Chinasoft International Ltd. · HKEX:354
Chinasoft International — H1 2013 Earnings Presentation
28 slides from Chinasoft International's earnings presentation, August 2013
Slide 1: ChinaSoft International 2013 Interim Results
ChinaSoft International (0354.HK) 2013 Interim Results Investor Presentation August 2013
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 2013 Interim Financial Highlights 3 Business Review and Development 4 Growth Strategy 5 Appendix 3
Slide 4: Snapshot of ChinaSoft International
Snapshot of ChinaSoft International Headcount 18946 18612 17053 Service Professional Services (47.5%) 14496 Offering 10940 Outsourcing Services (49.0%) (% of service 7759 revenue1) Training (3.5%) 4816 4363 2382 477 1055 238 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2012 2013 June June
Slide 5: Business Distribution
Business Distribution Service Revenue by Industry Verticals Service Revenue by Service Type ESG: Others Gov't & Training 4.7% MFG 3.5% 18.9% OSG: Telecom IT 26.5% PSG: Outsourcing Services IT 49.0% Consulting & Solutions BFSI 47.5% 20.5% Public Charging mode: Charging mode: Hi-Tech 24.1% Services ti
Slide 6: Business Development History
Business Development History Leading China based IT Services platform 2012/13 2010 that serves the world with deep domain expertise Headcount: 18,612 Service Revenue: and end-to-end service offerings Headcount: 10,940 New Industries: US$405m (2012) Telecommunications Won China Mobile New
Slide 7: Core Strengths
Core Strengths Focused on both organic growth and M&A ResourceOne® Proprietary middleware to become the Leading IT Services Company in platform based on SOA and cloud computing, fast-growing China IT Services market supporting application software Leading Innovative development for various verticals
Slide 8: Agenda
Agenda 1 Company Background 2 2013 Interim Financial Highlights 3 Business Review and Development 4 Growth Strategy 5 Appendix 8
Slide 9: Key Financial and Operating Data
Key Financial and Operating Data RMB million 2013 H1 2012 H1 Growth% Revenue 1,372 1,174 16.9% Service Revenue 1,347 1,111 21.2% Gross Profit 407 361 12.9% EBITDA 157 142 10.5% Business Contribution Profit* 159 146 9.2% Profit for the Period 81 65 23.3% Net Profit attributable to Equity 72 60 21.1%
Slide 10: Key Financial and Operating Ratio
Key Financial and Operating Ratio Gross Margin Business Contribution Profit Margin Service Gross Margin Total Gross Margin Service Operating Margin Total Operating Margin 17.0% 16.5% 37.3% 37.2% 35.9% 14.6% 33.1% 14.4% 14.0% 32.1% 32.5% 32.5%30.7% 12.9% 13.1%12.4% 30.2% 11.8%11.6% 29.7% 2010 2011 20
Slide 11: Financial and Operating Ratio Analysis
Financial and Operating Ratio Analysis Per Per Per Per Service Service RMB million 2013 H1 Revenue 2012 H1 Revenue Growth% revenue revenue % % % % Revenue 1,372 1,174 16.9% Service Revenue 1,347 98.2% 1,111 94.7% 21.2% Cost of sales 964 70.3% 71.6% 813 69.3% 73.2% 18.7% ——Salary Costs 767 55.9% 57.0
Slide 12: Segment Revenues
Segment Revenues Revenue Service Revenue Results* RMB million 2013 H1 2012 H1 Growth 2013 H1 2012 H1 Growth 2013 H1 2012 H1 Growth Professional Services Business 664.0 587.9 12.9% 639.1 525.3 21.7% 67.7 55.1 22.8% (PSG) Outsourcing Services Business 660.6 551.1 19.9% 660.6 551.1 19.9% 50.8 61.6 -17.
Slide 13: Customers Analysis
Customers Analysis Top Customers Concentration Customer Analysis Top 10 Clients % • For the 2013 H1, the service revenue from the top 5 customers accounted for 39.5% of the Group’s total service revenue. 77.0% 65.0% • The service revenue from the top 10 58.0% 57.0% customers accounted for 44.8% of t
Slide 14: Agenda
Agenda 1 Company Background 2 2013 Interim Financial Highlights 3 Business Review and Development 4 Growth Strategy 5 Appendix 14
Slide 15: Professional Services Business (PSG)
Business Review and Development • Leading position as a service provider in the auditing industry, and captured first-mover advantages through completion of the local projects of Golden Auditing Project III. Government • Through close cooperation with Alibaba Cloud, became a cloud integration servic
Slide 16: Business Review and Development
Business Review and Development • The JV with Huawei achieved significant progress in its capability construction. Based on the capability of independent offshore delivery, it actively established ability to deliver to customers more rapidly with higher quality at lower cost, and delivered more proj
Slide 17: Agenda
Agenda 1 Company Background 2 2013 Interim Financial Highlights 3 Business Review and Development 4 Growth Strategy 5 Appendix 17
Slide 18: New Focus and Growth in New Decade
New Focus and Growth in New Decade FOCUS in the NEXT decade Last Decade Cloud Enabling to Next Decade Cloud Based Services Platform Centric Operations FOCUS in the LAST decade 450 million USD Service Capabilities 2012 2015 2020 Verticals Region Coverage (In RMB mm) 2,768 2,244 1,601 1,10
Slide 19: Growth Strategies
Growth Strategies • Identify industry sectors with native and dominating customer (大型甲方),e.g. tobacco, electricity; Strategic • Forge strong strategic relationships with this customer, first through projects, Relationships then programs and finally partnership (3P); goal: become the de-facto IT serv
Slide 20: Growth via Acquisition
Growth via Acquisition Growth by acquisition has been, and will continue to be, a significant part of ChinaSoft International’s growth strategy. We typically acquire to 1) expand presence in a specific industry sector (around a strategic customer) or 2) obtain new service capability or 3) expand reg
Slide 21: Moving Up the Value Chain
Moving Up the Value Chain Strengthening core competitiveness Moving up the value chain Enhancing profitability ESG Intelligence focused Emerging (Analytics, BI) Services Group 智慧型服务 PSG Experience focused Professional Service Group 经验型服务 Efficiency focused OSG 效率型服务 Outsourcing Service Group 21
Slide 22: Thank You
THANK YOU IR Contacts Janet Lai Tel +852 2915-2830 Email [email protected]
Slide 23: Detailed Reconciliations
Detailed Reconciliations Per Per Per Per RMB million 2013 H1 Revenue Service 2012 H1 Revenue Service Growth% % revenue% % revenue% Profit for the Period 80.7 5.9% 6.0% 65 4.8% 5.9% 23.3% Non-GAAP Profit for the Period* 80.7 5.9% 6.0% 65 5.6% 5.9% 23.3% +Taxation 5.5 0.4% 0.4% 17 1.5% 1.5% -68.0% +Fi
Slide 24: Days Receivable Comparison with Peers
Days Receivable Comparison with Peers Days Outstanding of AR Days of AR Comparison for 2012 119 199 185 177 156 151 142 157 134 137 126 206 156 2006 2007 2008 2009 2010 2011 2012 2012H1 2013H1 24
Slide 25: Operating Cashflow
Operating Cashflow Net Cash flow from Operating Activities (In RMBmm) 222 210 189 135 93 -49 -55 -97 -101 -288 -300 2008 H1 2008 H2 2009 H1 2009 H2 2010 H1 2010 H2 2011 H1 2011 H2 2012 H1 2012 H2 2013 H2 25
Slide 26: Aging Analysis of Accounts Receivables
Aging Analysis of Accounts Receivables (Unaudited) (Audited) 2013 Jun versus RMB milllion % % 2012 Dec 30 Jun,2013 31 Dec,2012 Within 90 days 550 34% 601 43% -51 -8% Between 91-180 days 299 18% 116 8% 183 157% Between 181-365 days 155 9% 55 4% 100 183% Between 1-2 years 45 3% 57 4% -12 -21% Over 2 y
Slide 27: Balance Sheet
Balance Sheet (Unaudited) (Audited) (Unaudited) (Audited) RMB’000 RMB’000 30 Jun, 2013 31 Dec, 2012 30 Jun, 2013 31 Dec, 2012 Current liabilities Current assets Trade and other payables 620,400 668,918 Bills payable 1,672 7,071 Inventories 48,109 23,989 Amounts due to customers for contract work 123
Slide 28: Shareholdings Structure
Shareholdings Structure % of As of 2013 June 30 No. of Shares Ordinary Shares Hony Capital 335,076,453 18.7% Dr. Chen Yuhong 171,579,039 9.6% Greater Pacific Capital 119,268,639 6.7% Far East Holdings International 113,399,822 6.3% Microsoft 97,250,000 5.4% Atlantis Investment 89,750,000 5.0% Manage
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