Chinasoft International Ltd. · HKEX:354
Chinasoft International — FY2011 Earnings Presentation
29 slides from Chinasoft International's earnings presentation, March 2012
Slide 1: ChinaSoft International 2011 Annual Investor Presentation
ChinaSoft International (0354.HK) 2011 Annual Investor Presentation March 2012
Slide 2: Disclaimer
Disclaimer These presentations and/or other documents have been written and presented by Chinasoft International Limited (“ChinaSoft International” or “the Company”). The information presented or contained in these materials is subject to change without notice and its accuracy is not guaranteed.
Slide 3: Agenda
Agenda 1 Company Background 2 2011 Annual Financial Highlights 3 Business Review and Development 4 Future Outlook 5 Appendix 3
Slide 4: Snapshot of ChinaSoft International
Snapshot of ChinaSoft International Headcount 14496 Service IT Consulting and Solutions (47.5%) Offering 10940 IT Outsourcing (49.0%) (% of service revenue1) Others (3.5%) 7759 4816 4363 2382 477 1055 238 Government & Manufacturing (24.6%) 2003 2004 2005 2006 2007 2008 2009 2010 2011 Vertica
Slide 5: Business Development History
Business Development History Leading China based IT Services platform 2011 2010 that serves the world with deep domain expertise Headcount: 14,496 New Industries: and end-to-end service offerings Headcount: 10,940 New Industries: Energy, Insurance Telecommunications New Offering: New Off
Slide 6: Core Strength
Core Strength ResourceOne® middleware platform Putting equal emphasis on organic growth and based on SOA and cloud computing, with M&A to be the Leading IT Services Company independent IP rights, provides application in fast-growing China market software for industry solutions for various Leading In
Slide 7: Agenda
Agenda 1 Company Background 2 2011 Annual Financial Highlights 3 Business Review and Development 4 Future Outlook 5 Appendix 7
Slide 8: Key Financial and Operating Data
Key Financial and Operating Data RMB’000 2011 2010 Growth% Revenue 2,243,754 1,601,211 40.1% Service Revenue 1,959,885 1,374,424 42.6% Gross Profit 729,491 513,204 42.1% Segment Results 218,589 166,539 31.3% EBITDA 293,184 200,836 46.0% Non-GAAP Operating Profit* 323,380 233,687 38.4% Non-GAAP Net P
Slide 9: Key Financial and Operating Ratio
Key Financial and Operating Ratio Gross Margin Non-GAAP Operating Margin Service Gross Margin Total Gross Margin Service Operating Margin Total Operating Margin 36.9% 36.6% 37.3% 37.2% 17.0% 16.5% 32.1% 32.5% 14.1% 14.6% 14.4% 30.5% 12.7% 27.9% 10.6% 10.5% 2008 2009 2010 2011 2008 2009 2010 2011 EBI
Slide 10: Financial and Operating Ratio Analysis
Financial and Operating Ratio Analysis Per Per Service Per Per Service Per RMB’000 2011 2010 Service Revenue Growth% Revenue% revenue% Revenue% revenue% G% Revenue 2,243,754 1,601,211 40.1% Service Revenue 1,959,885 87.3% 1,374,424 85.8% 42.6% Cost of sales 1,514,263 67.5% 1,088,007 67.9% 39.2% ——Sa
Slide 11: Business Distribution
Business Distribution Service Revenue by Industry Verticals Service Revenue by Service Type Others Others 3.5% 3.5% G&M 24.6% Hi-Tech 26.9% IT Consulting &Solutions IT 47.5% Outsoucing Services 49.0% BFSI 18.0% Telecom 27.0% Charging mode: Charging mode: time and material fixed price Total 2011 Serv
Slide 12: Segment Revenues and Results
Segment Revenues and Results Segment Revenue Segment Service Revenue Segment Results* RMB'000 2011 2010 Growth 2011 2010 Growth 2011 2010 Growth G&M 726,905 471,820 54.1% 579,534 364,431 59.0% 54,586 36,997 47.5% BFSI 488,052 392,059 24.5% 351,554 272,661 28.9% 43,615 36,168 20.6% IT Outsourcing 959
Slide 13: Customers Analysis
Customers Analysis Top Customers Concentration Customer Analysis • For the 2011, the service revenue from the top 5 Top 10 Clients % customers accounted for 38.4% of the Group’s total service revenue. 77.0% • For the 2011, the service revenue from the top 65.0% 10 customers accounted for 43.7% of th
Slide 14: Agenda
Agenda 1 Company Background 2 2011 Annual Financial Highlights 3 Business Review and Development 4 Future Outlook 5 Appendix 14
Slide 15: Deep Domain Expertise in China's Most Attractive Verticals
Deep Domain Expertise in China’s Most Attractive Verticals Government & Manufacturing BFSI • Audit: continues to be leading vendor. The Golden Auditing • Bank: The deficiency-free start-up of the new generation of Project has been reaching its peak, and our new businesses, Shanghai Bank credit card
Slide 16: Deep Domain Expertise in China's Most Attractive Verticals
Deep Domain Expertise in China’s Most Attractive Verticals Telecommunications High Technology • With Telecom Operators: • Customer relationships remain stable, with sustained growth in business volume • Has signed the contract with China Mobile on the convenience card platform construction project i
Slide 17: Strong and differentiated human supply platform
Strong and differentiated human supply platform Nationwide Training Centers Superior Talent Management • The Group collaborates with over 400 universities and educational institutions. The training business achieved profitability growth as well as ensuring talents supply to the company, training mor
Slide 18: Win-win Strategic Cooperation
Win-win Strategic Cooperation Hony Capital is major shareholder of CSI 1st Chinese company awarded as Global Premier Vendor among 3,500 vendors worldwide CSI will be the major IT service provider for the Hony Capital’s portfolio companies 1st Chinese company as Top 10 MSIT Global Vender and
Slide 19: Agenda
Agenda 1 Company Background 2 2011 Annual Financial Highlights 3 Business Review and Development 4 Future Outlook 5 Appendix 19
Slide 20: Leading IT Services Company in the Fast-growing Chinese Market
Leading IT Services Company in the Fast-growing Chinese Market China Domestic IT Services Market Leadership in China IT Services Market size Ranked Top 3 by IDC in Consulting & Solutions for Government 51.6 industry vertical in 2007-2010 (In USDbn) 43.0 Ranked Top 2 by IDC in IT Outsourcing for
Slide 21: Vision and Development Objective of ChinaSoft International
Vision and Development Objective of ChinaSoft International Vision Grow together with China as a global IT service company rooted in China with end to end service capability. Become a world-class enterprise in booming China market with abundant human resources as competitive advantage. Values Missio
Slide 22: Driving Revenue Growth
Driving Revenue Growth Focus on key directions in the “Twelfth Five-Year Plan”: Fast growth driven by government’s 5-year-plan (2011-2015) which promotes IT Services in areas such as Social Security, Insurance, Agriculture, Power, High-speed Railway and Large SOEs, etc Focus on Expand software s
Slide 23: Driving Margin Expansion
Driving Margin Expansion Focus more on consulting and solution：Increasing of reusability of solutions for both Lines of Business, we can increase the Gross Margin of the whole Group . Focus on high margin customers：By increasing the weighting of Mobile Internet related business which enjoy a muc
Slide 24: Thank You
www.chinasofti.com THANK YOU
Slide 25: Reconciliations of GAAP NP to Non-GAAP NP and Non-GAAP OP
Reconciliations of “GAAP NP” to “Non-GAAP NP” and Non-GAAP OP” Per Per Per Per Per Service RMB’000 2011 Revenue Service 2010 Revenue Service Growth% Revenue % revenue% % revenue% G% GAAP Net Profit 121,076 5.4% 6.2% -29,736 -1.9% -2.2% 8.3% NA +Loss in FV changes of p shares 37,287 1.7% 1.9% 145,197
Slide 26: Service Revenue by Contract Model
Service Revenue by Contract Model RMB'000 2011 2010 Growth Fixed Price 1,000,427 51.0% 691,507 50.3% 44.7% T&M 887,783 45.3% 620,560 45.2% 43.1% Volume Base 71,675 3.7% 62,357 4.5% 14.9% Total 1,959,885 100% 1,374,424 100% 42.6% 26
Slide 27: Operating Cash flow
Operating Cash flow Net Cash flow from Operating Activities (In RMBmm) 123 121 92 86 44 38 12 2005 2006 2007 2008 2009 2010 2011 27
Slide 28: Days Receivable Comparison with Peers
Days Receivable Comparison with Peers Days Outstanding of AR Days of AR Comparison for 2011 185 92 151 142 137 134 127 126 150 174 137 2006 2007 2008 2009 2010 2011 28
Slide 29: Aging Analysis of Accounts Receivables
Aging Analysis of Accounts Receivables (Audited) (Audited) RMB’000 % % 2011 versus 2010 31 Dec,2011 31 Dec,2010 Within 90 days 483,793 48.2% 370,973 52.5% 112,820 30% Between 91-180 80,316 8.0% 40,565 5.7% 39,751 98% days Between 181-365 39,804 4.0% 16,347 2.3% 23,457 143% days Between 1-2 years 30,
Chinasoft International — FY2011 Earnings Presentation on 6ix