Geely Automobile Holdings Limited · HKEX:175
Geely Automobile — FY2016 Earnings Presentation
16 slides from Geely Automobile's earnings presentation, Mar 22, 2017
Slide 1: 2016 Final Results
2016 Final Results 22 March 2017
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 Full Year Results
2016 Full Year Results • Attributable profit up 126% to RMB5.1 billion • Sales volume up 50% • Average selling price up 22% • Revenue up 78% • Improved margin levels 3
Slide 4: 2016 Full Year Results
2016 Full Year Results • Fully diluted earnings per share up 123% to RMB 57.33 cents • 35% growth in free cash flow despite higher capex • Cash dividend up 216% to HK12 cents 4
Slide 5: 2016 Results Highlights
2016 Results Highlights • Sales of all four new models exceeded expectations • Strong sales of existing sedan models continued • Significant mix improvement & higher ASP driven by new models • New models accounted for 76% of the growth in 2016 5
Slide 6: 2016 Results Highlights
2016 Results Highlights • Record high net cash level of RMB13 billion at year end • Well controlled selling and administrative expenses due to economies of scale • Net FX gain of RMB242m partially offset by RMB172m bad debts write-off • Net gain of RMB374m from disposal of JV interests 6
Slide 7: Sales Volume Breakdown
Sales Volume Breakdown (Y/E December) 2016 2015 YoY change Total 765,970 510,097 +50% - Domestic 744,191 484,363 +54% - Exports 21,779 25,734 -15% Key Models: New Emgrand 230,403 198,302 +16% Vision 153,075 135,401 +13% Kingkong 63,412 56,090 +13% GC9 47,078 32,571 +45% Vision SUV/GX7 69,059 57,533
Slide 8: 2016 Final Results
2016 Final Results Y/E December (RMB m) 2016 2015 YoY change Turnover/Revenue 53,722 30,138 +78% Gross profit margin ratio* 18.3% 18.2% +1% Operating margin ratio** 11.1% 9.3% +19% Profit after tax 5,170 2,289 +126% Attributable profit 5,112 2,261 +126% Diluted EPS (RMB cents)# 57.33 25.66 +123% Cas
Slide 9: Financial Analysis
Financial Analysis Y/E December 2016 2015 YoY change Sales of vehicles (RMB m) 52,846 28,853 +83% Average unit price (RMB) 68,993 56,564 +22% Return on equity 20.9% 11.6% +81% EBITDA ratio* 14.2% 13.0% +9% Selling expenses (% of T/O) 4.7% 5.2% -10% Admin. expenses (% of T/O) 4.8% 7.2% -34% * EBITDA
Slide 10: Financial Summary
Financial Summary • Subsidy income down 5% • Improved operational efficiency as reflected by significant improvement in operating margin • Higher capex at RMB4.0bn to support faster growth • Genius AFC approached breakeven 10
Slide 11: Profitability
Profitability 25.0% 9.0% 8.0% 20.0% 7.0% 6.0% 15.0% 5.0% 4.0% 10.0% 3.0% gross margin selling expenses % T/O 5.0% 2.0% operating margin 1.0% administrative expenses % T/O 0.0% 0.0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2008 2009 2010 2011 2012 2013 2014 2015 2016 11
Slide 12: Operational Summary
Operational Summary • New product cycle well received • SUVs now 31% of total sales volume vs 12% a year ago • Genius AFC achieved its business plan and is on track for faster growth & positive return • Global launch of “Lynk&Co” brand • Customer after service satisfaction continued to improve • Exp
Slide 13: 2017 Outlooks
2017 Outlooks • The strongest new model renewal cycle to continue • Improved overall market environment • New CMA models under “Lynk&Co” brand to facilitate entry to new markets • Further increase in Capex to sustain future growth • Target to sell 1,000,000 units of vehicles in 2017, +31% YoY 13
Slide 14: New Products
New Products • Two new compact SUVs • Upgraded versions of existing major models • New HEV, PHEV models • New models from CMA platform 14
Slide 15: YTD Sales Performance
YTD Sales Performance (First 2 Months of 2017) • Monthly sales volume of “Boyue” exceeded 20,000 units so far in 2017 • Total sales volume +105% YoY • Domestic sales volume +113% YoY • Exports sales volume - 60% YoY • Well on track to achieve FY sales volume target 15
Slide 16: www.geelyauto.com.hk
Ma GEELY www.geelyauto.com.hk a
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