Geely Automobile Holdings Limited · HKEX:175
Geely Automobile — H1 2018 Earnings Presentation
15 slides from Geely Automobile's earnings presentation, Aug 22, 2018
Slide 1: 2018 Interim Results
2018 Interim Results 22 August 2018
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: 2018 First Half Results
2018 First Half Results • Attributable profit up 54% to RMB 6.67 billion • Sales volume up 44% • Improved profitability • Better operating efficiency • New contribution from Lynk&Co JV 3
Slide 4: 2018 Interim Highlights
2018 Interim Highlights • 7 models exceeding 10,000 monthly average volume • Market shares from 5.1% in 2017 to 6.4% in 2018_1H • ASP up 0.3% (up 7% if including Lynk&Co sales) • Higher margins • Strong operating cash flow 4
Slide 5: Profitability
Profitability 25.0% 7.0% 6.0% 20.0% 5.0% 15.0% 4.0% 3.0% 10.0% 2.0% 1H Gross margin 5.0% 1H Selling expenses % T/O 1H Operating margin 1.0% 1H Administration expenses % T/O 0.0% 0.0% 5
Slide 6: Sales Volume Breakdown
Sales Volume Breakdown (6M to June) 2018 2017 YoY Change Total 766,630 530,627 +44% -Domestic 757,931 526,779 +44% -Exports 8,699 3,848 +126% Key Models: Boyue 127,088 116,932 +9% New Emgrand 115,408 117,718 -2% New Vision 93,291 81,227 +15% Emgrand GS 84,117 58,260 +44% Emgrand GL 75,110 45,486 +65
Slide 7: 2018 Interim Results
2018 Interim Results 6M to June (RMB m) 2018 2017 YoY change Sales volume (units) 766,630 530,627 +44% Turnover/Revenue 53,709 39,424 +36% Gross profit margin ratio* 20.2% 19.2% +5% Operating margin ratio** 14.4% 13.5% +7% Profit after tax 6,736 4,386 +54% Attributable profit 6,670 4,344 +54% Dilute
Slide 8: Financial Analysis
Financial Analysis 6M to June 2018 2017 YoY Change Sales of vehicles (RMB m)# 52,810 38,776 +36.2% Average unit price (RMB)# 73,308 73,077 +0.3% Return on equity* 34.2% 31.0% +10.3% EBITDA** 8,928 6,173 +44.6% EBITDA margin** 16.6% 15.7% +5.7% Selling expenses (% of T/O) 4.2% 4.4% -4.5% Admin. expen
Slide 9: Financial Summary
Financial Summary • Subsidy income growth in line with R&D expense, Capex and Tax increase • Positive contribution from Lynk&Co and Genius AFC JVs • S&P credit rating upgraded to investment grade • Issuance of 300 million USD 5-year corporate bond at 3.625% coupon • Net cash up 6% to RMB 12.9 billio
Slide 10: Operational Summary
Operational Summary • Brand new product cycle characterized by new energy technologies • Tremendous success at Lynk&Co JV • NEV sales volume up 71% to 14,362 units • Good customer service satisfaction 10
Slide 11: Lynk & Co
Lynk & Co • “01” well received with 46,252 units sales volume in 2018_1H • Net profit of RMB 342 million in 2018_1H • “02” production started in Zhangjiakou plant • Launch of “01 PHEV” 11
Slide 12: New Energy Vehicles
New Energy Vehicles Sales Volume (units) New NEV models *2018 2018_1H 2017 2016 Borui GE PHEV 01 PHEV Borui GE MHEV - 20,000 40,000 * annualized EV - Range Per Charge (km) *2018 Emgrand EV350 Emgrand EV450 GSe 2017 2017 2016 - 200 400 600 * 1st Half Price Range (RMB '000) Emgrand EV300 Emgrand PHEV
Slide 13: New Products
New Products 2H 2018 • A0 segment SUV • A segment sedan • Boyue series sporty SUV • “03” sedan • “02 PHEV”, “03 PHEV” • MPV • Two pure electric vehicles • New NEV version for existing models 13
Slide 14: 2018 Outlooks
2018 Outlooks • Another new model cycle • Confident to accomplish and even exceed the annual sales target of 1,580,000 units • “New energy era” • YTD (first 7 months) total sales volume 43+% YoY to 886,907 units 14
Slide 15: www.geelyauto.com.hk
Ma GEELY www.geelyauto.com.hk a
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