2012 Annual Results

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2012 Annual Results 長城汽車股份有限公司 Great Wall Motor Company Limited * 2012 Annual Results * For identification purpose only March 2013 Improving little by little every day 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 Improving little by little every day Results highlights - Overview Sales volume of automobiles reached 621,000 units, representing a 34.3% YoY growth Revenue amounted to RMB43.16 billion, representing a 43.4% YoY growth Net profit attributable to shareholders of the parent company amounted to RMB5.69 billion, representing a 66.1% YoY growth The newly launched Haval M4 model delivered its best single- month sales volume of over 10,000 units Haval H6 model’s best single-month sales volume surpassed 15,000 units 3 Improving little by little every day Awards Received the “Best Automakers Listed among the “Most Award” from the Organizing Valuable Chinese Brands in 2012” Committee at the 2012 Guangzhou by Interbrand Automobile Exhibition Haval team finished 6th place at Received the “Self-owned Brand the 35th Dakar Rally Innovative Marketing Award” from China Marketing Association Enlisted in Forbes’ Top 50 Listed Haval H6 named as “CCTV Companies in Asia-Pacific Region Annual Top SUV in 2012” Named as “Star of China — Best Received “2012 China Outstanding Automaker 2012” by Global Finance Auto After-sales Service Brand magazine Name” by China Auto After-sales Service Quality Evaluation Center Enlisted in“Listed Companies with Named as the “Best Listed Highest Growth Potential in 2012” Company with Main Board IPO for by National Business Daily the Year” by China Business News 4 Improving little by little every day International cooperation 4 September: Cooperation with Germany’s 30 October: Cooperation with 3M Schaeffler Group Company 5 November: Cooperation with Dassault 30 November: Cooperation with Webasto Systèmes China 5 Improving little by little every day Contents 1 Financial Review 2 Operations Review 3 Future Prospects 4 Q&A 6 Improving little by little every day Financial Review Operations Review Future Prospects Balance Sheet RMB million As at 31 As at 31 As at 31 % change in December December December 2012 compared 2010 2011 2012 to 2011 Current assets 14,825 20,374 25,848 26.9 Including: cash and bank 3,095 7,107 6,337 -10.8 balances Bills receivable 7,726 8,703 14,791 70.0 Non-current 8,873 12,761 31.0 assets 16,721 Total liabilities 13,298 16,113 20,926 29.9 Total assets 23,698 33,135 42,569 28.5 Total shareholders’ 10,400 17,022 21,643 27.2 equity 7 Improving little by little every day Financial Review Operations Review Future Prospects Income statement RMB million % change in 2012 2010 2011 2012 compared to 2011 Revenue 22,986 30,089 43,160 43.4 Operating 2,968 4,012 6,663 66.1 profit Gross profit 5,688 7,496 11,598 54.7 Net profit attributable to shareholders of the 2,701 3,426 5,692 66.1 parent company Basic earnings per 0.99 1.22 1.87 53.3 share (RMB) 8 Improving little by little every day Financial Review Operations Review Future Prospects Cash Flow Statement RMB million % change in 2012 2010 2011 2012 compared to 2011 Net cash flow from operating 3,191 4,449 4,337 -2.5 activities Net cash flow from investing -2,307 -3,491 -3,936 12.8 activities Net cash flow from financing -1,212 3,283 -1,104 -133.6 activities Effect of foreign exchange rate changes on cash and cash -18 -8 -8 -2.0 equivalents Net increase in cash and cash -346 4,233 -711 -116.8 equivalents Cash and cash equivalents at 2,074 6,306 5,596 -11.3 the end of the year 9 Improving little by little every day Financial Review Operations Review Future Prospects Other Financial Guidance Overall gross margin Profit margin before interest and tax 30% 26.9% 30% 24.7% 24.9% 25% 20.2% 25% 20% 20% 13.7% 15.9% 15% 15% 13.2% 7.1% 10% 10% 5% 5% 0% 0% 2009 2010 2011 2012 2009 2010 2011 2012 Operating profit margin Expenses as a % of revenue for the Year 30% 6% 5.5% 25% 5% 4.7% 4.3% 4.0% 4.9% 4% 20% 15.4% 3.8% 3% 3.8% 4.0% 15% 12.9% 13.3% 2% 10% 6.7% 1% 5% 0% 2009 2010 2011 2012 0% 2009 2010 2011 2012 Selling expenses as a % of revenue Administrative expenses as a % of revenue 10 Improving little by little every day Financial Review Operations Review Future Prospects Other Financial Guidance Accounts receivable turnover (Day) Accounts payable turnover (Day) (including bills receivable) (including bills receivable) 120 120 100 100 109.4 104.3 103.7 98.4 80 80 98.3 96.1 89.6 60 60 64.6 40 40 20 20 0 0 2009 2010 2011 2012 2009 2010 2011 2012 Inventory turnover (Day) Weighted average return on net 60 assets 55 35% 30.8% 29.9% 50 27.8% 30% 45 43 39 40 38 25% 35 31 20% 14.0% 30 15% 25 10% 20 15 5% 10 0% 2009 2010 2011 2012 2009 2010 2011 2012 11 Improving little by little every day Financial Review Operations Review Future Prospects RMB million Domestic sales Revenue by car segment 34,828 36,000 49.5% Overall analysis 109.3% RMB million 27,000 19,163 40,729 10.7% 18,000 40,000 12.4% 9,874 44.5% 9,000 5,406 385 30,000 0 92.2% Pick-up SUV Sedan Others Total truck 21,843 RMB million Exports 20,000 5,901 6,000 12.4% 13.1% 20.7% 10,685 21.3% 7,809 10,000 4,000 12.6% 2,403 2,680 52.3% 2,000 392 811 0 7 Pick-up SUV Sedan Others Total truck 0 Pick-up SUV Sedan Others Total 2010 2011 2012 truck 12 Improving little by little every day Contents 1 Financial Review 2 Operations Review 3 Future Prospects 4 Q&A 13 Improving little by little every day Financial Review Operations Review Future Prospects Automobile industry vs. Company’s performance Growth rate of automobile industry 120% Total 100% 80% PV 60% 40% CV 20% SUV 0% -20% 2008 2009 2010 2011 2012 Sedan ‘000 units Industry ‘000 units 25,000 80.0% 2,500 SUV 200% 70.0% 20,000 60.0% 2,000 150% 15,000 50.0% 1,500 100% 40.0% 10,000 30.0% 1,000 50% 20.0% 5,000 500 0% 10.0% 0 0.0% 0 -50% 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 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 14 Improving little by little every day Financial Review Operations Review Future Prospects The Company’s sales volume by car segment in past 5 years Sales volume by car segment The proportion of each segment by sales volume ‘000 units 700 100% 2.9% 3.1% 1.4% 1.3% 0.9% 5.5 8.1% 90% 600 33.8% 32.0% 80% 36.6% 40.5% 199.3 500 6.1 70% 36.5% 60% 400 5.0 188.1 50% 24.4% 37.7% 45.0% 300 122.8 31.9% 280.0 40% 6.4 200 30% 147.5 52.5% 76.8 137.0 3.5 20% 35.9% 100 9.8 51.3 44.0 27.1% 26.3% 136.7 10% 22.0% 98.6 121.7 63.2 75.3 0 0% 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Pick-up truck SUV Sedan Others Pick-up truck SUV Sedan Others 15 Improving little by little every day Financial Review Operations Review Future Prospects Domestic sales and export volume in past 5 years Export and domestic sales volume The proportion of export and domestic sales ‘000 units 700 100% 13.74% 15.37% 90% 15.57% 17.13% 600 95.5 80% 43.36% 500 70% 79.3 60% 400 50% 50.0 86.26% 84.63% 300 40% 84.43% 82.87% 525.9 30% 56.64% 200 32.7 383.4 313.5 20% 100 52.2 177.2 10% 68.2 0% 0 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Domestic Exports Domestic Exports 16 Improving little by little every day Financial Review Operations Review Future Prospects Domestic sales analysis Domestic markets Domestic sales volume No. of units 37.2% 600,000 525,949 500,000 400,000 109.8% 3.3% 300,000 244,977 10.7% 181,107 200,000 94,421 100,000 Ranking 1 2 3 4 5 5,444 0 Pick-up SUV Sedan Others Total Provinces Shandong Hebei Guangdong Sichuan Henan trucks 2010 2011 2012 17 Improving little by little every day Financial Review Operations Review Future Prospects Exports Analysis Overseas markets Export sales volume No.
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