sumitomo corporation equity asia company introduction
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This presentation provides you an overview of the Asia focus VC arm of Sumitomo Corporation.TRANSCRIPT
Sumitomo Corporation Equity Asia Limited
The Asian Private Equity Arm of Sumitomo Corporation
April, 2013
Who is SCEA
Sumitomo Corporation Equity Asia Limited (“SCEA”) is the Asian private equity arm wholly owned by Sumitomo Corporation (http://www.sumitomocorp.co.jp), a leading global trading conglomerate in Japan, or so-called “Sogo-Shosha” in Japanese.
Founded in 2002, SCEA has been investing primarily in the early and growth stage companies in the Greater China and SE Asia, covering both the emerging technology and traditional industries sectors. All investments are 100% financed by Sumitomo Corporation.
SCEA seeks investment return through capital gain as well as business synergies amongst investee companies and Sumitomo's global business network.
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Sumitomo Corporation - Organization Chart
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• Headquartered in Tokyo, Japan
• $100B+ in consolidated revenues
• 140 offices in 65 countries
• 750+ subsidiaries and affiliates
• 400 year corporate history
Metal Products
Business Unit
Environment &
Infrastructure
Business Unit
Mineral Resource,
Energy, Chemical &
Electronics
Business Unit
Media, Network &
Lifestyle Related Goods
& Services
Business Unit
Transportation &
Construction
Systems
Business Unit
SCEA
Sumitomo Corporation China
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Sumitomo Corporation China operates in 14 cities with businesses covering Metal, Transportation and Infrastructure, Electronics and Chemicals, Life goods, Energy and Mineral resources. Sumitomo Corporation China offers value from raw material sourcing, manufacturing and processing, product logistics and end-user sales and services.
Sumitomo presence in SE Asia
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Iron, steel & Non-Ferrous
Metal Tubular Products
Chemical, Natural
Resources & Living-
related
Transportation &
Construction Systems
Infrastructure, New
Industry Development &
Cross-function
PT. Summit OTO Finance Motorcycle finance service
company in Indonesia
Tanjung Jati B Thermal power station in
Java island, Indonesia
Thang Long Industrial Park Industrial park near Hanoi, Vietnam
Office Locations; • 21 offices in 12 countries • 859 employees
Sumitomo Corporation Asia Group is a leading integrated business enterprise that engages in multi-disciplinary businesses across diverse industries. We established our presence in Asia in the 1950s.
Business Unit
Selected subsidiaries
Our Investment Philosophy
• We invest in growth and potentiality in Asia.
• We invest in regional penetration and global uniqueness.
• We prefer revenue generating business model to cost cutting type
• We seek business synergies amongst investee companies and Sumitomo group’s business network.
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Mission * Contribute to creation of new businesses (sources
for growth) by capturing new technology and business opportunities
* Become a global platform for venture investment throughout the company
Sumitomo Corporation
Equity Asia (Hong Kong)
Presidio Ventures, Inc.
(USA)
Principal Investment
Department (Tokyo)
Venture investment into Japan domestic
companies with global objectives
Fund operations
Investment into China, Asia and other emerging markets
Investment into environmental, energy, and IT deals
Investment into potential growth cases in traditional industries
Investment into breakthrough technology and
business model in the US
Investment into environmental, energy, and IT
deals
Become a "Trading Company's VC" –
create new value through synergies
Our Global Team
2002-
2000-
1998-
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Investment Strategy
- Pursue startups with differentiated technologies and/or business model.
- Balance the current strategic fit versus future business potential.
Enterprise IT (storage, security)
Cloud Computing (virtualization, management)
Internet and Mobile
Power Generation (photovoltaics, fuel cells, etc.)
Power Storage (batteries, capacitors)
Cleantech related services
Smart Grid
Investment focus domains
Cleantech TMT
US (Presidio)
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Investment Strategy
- Pursue with start-ups/growing companies that have core technology or business model which potentially monetize not only in Japan, but also global market.
Investment focus domains
Japan
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Enterprise IT (storage, security)
Cloud Computing (virtualization, management)
Internet and Mobile
Power Generation (photovoltaics, fuel cells, etc.)
Power Storage (batteries, capacitors)
Cleantech related services
Smart Grid
Cleantech TMT
Investment Strategy
- Capture fast GDP growth and potentiality in China/Asia.
- Leverage all the available resources for investees to add strategic values
- Contribute to SC Group companies through initiating new business opportunities
Investment focus domains
Rapid penetration of
application driven technologies
Business model paradigm shift
TMT
Explicit commitment by government
Sustainable growth of domestic energy demand
Cleantech
Demand for quality and quantity
Rising of middle class segment
Consumer/
Retail
Presidio
High growth of domestic consumption
Manufacturing/
Agriculture SC China
SC Tokyo/SC Group
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Our Industry Focus
Our Regional Focus
We currently focus in Greater China and South East Asia due to
the favorable macro-economic environment in the region.
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Size/Type of Investment
• Our preferred size of investment is around US$1 - 5 million.
• Where we invest:
Early/growth stage companies: we supply them with expansion capital.
Seed stage companies: not our priority, however, will still consider if product/service offered by the company is well accepted by certain customer segments, at least, and start generating solid revenue; imminent profitability is not a prerequisite.
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Our “NOT TO DO”
We have a clear NOT TO DO list:
• We do not invest in infrastructure, real estate, buildings.
– Too capital intensive, too long time-span
• We do not invest in privatization opportunities.
– Too political & too many hidden risks
• We do not invest in biotech.
– Sumitomo has a Bio/Biotech Fund managed by the 3 Sumitomo bio business units
where biotech experts will be handling bio related opportunities.
• SCEA does not invest in pure concept. Specifically those seed/early stage companies whose
products/services are still very conceptual, in most cases.
• We do not invest in fund.
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Why SCEA
Our portfolio companies enjoy synergies and all the competitive advantages that SCEA’s parent
company, Sumitomo Corporation brings:
Sumitomo Corporation’s integrated corporate strength:
Sumitomo Group has a very strong, huge and diversified business network covering almost all industries all over the world - global presence with 140 offices in 65 countries and 750+ subsidiaries worldwide.
Network of multifaceted relations with over 100,000 business partners globally across all industries.
“Sumitomo” is a brand name well recognized in global market.
Expertise in creating business: identifying promising new products, developing new markets, organizing appropriate business operations and execution.
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On top of capital, we provide our portfolio companies with strong business supports to foster their growth and ultimately,
achieve mutual gains
Value Added Advantages
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SCEA Portfolio Companies
• Access to global business network of Sumitomo Corporation – with diverse businesses covering wide range of industries globally.
• Access to market/industry intelligence.
• Marketing support in Japan and worldwide.
• General consultation and assistance which helps enhancing business opportunity and improving marketing strategies.
• Introduction/referral to Japanese and international key Industrial players.
Our Selected Investment Records
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Company Location Sector Business Exit
China Telecom A management consulting firm and channel partner of telecom operators in China, pioneering on the modernization of telecom sales channels.
China Internet A leading player in online and DM pets supplies retailing in China.
China/HK Information service The world’s leading Chinese news information service provider offering a suite of services and comprehensive solutions for different industries.
China/US Enterprise Software & Service
A leading In-database data mining company with the world’s fastest, most scalable Massively Parallel Processing (MPP) engine enabling fastest modeling to scoring capabilities
China Enterprise Software & Service
A first in the industry Live Web Virtual Event provider supporting high quality rich media communications among unlimited number of web audiences.
China/HK Internet & Media HK based search engine marketing (SEM) company maximizes advertiser’s online sales and marketing investment through its optimization technology and industry expertise.
China Telecom One Net Int’l Ltd.: A Mobile application platform (through pre-installation) of software, entertainment & media advertising, for mass market “Feature Phone” segment in China.
Sold in June 2011
Our Selected Investment Records
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Company Location Sector Business Exit
China Internet Provider of proprietary Internet Control Gateway (ICG) solutions that ensure legal, compliant, productive, and safe use of Internet at the workplace
China Outsourcing HR total solution provider offering HR Business Process Outsourcing (BPO) services, HR shared services and technology services
China IT service A leading Chinese IT service provider with comprehensive solutions & delivery platform.
Listed on Nasdaq in July 2010.
Thailand Automobile A Thailand manufacturer of precision-machine parts for motor cycle, automotive, compressor and office appliances.
Listed on SET in Sept 2011.
China Media A Shanghai based leading In-store TV media network operator for quality retail chains in China.
Sold to Focus Media in January, 2008.
China Internet Online gaming developer and operator in China, operating both licensed and self-developed games, including MMORPG and casual games.
Sold to a strategic investor in June, 2008.
China Automobile A China based integrated contract manufacturer of precision components for the consumer electronics, office automation, telecom and automotive industries
Listed on Singapore Stock Exchange in May 2006. Sold to Jurong Technologies in March 2006.
US/China Semi conductor Designs and manufactures LCoS imager IC and display controller in the US.
Sold to Omnivision in March 2010.
China Precision Technology LimitedChina Precision Technology Limited
Our Selected Investment Records
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Company Location Sector Business Exit
Thailand Automobile Thailand auto parts manufacturer supplying critical rubber parts to tier one OEM brake makers and wiper blades for the aftermarket.
China Semi conductor Fiberxon Inc.: A China based global supplier of high-speed data communication products for networking and storage applications.
Sold to MRV Communications in November 2007.
China Semi conductor A Wuxi based ICs manufacturing, foundry management and operating services for China and the international markets.
Listed on Hong Kong Stock Exchange in August 2004.
Malaysia Consumer Leading regional manufacturer of branded disposable diapers for babies.
Sold to a Swedish Company (SCA) in March 2004.
Thailand Consumer Operates convenient store chain (franchise of US 7-11) in Thailand. Listed on Thailand Securities Exchange in October 2003.
Taiwan Financial service Provides both equity & debt financing mainly for IT industries in Taiwan.
Malaysia Internet / Outsourcing
Leading SE-Asian Internet based recruitment service provider. Listed on MESDAQ in November 2004.
Recent investment (ICT) Company Location Sector Business Our Investment
stage
US Storage High performance SSD for Enterprise (IPO filing)
Early-Middle -Later
US Enterprise Software & Service
Cloud management platform Early-Middle
US/Israel Enterprise Software & Service
Next gen CDN Middle
US Enterprise Software & Service
Platform to mange public/private cloud infrastructure (Acquired by Citrix on July, 2011)
Middle
US/UK Internet & Media
Ad server solution for publishers, advertisers & networks
Middle
Israel Storage Zero data loss over Asynchronous replication Early
China/HK Internet & Media
SEM/Social media marketing in HK and PRC
Early-Middle
China Enterprise Software & Service
Web virtual event/conference service Early
China/US Enterprise Software & Service
Business analytics software for big data Early
China/HK Information service
Media & marketing intelligence service with the largest China content DB
Middle
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Recent investment(Clean Tech) Company Location Sector Business Our Investment stage
US Solar Next gen solar cell (GaAs)with high efficiency and
lower cost
Early-Middle
US Solar OPV (organic photovoltaic) technology Early
US Fuel cell Distributed power generator built with solid oxide
fuel cell
Later
UK Fuel cell low cost Proton Exchange Membrane (PEM) Fuel
Cells
Early
US Batteries New generation of rechargeable lithium batteries Early
US Bio fuel biology-based renewable energy company from a
variety of input material
Early
US Bio fuel
Developing proprietary crops and processes to
transform the economics of producing renewable
chemicals/fuels from non-food cellulosic biomass
Early
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SCEA-Selected Exits
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IPO (Nasdaq)
June 2010
IPO
(Thailand Securities Exchange)
October 2003
IPO
(Nasdaq(Malaysia))
November 2004
IPO
(Hong Kong Stock Exchange)
August 2004
Acquired by
OmniVision
April 2010
Acquired by
a strategic investor
July 2008
Acquired by Focus Media
January 2008
Acquired by
MRV Communications
July 2007
Acquired by
Jurong Technologies
March 2006
Acquired by
Swedish
Company(SCA)
March 2004
IPO
(Thailand Securities Exchange)
September 2011
Presidio Ventures-Selected Exits
IPO (AIM)
September
2006
IPO (Nasdaq)
September 2005
Acquired by NetApp
June 2005
Acquired by Cisco
April 2005
IPO (Nasdaq)
February 2004
IPO (Nasdaq)
December 2001
Acquired by
Lucent Technologies
September 2000
IPO (Nasdaq)
August 2000
IPO (Nasdaq)
July 2000
Acquired by
RedBack Networks
March 2000
IPO (Nasdaq)
April 2000
IPO (Nasdaq)
January 2000
IPO (Nasdaq)
December 1999
Acquired by
CMGI
November 1999
IPO (Nasdaq)
July 1999
IPO (Nasdaq)
April 1999
Acquired by
Microsoft
January 1999
Acquired by
CA
October 1998
IPO (Nasdaq)
November 2009
IPO (Nasdaq)
February 2008
Acquired by Sun
January 2008
Acquired by Citrix
October 2007
Acquired by Yahoo
September 2007
Acquired by Dell
July 2010
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Japan-Selected Exits
IPO (Mothers)
March 2010
IPO (Hercules)
May 2009
Acquired by Senshukai
April 2008
IPO (Mothers)
October 2007
IPO (Mothers)
September 2005
IPO (Centrex)
July 2005
Acquired by HRM
January 2005 IPO (Mothers)
October 2006
IPO (Mothers)
October 2006
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IPO (Mothers)
Mar 2012 IPO (Mothers)
Jun 2012
IPO (Mothers)
Sep 2012
Contact Information Sumitomo Corporation Equity Asia Limited
Office Address: 6509, 65/F, The Center
99 Queen’s Road Central, Hong Kong
Shanghai Representative Office:
10F, Shanghai World Financial Center, 100 Century Avenue, Pudong New Area,
Shanghai, 200120, China Tel: 86-21-6146-1888 ext. 2224
General Inquiry: Sophronia LOW (Executive Secretary)
Tel: (852) 2295-0300 Fax: (852) 2295-0600 Email: [email protected]
Managing Director: Genichiro HIGAKI
Direct: (852) 2295-0868
Investment Professionals:
Francis WONG Kensuke KAWATA Jacky CHU Josephine CHAN Preston ZHOU
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