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Contents

Foreword

1. China and its trade relationship with Ireland 5

2. Where is the opportunity? 8

3. The Irish success story 11

4. A case study: the Irish beef industry 12

5. Final words 14

6. References 14

7. Biographies 15

4

China’s re-emergence as one of the world’s foremost economies is one of the success stories of the last three decades. The development of the economy has set in motion unprecedented levels of inward and outward investment backed by improving economic indicators and changing consumer behaviours.

With the World Bank estimating average GDP growth in China of 7.5% from 2014 to 2016, and with China poised to overtake the U.S. as the world’s largest economy earlier than expected, China has cemented its place as a driving force of global economic activity.

Chinese trade volumes continue to increase as exports in 2013 rose 7.9% to $2.21 trillion (€1.74 trillion) while imports increased by 7.3% to $1.95 trillion (€1.53 trillion). The Economist Intelligence Unit (EIU) is forecasting that with the world economy showing signs of strengthening, and China itself likely to see its economy expand by 7-8%, trade should further improve by 8-9% in 2014.

Foreword

Chinese outbound M&A deal values reached record highs in 2013 as Chinese firms continued to invest heavily in acquisitions abroad. The Renminbi is also expected to strengthen gradually against the US dollar, by 0.8% a year on average, from 2014 to 2018.

Rising income, increased urbanisation, changing demographics and the evolution of consumer tastes have proved the catalysts for widespread increases in consumer demand, opening up new sectors and opportunities for both Chinese and foreign firms.

Over the medium to long-term, China represents a consistent growth market which can deliver tremendous opportunities for European exporters.

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1. China and its trade relationship with Ireland

China’s growing economyOver the course of the past 30 years, economic developments in China have transformed the country and how it is perceived globally, ensuring China has re-emerged as a global player across multiple business arenas. As globalisation continues and more countries become integrated to the world economy, the influence of the world’s second largest economy increases.

Here are some stand-out figures which help to highlight the growing importance of China:

• China is the world’s second largest economy with a GDP of $9.24 trillion (€7.26 trillion) in 2013, beating Japan into third place at $4.9 trillion (€3.85 trillion) and behind only the United States ($16.8 trillion or €13.2 trillion).

• Output grew by 7.7% in 2013, matching its 2012 growth rate and exceeding the government’s 7.5% indicative target. GDP growth is expected to continue at a marginally lower rate of 7.6% in 2014 and 7.5% in 2015.

• In 2024, China is expected to become the world’s largest economy and overtake the United States in terms of nominal GDP with the global information company IHS forecasting that China’s nominal GDP will be $28.25 trillion (€22.20 trillion) to the US’s $27.31 trillion (€21.46 trillion).

• China’s share of world GDP is forecast to rise from c.12% in 2013 to 20% by 2025.

• China’s position as a global manufacturing powerhouse continues with China the leading exporter of world merchandise trade in 2012 with $2.05 trillion (€1.61 trillion) worth of exports, a year-on-year increase of 8%, while the US exported $1.55 trillion (€1.22 trillion), a year-on-year increase of 4%.

China is comfortably the most populous country in the world with an estimated population of 1.354 billion people.

• Chinese firms are growing in international stature with 95 Chinese companies featuring in the Fortune Global 500 list in 2014 (up from 89 in 2013), posting $5.8 trillion (€4.56 trillion) in revenues. Three Chinese companies feature in the Top 10 while China’s recent dominance is highlighted as seven of the 23 newly-listed Fortune Global 500 companies are Chinese.

• China is comfortably the most populous country in the world with an estimated population of 1.354 billion people (over 4 times the size of the US’s 323 million).

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China is expected to be among the fastest growing markets for Irish exports in the coming years, with double digit export growth expected out to 2030, while China is forecast to overtake France and Japan to become Ireland’s fourth largest export destination.

Chinese imports and exportsChinese exports rose a further 7.9% to $2.21 trillion (€1.74 trillion) in 2013, while imports increased 7.3% to $1.95 trillion (€1.53 trillion). EIU forecasts that with the world economy showing signs of strengthening in 2014, and China itself likely to see its economy expand by 7-8%, trade should improve by 8-9% in 2014.

Trade between China and the EU increased 2.1% to $559 billion (€439 billion) in 2013. In aggregate, the EU is China’s largest market, accounting for 13% of its total trade. Chinese exports to the EU were $339 billion (€266 billion) in 2013, an increase of 1.1% from 2012 levels, while its imports from the EU were up 3.7% to $220 billion (€173 billion). Within the EU, Germany is by far China’s biggest trading partner with total trade of €141 billion in 2013, far outweighing the trade of the next largest country, the UK, who had bilateral trade of £45.8 billion (€58.0 billion).

According to Central Statistics Office (CSO) Ireland, Ireland’s exports to China in 2013 were €1.94 billion. Food and beverage (F&B) exports grew by over 40%, with values trebling in the past 3 years to reach a level of €390 million. China is now Ireland’s sixth largest market overall for F&B, driven by strong dairy and pork exports. Seafood and beverage exports are also growing solidly albeit from a lower base, while it is hoped that eventual access to the beef market will act to further increase the industry’s presence in the world’s fastest growing market.

Ireland also imports a variety of items from China with over €3 billion worth of goods imported in 2013. Electrical goods (€1.1 billion) made up over a third of all imported goods while there was also €440 million worth of clothing and accessories and €137 million worth of chemicals items (medical, pharmaceutical, and organic) imported during the year.

According to HSBC’s Ireland Trade Forecast, Ireland is expected to face increasingly favourable trade conditions in the second half of 2014. China is expected to be among the fastest growing markets for Irish exports in the coming years, with double digit export growth expected out to 2030, while China is forecast to overtake France and Japan to become Ireland’s fourth largest export destination.

Chinese outbound M&AChinese outbound M&A deal values reached record highs in 2013. According to Mergermarket data, Chinese firms continued to invest heavily in acquisitions abroad throughout 2013. The basic drivers for deal-making continue to be rooted in Chinese companies’ desire to acquire the resources, expertise and brands of their American and European counterparts.

Last year saw Chinese acquirers carry out 220 deals worth $68.9 billion (€54.1 billion), a 37% increase in volume and 17% increase in value from the prior year. The frequency of large-ticket deals was also sustained in 2013 with 32 deals worth over $500 million (€393 million) in comparison to 25 in 2012.

The largest of these deals was Shuanghui International Holdings’ $6.9 billion (€5.4 billion) purchase of Smithfield Foods. The merged entities were rebranded as WH Group and raised net proceeds of $2.36 billion (€1.85 billion) from their Hong Kong IPO. The deal was driven in part by the shifting dynamics in China – an expanding middle class and a growing focus on the supply of quality food.

The question arises – how can Ireland get involved?The consumer sector, and in particular the F&B sector is considered Ireland’s most important indigenous industry. While not the largest sector for outbound acquisitions from China, the consumer sector has seen an increase in the number of deals as Chinese companies look to take advantage of the opportunities presented by rising demand. Underpinning this increasing focus on the F&B sector is China’s burgeoning middle class and persistent fears over food safety in China. Between 2012 and 2013, consumer sector deals comprised 15% of the volume and 9% of the value of all outbound deals.

However, Irish F&B producers haven’t attracted the same level of interest from Chinese acquirers as their US and European counterparts. As has been the case for some time, this is primarily due to the fact that many of the M&A opportunities available in Ireland are simply too small for Chinese companies to be interested in pursuing. While a handful of Irish companies may be of interest to Chinese acquirers, such companies are unlikely to be sold as they are either shareholder-controlled listed PLCs or iconic national brands.

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8

2. Where is the opportunity?

If it is evident that the opportunity doesn’t lie with mergers and acquisitions, could the opportunity lie in potential China/Ireland joint ventures or possibly through supplying directly to the Chinese market? Could the expanding Chinese middle class and a growing focus on the supply of quality food drive Chinese companies to partner with world renowned Irish F&B producers? The statistics tend to suggest so.

There is certainly no questioning the growth in demand shown by Chinese consumers in recent years. China’s F&B imports have grown significantly leading to China surpassing the United States as the world’s largest market for food and grocery retail in 2011. China’s F&B industry as a whole grew at an average rate of 30% in the six years preceding 2012. Given that China is a net importer of F&B products and is now the world’s fourth largest importer of food, opportunities for Irish F&B exporters to sell their products to Chinese consumers are constantly growing.

EU F&B exports to China increased threefold between 2006 and 2011 with particularly significant growth seen in the latter years. In 2011, meat (28%), alcohol (29%) and dairy exports (9%) performed well accounting for two-thirds of all EU F&B exports to China. Key growth drivers continue to be rising income, increased urbanisation, improved logistics and growing concerns for food safety. Herein lies the opportunity to grow the prevalence of Irish produced and labelled products in China. Rapid economic growth means China will become a mainstay of middle class consumerism over the next two decades. GDP growth and increased employment will continue to drive growth in this “middle class” – the key demographic for sales of quality F&B. The increase in employment and total income has led to a large increase in the amount of middle class urban families able to afford such products. By 2025, it is forecast that more than 60% of households will earn between 40k and 100k Renminbi (€5,142 - €12,855).

The potential buying power of China’s middle class is vast. If current patterns continue, the Brookings Institution, an American think tank devoted to independent research and innovative policy solutions, expects the number of Chinese citizens qualifying as middle class to soar to 607 million by 2020, with spending by China’s middle class rivalling that of the U.S., after adjusting for inflation and purchasing power. This changing demographic will lead to an increasing demand in China for protein-rich foods, making the country a key location for Irish F&B exports.

The increased employment and GDP growth has led to a period of substantial growth in total income in both urban and rural areas. Total income in urban areas was 3.5 times higher in 2011 than in 2000 while total income in rural areas was 3.1 times higher in 2011 than in 2000.

Food safety also continues to be an issue of great concern in China as rapid urbanisation and industrialisation puts a strain on China’s food system. In 2012, the Pew Research Center, a nonpartisan American think tank based in Washington, D.C., carried out a Global Attitudes Project which recognised that the proportion of Chinese consumers identifying food safety as a moderately or very big concern increased from 49% in 2008 to 80% in 2012, primarily driven by the food safety scandals in the industry. This lack of trust will continue to shape market share, presenting an opportunity for Irish F&B exporters with a strong quality and traceability reputation.

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China is now Ireland’s sixth largest market overall for F&B, driven by strong dairy and pork exports.

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11

3. The Irish success story

Irish dairy exports to China were worth €170 million in 2013, an increase from just €50 million in 2011, with infant milk formula (“IMF”) accounting for a significant portion of total exports. IMF is one of the fastest-growing dairy market segments globally with growth of more than €3.5 billion in 2013. A large factor in this growth has been the ongoing increase in sales to China due to food safety concerns there.

China’s dairy industry has been on the defensive since major incidents in 2004 and 2008 caused widespread outrage. In 2008, melamine contaminated products effecting hundreds of thousands of children, and four years earlier in 2004, nutritionally sub-standard milk led to deformities in children. Such incidents severely damaged the trust the Chinese population had in locally produced products, leading consumers to seek out foreign brands to satisfy their requirements. In 2013, Bord Bia estimated that consumer reliance on imported “branded” products continued at 60% of the market, equating to €7.13 billion.

Both the volume and value of the Chinese IMF market has grown substantially in recent years with market volume growing at a compound annual growth rate (CAGR) of 18% between 2007 and 2012 to reach 560k tonnes in 2012 while market value has grown at a 25% CAGR in the same period to reach c. €10 billion (RMB 77 billion) in 2012. Strong growth is expected to continue in the medium term with sales volume and value forecast to grow at CAGRs of 13% and 15% respectively between 2012 and 2017. This continued growth is estimated to result in the market value doubling to c. €20 billion by 2017.

With three of the world’s top baby formula makers (Danone, Abbott, Kerry Group) based in Ireland, it is estimated that up to 10% of the world’s baby formula comes from Ireland while exports of baby food/infant formula to China alone are estimated to be worth over €120 million. In May 2014, the Irish dairy sector received a further boost as it was announced that each of the 30 Irish companies that applied for approval to export dairy products to China had been approved after stringent audits by Chinese authorities. Ireland’s dairy industry has a track record of developing strong business relationships in China, with many leading companies such as Kerry Group, Glanbia, Dairygold and the Irish Dairy Board now having a presence in the Chinese market after developing close partnerships with key Chinese dairy and infant formula companies.

While demand for imported ingredients continues to grow, the Chinese authorities continue to try to ease the concerns of the Chinese consumers and in June 2014, China’s State Council unveiled a blueprint to push consolidation of the country’s baby formula milk powder industry in an attempt to reshape the sector. The State council said in a statement that the industry remains fragmented and consumers lack confidence in domestic brand

names. The Government is aiming to form about 10 large milk powder groups with annual revenue of more than $323 million (€254 million) each by the end of the year, stating it would give “appropriate” fiscal support to those companies that succeed in merging and restructuring. Irish exporters need to consider that the efforts being made by Chinese authorities to reinstate confidence in Chinese dairy produce may ultimately gain some success, leading to a potential decline in demand for foreign imports over the long-term.

While these efforts may lead to a more challenging environment for Irish exporters, it is hoped that the work Irish companies have put in to develop relationships with Chinese companies and to gain the trust of the Chinese consumer puts them in good stead to continue taking advantage of the growing market in the medium term.

It is not just Irish dairy products that have proved popular with Chinese consumers. Just as IMF has succeeded, so have other Irish products such as pork and seafood.

Irish pork exports are growing rapidly and, in 2013, worldwide exports increased by 3% to €525 million, with China becoming Ireland’s third largest pork market. The Chinese authorities have approved over 80% of Ireland’s pig meat industry for direct export to the mainland. Irish seafood exports to China are also following a steady growth trajectory and in 2012, seafood exports to China reached €7.7 million, an increase of 169% on previous year sales. China’s international seafood trade has grown by 8% year-on-year since 1996 to reach almost €20 billion, cementing China’s position as the world’s leading seafood trading country and reinforcing the opportunity that exists for Irish seafood exporters. Shellfish exports to China put in a particularly strong performance in the first half of 2013 with an increase of 168%.

12

On 3 December 2013, the Irish beef industry received a major boost as the Taoiseach Enda Kenny confirmed that the 13-year ban on exporting Irish beef and offal to Japan had been lifted with immediate effect. A ban had been in place since the BSE disease outbreak in 2000. The lifting of the ban means Ireland are now one of only three European countries, along with France and Denmark, exporting beef to Japan.

Following the success with Japan, The Government is hopeful of making similar progress on opening up the key market of China for Irish beef exports. In December 2013, both the Taoiseach and Agriculture Minister Simon Coveney confirmed that talks were ongoing with China, with a delegation from Mr Coveney’s department visiting China for discussions on lifting the ban. In the aftermath of that visit, Mr Coveney said that there remained “a number of stages to go before Ireland secure access for beef to China”, but added: “I am hopeful that these can be progressed in 2014”. From 15-17 June 2014, Mr Liu Yunshan, a member of the Communist Party Politburo Standing Committee and First Secretary of the Central Secretariat of the CPC, visited Ireland at the invitation of the Government. During the visit, Minister of State at the Department of Agriculture Food and the Marine, Tom Hayes T.D. met with Mr Liu Yunshan at a farm in Co. Wicklow which specialises in beef production and afterwards Minister Hayes expressed his delight at being able to showcase the grass fed production systems that differentiate Irish beef and lamb.

If Ireland was to get access to the China beef market what would this opportunity look like?It has been widely estimated that the lifting of China’s ban could be worth potentially €15 million per year to the Irish food industry. In reality it’s hard to know exactly but key metrics show that China’s appetite for beef is increasing and if Ireland could secure a proportion of the success it has with IMF, the beef market could be worth multiples of the numbers currently being quoted.

At present, China only allows beef imports from six countries: Australia (53%), Uruguay (24%), New Zealand (12%), Canada (8%), Argentina (3%), and Costa Rica (<0.1%). Imports from other countries are prohibited due to the BSE outbreak. If the ban was to be lifted, Ireland’s climate and traditional role as a food producer, along with our reputation as Europe’s largest beef exporter, could propel us to capitalise on China’s growing hunger for beef.

In 2013, beef imports to China saw a 380% increase to nearly 300,000 metric tonnes; frozen beef representing over 95% of all imports, none of which came from Ireland. The Rabobank Beef Quarterly Q2 Report confirmed that China’s beef imports continued to grow in 2014, with imports

4. A case study: the Irish beef industry

reaching 101,000 tonnes in the first four months of 2014, an increase of 34% year-on-year, but lower compared to the growth experienced in 2013. While 2013’s growth was exceptional because of the domestic shortage, Chinese beef imports remain historically very high.

Deloitte estimates China’s beef consumption by value to grow at a CAGR of 8% going forward, reaching 8 million metric tonnes with a market size of RMB 600 billion (€77 billion) by 2018. Global beef demand growth will continue to come mainly from China as Chinese farmers take little interest in government-supported production expansion. Factors such as increasing population, improving living standards, rising income, and changing diets will continue to drive China’s growing demand for red meat.

Evidence suggests that consumption of beef per capita appears to be highly correlated (high R2 value) with GDP per capita of a country/region. Based on the history of Japanese, Korean and Taiwan beef consumption in the 1980’s and 1990’s, consumption is closely correlated with GDP per capita, and beef consumption appears to enter a rapid growth period (5-7% CAGR) after per capita GDP exceeds $6,000. China’s per capita GDP reached $6,100 in 2012 and $6,800 in 2013.

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The marketThe beef market in China is segmented into three tiers by retail price: the “Premier and High-end” segment; the “Mid-to-High-end” segment; and the “Mass Market” segment. Deloitte’s estimates of the market size (2013 vs. 2018F) of each of the segments are shown in the graphs opposite.

The different types of beef purchased by Chinese consumers can be broken down into 4 main categories – slaughter warm meat, chilled beef, frozen beef, and processed beef. The Mid-to-High-end and Premier and High-end segments focus on the latter three categories while the Mass Market segment tends to focus on the cheaper slaughter warm meat category.

The Mid-to-High-end market is forecast to reach RMB 50-60 billion (€6.4 million - €7.7 million) or 6% of total by 2018, indicating 15.5% CAGR from 2013 to 2018. Besides overall high growth potential, the segment’s main product categories — chilled beef and processed products — present the highest profitability propositions for producers and represent the most sought after categories amongst Chinese consumers. Chilled beef commands a retail price of over 100 RMB/Kg and has an ex-factory margin level of 15% - 25%. Processed beef also commands a retail price of over 100 RMB/Kg and has an ex-factory margin level of 20% - 30%. These retail prices and ex-factory margins compare to 50-80 RMB/Kg or 5% - 10% and 50-100 RMB/Kg or 5% - 15% for slaughter warm meat and frozen beef respectively. This would suggest the Mid-to-High-end market is where Irish beef exporters should focus their targeting effort in the event the ban is lifted.

Evidence suggests that consumption of beef per capita appears to be highly correlated (high R² value) with GDP per capita of a country/region.

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5. Final Words

6. References

China is a massive market and a huge opportunity for Irish companies, but market intelligence and deep knowledge of the marketplace in China is essential to capitalise on the opportunity. While increasing population numbers, rising income and the growth of the middle class means the opportunity to export to China will continue to rise, success won’t come easily and recent history has shown that many western companies have failed to create a sustainable Chinese export business.

Businesses that want to succeed typically need to be of a significant scale or have something unique to offer to the Chinese consumer. They also need to show they are there for the long-term. Trust is typically something which takes time to earn

and cannot be forced. Forging relationships with well-respected distributors can help to open doors while the value of face-to-face meetings cannot be underestimated.

While Chinese businesses welcome the prospect of a growth in imports, they want to deal with western companies on an equal footing. This suggests that with the support of Irish state agencies such as Bord Bia, Irish exporters should consider partnering together to market Irish produce as one single offering of Irish meat, dairy or other food and beverage products. It is equally important that Irish exporters focus on their key strength as prominent producers of quality protein products, highlighting Ireland’s proven ability to produce safe and trustworthy food products.

China Hand February 2014 - The Economist Intelligence Unit Limited 2014 http://www.eiu.com/FileHandler.ashx?issue_id=361574020&mode=pdf

Federal Statistical Office (Destatis), Germany https://www.destatis.de/EN/FactsFigures/NationalEconomyEnvironment/ForeignTrade/TradingPartners/Current.html

China in Numbers (June 2014), Foreign & Commonwealth Office (British Embassy Beijing) https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/320305/Chinanumbers_-_June_2014.pdf

Bord Bia, Export Performance Prospects 2014 http://www.bordbia.ie/corporate/press/pages/ExportPerformanceProspects2014.aspx

Bord Bia, Irish Seafood Industry Tackles Chinese Market http://www.bordbia.ie/corporate/press/2013/pages/IrishSeafoodIndustryTacklesChineseMarket.aspx

Global M&A Series - China Outbound M&A Trends Full-year 2013 Mergermarket in association with Squire Sanders http://www.squiresanders.com/files/Publication/7845ad88-b0a6-4533-853e-45518a586d8a/Presentation/PublicationAttachment/d7280fcb-6470-4a44-b023-ff9b1258057c/China-Outbound-Februray-2014.pdf

EU SME Centre - The Food & Beverage Market in China http://www.liaa.gov.lv/files/liaa/attachments/eu_sme_centre_report_the_food__beverage_market_in_china_en.pdf

Irish Food Magazine - Issue 4 2014 http://www.irishfoodmagazine.com/images/pdf/2014/issue4_2014.pdf

Rabobank – Beef Quarterly Q2 2014 http://www.rabobank.com.au/Research/Documents/Reports/Rabobank_Beef_Quarterly_Q2_2014.pdf

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7. Biographies

Alan McCharlesPartner, Financial Advisory China

Alan heads the Commercial Strategy and Research Team for Mainland China and has over 17 years of consulting, market strategy and due diligence experience. He has conducted over 200 engagements in China and his practice specialises on primary data creation to compensate for the absence of reliable 3rd party research in short timeframes – which includes extensive China market studies, competitive assessments, market due diligence, business plan assumption checking, market sizing and China entry strategy. Alan specialises in the consumer market – some example projects include market entry projects for overseas food (fruit, packaged foods, edible oils, beef, dairy, etc.) companies, restaurants, apparel brands and hospitality companies.

Kevin SheehanConsumer Business Industry Leader IrelandPartner, Audit

Kevin is an audit partner in the Dublin Office and leads the firms Travel, Hospitality and Leisure industry group. He has over 22 years’ experience in audit and advisory work, 17 of which have been with Deloitte. Kevin ensures Deloitte deliver on our excellent service promise using his personal experience in leading large multi-location global audits and using his extensive Agri, Dairy and Consumer Foods industry knowledge, and leveraging his role as the Consumer Business industry leader for the Irish firm.

Michael FlynnCountry Head, China Services GroupDebt & Capital Advisory Leader IrelandPartner, Corporate Finance

Michael leads the Deloitte Debt Advisory Practice in Ireland and is a member of the Deloitte Global Debt and Capital Advisory steering committee. Michael advises public, private and banking sectors on debt raisings, restructuring and refinancing for both project finance and corporate debt transactions.

Michael also runs the China Services Group in Ireland and under Michael’s leadership; recent engagements include an assignment with a multinational heavy machinery manufacturing company, a capital raise in China for projects in the Middle East, and a number of agricultural related advisory assignments.

Austin CurrieIreland Director, China Services GroupDirector, Corporate Finance, Ireland

Austin is Director of the Ireland China Services Team. He has over 12 years’ experience in various Operations, Middle Office and Risk functions in banks before joining Deloitte but in his current role he is focused on inbound and outbound investment opportunities for Irish and European firms.

Austin worked for a US international bank for 10 years working in Asia, continental Europe, UK and US where he generated an extensive network. His primary role within the China Services Group is to work with the China Deloitte firm, the Deloitte International Development Group & the Irish Deloitte firm to give a seamless Deloitte “AS ONE” service to the client.

David Percival MBE Director, China

David has recently joined Deloitte in Shanghai on a 3 year secondment from the commercial arm of the UK diplomatic service, UK Trade & Investment (UKTI). Between 2008-2012 David was Head of UKTI’s Investment team across China and a senior British Consul overseeing the UK Governments relations with over 400 Chinese companies active in the UK. David was also Commercial Director of the UK at Shanghai World Expo 2010, the UK Government’s largest ever commercial programme overseas which forged relationships with over 2000 Chinese business leaders.

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Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/ie/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte has in the region of 200,000 professionals, all committed to becoming the standard of excellence. This publication contains general information only, and none of Deloitte Touche Tohmatsu Limited, Deloitte Global Services Limited, Deloitte Global Services Holdings Limited, the Deloitte Touche Tohmatsu Verein, any of their member firms, or any of the foregoing’s affiliates (collectively the “Deloitte Network”) are, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your finances or your business. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication. © 2014 Deloitte & Touche. All rights reserved..

For more details please contact:

Alan McCharlesPartner, Financial Advisory ChinaT: +86 21 61411658E: amaccharles@deloitte.com.cn

Kevin SheehanConsumer Business Industry Leader IrelandPartner, AuditT: +353 1 417 2218E: kesheehan@deloitte.ie

Michael FlynnCountry Head, China Services GroupDebt & Capital Advisory Leader IrelandPartner, Corporate FinanceT: +353 1 417 2515E: micflynn@deloitte.ie

Austin CurrieIreland Director, China Services GroupDirector, Corporate Finance, IrelandT: +353 1 417 2202E: acurrie@deloitte.ie

David Percival MBEDirector, ChinaT: +86 21 61411221E: dapercival@deloitte.com.cn