Geely Automobile Holdings Limited · HKEX:175
Geely Automobile — Investor Presentation (July 2014)
31 slides from Geely Automobile's investor presentation, Jul 22, 2014
Slide 1: Opportunities in China Passenger Vehicle Market
Opportunities in China Passenger Vehicle Market 22 July 2014
Slide 2: China Passenger Vehicle Market
China Passenger Vehicle Market (sales volume, ‘000 units) 18,000 SUV 16,000 MPV 14,000 sedan 12,000 10,000 8,000 6,000 4,000 2,000 - 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 1H2014 Source: China Association of Automobile Manufacturers 2
Slide 3: China Passenger Vehicle Market
China Passenger Vehicle Market (+/- % YoY growth) 50% 47% 45% 40% 35% 34% 35% 30% 25% 25% 25% 23% 20% 15% 11% 10% 8% 8% 7% 5% 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 1H2014 Source: China Association of Automobile Manufacturers 3
Slide 4: China MPV Market
China MPV Market (+/- % YoY growth) 180% 165% 160% 140% 120% 100% 79% 80% 60% 55% 43% 40% 23% 26% 18% -12% 20% 12% -1% 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 1H2014 -20% -40% Source: China Association of Automobile Manufacturers 4
Slide 5: China SUV Market
China SUV Market (+/- % YoY growth) 120% 101% 100% 80% 60% 50% 49% 47% 40% 37% 25% 25% 21% 21% 20% 20% 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 1H2014 Source: China Association of Automobile Manufacturers 5
Slide 6: China Passenger Vehicle Market
China Passenger Vehicle Market (3MMA +/- % YoY growth) 300% sedans 250% MPVs SUVs 200% 150% 100% 50% 0% 10 10 10 10 10 10 4 4 7 4 7 4 7 7 4 7 4 7 4 2010 2008 2009 2011 2012 2013 2014 -50% Source: China Association of Automobile Manufacturers 6
Slide 7: China Passenger Vehicle Market
China Passenger Vehicle Market (engine size & transmission types) 100% 100% 90% 90% 80% 80% 70% 70% 60% 60% > 2.0L 50% 50% Others 1.6-2.0L 40% 40% Manual 1.0-1.6L 30% 30% Automatic <= 1.0L 20% 20% 10% 10% 0% 0% Source: China Association of Automobile Manufacturers 7
Slide 8: China Sedan Market
China Sedan Market (market share of indigenous brands) 100% 90% 80% 70% French 60% Korean 50% American 26% 26% German 40% 26% 30% 31% 29% Chinese 28% 28% 30% Japanese 22% 20% 10% 0% 2006 2007 2008 2009 2010 2011 2012 2013 1H2014 Source: China Association of Automobile Manufacturers 8
Slide 9: China Sedan Market
China Sedan Market (top models by sales volume, 1H2014) Models Engines Ret ail Pric es Shanghai VW Lavida 1.4L-1.6L RMB107,800-165,900 Changan Ford Focus 1.6L-2.0L RMB99,800-169,900 Shanghai VW Santana 1.4L-1.6L RMB84,900-123,800 FAW VW Sagitar 1.4L-2.0L RMB131,800-225,800 FAW VW Jetta 1.4L-1.6L RMB
Slide 10: China MPV Market
China MPV Market (top models by sales volume, 1H2014) Models Engines Ret ail Pric es SGM Wuling Hongguang 1.2L-1.5L RMB44,800-69,800 Changan Honor 1.3L-1.5L RMB44,900-60,900 Dongfeng LZ Lingzhi 1.5L-2.4L RMB56,900-138,900 Dongfeng LZ Joyear 1.5L RMB59,900-73,900 SH GM Buick GL8 2.4L-3.0L RMB209,000-
Slide 11: China SUV Market
China SUV Market (top models by sales volume, 1H2014) Models Engines Ret ail Pric es Great Wall Haval 1.5L-2.4L RMB92,800-318,800 Shanghai VW Tiguan 1.4L-2.0L RMB199,800-315,800 Dongfeng Honda CRV 2.0L-2.4L RMB193,800-262,800 Beijing Hyundai IX35 2.0L-2.4L RMB169,800-242,800 Chery Tiggo 1.6L-2.0L RM
Slide 12: China Passenger Vehicle Market
China Passenger Vehicle Market (top manufacturers by sales volumes, 1H2014) Shanghai Volkswagen FAW Volkswagen Shanghai GM Shanghai GM Wuling Beijing Hyundai Chongqing Changan Dongfeng Nissan Changan Ford Dongfeng Peugeot-Citroen Dongfeng Yueda Kia - 200,000 400,000 600,000 800,000 1,000,000 Source:
Slide 13: China Passenger Vehicle Market
China Passenger Vehicle Market (top manufacturers by market shares, 1H2014) Shanghai Volkswagen 9.8% FAW Volkswagen 9.4% Shanghai GM 8.5% Shanghai GM Wuling 8.2% Beijing Hyundai 5.7% Chongqing Changan 5.5% Dongfeng Nissan 4.9% Changan Ford 4.2% Dongfeng Peugeot-Citroen 3.6% Dongfeng Yueda Kia 3.2% 0
Slide 14: Geely Automobile In Figures
Geely Automobile In Figures Year started: 1998 Total workforce: 18,138 (on 31/12/2013) Manufacturing facilities: 8 car plants in China Products: 16 major sedan models under 5 platforms Distribution network: 882 dealers in China, 41 sales agents, 527 sales and service outlets in 41 oversea countries
Slide 15: Geely Automobile - Financial Performance
Geely Automobile - Financial Performance 15
Slide 16: Geely Automobile - Strengths
Geely Automobile - Strengths • Management-owned, market driven • Cost effective supply chain • Professional management team • Abundant intellectual resources • A vertically integrated operation • Experience and track record in China • Strong cooperative relationship with Volvo Car 16
Slide 17: Geely Automobile - Strategy
Geely Automobile - Strategy Products • Platform and modular architecture; • Focus on powertrain technology; • In-house international design capabilities; • Joint product architecture with Volvo Car; • Gradual transition from hybrid to pure electric; • Partnership to speed up electrification offering
Slide 18: Geely Automobile - Vehicle Safety
Geely Automobile - Vehicle Safety 18
Slide 19: Geely Automobile – Overall Sales
Geely Automobile – Overall Sales First Half 2014 Overall: 187,186 units, -29% YoY Domestic: 152,856 units -28% YoY Exports: 34,330 units -32% YoY Mid-Size Sedans (EC7+GC7+SC7+Vision) 96,476 units -32% YoY SUVs (GX7+SX7) 29,333 units +4% YoY 19
Slide 20: Geely Automobile – Domestic Sales
Geely Automobile – Domestic Sales • Sales volume in China fell in the first half of 2014 due to the reshuffle of the sales and marketing system and the current major model upgrading cycle, but started to recover since March 2014 • Sales volume in January 2014 was also affected by the Group’s effort
Slide 21: Geely Automobile - Exports
Geely Automobile - Exports Export Sales Volume (units) 140,000 120,000 100,000 80,000 60,000 40,000 20,000 - 2007 2008 2009 2010 2011 2012 2013 1H2014 Top Export Destinations Emgrand7 (EC7) is 1H2014 Russia the most popular Egypt export model, accounting Belarus for half of the total exports Iran vo
Slide 22: New Products – 2014 EC7
New Products – 2014 EC7 2013 EC7 2014 EC7 Engine: 1.5L, 1.8L petro engines Engine: 1.3L Turbocharged Transmissions: 5MT, CVT engines Dimension: 4635/1789/1470 Transmissions: 6MT, CVT Wheelbase: 2650 Power: 98/5500(Kw/rpm) Safety: Euro-NCAP 4 star Max. Torque: 185/2000-4500 N.m/rpm C-NCAP 5 star Emis
Slide 23: New Products - SUVs
New Products - SUVs GX7 GX9 Engine: 1.8L, 2.0L, 2.4L petro Engine: 2.4L petro, engines 2.0L diesel engines Transmissions: 5MT, 6AT Transmissions: 6MT, 6AT Dimension: 4541/1833/1700 Dimension: 4839/1884/1715 Wheelbase: 2661 Wheelbase: 2800 Safety: C-NCAP 5 star+ Seat Capacity: 5 or 7 Seat capacity: 5
Slide 24: New Products – Sedans
New Products – Sedans EC8 EC9 Engine: 2.0L, 2.4L petro engines Engine: 1.8T, 3.5L petro engines Transmissions: 5MT, 6AT Transmissions: 6AT, 7DCT Dimension: 4905/1830/1495 Dimension: 4956/1860/1516 Wheelbase: 2805 Wheelbase: 2850 Safety: C-NCAP 5 star MSRP: RMB99,800-209,800 24
Slide 25: New Products – Engines
New Products – Engines JLB-4G15 JLB-4G13T No. of cylinders: 4 No. of cylinders: 4 Displacement: 1.498 L Displacement: 1.299 L Power 75/6000 KW/rpm Power 98/5500 KW/rpm Max. Torque: 141/3800~4200 N.m/rpm Max. Torque: 185/2000~4500 N.m/rpm Emission: Euro V Emission: Euro V 25
Slide 26: New Energy Vehicles
New Energy Vehicles JL7001BEV (2013) EC7-EV (2014/2015) EC7 Petro Hybrid Emgrand Cross Plug-in Hybrid (2014/2015) (2015) 26
Slide 27: Geely + Volvo Car = ?
Geely + Volvo Car = ? Zhejiang Geely Geely Auto Product Logistics; Platform Exports Volvo Car Financing; Powertrain; Services Technology Human Manufacturing; Resources Supply Chain 27
Slide 28: Opportunities
Opportunities • China has amongst the lowest penetration rates for motor vehicles in the World • In addition to new demand, there are substantial replacement and substitution demand for motor vehicles in China • Chinese government has consistently promoting fuel efficient and environmentally friendl
Slide 29: Challenges
Challenges • Fierce competition from both foreign and indigenous brands • Substantial capex needed to narrow technology gap, expand product range and increase production capacity • Product and brand differentiation • Rising production costs in China • Regulation risk: – New vehicle purchase restrict
Slide 30: Outlooks
Outlooks • Despite its size, China’s auto market is still at early stage of development • Very low level of financial leverage in China’s auto market and amongst major industry players • Growth stabilizing after exceptional strength in 2009-2010 • Unlike other consumer sectors, indigenous brands are
Slide 31: 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
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