长城汽车股份有限公司 Great Wall Motor Company Limited *
2013 Interim Results
* For identification purpose only August 2013 Disclaimer This presentation is prepared by Great Wall Motor Company Limited (the “Company”) and is solely for the purpose of corporate communication and general reference only. The presentation is not intended as an offer to sell, or to solicit an offer to buy or form any basis of investment decision for any class of securities of the Company in any jurisdiction. All such information should not be used or relied on without professional advice. The presentation is a brief summary in nature and do not purport to be a complete description of the Company, its business, its current or historical operating results or its future prospects.
This presentation is provided without any warranty or representation of any kind, either expressed or implied. The Company specifically disclaims all responsibilities in respect of any use or reliance of any information, whether financial or otherwise, contained in this presentation.
2 Results highlights - Overview
Sales volume of automobiles reached 370,000 units, representing a 41.3% YoY growth
Operating revenue amounted to RMB26.42 billion, representing a 44.5% YoY growth
Net profit attributable to shareholders of the Company amounted to RMB4,09 billion, representing a 73.7% YoY growth
Average monthly sales volume of Haval M4 amounts to 10,000 units
Average monthly sales volume of Haval H6 amounts to 15,000 units
3 Contents
一 Financial Review
二 Operations Review
三 Future Prospects
四 Q&A
4 Financial Review Operations Review Future Prospects
Balance Sheet RMB million Changes as at As at 31 As at 31 As at 31 As at 30 the end of 2013 December December December June 2013 interim period 2010 2011 2012 compared to end of 2012 (%) Current assets 14,825 20,374 25,848 26,200 1.4
Including: cash and bank 3,095 7,107 6,337 7,364 16.2 balances
Bills receivable 7,726 8,703 14,791 13,658 -7.7
Non-current 8,873 12,761 16,721 18,682 11.7 assets
Total liabilities 13,298 16,113 20,926 20,983 0.3
Total assets 23,698 33,135 42,569 44,882 5.4 Total shareholders’ 10,400 17,022 21,643 23,899 10.4 equity 5 Financial Review Operations Review Future Prospects
Income statement RMB million % change 2011 2012 2012 1H 2013 1H in 2013 1H compared to 2012 1H
Revenue 30,089 43,160 18,288 26,417 44.5
Gross profit 7,496 11,598 4,811 7,651 59.0
Operating 4,012 6,663 2,811 4,873 73.3 profit Net profit attributable to 3,426 5,692 2,354 4,087 73.7 shareholders of the parent company Basic earnings per 1.22 1.87 0.77 1.34 73.7 share (RMB)
6 Financial Review Operations Review Future未来发展 Prospects
Cash Flow Statement RMB million % change 2011 2012 2012 1H 2013 1H in 2013 1H compared to 2012 1H Net cash flow from operating 4,449 4,337 2,432 4,953 103.7 activities
Net cash flow from investing -3,491 -3,936 -2,333 -2,179 -6.6 activities
Net cash flow from financing 3,283 -1,104 -918 -1,680 82.9 activities Effect of foreign exchange rate changes on cash and -8 -8 2 -9 -480.9 cash equivalents Net increase in cash and 4,233 -711 -817 1,085 232.8 cash equivalents
Cash and cash equivalents 6,306 5,596 5,489 6,681 21.7 at the end of the period
7 Financial Review Operations Review Future未来发展 Prospects Other Financial Indicators Overall gross margin EBIT Margin 30% 30% 29.0% 25% 28% 26.3% 18.7% 26.1% 20% 15.6% 26% 15.5% 15.4% 24.2% 15% 24% 10%
22% 5%
20% 0% 10-1H 11-1H 12-1H 13-1H 10-1H 11-1H 12-1H 13-1H Operating profit margin 30% Expenses as a % of revenue for the Period 6% 25% 5.0% 18.4% 3.8% 3.8% 3.9% 20% 4% 15.4% 15.0% 3.7% 3.2% 15% 3.7% 3.5% 12.0% 2% 10% 0% 5% 10-1H 11-1H 12-1H 13-1H 0% Selling expenses as a % of revenue 10-1H 11-1H 12-1H 13-1H Administrative expenses as a % of revenue 8 Financial Review Operations Review Future未来发展 Prospects Other Financial Indicators-Cont Accounts receivable turnover (Day) Accounts payable turnover (Day) (including bills receivable) (including bills receivable) 110 120
105 100 109.4 98.3 96.1 100 104.3 103.7 80 101.6 89.2 95 60
90 40 89.6 85 20
80 0 10 11 12 13-1H 10 11 12 13-1H Inventory turnover (Day) Weighted average return on net 60 53 assets 50 20% 17.6% 43 41 16.9% 40 15% 13.3% 30 26 10.9% 10% 20 5% 10
0 0% 10-1H 11-1H 12-1H 13-1H 10-1H 11-1H 12-1H 13-1H 9 Financial Review Operations Review Future未来发展 Prospects
Domestic sales Revenue by car segment RMB million 27,000 22,427 RMB million Overall analysis 86.7% 57.6% 30,000 18,000 13,171 46.5% 25,020 32.9% 25,000 9,000 16.9% 5,714 3,226 316 20,000 0 70.8% 14,398 Pick-up SUV Sedan Other Total 15,000 RMB million Export 6,000 10,000 9.5% 30.4% 6,045 8.9% 4,260 4,000 5,000 2,593 8.7% 10.8% 317 2,000 0 1,034 1,227 0.9% Pick-up SUV Sedan Other Total 331 1 0 11-1H 12-1H 13-1H Pick-up SUV Sedan Other Total
10 目 录
一 Financial Review
二 Operations Review
三 Future Prospects
四 Q&A
11 Financial Review Operations Review Future未来发展 Prospects
Automobile industry vs. Company’s performance 120% Growth rate of automobile101.3% industry Total 100% SUV 80% 60% 47.1% Sedan 48.1% 40% 25.3% 20.2% 25.5% 41.6% 20% 27.0% 6.6% 6.1% 11.7% 0% 6.8% 2008 2009 2010 2011 2012 2013/1H
‘000 units Industry ‘000 units SUV 25000 74.2% 73.2% 80% 2500 200% 70% 167.1% 20000 2000 150% 60% 15000 41.3% 50% 1500 101.3% 90.0% 100% 45.5% 78.0% 34.3% 40% 27.3% 47.1% 10000 32.4% 30% 1000 50% 25.3% 20.2% 11.7% 20% 41.6% 5000 500 16.5% 0% 12.3% 7.6% 25.5% 10% -15.1% 6.7% 4.3% 0 2.5% 0% 0 -50% 2008 2009 2010 2011 2012 2013/1H 2008 2009 2010 2011 2012 2013/1H Industry sales volume GWM sales volume Industry GWM Industry growth rate GWM growth rate Industry growth rate GWM growth rate
Source: China Association of Automobile Manufacturers, GWM’s data 12 Financial Review Operations Review Future未来发展 Prospects SUV market competition
The top 10 enterprises in terms of SUV The top ten ranked localbrand middle-level sales volume in 2013 1H SUV's sales volume models in 2013 1H
GWM Haval H6
Beijing Hyundai Chery Tiggo
Shanghai VW BYD S6
DF Honda ZhonghuaV5
DF Yueda KIA Haval H5
FAW VW Changan CS35
FAW Toyota Geely GX7
DF Nissan Haima Qishi
Changan Ford JAC S5
Chery ‘000 units Santa Fe ‘000 units
0 50 100 150 200 0 20 40 60 80 100
Sources: China Association of Automobile Manufacturers, GWM’s data 13 Financial Review Operations Review Future未来发展 Prospects Great Wall Motor’s sales volume in past 5 years
‘000 units Sales volume by car segment Sales volume contribution by car segment 700 100% 2.9% 3.1% 1.4% 1.3% 0.9% 0.6% 1.2% 6.0 8.1% 90% 600 29.0% 33.8% 32.0% 33.4% 80% 36.6% 40.5% 199.0 500 6.0 70% 36.5%
60% 400 5.0 4.0 188.0 50% 24.4% 108.0 39.9% 300 123.0 37.7% 45.0% 50.3% 280.0 2.0 40% 31.9% 6.0 87.0 200 147.0 30% 77.0 137.0 186.0 52.5% 3.0 10.0 105.0 20% 35.9% 100 51.0 44.0 27.1% 26.3% 26.1% 137.0 22.0% 99.0 122.0 10% 19.5% 63.0 75.0 68.0 72.0 0 0% 2008 2009 2010 2011 2012 2012 2013 2008 2009 2010 2011 2012 2012 2013 1H 1H 1H 1H Pick-up truck SUV Sedan Others Pick-up truck SUV Sedan Others
14 Financial Review Operations Review Future未来发展 Prospects
Great Wall Motor -- Domestic sales and export volume in past 5 years The proportion of ‘000 units Export and Domestic sales volume export and domestic sales 700 100% 15.6% 13.7% 17.3% 11.3% 90% 15.4% 600 17.1% 95.5 80% 43.4% 500 79.3 70%
60% 400 41.9 50.0 525.9 50% 86.3% 84.6% 88.7% 300 40% 45.4 84.4% 82.7% 82.9% 32.7 383.4 200 30% 56.6% 313.5 328.4 52.2 20% 216.6 100 177.2 10% 68.2 0 0% 2008 2009 2010 2011 2012 2012 2013 2008 2009 2010 2011 2012 2012 2013 1H 1H 1H 1H Domestic sales Export Domestic sales Export 15 Financial Review Operations Review Future未来发展 Prospects Domestic sales and export analysis
Domestic sales ‘ Export ‘000 units 000 units 350 328.40 50 7.8% 51.6% 41.90 300 40
250 95.4%
30 9.0% 200 169.70 7.6% 25.6% 150 18.20 20 16.40 11.9% 100.30 4.1% 100 54.00 10 7.30 50 4.40 - - 0 Pick-up SUV Sedan Others Total Pick-up SUV Sedan Others Total truck truck 2011 1H 2012 1H 2013 1H 2011 1H 2012 1H 2013 1H
16 Financial Review Operations Review Future未来发展 Prospects
Key models Specification Dimension 4640*1825*1690 Haval哈弗H6 H6 (mm) Wheelbase 2680 (mm)
Displacement 1.5T/2.0L/2.4L
5MT Transmission 6MT 4AT
Price 100.8-151.8 ‘000 units 2012 2013 (RMB’000) 18 16 14 12 10 8 6 4 2 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
17 Financial Review Operations Review Future未来发展 Prospects
Key models Specification Dimension 3961*1728*1617 Haval哈弗M4 M4 (mm) Wheelbase 2383 (mm)
Displacement 1.5L
Transmission 5MT
Price (RMB’000) 63.9-71.9
‘000 units 2012 2013 18 16 14 12 10 8 6 4 2 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
18 Financial Review Operations Review Future未来发展 Prospects
Key models Specification
Dimension 4452*1705*1480 Great长城 WallC30 C30 (mm) Wheelbase 2610 (mm)
Displacement 1.5L
5MT Transmission CVT
Price 64.5-83.5 (RMB’000) ‘000 units 2012 2013 18 16 14 12 10 8 6 4 2 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
19 Financial Review Operations Review Future未来发展 Prospects
Key models Specification
Dimension 4650*1775*1455 Great长城 C50Wall C50 (mm) Wheelbase 2700 (mm)
Displacement 1.5T
Transmission 5MT
Price (RMB’000) 78.8-91.8 ‘000 units 2012 2013 18 16 14 12 10 8 6 4 2 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
20 Financial Review Operations Review Future未来发展 Prospects
Key models Specification Dimension 5360*1800*1730 Wingle风骏5 5 (mm) Wheelbase 3350 (mm)
Displacement 2.2L/2.4L/2.8L
Transmission 5MT
Price (RMB’000) 67.8-122.8 ‘000 units 2012 2013 18 16 14 12 10 8 6 4 2 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
21 目 录
一 Financial Review
二 Operations Review
三 Future Prospects
四 Q&A
22 Financial Review Operations Review Future Prospects Increase R&D investment Comparison of R&D expenses of GWM with USD million those of overseas automobile manufacturers R&D expenses as a % of revenue 9000 7% 8000 6% 7000 5% 6000
4% 5000
3% 4000
2% 3000
1% 2000
0% 1000 2010 2011 2012 2013 (E) 0
Great Wall Motor Hyundai 2010 2011 2012 KIA Toyota Great Wall Hyundai KIA Toyota Honda GM Ford BMW Honda GM Ford BMW
23 Financial Review Operations Review Future Prospects New R&D facilities
New technology center New testing grounds
24 Financial Review Operations Review Future Prospects
Innovative Marketing Strategies – Independent Brand
Great Wall Motor Corporate brand
HAVAL Brand Product brand Great Wall Brand
M4 C30 C50 H6 up truck- up
truck pick
Model HAVAL H5 HAVAL HAVAL Great Wall Great Wall Great Wall Great Wall Subsequent SUV models Great Wall Great Wall Othersedan and pickup Wingle
25 Financial Review Operations Review Future Prospects Innovative Services - Improving sales service quality
Fourth season
Decisive advantage in Third season 2013.07- sales service 2012.11-2013.05 Enhance management of Second season Enhance customer satisfaction level staff and facility 2012.06-2012.10 First season Improve customer Improve the relation among Company Manage sales 2011.07-2011.11 relationship Dealer and service procedure customer Detailing standard procedure
26 Financial Review Operations Review Future Prospects New Model - Haval H6, sporty version
Specification
Dimension 4640*1825*1690 (mm)
Wheelbase 2680 (mm)
Displacement 1.5T/2.0L/2.4L
5MT Transmission 6MT 4AT
27 Financial Review Operations Review Future Prospects New Model - Haval H2
Specification
Dimension 4330*1815*1700 (mm)
Wheelbase 2560 (mm)
Displacement 1.5T
Transmission 6MT
28 Financial Review Operations Review Future Prospects New Model - Haval H8
Specification
Dimension 4806*1975*1794 (mm)
Wheelbase 2915 (mm)
Displacement 2.0T
Transmission 6AT
29 Financial Review Operations Review Future Prospects Capital Expenditure Amount Year Applications (RMB billion)
• Investment in Tianjin production base • Expansion of production capacity of automotive 2011 3.8 parts and components • New product development
• Investment in automobile production base • Expansion of production capacity of automotive 2012 4.4 parts and components • New product development • Research and development center
• Investment in automobile production base • Expansion of production capacity of automotive 2013 1H 2.5 parts and components • New product development • Research and development center
• Expansion of production capacity of automobile 2013 2H 2.6 and automotive parts and components • Investment in research and development
30 Q&A Session
31