DRAFT

Smartphone Display
Nov, 2020

Observations and Initial Perspectives

CONFIDENTIAL – NOT FOR DISTRIBUTION

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Table of Contents

Appendix

Observations and Initial Perspectives 2 Smartphone Display Technology Discussion 9

A&M Overview 16

1
Observations and Initial Perspectives
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Executive Summary
Innovation, customer diversification, and cost optimization are the key success factors for
Smartphone Display manufacturers
 Smartphone Display manufacturers are in a technological race to fulfill customer demand for larger screens with
smaller pocket space and better user experience
− High demand of Smartphone with CAGR ~11% (2019-25) is driving strong growth in the Smartphone Display
market at ~7% CAGR (2019-25) with the possibility of Display supply being unable to met demand
Innovative  Therefore, positioning the company with the key trends of innovation is important for future success, including:
Evolution
− Developing AMOLED production capability and further R&D for AMOLED performance and efficiency, as AMOLED
market is growing at CAGR of 18% (2020-27), whereas the TFT LCD is growing at -2% CAGR (2021-26); and
− Incorporating new technology breakthrough, such as curve / foldable displays, higher resolution, under-display
optical fingerprint sensors, and in-display front camera solution.

 To grow revenue, Smartphone Display manufacturers need to diversify their client portfolio by:
Diversifying
− Building new relationships with multiple Smartphone manufacturers as they are looking to diversify supply base to
Client Portfolio prevent over-reliance on Samsung’s AMOLED; emerging approach is R&D partnership; and
for New
− Building new relationships beyond Smartphones, penetrating other growing Consumer electronics, that also need
Revenue
displays, such as tablet, wearable electronics, household appliances etc.

 The increasing pressure for a better margin requires the Smartphone Display manufacturers to improve their bottom-
line through the following means:
− Operating in a highly efficient and lean production line, even with the help of automation and technology;
− Effectively allocating budget and capital; and
− Right-sizing of support functions.
Cost
 It’s crucial to manage cost for rare earth material as this is being dominated by China.
Optimization
− Many of the vivid red, blue, and green colors are made by rare-earth metals (e.g. Terbium and dysprosium);
− Display panel manufacturers can only carry out expansion research and increase production after obtaining the
authorization of these core patents; and
− Manufacturers are recycling rare earth materials in smartphone production.

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Display Application Market

Display panels are essential to display-based applications, with Smartphones being the
largest market share
Key Applications of Display Display Application Market Trends

 Smartphone  Television  PC / Laptop  Tablet Key Highlights

 Whole market is estimated USD137.7 billion in 2019 and
forecasted to reach USD 167.7 billion in 2024 with 4% CAGR
 Smartphones, televisions, automotive displays, and smartwatches
 Outdoor
are high-growth segments in the display panel market over the
 Automotive  Wearables  Others
forecast period
(gaming consoles,
home appliances,  OLED and micro-LED are the major technologies making up the
cameras, medical growth
devices, industrial
displays, etc.)
Key Driving Factors
Display Market Share by Application (million pieces of shipment)
 Growing adoption of OLED displays in smartphones and
2,544 3,300 televisions
100%

Smartphone  Increasing demand for 4K / 8K displays with the availability of

UHD content
Television
68% Automotive  Significant government investment support for new OLED and
73%
LCD panel manufacturing facilities
PC / Laptop
Smartwatch  Increasing deployment of HUD that projecting the display onto a
Tablet
glass combiner mounted above or below the windshield, central
9% stack display, and instrument cluster in automotive vehicles
11% 1% 7% Outdoors
6% 0% 4% 0% Others
 Rising focus toward technological development of energy-
2%
6% 0% 10% 0% efficient, attractive, and high-quality display products
1%
2019 2024  Increasing demand for flat panel display panels with high
resolution, fast response time, and better picture quality
Source: A&M analysis

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Smartphone Display Market

The Smartphone Display market is anticipated to grow strongly to ~USD 98.3 billion by
2027
The Smartphone market continues to …with Display as 2nd highest …thus Display and Screen Protector
grow… component cost for a Smartphone… Markets are growing strong

The Smartphone Market Size 1 A Smartphone’s Cost of Manufacturing2 The Smartphone Display Market 3
(USD billion) (%) (USD billion)
+7%
+11% Total Cost 100% 98.3
1,351.8 Cellular connectivity 18% 56.1
715.0 Display 17%
Memory 11%
2019 2027
Camera 11%
2019 2025
Processing 10%  Key driver for growth is increasing of
 The demand for smartphones continues casing 5% smartphones adoption
to increase as people look for improved IPR & software 5%
connectivity on the go S Pen 5%
Global Screen Protector Market Size 4
 Companies have been increasing their Assemble & testing 3%
(USD billion) +8%
revenues by launching new phones with Others 3%
3.8
increased frequency PCB 3% 2.4
 Component suppliers are ramping up Sensors 2%
their production to support the efforts of Battery 2%
smartphone manufacturers Connectivity others 2% 2019 2025
Power management 1%  Increasing demand for protective
 However, smartphones market are
Charger & cables 1% smartphone accessories coupled with
concentrated: Top 5 manufacturers
Accessories 1% high disposable income of the
(Huawei, Samsung, Apple, Xiaomi, and
consumers is expected to translate into
Oppo) command 71% market share Audio 1%
increased growth.
Sales box 0%

Source: (1) https://www.mordorintelligence.com/

(2) https://www.counterpointresearch.com/
(2) https://www.maximizemarketresearch.com/
(5) https://www.marketstudyreport.com/
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Smartphone Display Manufacturers

AMOLED is the next leading generation in smartphone display technology, which
currently is dominated by Samsung
Smartphone Display Panels Shipment 2018-2019 Smartphone Display Panels Development Trends
Quantity (million pcs)
450 AMOLED LTPS LCD Oxide LCD A-Si LCD Key Highlights
400  Samsung, BOE, and Tianma were the Top 3 makers of
Left bar: 2019
350
Right bar: 2018
smartphone displays in 2018-2019; Samsung had 8% growth with
300
410 million pieces by shipment, and BOE had 17.5% growth with
376 million pieces by shipment in 2019
250

200
 OLED will be the next generation display panels, which has been
used for the next generation smartphone, like iPhone11 and
150
iPhone12, etc.
100
 Samsung has upgraded its production for smartphone display
50 panels from LCD to OLED since 2018; at present, Samsung is
the largest OLED maker for smartphone display panels worldwide
 Since 2018, BOE has become the largest LCD smartphone
display panel provider; over 50% shipment of smartphone display
Source: HIS Market
panels worldwide was from Chinese makers, like BOE, Tianma,
Region Key Makers of Smartphone Display Panels China Star, etc.

China BOE, China Star (CSOT), Tianma, Century, IVO  BOE has formed an absolute advantage in production capacity
with investment capital and technical strength. The company has
Korea LGD, Samsung two new production lines under construction. Estimated by 2021,
BOE’s Flexible AMOLED production capacity occupies 37% of all
Taiwan Innolux, AUO, HSD domestic China production capacity. BOE is expected to become
Japan JDI, SHARP
the biggest beneficiary after OLED enters a period of rapid
growth.

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Smartphone Display Value Chain

Upstream (e.g., glass substrate) suppliers and downstream (e.g., smartphone OEMs)
enjoy the highest and most stable margins across the value chain

Upstream Suppliers Display Panel Makers Downstream Customers

 Panel components: glass substrate,
optical film/materials, chemical materials,
backlight module, polarizer, etc.
 Installed components: driver IC, PCB,
passive components
 Equipment: vacuum evaporation,
photolithography, etc.
 Key suppliers:
 LCD display panel manufacturing
process: Array process + CF process
 Cell process  Module assembly
 OLED display panels manufacturing
process: Array process  Cell
process (different with LCD cell
process)  Module assembly
 Key makers:
 Sales channel / dealers
 Brand manufacturers of smartphone, TV,
PC, car maker, etc.
 Movement board manufacturers of
smartphone, TV, PC, etc.
 Video processor IC
 Key companies:

The profit margin of LCD manufacturers is the lowest across the value chain;
Estimated profit margin for OLED manufactures is expected to be lower than LCD due to higher cost of OLED manufacturing and
inability to pass down the large portion of cost to customers
< 60% The lowest and unstable
gross margin in the
< 35% supply chain < 25% < 30%
< 20%
< 10% < 5% < 5%

Glass substrate Chemical Driver IC LCD panel LCD panel Movement Brand Sales / Dealer
materials module board manufacturer
Source: Yuekai Securities
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Cost Structure Comparison

The total cost of OLED is driven by the current increase in capex investment, an area
which is estimated to improve as production volume increases over time

Small & Mid Size LCD Panel vs. OLED Panel Cost Structure Display Cost Structure Analysis

Smartphone Panel Prices (USD/pcs) Key Highlights

90 90 90 90
 The biggest cost differences of LCD and OLED is
85 85 the proportion of material and depreciation
80 76 6"QHD+OLED
Flexible Model  LCD’s depreciation is lower, particularly for small /
mid size displays due to the large production
34 34 32 31 volume compared to mature (depreciated) facilities
29 26 25 24
5.5"FHD OLED  On the other hand, OLED’s product volume is
27 25 22 21 19 16
5.5"FHD LCD ramping-up while facilities are still new
15 15
1Q’ 17 2Q’ 17 3Q’ 17 4Q’ 17 1Q ’18 2Q ’18 3Q ’18 4Q ’18  In material cost, the biggest item for LCD is
Source: DSCC
backlight module, while in OLED biggest cost is
organic materials
100% 100% 100%  The OLED organic material cost can be reduced
5% 5% 7%
3% 10% by increasing production volume
17% 3% 37%
48%  However, OLED production expansion faces the
SG&A Backlight module Organic materials
R&D Color filter Driver IC bottleneck of production capacity shortage at
45% Labor Cost 18% Glass substrate PCB equipment suppliers, particularly in evaporation
Depreciation Polarizer 15% Glass substrate process equipment
9%
70% Material Cost 8% Driver IC
15%
Others
 OLED also incurs higher R&D expense
8% LC materials
35% 5% Others 13%
15% 9%
LCD OLED LCD OLED
Material Material
Operation Cost Cost
Cost
Source: Mizuho Securities 8
Appendix: Smartphone Display Technology Discussion
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Technology Landscape Overview

The key technologies of main display panels on the current market are divided into LCD,
and OLED, Micro LED, Direct-view LED, etc. OLED technology have good development
potentials to gain more market share

Key Technologies of Display Display Technology Key Development

 LCD Key Highlights

 LCD display panels have made a huge impact on the market in the last
few years due to a consistent decrease in their price. The prices of LCD
panels are now lower than that of OLED panels
 The price of LCD-based display products fell substantially during 2013-
2019 owing to the maturity of the technology and newer display
technologies such as OLED. Similarly, the price of OLED panels will also
 OLED fall after this technology matures
 At present, flexible OLED-based (highly priced) display panels are being
adopted in smartphones at a high rate globally. The major factors
boosting the use of OLED displays in smartphones include energy-
efficiency, sunlight readability, vivid color and picture quality, and easier
recyclability than LCDs
 Micro-LED is an emerging display technology and has the potential to
 Micro LED disrupt the LCD and OLED display ecosystem. Increasing demand for
brighter and more power-efficient display panels for smartwatches,
mobile devices, and NTE (AR/VR) devices will be the major factors for
the growth of micro-LED technology in the display panel market
 Direct-view LED display feature incredible contrast ratios, vibrant colors,
 Direct-view LED and brightness levels several times that of LCD display, and can also be
made in virtually any large sizes of 100 feet or more, making them the
perfect choice for outdoor spaces

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AMOLED Trend
The share of AMOLED display panels have steadily increased, especially for mid and
high-end smartphones, over the past decade

Key Technologies of Display Display Technology Development Trends

Smartphone Display Shipment Share by Technology Key Highlights
% Unit Shipped

 Global AMOLED Displays Industry is estimated to be USD 1

100%
billion by 2027, growing at a CAGR of 17.7% over the period
80%
2020-2027. Conversely, the global TFT LCD market size is
TFT LCD projected to decrease to USD 93.4 billion by 2026, from USD
60% 106.2 billion in 2020, at -2.1% CAGR
 Smartphone brands across the world increasingly are migrating
40%
AMOLED
their product lines to AMOLED display technology – Apple is
20%
expected to expand its AMOLED iPhone line-up to three models
in 2020, up from two in 2019. Chinese smartphone OEMs are
also expected to increase the number of high-end smartphones
2015 2016 2017 2018 2019 2020 2021 2022 2-23 2024 integrating AMOLED panels in 2020
Source: macropolo.org
 Samsung is taking advantage of its leading manufacturing
Progression in the development of flexible AMOLED Technology
process in AMOLEDs by introducing more complicated panels
and capturing more value per panel, often at the expense of
materials suppliers.
 By converting existing capacity to more complicated processes
that add functionality or improve performance, it is reducing its
capacity, improving fab utilization, and boosting its revenues and
margins per panel

Source: ieeexplore.ieee.org 11
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Displays Size Trend

Larger Smartphone Display demand is driving the innovation of new type of technology

Key Technologies of Display Size Display Technology Development Trends

Smartphone unit shipments by screen size worldwide 2018-2022 Key Highlights
(in millions)  The statistic shows forecast global smartphone unit shipments by screen
Screen Size 1,555 1,600 1,635 that in screen size 5.5” – 6” represents the mainstay product size,
1,445 1,500
55 40 220 25
0" < 5" 150 75 270 235 whereas screen size 6”-7” is growing in demand
305
5" < 5.5" 350 730
675 710  Forecasts suggest that notched smartphone displays will account for
655
5.5" < 6" 650 53% of all smartphone display shipments in the second quarter of 2019,
6" < 7" 465 555 615 660 while the ‘Hole’ displays are the new growing trend
295
2018 2019 2020 2021 2022  Under-display optical fingerprint sensors and in-display front camera
Source: Statista
solution is the future trend. Chinese manufacturers are leading in this
technology development
Smartphone Display Shipment Share Worldwide 2017-19 (by Shape)
100%  While smartphone screens are increasing in size, there has not been a
42% 36% Standard race to 4K from smartphones makers. The norm at the top of the market
52%
81%
67% is a 2K panel, rather than a higher resolution option due to concerns
97% 92% 93%
regarding battery life (i.e. larger / higher-resolution displays require more
53% 53% Notch
47% power to operate)
33% Hole
0% 9% 0% 0% 19% 0% 12%
4% 8% 0% 1% 6%  Brightness is measured in 'nits’, whereby currently Samsung Note S20
3Q ’17 4Q ’17 1Q ’18 2Q ’18 3Q ’18 4Q ’18 1Q ’19 2Q ’19 achieves the highest rating at 1,342 nits. Manufacturers are trying to
Source: Statista
improve the brightness per watt, which simplifies the efficiency of the
displays
Flexible Display Market Forecast by Form Factor (Shipment in units)  Curve Displays are one of the innovation to effectively have a screen-to-
100% body ratio of 100% because there will be no bezels. However, the
Flat forecast shows that the trend is slowing down
68% 61% 62% 62%
Curved
 Bendable and Foldable Displays are the latest technology to allow users
Foldable to enjoy a larger screen that takes up less space in the pocket. Market
37% 30% 29%
32% 2% Others observers predict this trend to grow rapidly over the next few years. The
0% 1% 7% 3% 6%
foldable display market size was valued at over USD 65 million in 2018
2018 2019 2020 2021 and is expected to grow at 75% CAGR from 2019 to 2025. The global
shipments are expected to exceed 155 million units by 2025
Source: Fomdia.tech.informa.com Source: https://www.gminsights.com/

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Touch Screen Trend

In-cell TFT LCD and On-cell AMOLED are leading the rapid growth in market share for
Smartphone touch screen technology
Key Technologies of Display Display Technology Key Development
Smartphone touch screen market share by technology Key Highlights
100%
In-cell TFT LCD 13% 16%
22% 25%
 Global Multi Touch Screen Market is expected to reach USD
31%
On-cell AMOLED 17%
32% 33% 37% 39% 40% 16.23 billion by 2026, with the Smartphone products segment
15%
16% estimated to hold the largest market share in the forecast period
23%
20%
23%
 The key drivers is due to increase in the number of electronic
25%
28% display devices, rise in trend of retail and media applications, and
31%
34% the surge in investment from corporate users
Projected capacitive 67% 64%
57%
44%
43%  The application in the entertainment segment is expected to
43%
40%
35%
register the highest growth during the forecast period, owing to
30%
On-cell TFT LCD 26% the increase in demand for consumer electronics, wearable
Resistive
4% 0% 5% 1% 6% 8% 6%
2% 1% 0% 0% 0%
devices, and rapid growth in the retail industry
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
 Panel makers that have manufactured in-cell touch TFT LCD
Source: Statista
panels for smartphones have accumulated know-hows in cost
Smartphone Touch Structure reduction and process saving. They have achieved saving
solutions for the in-cell touch, which allow more affordable
Cover Glass
Cover Glass
production cost than the conventional add-on types.
ITO
Cover Glass  The success has convinced panel makers and brands to adopt in-
TP Glass Cover Glass
Touch Sensor cell touch to larger applications, such as tablet and notebook PC.
ITO Polarizer Although the solution’s presence in the tablet PC panel market
Touch Sensor
was still minor in 2017, it accounts for 7% in the notebook PC
TFT LCD
LCD TFT LCD panel shipments. The solution is expected to expand the
+ Touch Control AMOLED
shipment share for both applications in 2018

Projected Capacitive On-cell TFT LCD In-cell TFT LCD On-cell AMOLED
Source: A&M analysis

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Refresh Rate Trend

Smartphone Display’s Refresh Rate Technology >90Hz is penetrating rapidly in the
market due to demand of improving user experience and demand of gaming, however it
is not directly affecting the consumer preference of OLED / AMOLED over LCD tech

Key Technologies of Refresh Rate Display Technology Development Trends

Market Penetration Rate of Higher Refresh Rate Key Highlights
(>90Hz) Smartphones
 Market share of products with >90Hz is increasing rapidly after
the third quarter of 2019, reaching 8.1% in the second quarter of
2020. This is due to higher refresh rates provide smoother
scrolling and animation, which is crucial in gaming or 4K video.
After experiencing this quality, most consumers find it difficult to
return to a lower specification
 Refresh rate is important for gaming. Gaming smartphone is
increasing worldwide, with the demand of sharp displays and
increased battery capacity makes these gaming smartphones
ideal handsets to deliver the processing power hungry gaming
experience on the go

High refresh rate smartphone market share ranking (AMOLED)
 However, the higher the refresh rate, the faster the battery drains
 Another constraint is that there is not much content other than
games that can be used with such a fast refresh rate
 Consumer research indicates that benefit of a high refresh rate
does not outweigh the benefit of a standard OLED panel.
Consumers prefer OLED or AMOLED type of screen over a high
refresher rate LCD Tech.1
 Manufacturers are using AMOLED as it has higher refresh rates
than OLEDs

Source https://tekdeeps.com/ Source: (1) https://www.androidauthority.com/

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Regional Market Trend

APAC is the leading region most of projected period, witnessing significant advancements
in the display device market.
Smartphone Display Market Development by Region Display Regional Development Trends
Smartphone OLED capacity market share % by country Key Highlights
100  The majority of the market growth would be generated in APAC in
the next five years. The economies such as China, India, Japan
90
and South Korea are dominated the market owing to the
80 presence of smartphone manufacturers like Samsung, Oppo,
Vivo, LG and others
70
 The rise in the adoption of new technologies related with mobile
60 phone by many manufacturing industries across the region is also
China driving the growth of market
50
Korea  Furthermore, in large population countries such as India and
40 China the number / penetration of smartphone users are high
which leads to the growth of smartphone display market in the
30
region
20  The trend of China gaining market share will continue in OLEDs,
10
as the promise of more jobs and higher tax revenues remains
Japan highly attractive to the local Chinese governments. They are
0 trying to be the fast followers in mobile OLEDs and keep up with
2018 2019 2020 2021 2022 2023 2024 2025
SDC while being more patient in OLED. With multiple Chinese
manufacturers adding multiple fabs, we expect China to overtake
Korea in mobile OLEDs in 2024
 India is also giving more than a dozen companies new incentives
to invest in the country's smartphone industry

Source: https://onlinelibrary.wiley.com/

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Appendix: A&M Overview
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A&M’s Global Reach

For more than three decades, Alvarez & Marsal has set the standard for helping
organizations tackle complex business issues, boost operating performance and
maximize stakeholder value.

5,000+ 4
Employees Continents

35+ 65+ 25+

Years Offices Countries

NORTH AMERICA EUROPE AND THE MIDDLE EAST LATIN AMERICA ASIA
New York (Global HQ) London (Europe HQ) São Paulo (Latin America HQ) Hong Kong (Asia HQ)
Atlanta El Segundo Phoenix Amsterdam Madrid Belo Horizonte Beijing
Birmingham Greenwich San Antonio Athens Manchester Mexico City Delhi
Boston Houston San Francisco Birmingham Milan Rio de Janeiro Mumbai
Calgary Kansas City San Jose Cayman Islands Moscow Seoul
Charlotte Los Angeles Seattle Dubai Munich Shanghai
Chicago Miami Tampa Dublin Paris Singapore
Dallas Morristown Toronto Dusseldorf Prague
Denver Nashville Vancouver Frankfurt Riyadh
Detroit Philadelphia Washington, D.C. Glasgow Stockholm
Hamburg Switzerland
Kiev Warsaw
Leeds Zürich

17
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A&M Global Services

A&M brings operating and management expertise combined with top-tier consulting and
specialized industry experience to meet the changing needs of companies and investors

Performance Improvement
● Growth and Revenue Enhancement ● SG&A ● Human Capital and Organizational
● Supply Chain Operations ● Finance and Accounting Change
● Manufacturing Operations and Footprint ● Information Technology ● Merger Integration

Corporate Restructuring
● Turnaround Advisory ● Corporate Finance ● Unsecured Creditor
● Interim and Crisis Management ● Creditor Advisory Committee Advisory
● Claims Management Services ● Fiduciary Services

Transaction Advisory, Forensics & Dispute Services

● Transaction Advisory ● Tax Advisory ● Corporate Governance
● Global Forensic and Dispute ● Valuation Services ● Executive Compensation
Services ● Regulatory and Risk Management and Benefits

Private Equity Services

● Due Diligence Services ● Transaction Tax
● Operations and Performance ● Rapid ResultsTM
Improvement ● Exit Readiness

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The A&M Difference

A&M adds substantial value to any complex situation.

Leadership Senior Resource Depth

 Focusing senior resources at every stage of the
delivery process
 Forging consensus around credible, executable
solutions
 Engaging and partnering with your organization
 Global reach
 Executives drawn from both industry and
professional services firms
 Majority of our professionals (Director grade and
above) have extensive Board-level operational
experience

Managing Complexity Speed, Execution and Action

 Proven track record in managing complex,
high-profile situations
 Delivery through assured leadership and execution
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options in cooperation with management to support
the business plan
 Focus on delivering rapid results with overarching
focus on improving bottom-line results
 Coordinate short- and medium-term objectives and
credible plans with achievable milestones

Operational Heritage Practical Bottom-line Orientation

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rapid implementation
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restructuring speed

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We Serve Global Private Equity Clients

We are trusted by a wide range of global, regional and local private equity sponsors

20
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A&M Asia Overview

MARKET PRESENCE
Established presence in 2003
Offices in Greater China (Hong Kong, Beijing and Shanghai), India (Mumbai and Delhi), Korea (Seoul) and
Southeast Asia (Singapore)
Experience in serving clients in Australia and Japan

EXPERIENCED SENIOR TEAM

Average of 15+ years of experience
Combination of top-tier consultants, other professional services and line roles (CEO, COO, CRO, CFO)
C-level experience in consumer goods/retail, manufacturing, commercial banking, enterprise software,
transportation and energy
Advisory experience covers private equity, financial services, telecommunications, consumer goods/retail, industrial
products and services, transportation and logistics, energy and resources, automotive and assembly

OUR CLIENTS
Local and multinational corporations with businesses, operations and supply chains in Asia
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US and European focused private equity firms with portfolio businesses operating in or sourcing from Asia
Distressed funds and hedge funds holding debt issued by Asian companies
Local and international banks lending to Asian businesses
Law firms and their clients

21

Asia TMT Leadership
Alan Huang
Managing Director
Performance Improvement
 20+ years experience in strategy and
operations consulting focusing on the
global technology sector, as well as
operator roles in two high-tech start-ups in
Silicon Valley
 Relevant experience includes…
- Product development transformation for
a major Scandinavian mobile handset
and telecom equipment manufacturer
- Supply chain transformation for a major
Japanese mobile and telecom
equipment manufacturer
- Value chain optimization for a leading
US computer and enterprise server
equipment provider
- NPI acceleration for a major US digital
and analog semiconductor device
company
- Vendor due diligence for a UK-
Singapore fabless communications
semiconductor company
- Business and operational restructuring
for Thailand’s incumbent telecom SOE
Oliver Stratton
Managing Director
Performance Improvement
 25+ years experience in consulting and
private equity in Asia, for telco and
industrial services
 Relevant experience includes…
- Reorganization and streamlining of
leading telco in Mongolia including
integration of subsidiaries, process
improvement, new organization design
and managing of headcount reduction
- Process reengineering and
implementation for incumbent Hong
Kong telco covering customer service,
new product development, network
construction
- 3-year business transformation for
leading Southeast Asian telco covering
all functions and resulting in 40% cost
reduction while achieving 2x revenue
growth
- Sales and marketing strategy, program
design and implementation for
Southeast Asian telco
- Restructuring of distressed Southeast
Asian cellular operator
22
DRAFT
Xuong Liu
Managing Director
Transaction Advisory Group
 20+ years of experience
 Specializes in transaction services
including financial due diligence, SPA
assistance, closing balance sheet and
purchase price adjustment reviews
 Relevant experience includes…
- Platinum Equity’s acquisition of
Compart, a manufacturer of mass
flow control devices used in the
semiconductor industry
- Huawei’s proposed acquisition of
Nortel Networks
- A US PE firm’s proposed
investment in a broadband
hardware supplier
- A global PE firm’s proposed
investment in a major broadband
operator in Taiwan
- Platinum Equity’s acquisition of PCI
Ltd, an EMS provider specializing in
ODM listed on the SGX
- Bain Capital’s investment into
Gome, the leading consumer
electronics retailer in China.
Our Experience TMT Value Chain
We have served marquee companies across the TMT ecosystem

Technology Media Telecom

Note: Combination of A&M and team members’ clients

23
Selected TMT Cases
Manufacturing
LG
TMTPhilips Displays
China
Hong Kong
Assisted LG Philips Displays
on a restructuring process
negotiating ongoing supply
arrangements, labor support
and business transfers
Provided operational restructuring
services
Dell
Assisted Dell in its
acquisition of Kace
Networks, which specializes
in the development of
computer appliances for
systems management of
information technology
equipment
Provided financial due diligence
services
B2B Media Company
Assisted B2B Media
company to perform
operation due diligence
about potential cost
reduction opportunities and
reorganization plan. Later,
established PMO to lead
implementation phase
Provided operations due diligence
services
Dell
Assisted Dell in its
acquisition of Scalent
Systems, which specializes
in the development of
software to manage data
center infrastructure
Provided financial due diligence
services
24
Europe HQ High Tech
Company
Assisted the client to assess
the target’s operational
capabilities, growth
potentials, and investment
needs. In operation,
strategy, IT, sales, finance,
procurement, and tax
Provided performance
improvement services
Juniper network
Assisted Juniper networks in
its acquisition of Smobile,
Inc., which specializes in the
development of security
applications for mobile
devices
Provided financial due diligence
services
Hewlett Packard
Assisted Hewlett Packard in
its acquisition of 3com
Corporation, including H3C,
its China based JV with
Huawei
Provided financial due diligence
services
Manufacturing
Juniper
TMT network
ChinaKong
Hong
Assisted Juniper networks in
its proposed acquisition of a
business unit in the network
systems division of a leading
global telecommunications
infrastructure company
Provided financial due diligence
services and SPA review
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A&M Services in Support of Investment Lifecycle

A&M provides end-to-end services for private equity firms across the investment lifecycle

Performance Improvement
Diligence /
Exit Support
Acquisition Support EBITDA Interim
Asset Efficiency
Improvement Management

 Acquisition Identification  Cash Flow and Working  C-Suite Executives  Exit Planning and Execution
and Sourcing
 Revenue Enhancement
Capital Management (e.g., CEO, COO, CFO, o Carve-Out /
CAO, CMO) Divestiture Advisory
 Buy Side Due Diligence o Corporate Finance
 Cost Efficiency /
 o Exit Tax Advisory
o Commercial Diligence Reduction
 Capital Expenditure Operating Functions
Assessment (e.g., Supply Chain,
o Operational Diligence o Direct Costs
Store Operations,
o Financial Diligence o G&A  Pre-Exit Financial Advisory
Sales, Production,
o Forensics o Human Capital  Asset Optimization
Manufacturing, Field o Capital Structure Redesign
o Tax Diligence and Tax o Operating Assets o Securities Renegotiation and
Operations, Call
Structure Planning  Supply Chain / o Technology Assets Center) Amendment
Procurement
 Merger Integration / o Outsourcing and  ERP Selection and
Carve-out Planning  Support Functions
Off-shoring Project Management (e.g., Treasurer,
 Sell Side Due Diligence
o Day One / 100-Day o Leveraged Sourcing o Vendor Due Diligence
Controller, Tax, HR, IT,
Plan Development o Synergy Assessment
Insurance, Risk)
o Carve-Out Planning  IT Strategy / o Cost Reduction
 Organization &
and Execution Operations Process Management Implementation Planning
o Post Merger Restructuring  PMO Support
Integration Execution
o PMO Planning
 Cash and Liquidity
Management
 Leadership Assessment

 Risk Management /
Insurance Advisory

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Integrated Due Diligence

Our integrated approach combines financial / accounting, tax and operational diligence as
well as SPA review to generate combined insights and guide private equity professionals in
their investment evaluation and underwriting process

Data and Information Transfer

Corporate and Private Equity Investment Professionals

Business Insights

Integrated Diligence with a Common Data Platform

A&M’s
Integrated
Diligence Financial Operational Commercial Tax
Solution

Post Investment
Readiness

100-day Performance Improvement Plan

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® and A&M® are trademarks of Alvarez & Marsal Holdings, LLC.

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