1、useCoopersNippon Life Draft ver. 1 In order to have a better understanding of what companies are more fit than others to be Nippon Lifes JV partner, before we stared sorting out the shortlist, we conducted a quick research of seven available websites* of the main existing life insurance JVs in China
2、, the objective was to see what type of local companies are partners with foreign insurance companies in China.* Quick appraisal of the existing life insurance JVs http:/www.citic- http:/www.citic- http:/www.axa- http:/www.axa- Phase 2: Identify the shortlist of 20 companies * We cant reach the webs
3、ites of other JVs in life insurance * *See appendix 4 for more details 18 PricewaterhouseCoopersNippon Life Draft ver. 1 We found three common characteristics concerning the local JV partners from the existing JVs websites: !Strong government ties ! Rich international experience ! Finance solvency A
4、mong the above criteria, two have been identified by Nippon Life. We decided to introduce “strong government ties”as another criterion to be considered, especially for the SOE companies. Refine criteria / indicators for our analysis Notes: The first 7 JVs have existing websites (see former page) * T
5、he companies embracing strong government ties China Life Insurance CompanyCommonwealth Group Dazhong Insurance Co., LtdAllianz AG FOTIC，Subsidiary of SINOCHEM*Manmulife China Pacific Insurance (group) Co.,Ltd* Aetna U.S. Healthcare Commercial General Norwich Union Plc, and AON Corp. New York Life As
6、sicurazioni Generali S.P.A. Winterthur Life Insurance Ltd. John Hancock AXA Group Prudential Plc. Foreign partnersForeign partners China national Cereals, Oils&Foodstuffs Imp & Exp Corp* Haier Group CNPC of SINOPERO* China National Travel Service Co.,Ltd.,Sinopec Corp(beijing)，etc. Tianan Insurance
7、Company Limited of China Minmetals Group* China International Trust and Investment Corporation,CITIC* Local Local partnerspartners Phase 2: Identify the shortlist of 20 companies 19 PricewaterhouseCoopersNippon Life Draft ver. 1 Step 1. Sorting out the first long lists From the targeted industries o
8、f over 1,000 companies, we screened out the relatively big and strong SOE and Non-SOE long lists by evaluating the companies in their respective financial performance in terms of sales volume, profit and assets. Phase 2: Identify the shortlist of 20 companies Notes: *the results of this step is atta
9、ched in appendix 5 Sales volume Profits Assets SOE Long List 500 companies 23 Industries Non-SOE Long List 500 companies First SOE long List of 140 companies First non-SOE long List of 135 companies 15 Industries 20 PricewaterhouseCoopersNippon Life Draft ver. 1 Step 2. Shorten the first long lists
10、Having derived our preliminary long lists of 140 SOE and 135 Non-SOE companies, we began comparatively assessing all these companies in four dimensions: financial, international outlook, brand recognition as well as their government ties*. Phase 2: Identify the shortlist of 20 companies Due to their
11、 government ties, some companies added onto the second long lists of 11 industries, Brand recognition Finance Government ties International First SOE long List of 140 companies First non-SOE long List of 135 companies 15 Industries Second SOE long List of 30 companies Second non-SOE long List of 30
12、companies 11 Industries 21 PricewaterhouseCoopersNippon Life Draft ver. 1 Step 3. Refine the second long lists of 60 According to Nippon Lifes criteria, we ranked the companies on the second long lists of both the SOE and Non-SOE companies by assigning scores(see next page) Based on the ranking scor
13、es in each aspect and their consequent total scores, we reached a shortlist of 10 SOE and 10 Non-SOE companies Phase 2: Identify the shortlist of 20 companies second SOE long List of 30 companies Second non-SOE long List of 30 companies 11 Industries SOE shortlist 10 companies Non-SOE shortlist 10 c
14、ompanies 8 Industries International outlook Brand recognition Finance solvent Sales volume Total assets Profits Imp. & Exp. International cooperation Background of management Global business scope Geographical Scope Value Products & Industry 22 PricewaterhouseCoopersNippon Life Draft ver. 1 Ranking
15、the companies on the second long lists Brand value Geographical scope Industry & Products ScaleWeight* Grand Weight* Imports & Exports International cooperation Global business scope Background of management 15324 15324 15324 15324 15324 15324 15324 15324 15324 15324 Sales volume Assets Profits 20%
16、30% 50% 30% 50% 20% 40% 30% 20% 10% 40% 40% 20% Finance solvent International Outlook Brand Recognition Phase 2: Identify the shortlist of 20 companies * Weights were assigned subjectively by us based on our understanding of Nippons objectives and concerns. Therefore, they may be changed later. 23 P
17、ricewaterhouseCoopersNippon Life Draft ver. 1 Ranking results of the top 10 SOE companies* 4.414.554.684.202China Ocean Shipping (Group) Company* 3.733.253.054.3210Power Corporation of Guangdong Province* 4.044.153.984.036Shanghai Motor Industry (Group) Corp. 3.964.053.684.107FAW Group Corp. of Chin
18、a 3.884.303.483.958Sichuan Changhong Electric Group Corp. 3.824.203.703.749Chunlan Group Corp. of China 4.053.454.334.125Shanghai Electric (Group) Corporation 4.143.803.754.504China United Telecommunications Corp. 4.163.604.704.063China National Offshore Oil Corporation 4.493.954.584.651Shanghai Bao
19、steel Group Corporation* Total Score BrandInternational Outlook Finance Solvent RankCompany Phase 2: Identify the shortlist of 20 companies See appendix 6 for complete results of all the SOE companies on the second long list. * the companies introduced by Nippon 24 PricewaterhouseCoopersNippon Life
20、Draft ver. 1 3.574.253.703.228Beijing Huiyuan Beverage and Food (Group) Co.,Ltd 3.823.403.754.034Chint Group Corp. 3.803.354.503.565Holley Group 3.793.953.154.106Top Group 3.653.203.433.977DeLiXi Group 3.213.303.333.119China Zongshen Group 3.163.253.283.0610Chongqing Lifan Industry (Group) Co., Ltd.
21、 3.934.153.284.233Stone Group 4.373.904.654.382Wanxiang Group 4.544.754.484.501Legend Group Limited Total Score BrandInternational Outlook Finance Solvent RankCompany Phase 2: Identify the shortlist of 20 companies See appendix 6 for complete results of all the Non-SOE companies on the second long l
22、ist. Ranking results of the top 10 Non-SOE companies* 25 PricewaterhouseCoopersNippon Life Draft ver. 1 To be conducted in the next phase Phase 3: Investigate the companies interests in the life JV* Notes: *this phase will be completed late on 26 pwc Confidential Appendix* (attached separately) Note
23、s: This part is only for some reference purposes, we will revise it for the final report PricewaterhouseCoopersNippon Life Draft ver. 1 Appendix 1: Engagement letter 28 PricewaterhouseCoopersNippon Life Draft ver. 1 Appendix 2: Considered industry classifications 29 PricewaterhouseCoopersNippon Life Draft ver. 1 Appendix 3: Some obtained c
