2019 Annual Results Presentation 601238.SH | 02238.HK Disclaimer
The presentation has been prepared by Guangzhou Automobile Group Co., Ltd.
(“GAC” or the “Company”) without independent verification. The presentation does not express or imply any representations or warranties, and shall not be relied upon for the accuracy, fairness or completeness of the information described or contained herein. The Group and any of its affiliates, advisors or representatives shall not be liable for any loss arising in any way from any information described or contained herein. You are advised against relying upon any prospective remarks contained in the presentation.
601238.SH | 02238.HK | www.gac.com.cn Contents
01 02 03 04 I n d u s t r y O p e r a t i o n F i n a n c i a l K e y w o r k D e v e l o p m e n t R e s u l t s R e s u l t s i n 2 0 2 0 O v e r v i e w O v e r v i e w O v e r v i e w n Due to the macroeconomic downturn, Sino-US trade friction, lacking of consumer confidence, emission standard switching and other factors, the industry situation remained grim. Negative growth in sales volume of automobile market for 18 consecutive months; n 25.77 million vehicles were sold in 2019, down by 8.2% YoY. 21.44 million passenger vehicles (PV) were sold, decreased by 9.6% YoY. Commercial vehicle (CV) sales were 4.32 million units, declined by 1.1% YoY.
Unit: 10K 14% 13.70% 6.90% 4.70% 3.00% 3% 4% -2.80% -8.20%
2,803 2,888 2,808 416 2,460 365 437 2,577 2,198 2,349 345 432 1,931 379 1,851 406 403 381
2,437 2,472 2,371 2,115 2,144 1,793 1,970 1,447 1,550
2011 2012 2013 2014 2015 2016 2017 2018 2019
Source: CAAC PV CV Total sales Vol.
601238.SH | 02238.HK | www.gac.com.cn Unit: 10K 2% 2% 2% 100% 5% 3% Fierce “stock competition" in all 9% 7% 6% 15% 12% 8% 7% 90% 7% 10% 10% segments of PV market 3% 80% 13% 17% 21% 70% 29% 45% 41% 42% 44% n In the context of the overall market decline, all M微in客ivan segments of PV market have slipped in 2019. 60% n In terms of sales share, the share of SUV has 50% MPV steadily increased while the share of MPV has SUV 40% gradually decreased, and the share of sedan has 69% 67% 63% S轿e车dan stabilized in recent years.。 30% 55% 60% 48% 49% 48% 20% 10% 0% 4.7%3.4% 2012 2013 2014 2015 2016 2017 2018 2019 8.9% 37.3% Proprietary German and Japanese brands Gernman further expanded market share 21.3% Japanese US n In terms of sales by brand origins, sales of Japanese and Korean German brands gained contrarian growth, and the other Others brands presented different degrees of decline. 24.2% n German and Japanese brands’ market share increased to 24.2% and 21.3% respectively.
Source: CAAC
6012385.SH | 02238.HK | www.gac.com.cn 广州汽车集团股份有限公司 125.6 120.6 德系日系进一步扩大市场份额
Unit: 10K 77.6 105.3 106.2 50.6 57.8 33.6
17.0 19.8 20.3 14.4
2016 2017 2018 2019
商Com用me车rcial Vehicles 乘Pas用sen车ger Vehicles
Source: CAAC Negative growth in new energy vehicle market throughout the year n In 2019, new energy vehicle (NEV) sales reached 1.206 million units, down by 4.0% YoY. n New energy passenger vehicles sales reached 1.062 million, an increase of 0.9% YoY. New energy commercial vehicle sales were 0.144 million, decreased by 29.1% YoY. New energy passenger vehicles are still the main driving force for new energy vehicle sales growth. n From the perspective of sales volume trend, the sales of new energy vehicles achieved year-on-year growth in each month of the first half of 2019, mainly because of the release of demand ahead of schedule caused by the transition period of implementing subsidy policy ended on June 25. n Affected by the subsidy phase-down, sales in each month of the second half of 2019 showed a decline, of which the year- on-year decrease in October reached 45.7%. 6 广州汽车集团股份有限公司 Contents
01 02 03 04 I n d u s t r y O p e r a t i o n F i n a n c i a l K e y w o r k D e v e l o p m e n t R e s u l t s R e s u l t s i n 2 0 2 0 O v e r v i e w O v e r v i e w O v e r v i e w GAC Ranked 189th in the Fortune Global 500
Humanity Credibility Creativity n In 2019, GAC ranked the189th in the Fortune Global 500, entering into the top 200 for the first time and up by 13 places. n Since first entry in 2013, GAC has obtained a position in the Fortune Global 500 list for seven consecutive years, and the ranking has reached a new high.
601238.SH | 02238.HK | www.gac.com.cn GAC’s scale ranked No.5 in the industry GAC's domestic market share Sales declining rate lower than that of the industry increased by 0.4% n Sino-US economic and n The annual sales decline is 4.2 percentage n trade frictions Active adjustment points lower than that of the industry; and active response n Switch from China V to n The retail sales volume reached 2.085 million China VI n Sales promotion, units, realizing a positive growth; cost reduction and n The sales volume ranked in top five in China, n Phase-down of new improve weak links with the market share of 8%, rising by 0.4 energy subsidies percentage points and presenting strong resilience.
800 5.00% Unit: 10K 700 0.00% 600 -3.99% 500 -5.00% 400
300 Industry average growth rate-8.23% -10.00%
200 -15.00% GAC FCA 7.4 100
0 -20.00%
D F G S F A B A A L W A C G C I I E H C C C E E H L R A YG Y N R G E A A N T W B A r L i L l l 2018 2019 IncGreraiosweth rate a n c e
A u t o 601238.SH | 02238.HK | www.gac.com.cn GAC Motor Proprietary brand: Staying focused, honing abilities tirelessly GAC New Energy
n The retail sales reached 387,000 units; the total inventory at n GAC New Energy sold 42,000 vehicles in the whole the year-end decreased by 41.63% YoY; year, with a year-on-year growth of 110.5%; n Stabilized quantity and price to build a healthy market order and n Established the second generation of pure electric boost dealers' confidence significantly; exclusive platform GEP: "Battery + three in one n The second generation GS4, developed on the all new GPMA integrated electric drive" as the central layout, and platform, sold more than 10,000 units in the first month of cooperated with the leading parts suppliers such as launch; CATL and NIDEC ; n The brand IQS has risen by three places to the ranking No. 6 n Aion S: became the No.2 pure electric car in sales in among the mainstream automobile enterprises, and has the second month after its launch. Under the overall topped proprietary brand for seven consecutive years, industrial slippery and phase-down of new energy making the best-ever achievement among Chinese brands. subsidies, the sales volume of Aion S ramped up GAC Motor was the only auto brand won the " Annual cutting- gradually, with an accumulated annual sales volume of edge brand of 2019 China brand power grand ceremony”; 32,000 units; n Promoted proprietary brand marketing innovation: "Golden n Aion LX: has become a new benchmark of proprietary marketing triangle in digital era" and "4 × 2 + 1 project"; pure electric vehicle with 650km NEDC mileage, 3.9s upgraded more than 500 GAC Motor dealers. 0~100km acceleration and Level 2.5 autonomous driving.
601238.SH | 02238.HK | www.gac.com.cn JV brand: JV cooperation hit new high
GAC Honda GAC Toyota n The capacity utilization rate n The capacity utilization rate is reached 117.7%; 139.7%; n 776,600 vehicles were n 670,600 vehicles were produced, produced, up by 1.7% YoY; up by 11.9% YoY, and 682,000 785,000 vehicles were sold, vehicles were sold, up by 17.6% up by 4.1% YoY; YoY; n Accomplished 7 months’ n All indicators achieved double- production and sales targets digit growth; in 6 months; n The product lineup became richer, n Launched new models such and the proportion of new energy as Breeze and Odyssey Sport and energy-saving products hybrid. continued to increase.
GAC Mitsubishi GAC FCA n Implemented the reform of n Overcame the downward production and sales integrated pressure of the market; operation; n Retail sales increased by n Improved the response speed to 3.5% YoY. the market.
601238.SH | 02238.HK | www.gac.com.cn R&D: Continuously strengthen R&D and innovation, accelerate the accumulation of development momentum Promoted 53 vehicle projects Developed and launched 14 models Launched the second generation GS4, Aion S, Aion LX and other new models; completed the development of next generation of B / C platform.
13 powertrain project Independent grasp on the core components Miller cycle 1.5TM engine SOP successfully; the prototype trial production of fourth generation engine of 2.0T GDI was pulled ahead. Inde pend Completed development of multiple technological innovation ent projects d and achieved mass production application R&D Single pedal control system, vehicle Ethernet projects etc.
Intelligent connectivity automobile ecosystem Released ADiGO ecosystem (for intelligent and connected driving).
Improved independent innovation capability, and 1,454 new patent applications were filed in 2019. Mark et reco According to evaluation results of National Enterprise Technology gniti Center of NDRC in 2019, GAC scored 96.4 points, ranking No.6 in on the country and No.1 in the automobile industry.
601238.SH | 02238.HK | www.gac.com.cn Vehicle capacity steadily increased by 19% Capacity utilization over 81%
Unit: 11000K00 vehicles GAC Motor(INC new 52 energy) 82
GAC Honda(INC Honda 65 China) 65
48 GAC Toyota 60
20 GAC Mitsubishi 20
GAC FCA 32.8 GAC FIAT 32.8
0 20 40 60 80 100 Designed capacity by 2018.12.31 Designed capacity by 2019.12.31
In 2019, the vehicle production capacity was steadily increased, and key projects were steadily promoted as planned. n The total capacity reached 2.613 million units / year, with the overall capacity utilization rate more than 81%; n GAC Industrial Park for Intelligent and Connected NEVs project was promoted as planned, and GAC New Energy’s intelligent ecological plant phase I has been put into operation; n Phase II of the capacity expansion project for GAC Honda Zengcheng plant was put into operation in February 2020, with an additional capacity of 120,000 vehicles / year installed.
601238.SH | 02238.HK | www.gac.com.cn GAC Vehicle Business Unit Take organizational reform to improve management efficiency
n Adjusted the BoD of three subsidiaries for self-owned brand to have the same Board directors; n Improved the efficiency of integrated operation, GAC R&D GAC New communication and coordination of proprietary brand. Center Energy Deepen enterprise reform under the guidance of "double hundred actions"
n Implemented the Group’s professional managers reform for the first full year, tackled with tough market challenges GAC Motor and achieved substantial results in numerous work.
Take the opportunity of professional managers reform to stimulate entrepreneurship and enthusiasm
n Started the reform of professional managers in investing enterprises and further stimulated their vitality. n Continued to improve and optimize the assessment and motivation mechanism of professional managers.
601238.SH | 02238.HK | www.gac.com.cn n o i t a c i f i r t c e l E n Aion S gained the second place of pure electric sedan and the third place of pure electric vehicle in July, with a growth against the trend; Aion LX has been well received by customers with its g high-tech, high-quality and high-performance since its launch; n i other models such as GAC Honda VE-1, GAC Toyota iA5, GAC r
a Mitsubishi Qizhi EV etc. were launched. h n The first model of GAC NIO, GAC Honda’s pure electric model, s
- GAC R&D’s hydrogen fuel cell and other projects are advancing r
a in an orderly manner. C
n OnTime was officially launched on June 26, and the Group's sharing strategy was officially implemented. n After 5 months of operation, the cumulative user registration n has exceeded 1 million with more than 2.1 million orders, and o i t has achieved the full coverage of key transport hubs. a z i t i g i D n GAC officially regarded digitalization as one of the medium and long-term development strategies to fully integrate and leverage the Group's resources and capabilities to promote digitalization transformation. At present, achievements have been made in the construction of the Group's big data platform as well as digital marketing of various enterprises.
601238.SH | 02238.HK | www.gac.com.cn g n i v i r d
t n e g i l n l The ADiGO (for intelligent and connected driving) e t n
ecosystem, developed independently by GAC with I support from strategic partners including Tencent, Huawei, was released to create a large ecosystem for intelligent and connected vehicles. n Promoted the construction of GAC Industrial Park for Intelligent and Connected NEVs, whose approved n
investment scale has reached 28.5 billion RMB. o i t
Guangdong Intelligent and Connected Automobile a z i Innovation Center was officially established to further l a
support the sound development of GAC’s intelligent and n o i new energy industry. t a n r e t n n Cultivated the markets along the Belt and Road, newly I expanded to 8 countries including Israel and Kampuchea, and has achieved penetration to 24 countries around the world. n Adjusted the overseas business platform, and completed the registration of GAC MOTOR International （HK） Company and the opening of GAC Motor Russia. The export of proprietary brand GAC Motor increased by 97.6% YoY.
601238.SH | 02238.HK | www.gac.com.cn Contents
0011 02 03 04 I n d u s t r y O p e r a t i o n F i n a n c i a l K e y w o r k D e v e l o p m e n t R e s u l t s R e s u l t s i n 2 0 2 0 O v e r v i e w O v e r v i e w O v e r v i e w Summary of Balance Sheet
(RMB 100mm) 31-12-2019 31-12-2018 change (%)
Non-current assets 805.45 659.33 22.16%
Current assets 568.65 661.87 -14.09%
Total assets 1,374.10 1,321.20 4.00%
Non-current liabilities 133.70 140.24 -4.67%
Current liabilities 415.85 401.75 3.51%
Total liabilities 549.55 541.99 1.40%
Total equity 824.54 779.21 5.82%
Financials in this section are prepared in accordance with China Mainland Financial Reporting Standards.
601238.SH | 02238.HK | www.gac.com.cn Summary of Comprehensive Income
（RMB 100 mm, except EPS） 2019 2018 Change (%)
Revenue 597.04 723.80 -17.51%
Cost of operation 551.48 582.41 -5.31%
Sales and distribution cost 45.53 50.73 -10.24%
Administrative expenses 32.44 40.56 -20.03%
R&D expenses 10.02 8.38 19.57%
Financial expenses 0.26 -1.51 117.43%
Income from investment 96.26 90.03 6.92%
Net profit attributed to the parent company 66.18 109.03 -39.30%
Earnings per share (RMB) 0.65 1.07 -39.25%
Financials in this section are prepared in accordance with China Mainland Financial Reporting Standards.
601238.SH | 02238.HK | www.gac.com.cn Summary of Cash Flow
（RMB 100 mm） 2019 2018 Change (%)
Net cash flows from operating -3.81 -12.68 69.99% activities
Net cash flows from investment -48.26 -55.81 13.54% activities
Net cash flow from financing -23.25 -24.74 6.02% activities Net increase in cash and cash -75.01 -92.46 18.87% equivalents Ending cash and cash 305.65 380.66 19.71% equivalents
Financials in this section are prepared in accordance with China Mainland Financial Reporting Standards.
601238.SH | 02238.HK | www.gac.com.cn （RMB 100mm） 2018 2019 -17.51% 800.00 -2.36% 723.80 3637
700.00 3551
-28.44% 597.04 600.00
503.94 500.00
400.00 360.60
+15.13% 300.00
188.51 200.00 163.74 -15.05% -14.16% 100.00 28.82 24.74 27.30 23.19
0.00 整 Ve车hic制le 造 业 零 部 Pa件rts制 造 业 Tr商ade贸 se服rvi务ces 金 Fin融an及ce 其ser他vices 合Tot计al Sales revenue incl. JVs and Affiliates manufacturing manufacturing and other
Financials in this section are prepared in accordance with China Mainland Financial Reporting Standards.
601238.SH | 02238.HK | www.gac.com.cn (RMB 100mm) 109.5
27.9 67.1
8.2
5.2 -1.8 -1.8 6.2
-86.3
Net profit of this period Financials in this section are prepared in accordance with China Mainland Financial Reporting Standards.
601238.SH | 02238.HK | www.gac.com.cn Net Profit Attributed to the Weighted Average Parent Company Return on Equity (RMB100mm) 109.03 14.97%
66.18 8.46%
2018 2019 2018 2019
Earnings per Shares Annual Dividend Payout Ratio ((R单M位B：) 元） 1.07
0.65 35.66% 30.94%
2018 2019 2018 2019 Financials in this section are prepared in accordance with China Mainland Financial Reporting Standards.
601238.SH | 02238.HK | www.gac.com.cn 23 广州汽车集团股份有限公司 Contents
01 02 03 04
I n d u s t r y O p e r a t i o n F i n a n c i a l K e y w o r k D e v e l o p m e n t R e s u l t s R e s u l t s i n 2 0 2 0 O v e r v i e w O v e r v i e w O v e r v i e w Operational work will Business development will emphasize "stability" highlight "quality"
Increasing uncertainties in the macro The energy revolution, the intelligent economy and the coronavirus revolution and the Internet revolution of the outbreak in country will cause greater automobile industry are on the way, and downward pressure to the entire innovative technologies and business automotive industry. models are emerging.
The industry competition changes In the new year, confronting with the rapidly from incremental to stock. increasingly complex internal and external The market shuffle will be further situation, GAC will be pragmatic and stick to intensified, bringing more and more our original aspiration, keep strategic focus, intense competition. innovate development mode, and unswervingly promote high-quality development. Operation and management will Development and reform will focus on "efficiency" focus on "transformation"
601238.SH | 02238.HK | www.gac.com.cn 8 proprietary brand products n GAC Motor: second generation GS4 PHEV and Coupe, GA8 MCA, GM8 MCA and GS3 MCA n GAC New Energy: pure electric medium SUV, compact crossover model n GAC NIO: first model HYCAN 007
11 joint venture products n GAC Toyota: Wildlander (including hybrid), C-HR EV n GAC Honda: Breeze hybrid, Crider hybrid, Avancier MCA, the fourth generation Fit, VE-1 MCA, Acura CDX MCA n GAC FCA: Jeep Compass MCA n GAC Mitsubishi: ASX MCA
601238.SH | 02238.HK | www.gac.com.cn Adhere to customer- Insist on innovation and Stick to the goal and orientation and create new enhance core strive to stabilize growth marketing experience competitiveness n Increase revenue and reduce n Highlight the cultivation of star n Improve the R&D, production expenditures to promote cost models; and sales integration reduction and efficiency n Focus on quality control and mechanism, improve enhancement; cost control; proprietary brand integrated n management and the efficiency Fully explore operation n Build a digital "Golden triangle" potential and commence to of communication and sales and service system coordination; compile the 14th five-year-plan. centered on customer n experience, and expand the Strengthen core technological service ecosystem. capabilities and enhance competency of independent innovation system.
601238.SH | 02238.HK | www.gac.com.cn Stay focused, face up to Keep nonstop reform and Persist on open difficulties, and cultivate new driving force promote high quality cooperation and integrate comprehensively development resoureces for all-win n Implement the task of "double n Promote the project of GAC n hundred reform"; Steadily promote Industrial Park For Intelligent internationalization, improve And Connected NEVs, n Continue optimizing the assessment the level of joint venture facilitate the development of mechanism for professional managers, critical parts and components and accelerate the implementation of cooperation, and propel open for intelligent and connected the reform of professional managers innovation and cross-border system and make phased in investing enterprises; integration. achievements; n Continuously enhance brand value n Constantly enrich the new and actively fulfill social responsibility; energy vehicle product lineup; n Shoulder the responsibilities of full n Accelerate the digital and strict governance over the Party, transformation of the Group clean employment, safe production, and actively innovate the stability maintenance and mobility operation mode. comprehensive governance, and risk prevention and control.
601238.SH | 02238.HK | www.gac.com.cn THANKS