Geely Automobile Holdings Limited · HKEX:175
Geely Automobile — H1 2016 Earnings Presentation
15 slides from Geely Automobile's earnings presentation, Aug 18, 2016
Slide 1: 2016 Interim Results
2016 Interim Results 18 August 2016
Slide 2: Important Notice
Important Notice The information contained herein is meant for presentation purposes only and may not be used and relied upon by any other party. It is not to be taken in substitution for the exercise of judgement. You shall be solely responsible for making your own independent investigation of the
Slide 3: 2016 First Half Results
2016 First Half Results • Attributable profit up 36% to RMB1.91 billion • Sales volume up 11% • Average selling price up 17% • Revenue up 31% • Improved margin levels • FD EPS up 36% to RMB 21.65 cents 3
Slide 4: Interim Highlights
2016 Interim Highlights • Sales of “Boyue” SUV & “Emgrand GS” Crossover exceeded expectations • Strong sales of existing sedan models continued • Significant mix improvement & higher ASP driven by “GC9” and new models • Customer after service satisfaction continued to improve 4
Slide 5: Interim Highlights
2016 Interim Highlights • Strong operation cashflow and thus financial position • Well controlled selling expenses • Higher administrative expenses due to increased investments to maintain competitiveness • Net FX gain of RMB144m • Net profit still up 28% after excluding one-off items 5
Slide 6: Sales Volume Breakdown
Sales Volume Breakdown (6M to June) 2016 2015 YoY Change Total 280,337 251,873 +11% - Domestic 269,669 233,990 +15% - Exports 10,668 17,883 -40% Key Models: New Emgrand 106,959 99,999 +7% Vision 67,925 61,943 +10% Kingkong 35,953 30,660 +17% GC9 24,786 5,790 +328% Boyue 19,211 0 - GX7 14,086 33,038
Slide 7: Interim Results
2016 Interim Results 6M to June (RMB m) 2016 2015 YoY change Sales volume (units) 280,337 251,873 +11% Turnover/Revenue 18,089 13,807 +31% Gross profit margin ratio* 17.7% 17.6% +1% Operating margin ratio** 13.4% 12.6% +6% Profit after tax 1,930 1,420 +36% Attributable profit 1,907 1,405 +36% Dilute
Slide 8: Financial Analysis
Financial Analysis 6M to June 2016 2015 YoY change Sales of vehicles (RMB m) 17,599 13,496 +30% Average unit price (RMB) 62,776 53,583 +17% Return on equity* 18.1% 14.4% +25% Gross margin ratio** 17.7% 17.6% +1% Operating margin ratio*** 13.4% 12.6% +6% Selling expenses (% of T/O) 4.5% 5.7% -20% Adm
Slide 9: Financial Summary
Financial Summary • Improved profitability & margins (gross, operating, EBIT and EBITDA) • Mix improvement and rapid rise in ASP • Stable subsidy income • Improved operational efficiency • Higher capex to support technology/product upgrade 9
Slide 10: Profitability
Profitability 25.0% 7.0% 6.0% 20.0% 5.0% 15.0% 4.0% 3.0% 10.0% 2.0% 1H gross margin 1H selling expenses % T/O 5.0% 1.0% 1H operating margin 1H administrative expenses % T/O 0.0% 0.0% 2009 2010 2011 2012 2013 2014 2015 2016 2009 2010 2011 2012 2013 2014 2015 2016 10
Slide 11: Operational Summary
Operational Summary • New product cycle well received • Substantial investment in production facilities, technologies and manpower to sustain growth • Acquisitions of Baoji and Shanxi plants to upgrade production facilities • Disposal of non-core investments in Kandi and Zhidou JVs • Genius AFC on t
Slide 12: Second Half Outlooks
2016 Second Half Outlooks • The strongest new model renewal cycle to continue • Improved overall market environment • Proven execution capabilities in delivering quality products and services • Raised target sales volume by 10% to 660,000 units, +29% YoY 12
Slide 13: New Products
New Products 2H 2016 • New A+ segment Sedans (Emgrand GL) • New compact SUVs (Vision SUV) • New hybrid electric version of Emgrand series sedans 2017 • New models from CMA platform 13
Slide 14: YTD Sales Performance
YTD Sales Performance (First 7 Months 2016) • Emgrand GS well- received (sold 14,128 units in first 3 months) • Monthly sales volume of “Boyue” exceeded 10,000 units in July 2016 • Total sales volume +17% YoY • Domestic sales volume +21% YoY • Exports sales volume - 37% YoY 14
Slide 15: www.geelyauto.com.hk
Ma GEELY www.geelyauto.com.hk a
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