Kingdee International Software Group Co., Ltd. · HKEX:268
Kingdee International Software — FY2007 Earnings Presentation
25 slides from Kingdee International Software's earnings presentation, 2008
Slide 1: 2007 Annual Results Corporate Presentation
Z Objective 7 , Business (a) C) (i . Tr, o> A esstonal FA sett. tf A Corporate Presentation 2007 Annual Results Kingdee International Software Group Company Limited Kingdee Enterprise Management Expert Stock Code: 268
Slide 2: Agenda
Agenda Financial Highlights Business Review Prospects Kingdee International Software Group Company Limited 2
Slide 3: Financial Highlights
~ — / Financial Highlights
Slide 4: Strong Profitability
Strong Profitability 2007 2006 Change Description Revenue 766,874 611,443 +25% • Strong market demand (RMB’000) • Distribution sales and EAS increased by 41% and 70% respectively Profit 136,476 97,377 +40% • Net profit growth (RMB’000) outweighed revenue growth Net Profit 17.8% 15.9% +2% • Efficienc
Slide 5: Good Quality of Assets
Good Quality of Assets 2007 2006 Change Description (RMB’000) (RMB’000) Cash and 438,595 390,271 +12% • Strong cash flow despite Deposits over RMB100 million investment in buildings Net Operating 268,715 210,124 +28% Cash • Rich in Cash. Immunize from economic slowdown Trade 63,287 66,245 -4% • Made
Slide 6: Accelerating Growth
Accelerating Growth RMB’000 900,000 Turnover 800,000 766,874 700,000 611,443 600,000 529,343 500,000 445,922 400,000 365,573 294,532 300,000 200,000 187,742 100,000 0 2001 2002 2003 2004 2005 2006 2007 Annual growth rate 57% 24% 22% 19% 16% 25% 2001 – 2007 CAGR Turnover Net Profit 26.4% 28.7% Kingde
Slide 7: Business Review
Business Review
Slide 8: Dominant Market Position and Economies of Scale
Dominant Market Position and Economies of Scale Dominant market position }Reputable brand, comprehensive products, strong distribution network creating high entry barrier }Existing clients continue to generate recurrent revenue Economies of scale } More efficiency in utilizing the back office so
Slide 9: World Class Software Capabilities Breakthrough
World Class Software Capabilities Breakthrough Management software Integrating middleware, BOS and ERP, the Group earned the recognition of a number of world-renowned customers Kingdee EAS V5.2 • IBM SOA standard certification Kingdee K/3 V10.4 • Microsoft's Windows Vista certified Kingdee EAS • B
Slide 10: Value Recognized by Customers
Value Recognized by Customers Timely Improved Increased Enhanced response efficiency effectiveness execution Decision Budget & Consolidation Performance Analysis Task Execution Management Financial Report Approval Analysis Operation Generate Voucher Daily Enquiry Order Entry Kingdee International So
Slide 11: Sizable Clientele
Sizable Clientele Kingdee - No.1 in China SMB Management Software Market in terms of market share - IDC, 2007 500,000 customers in various industries, of which many are outstanding clients in different industries Telecom, Electronics, Mechanical, Iron and Steel Finance, Property, Automobile, Tobacco
Slide 12: Sizable Clientele
Sizable Clientele 500,000 customers in various industries, of which many are outstanding clients in different industries Logisitcs, Travel and Pharmaceuticals, Food, Retail Government Sectors transportation and Wholesale Zhanjiang Port Group Inner Mongolia Little Sheep Ministry of Supervision
Slide 13: Sizable Clientele
Sizable Clientele Kingdee International Software Group Company Limited 13
Slide 14: Transformed from Direct to In-Direct Sales
Transformed from Direct to In-Direct Sales Revenue of KIS Distributors Direct Sales Distributors RMB’000 80,000 Direct Sales 72,462 70,000 60,000 51,449 52,894 54,938 50,000 This transformation has 40,000 30,000 proven very successful in 20,000 both revenue and margin 10,000 growth 0 2004 2005 200
Slide 15: Global Strategic Alliance and Business Cooperation
Global Strategic Alliance and Business Cooperation Global Strategic Alliance } IBM and Lehman Brothers acquired 7.7% issued share capital (35,000,000 existing Shares ) of Kingdee International Joint Venture } Joint venture with YGL to promote Kingdee's K/3 ERP system in Southeast Asian markets
Slide 16: Pioneer on SaaS
Pioneer on SaaS Online Software Platform YouShang.com (SaaS) } China first online management software platform } Integration of online management and e-business } Strengths • Manage your company anytime, anywhere • Ease of use • Reach outside the corporation from internal focus (B2B) } Jointly pro
Slide 17: Competitive Edges
Competitive Edges 4 years in the road named the largest share in SME management software market in China ( November 2007, IDC) 2 years in the road named “Asia’s Top 200 SME – the Best under a Billion” (Forbes Asia October 2006 and October 2007) One of the 19 major Next Generation SOA service provide
Slide 18: Prospects and Strategy
Prospects and Strategy Kingdee International Software Group Company Limited 18
Slide 19: Steady Growth to High Speed Growth
Growth Drivers Steady Growth Æ High Speed Growth Drivers for long-term industry Triggers of fast growth - the growth - China ERP market turning point is still in the infancy stage } On-going strong GDP growth } Over 42 million SMEs with low } More government’s efforts in penetration rate promoting t
Slide 20: Three Breakthroughs
Three Breakthroughs Service Breakthrough Product Breakthrough Channel •Consultation Breakthrough Services •Implementation •Effective channel •Fully integrated services coverage products with SOA •Support Services •Implementation •Ease of use •Education Services service partners •Reliability 2008 200
Slide 21: Focus in 2008
Focus in 2008 1. Management Software Implement the in-direct sales model on K/3 product Continue to improve EAS product and establish the image of expert in management, improve the high-end sales capabilities Further increase the partner coverage for KIS Form strategic consulting department
Slide 22: Revenue Mix
Revenue Mix 2007 2010 Services 30% Services 35% Direct sales 25% In-Direct sales 26% Direct sales 44% In-Direct sales 40% Transformation from direct sales to in-direct sales model Transformation from a product company to a service-oriented solution provider Kingdee International Software Group C
Slide 23: Thank You!
Thank You! Kingdee International Software Group Company Limited 23
Slide 24: Disclaimer
Disclaimer All information contained in this Presentation is provided for reference only. Some information relates to forward-looking statements of future events or future financial, business or development of the Company and are subject to various risks and uncertainties that could cause actual res
Slide 25: Investor Relations
Investor Relations • Barry Ho General Manager Corporate Finance & Business Development 852 2155 3721 [email protected] • Tony Zhu 86 (755) 2661 2299 ext. 6112 [email protected] • Alice Zhang 86 (755) 2661 2299 ext. 6113 [email protected] • www.kingdee.com Kingdee International Software
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