim Lennon (4420) 7065 2014
Matthew Smith (Taiwan) (8862) 2734 7514 Christina Lee (Korea) (822) 3705 8670 Adam Rowley (4420) 7065 2013
Alastair Macdonald (Thailand) (662) 694 7741 Jonathan Butcher (4420) 7065 5938
Property Max Layton (4420) 7065 2000
Chemicals/Textiles
Matt Nacard (Asia) (852) 2823 4731 Bonnie Liu (8621) 2412 9008
Scott Weaver (Taiwan) (8862) 2734 7512 Eva Lee (China, Hong Kong) (852) 2823 3573 Henry Liu (8621) 2412 9005
Jal Irani (India) (9122) 6653 3040 Chris Cheng (China, Hong Kong) (852) 2823 3581 Rakesh Arora (9122) 6653 3054
Christina Lee (Korea) (822) 3705 8670 Unmesh Sharma (India) (9122) 6653 3042
Sunaina Dhanuka (Malaysia) (603) 2059 8993 Chang Han Joo (Japan) (813) 3512 7885
Data Services
Conglomerates Hiroshi Okubo (Japan) (813) 3512 7433 Andrea Clohessy (Asia) (852) 2823 4076
Tuck Yin Soong (Singapore) (65) 6231 2838 Economics
Gary Pinge (Asia) (852) 2823 3557 Elaine Cheong (Singapore) (65) 6231 2839
Leah Jiang (China) (8621) 2412 9020 Corinne Jian (Taiwan) (8862) 2734 7522 Bill Belchere (Asia) (852) 2823 4636
Kenneth Yap (Indonesia) (6221) 515 7343 Patti Tomaitrichitr (Thailand) (662) 694 7727 Rajeev Malik (ASEAN, India) (65) 6231 2841
Ashwin Sanketh (Singapore) (65) 6231 2830 Richard Gibbs (Australia) (612) 8232 3935
Resources / Metals and Mining Paul Cavey (China) (852) 2823 3570
Consumer Andrew Dale (Asia) (852) 2823 3587 Richard Jerram (Japan) (813) 3512 7855
Mohan Singh (Asia) (852) 3901 1111 YeeMan Chin (China) (852) 2823 3562
Jessie Qian (China, Hong Kong) (852) 2823 3568 Rakesh Arora (India) (9122) 6653 3054 Quantitative
Charles Yan (China) (8621) 2412 9033 Adam Worthington (Indonesia) (6221) 515 7338 Martin Emery (Asia) (852) 2823 3582
Unmesh Sharma (India) (9122) 6653 3042 Polina Diyachkina (Japan) (813) 3512 7886 Viking Kwok (Asia) (852) 2823 4735
Sarina Lesmina (Indonesia) (6221) 515 7339 Christina Lee (Korea) (822) 3705 8670 George Platt (Australia) (612) 8232 6539
Duane Sandberg (Japan) (813) 3512 7867 Scott Weaver (Taiwan) (8862) 2734 7512 Raelene de Souza (Australia) (612) 8232 8388
Toby Williams (Japan) (813) 3512 7392 Technology Tsumugi Akiba (Japan) (813) 3512 7560
Heather Kang (Korea) (822) 3705 8677 Strategy/Country
Warren Lau (Asia) (852) 2823 3592
HongSuk Na (Korea) (822) 3705 8678
Kishore Belai (India) (9122) 6653 3046 Tim Rocks (Asia) (852) 2823 3585
Edward Ong (Malaysia) (603) 2059 8982
Damian Thong (Japan) (813) 3512 7877 Daniel McCormack (Asia) (852) 2823 4073
Alex Pomento (Philippines) (632) 857 0899
David Gibson (Japan) (813) 3512 7880 Desh Peramunetilleke (Asia) (852) 2823 3564
Linda Huang (Taiwan) (8862) 2734 7521
George Chang (Japan) (813) 3512 7854 Mahesh Kedia (Asia) (852) 2823 3576
Emerging Leaders Yukihiro Goto (Japan) (813) 3512 5984 Michael Kurtz (China) (8621) 2412 9002
Jake Lynch (Asia) (8621) 2412 9007 Do Hoon Lee (Korea) (822) 3705 8641 Seshadri Sen (India) (9122) 6653 3053
Hiu-Lui Ko (China) (852) 2823 4704 Michael Bang (Korea) (822) 3705 8659 Ferry Wong (Indonesia) (6221) 515 7335
Patrick Yau (Singapore) (65) 6231 2835
Minoru Tayama (Japan) (813) 3512 6058 Chris Hunt (Japan) (813) 3512 7878
Chia-Lin Lu (Taiwan) (8862) 2734 7526
Robert Burghart (Japan) (813) 3512 7853 Peter Eadon-Clarke (Japan) (813) 3512 7850
Daniel Chang (Taiwan) (8862) 2734 7516
Heather Kang (Korea) (822) 3705 8677 Eugene Ha (Korea) (822) 3705 8643
James Chiu (Taiwan) (8862) 2734 7517
Scott Weaver (Taiwan) (8862) 2734 7512 Prem Jearajasingam (Malaysia) (603) 2059 8989
Nicholas Teo (Taiwan) (8862) 2734 7523
Industrials Edward Ong (Malaysia) (603) 2059 8982
Telecoms Alex Pomento (Philippines) (632) 857 0899
Inderjeetsingh Bhatia (India) (9122) 6653 3166 Tim Smart (Asia, China) (852) 2823 3565 Tuck Yin Soong (ASEAN, Singapore) (65) 6231 2838
Christopher Cintavey (Japan) (813) 3512 7432 Bin Liu (China) (852) 2249 3634 Daniel Chang (Taiwan) (8862) 2734 7516
Janet Lewis (Japan) (813) 3512 7475 Shubham Majumder (India) (9122) 6653 3049 Alastair Macdonald (Thailand) (662) 694 7741
Michael Na (Korea) (822) 2095 7222 Kenneth Yap (Indonesia) (6221) 515 7343
Sunaina Dhanuka (Malaysia) (603) 2059 8993 Nathan Ramler (Japan) (813) 3512 7875
David Gambrill (Thailand) (662) 694 7753 Prem Jearajasingam (Malaysia) (603) 2059 8989 Find our research at
Insurance Ramakrishna Maruvada Macquarie: www.macquarie.com.au/research
(Philippines, Singapore, Thailand) (65) 6231 2842 Thomson: www.thomson.com/financial
Mark Kellock (Asia) (852) 2823 3567
Seshadri Sen (Asia, India) (9122) 6653 3053 Reuters: www.knowledge.reuters.com
Makarim Salman (Japan) (813) 3512 7421 Bloomberg: MAC GO
Factset: http://www.factset.com/home.aspx
Email macresearch@macquarie.com for access

Sales
Regional Heads of Sales Regional Heads of Sales cont’d Sales Trading cont’d
Peter Slater (Boston) (1 617) 217 2103 Scot Mackie (New York) (1 212) 231 2848 Brendan Rake (India) (9122) 6653 3204
Michelle Paisley (China, Hong Kong) (852) 2823 3516 Sheila Schroeder (San Francisco) (1 415) 835 1235 Edward Robinson (London) (44) 20 7065 5883
Ulrike Pollak-Tsutsumi (Frankfurt) (49) 69 7593 8747 Giles Heyring (Singapore, Malaysia) (65) 6231 2888 Robert Risman (New York) (1 212) 231 2555
Thomas Renz (Geneva) (41) 22 818 7712 Mark Duncan (Korea, Taiwan) (8862) 2734 7510 Isaac Huang (Taiwan) (8862) 2734 7582
Ajay Bhatia (India) (9122) 6653 3200 Angus Kent (Thailand) (662) 694 7601 Jon Omori (Tokyo) (813) 3512 7838
Stuart Smythe (India) (9122) 6653 3200 Michael Newman (Tokyo) (813) 3512 7920
Chris Gray (Indonesia) (6221) 515 7304 Charles Nelson (UK/Europe) (44) 20 7065 2032
Alternative Strategies
Gino C Rojas (Philippines) (632) 857 0761 Rob Fabbro (UK/Europe) (44) 20 7065 2031 Convertibles - Roland Sharman (852) 2823 4628
Greg Norton-Kidd (New York) (1 212) 231 2527 Depository Receipts - Robert Ansell (852) 2823 4688
Sales Trading Derivatives - Tim Connolly (852) 2249 3380
Luke Sullivan (New York) (1 212) 231 2507
Adam Zaki (Asia) (852) 2823 3528 Futures - Tim Smith (852) 2823 4637
Mona Lee (Hong Kong) (852) 2823 3519 Hedge Fund Sales - Darin Lester (852) 2823 4736
Stuart Goddard (Europe) (44) 20 7065 2033 Structured Products - Andrew Terlich (852) 2249 3225

December 08

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