Geely Automobile Holdings Limited · HKEX:175
Geely Automobile — FY2013 Earnings Presentation
20 slides from Geely Automobile's earnings presentation, Mar 19, 2014
Slide 1: 2013 Final Results
2013 Final Results 19 March 2014
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: Financial Summary
Financial Summary Y/E December (RMB m) 2013 2012 YoY change Sales volume (units) 549,468 483,483 +14% Turnover/Revenue 28,708 24,628 +17% Gross profit margin ratio 20.1% 18.5% +8% Operating margin ratio* 12.0% 11.4% +5% Profit after tax 2,680 2,050 +31% Attributable profit 2,663 2,040 +31% Diluted E
Slide 4: Results Highlights
Results Highlights • 2013 results beat expectations helped by stronger vehicle sales in China and better product mix • Net profit up 31% to RMB2,663 million in 2013 (Diluted EPS up 16% to RMB 30.42 cents) • Key earnings growth drivers included 35% growth in the sales volume of “EC7” and 109% growth
Slide 5: Achievements
Achievements • Stable product prices and improving product mix (ASP +6%), reflecting Geely’s enhanced brand image • Continued recovery of domestic sales volume • Maintaining exports sales volume growth despite higher base of comparison and unfavorable environment at major export markets • Stronger f
Slide 6: Overall Sales Volume Breakdown
Overall Sales Volume Breakdown Model (Y/E Dec) 2013 2012 YoY change EC7 192,226 142,503 +35% GC7/SC7/Vision 117,485 93,823 +25% GX7/SX7 64,298 30,793 +109% Kingkong 51,247 78,444 -35% Free Cruiser 37,857 66,481 -43% Panda 35,085 31,471 +11% SC6 27,607 11,377 +143% SC3 12,241 12,952 -5% EC8 10,284 12
Slide 7: Overall Sales Volume Up 14%
Overall Sales Volume Up 14% Overall: 549,468 units, +14% YoY Domestic: 430,597 units +13% YoY Exports: 118,871 units +17% YoY EC7+GC7+SC7+Vision 309,711 units +31% YoY GX7+SX7 64,298 units +109% YoY 7
Slide 8: Domestic Sales Volume Breakdown
Domestic Sales Volume Breakdown Model (Y/E Dec) 2013 2012 YoY change EC7 130,108 108,394 +20% GC7/SC7/Vision 113,059 87,861 +29% GX7/SX7 54,948 30,778 +79% Kingkong 32,961 54,378 -39% Free Cruiser 29,357 46,702 -37% SC6 27,597 11,377 +143% Panda 24,464 20,266 +21% SC3 12,241 12,952 -5% EC8 4,732 6,5
Slide 9: Exports Sales Volume Breakdown
Exports Sales Volume Breakdown Model (Y/E Dec) 2013 2012 YoY change EC7 62,118 34,109 +82% Kingkong 18,286 24,066 -24% Panda 10,621 11,205 -5% GX7 9,350 15 +62233% Free Cruiser 8,500 19,779 -57% EC8 5,552 6,199 -10% GC7/SC7/Vision 4,426 5,962 -10% Others 18 576 -97% Total 118,871 101,911 +17% 9
Slide 10: Exports Sales Volume up 17%
Exports Sales Volume up 17% Top Export Models 10
Slide 11: Consolidated Income Statement
Consolidated Income Statement Y/E Dec (RMB m) 2013 2012 YoY change Turnover/(Revenue) 28,708 24,628 +17% Gross profit 5,766 4,559 +26% Other Income 1,062 1,048 +1% Selling Expenses -1,705 -1,483 +15% Admin. Expenses -1,682 -1,319 +28% Share-based payments -87 -79 +11% Finance costs, net -40 -195 -79
Slide 12: Net Profit up 31%
Net Profit up 31% • The earnings performance in 2013 was a result of: – 14% growth in overall sales volume – 6% increase in average ex-factory price – 20% increase in vehicle sales revenue – continued improvement in product mix – 79% decrease in net finance costs – Well-controlled selling and distri
Slide 13: Improved Profitability
25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Improved Profitability il operating margin 2008 2009 2010 2011 2012 2013 0.0% 2008 2009 =2010 2011 = =—2012 2013
Slide 14: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position (RMB m) 31 Dec 2013 31 Dec 2012 YoY change Non-current assets 11,348 11,525 -2% Inventories 1,784 1,822 -2% Trade/other receivables 14,785 13,476 +10% Total cash/bank balance 5,583 4,502 +24% Trade/other payables 16,075 15,183 +6% Short-term borrowings 96
Slide 15: Financial Analysis
Financial Analysis Y/E December 2013 2012 YoY change Sales of vehicles (RMB m) 27,828 23,145 +20% Average unit price (RMB) 50,646 47,872 +6% Return on equity 16.6% 15.8% +5% Gross margin ratio 20.1% 18.5% +8% Operating margin ratio 12.0% 11.4% +5% Selling expenses (% of T/O) 5.9% 6.0% -1% Admin. exp
Slide 16: Vehicle Safety
Vehicle Safety Year Test Models Ratings 2009 C-NCAP Geely Panda 5 star (45.3 pts) 2010 C-NCAP Emgrand EC7 5 star (46.8 pts) 2011 Euro-NCAP Emgrand EC7 4 star 2011 C-NCAP Emgrand EC8 5 star (49.6 pts) 2012 C-NCAP GLEagle GX7 5+star (50.3 pts) 2013 C-NCAP Englon SC515 5 star (55.4 pts) 16
Slide 17: New Products
New Products “GX7” facelift “GX2” facelift “SC5-RV” facelift “SC6” facelift “Geely Kingkong” upgraded version “EC7” upgraded version “EC7-RV” upgraded version “GX9” full size SUV “EC9” large size sedan (“KC”) 17
Slide 18: 2014 New GX7
2014 New GX7 • New styling • New interior • Enhanced seating, storage space • More powerful powertrain with sport mode • NVH noise cancellation technology • Bosch’s 9th generation ABS+EBD • Four new colours • Volvo Car technologies 18
Slide 19: Outlook
Outlook • Key challenges: rapid changes in regulatory environment in China, fierce competition and increasingly demanding customer expectations • Positives: enhanced brand image, product quality and service quality, strong financial position, new cycle of product renewal, and new export markets. • C
Slide 20: www.geelyauto.com.hk
Ma GEELY www.geelyauto.com.hk a
Geely Automobile Holdings — FY2013 Earnings Presentation on 6ix