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Copyright(c) SNE Research. All Rights Reserved. 2 CONTENTS

1. Company Introduction

2. Finance

3. Technology

4. Production

5. Existing Projects

Copyright(c) SNE Research. All Rights Reserved. 3 CONTENTS

1. Company Introduction 1.1 Company History 1.2 Company Profile 1.3 Organization 1.4 BYD Management Team 1.5 Key Employee List & Contacts 2. Finance 3. Technology 4. Production 5. Existing Projects

Copyright(c) SNE Research. All Rights Reserved. 4 1.1 Company History

 In 1995, established in with only 20 staff 0.3 MUSD investment.

 In 1998, became the first Chinese Li-ion battery supplier of Motorola.

 In 1999, set up its first industrial park in Shenzhen, .

 In 2002, became the first Chinese Li-ion battery supplier of Nokia.

 In 2002, BYD Co., Ltd. was listed on the HongKong Exchange (1211.HK).

 In 2003, started automotive business by M&A Qinchuan Auto (270 MRMB for 77% stock share).

 In 2005, first car F3 launched and started the BYD legend.

 In 2007, BYD Electronics (International) Co., Ltd. was listed on the HongKong Exchange (00285.HK).

 In 2008, acquired 10% stake in BYD.

 In 2008, launched first NEV, which is F3DM.

 In 2010, BYD and Daimler set up a JV to develop NEV in China.

 In 2011, BYD Co., Ltd. was listed on the Shenzhen Stock Exchange (002594.SZ).

 In 2013, opened its North American E-BUS and Iron-Phosphate battery plant.

Copyright(c) SNE Research. All Rights Reserved. 5 1.2 Company Profile Award

Copyright(c) SNE Research. All Rights Reserved. 6 1.2 Company Profile Robust Growth Record

 BYD had sustained growth in its company history. Since 2010, BYD was facing the traditional business downturn. In 2015, BYD has significantly increase due to NEV business. 12,349

9,047 8,596 7,800 7,650 7,100

6,000

4,000 3,105

2,000

952 967 586 337 0 7 13 31 62 127 190

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Revenue (MUSD)

Copyright(c) SNE Research. All Rights Reserved. 7 1.2 Company Profile Employee Number

 BYD is already a huge company with 180,000 employees, so it started to control the employee number since 2010, due to the weakness of economic. 180,000 180,000 180,000 180,000 180,000 180,000

150,000

130,000 120,000

100,000

55,000

36,000 26,000 20,000 13,00015,000 4,000 7,000 20 200 800

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Employee Number Copyright(c) SNE Research. All Rights Reserved. 8 1.2 Company Profile Site Locations

Copyright(c) SNE Research. All Rights Reserved. 9 1.2 Company Profile Site Locations

Copyright(c) SNE Research. All Rights Reserved. 10 1.3 Organization

Board Supervisor

Secretary of the Board

President

President Office

IT Automotive New Energy

Central BD1 BD6 BD11 BD16 HR R&D Center

Finance Automotive BD2 BD7 BD12 BD17 R&D Center

Marketing Electronic BD3 BD8 BD13 BD18 R&D Center

Logistic IP BD4 BD9 BD14 BD19

BD5 BD15

This report will mostly focus on BYD battery business, which is the Business Division 2 in BYD Group. Copyright(c) SNE Research. All Rights Reserved. 11 1.3 Organization Business Division Description

Business Established Responsibility General Manager Division Year

BD1 Ni-battery, Charger, FPC, Cables, Earphone, Metal surface decoration 1994 Wang Nianqiang

BD2 Li-Battery, Fe-Battery, Materials, UPS, Power system, Solar products 1998 He Long

BD3 Plastic surface decoration, Keypad/Mouse, Molding, Lens, Metal, Components 2002

BD4 LCD/LCM (CSTN/TFT), Touch panel, Backlight, Die cutting 2001

BD5 ODM R&D, JDM R&D (TD-SCDMA, CDMA, WCDMA, GSM) 2007

BD6 Power MOSFET CMOS, IC, LED driver, DC/DC, LDO, PMU 2005

BD7 LED, Camera, Lens, Intelligent security product 2003

BD8 Laptop, Bluetooth handset, Mobile power 2009

BD9 EMS, PCBA 2006

BD11 Pressing, Welding, Painting, Assembly, Oil tank 2003

BD12 Tooling factory 2003

BD13 Exterior, Interior, Light 2005 Lian Yubo

BD14 NEV key components 2008 Luo Hongbin

BD15 Car electronics, Body electronics, Safety electronics 2003 Zou Caisong

BD16 Chassis, Seat 2004

BD17 Engine, Transmission 2004 Zhang Jintao

BD18 Rubber, Plastic, Paint 2008

BD19 Bus 2009

This report will mostly focus on BYD battery business, which is the Division 2 in BYD Group. Copyright(c) SNE Research. All Rights Reserved. 12 1.3 Organization BD2 SVB

BD2 SVB (Shen Xi) ① Total 3,000 employee until the end of 2015

Manufacturing Engineering Planning Purchase Operation R&D QMT HR

Design 1

Design 2

Pack Design

Test

BD2 SVB is the plant for battery design and production. Copyright(c) SNE Research. All Rights Reserved. 13 1.4 BYD Management Team CEO Resume

Wang Chuanfu (王传福)

 Born on Feb 15th, 1966

 Hometown is Wuhu, Anhui

 1983~1987, bachelor at Metallurgical Physical Chemistry in Central South University.

 1987~1990, master at General Research Institute for Nonferrous Metals

 1990~1995, work in General Research Institute for Nonferrous Metals

 1993~1995, CEO of Bige Battery (sub company of General Research Institute for Nonferrous Metals)

 1995~now, Chairman of BYD

 Ranking No. 1 for wealth in China in 2009

 Has 5 elder sisters, 1 elder brother and 1 younger sister

 Father was dead when he was 13 years old and mother was dead when he was15 years old

Copyright(c) SNE Research. All Rights Reserved. 14 1.4 BYD Management Team Key Person Resume

Lv Xiangyang (吕向阳)

 Born on 1962

 Hometown is Anhui

 1978~1993, work in Bank of China Anhui Branch Company

 1993~now, Chairman of Youngy Investment

 1993~now, board member of BYD

 Lv Xiangyang is ’s elder cousin. When he worked in Bank of China, he provided a loan to Wang Chuanfu for establishing BYD without permission. Later he was fired and worked for BYD as board member.

Copyright(c) SNE Research. All Rights Reserved. 15 1.4 BYD Management Team Board Members

Name Position Resume

Wang Chuanfu Chairman See Page 12

Lv Xiangyang Director See Page 13

Born in 1963, Bachelor from USTB, MBA from Peking Xia Zuoquan Director University. Worked in PICC before join BYD. Join BYD in 1997.

Born in 1958, Bachelor from BIT. Current work as Dean in National Battery Test Center. He is very Wang Zidong Independent Director famous in China battery industry and his test center issues certification for battery used in NEV.

Born in 1977, Bachelor and Master from BJTU, PHD from Leeds School of Business, University of Zhang Ran Independent Director Colorado at Boulder. Currently Assistant Professor in Peking University.

Born in 1973, Master and PHD from University of Zou Fei Independent Director Texas. Currently Chairman of SYN Capital.

Copyright(c) SNE Research. All Rights Reserved. 16 1.4 BYD Management Team Supervisor Members

Name Position Resume

Born in 1934, Bachelor from Moscow Academy of Dong Junqing Supervisor Board Chairman Nonferrous Metals and Gold. Used to be professor at China Northeastern University.

Born in 1980, Bachelor from ZUEL. Worked in Huang Jiangfeng Supervisor Sinopec and Guosen Securities. Currently board member of Youngy Investment.

Born in 1961, Bachelor from XATU. Currently Li Yongzhao Supervisor Chairman of Qinchuan Group. (BYD M&A Qinchuan Motors to start automotive business in 2003)

Born in 1977, Bachelor from BAUU, Joined BYD in Yan Chen Employee Supervisor 2000. Currently General Manager of BYD Automotive Business.

Born in 1976, Bachelor from GDUFS. Joined BYD in Wang Zhen Employee Supervisor 1998. Currently Director of the president office.

Copyright(c) SNE Research. All Rights Reserved. 17 1.4 BYD Management Team Key Management Members

Name Position Resume

Wang Chuanfu Chairman & CEO See Page 12

Born in 1973, Bachelor from JXUFE, EMBA from Li Qian Secretary of the Board Peking University. Worked in PWC and ZTE before. Joined BYD in 2005.

Born in 1963. Bachelor from AHNU, MBA from Wu Jingsheng CFO Peking University, Got CPA in 1995. Worked in Youngy Investment before. Joined BYD in 1995.

Vice President Born in 1964, Bachelor and Master from NUAA. Lian Yubo Automotive Chief Engineer Worked in CATARC and TJ Innovation before. Join General Manager of BD13 BYD in 2004.

Vice President Born in 1972, Bachelor and Master from Peking He Long General Manager of BD2 University. Join BYD in 1999.

Born in 1970, Bachelor from Fudan University. Vice President Li Ke Worked in Asia Resources before. Joined BYD in COO of BYD International 1996.

Born in 1966, Bachelor from AFEU. Worked as Vice President Luo Hongbin teacher in several universities before. Joined BYD in General Manager of BD14 2003.

Copyright(c) SNE Research. All Rights Reserved. 18 1.4 BYD Management Team Key Management Members

Name Position Resume

Vice President Bornin 1958, Bachelor from WHUT. Joined BYD in Zhang Jintao General Manager of BD17 2002.

Vice President Born in 1963. Bachelor and Master from China Liu Huanming HR Head Northeastern University. Joined BYD in 1997.

Born in 1977. Bachelor from JXUFE. Joined BYD in Zhou Yalin Chief Accountant 1999.

General Manager of BYD Automotive Yan Chen See Page 15 Business

Wang Zhen Director of the President Office See Page 15

Born in 1964, Bachelor from CSU, MBA from CEIBS. Wang Nianqiang General Manager of BD1 Joined BYD in 1995.

Copyright(c) SNE Research. All Rights Reserved. 19 1.5 Key Employee List & Contacts

Name Position Phone number Email

Wang Chuanfu Chairman +86-13902466735 [email protected]

Vice President Lian Yubo Automotive Chief Engineer +86-13510883665 [email protected] General Manager of BD13

+86-755-89888888 ext Liu Huanming HR Head [email protected] 6001

Yan Chen Automotive Business General Manager +86-13632992366 [email protected]

+86-755-89888888 ext Wang Nianqiang General Manager of BD1 [email protected] 2104

Zhang Weiming NEV Business General Manager +86-18666281355 [email protected]

Shen Xi BD2 SVB General Manager +86-15986965688 [email protected]

Chen Wei NEV R&D Leader +86-18666280860 [email protected]

Wang Aihui NEV Marketing Director +86-18666282829 [email protected]

Liu Bin Purchase Director +86-13510886295 [email protected]

Copyright(c) SNE Research. All Rights Reserved. 20 1.5 Key Employee List & Contacts

Name Position Phone number Email

+86-755-89888888 ext Sun Huajun BD2 SVB Vice General Manager [email protected] 50500

Wang Gaowu BD2 SVB R&D JR Team Leader +86-18998125232 [email protected]

Yang Jianchun Automotive Business Manager +86-13510880276 [email protected]

Qiu Xiaoqin Automotive Business Manager +86-13632991767 [email protected]

Chen Yan Sales Senior Manager +86-18620333323 [email protected]

Tan Xin Senior Account Manager +86-13632990964 [email protected]

Guo Weinan BD2 SVB Project Manager +86-15986965542 [email protected]

Jiang Wenfeng BD2 SVB R&D Manager +86-18998120766 [email protected]

Wu Guanglin BD2 SVB Test Manager +86-18666201525 [email protected]

Wang Yun BD2 SVB QMT Manager +86-13510886541 [email protected]

Ling Heping NEV R&D Manager +86-18998126957 [email protected]

Yin Juelin BD2 SVB Project Engineer +86-13510889607 [email protected]

Copyright(c) SNE Research. All Rights Reserved. 21 CONTENTS

1. Company Introduction 2. Finance 2.1 Top 10 Shareholders 2.2 Annual Report 2.3 Battery Business Revenue 3. Technology 4. Production 5. Existing Projects

Copyright(c) SNE Research. All Rights Reserved. 22 2.1 Top 10 Shareholders

Name Number of Share Percent Comment

Hong Kong Securities Clearing Company HKSCC NOMINEES Ltd. Hongkong investors can’t buy China 688,848,800 27.82% LIMITED stock directly, so this company holds these stock on behalf of them.

Wang Chuanfu 512,623,800 20.70% Chairman of BYD

Chairman of Youngy Investment & Board Lv Xiangyang 239,228,600 9.66% member of BYD

BERKSHIRE HATHWAY 225,000,000 9.09% Owned by Warren Buffett ENERGY

Youngy Investment 162,681,900 6.57% A Chinese investment company

Xia Zuoquan 118,977,100 4.81% Board member of BYD

Guolian Securities 32,590,600 1.32% A Chinese Fund

Yang Longzhong 26,500,000 1.07% Co-founder of BYD

Central Huijin Investment 20,873,400 0.84% A Chinese investment company

Wang Nianqiang 19,049,700 0.77% VP of BYD

Total 2,046,373,900 82.65% Include 20.90% tradable shares

Source: BYD Annual Report Copyright(c) SNE Research. All Rights Reserved. 23 2.2 Annual Report

Year 2013 2014 2015 2015 over 2014 (%)

Total Asset 78,014,833,000 94,008,855,000 115,485,755,000 22.85%

Net asset 21,709,764,000 25,365,597,000 32,294,404,000 27.32%

Revenue 52,863,284,000 58,195,878,000 80,008,968,000 37.48%

Net Profit 553,059,000 433,525,000 2,823,441,000 551.28%

Net Cash Flow 2,436,169,000 38,069,000 3,842,094,000 9,992.45%

EPS 0.23 0.18 1.12 522.22%

ROE 2.58% 1.84% 10.22% 8.38%

Source: BYD Annual Report Copyright(c) SNE Research. All Rights Reserved. 24 2.2 Annual Report 2015 Quarterly Report

Quarter 1st 2nd 3rd 4th

Revenue 15,282,504,000 16,299,862,000 16,911,208,000 31,515,394,000

Net Profit 120,946,000 345,714,000 1,494,700,000 862,081,000

Net Cash Flow 3,937,007,000 -914,966,000 -4,563,051,000 5,383,104,000

Source: BYD Annual Report Copyright(c) SNE Research. All Rights Reserved. 25 2.2 Annual Report Revenue Composition

Year 2013 2014 2015

Revenue Percentage Revenue Percentage Revenue Percentage Total 52,863,284,000 100% 58,195,878,000 100% 115,485,755,000 100%

*Automotive 26,346,561,000 51.73% 27,089,182,000 48.12% 40,655,203,000 50.81%

Mobile Phone 19,546,955,000 38.38% 24,211,820,000 43.01% 33,262,988,000 41.57% By Industry LiB and PV 5,040,880,000 9.9% 4,992,161,000 8.87% 6,080,075,000 7.6%

Others - - - - 10,702,000 0.01%

China 43,885,622,000 86.16% 48,829,348,000 86.74% 72,365,195,000 90.45%

US 1,918,000,000 5.67% 2,148,425,000 3.82% 2,888,867,000 3.61%

By region Europe 1,146,391,000 3.77% 1,541,286,000 2.74% 1,363,431,000 1.7%

India 1,098,949,000 2.25% 284,654,000 0.51% 58,473,000 0.07%

Others 2,885,434,000 2.16% 3,489,450,000 6.2% 333,300,2000 4.17%

Source: BYD Annual Report * xEV battery business revenue is calculated in Automotive industry, not in LiB&PV industry

Copyright(c) SNE Research. All Rights Reserved. 26 2.3 Battery Business Revenue

 BYD has significantly increase compare to 2014 with % YOY.

 CE battery holds % of total battery revenue, where NEV/ESS battery holds %.

12,726 * Battery Business Revenue Unit: MRMB

6,589

5,070

2,988 2,643 2,403 2,265 1,270 1,287 1,389

Q1 Q2 Q3 Q4 Year 2014 2015

Source: Bright Intelligence investigate * CE battery + xEV&ESS battery Copyright(c) SNE Research. All Rights Reserved. 27 2.3 Battery Business Revenue CE Battery Revenue

 CE battery has a little drop compare to 2014, and the profit is around %.

CE Battery Business Revenue 2,949 2,839 Unit: MRMB

802 774 689 681 692 692 718 740

Q1 Q2 Q3 Q4 Year 2014 2015

Source: Bright Intelligence investigate Copyright(c) SNE Research. All Rights Reserved. 28 2.3 Battery Business Revenue CE Battery Shipment

 Cellphone battery holds 71% of battery CE battery cells, and portable power holds 20.5%, and DSC holds 5.3%.

 The volume keeps dropping from Nokia due to the weak sales. SEC, Huawei, TCL has increase their order in 2015.

CE Battery Shipment 311.8 277.5 Unit: Million Cells

77.8 80.2 76.5 82.9 68.9 70.9 64.0 68.1

Q1 Q2 Q3 Q4 Year 2014 2015

Source: Bright Intelligence investigate Copyright(c) SNE Research. All Rights Reserved. 29 2.3 Battery Business Revenue NEV/ESS Battery Revenue

 NEV/ESS battery is the key point of growth in BYD battery business. The profit is around %.

NEV/ESS Battery Business Revenue 9,887 Unit: MRMB

4,330 3,640

2,270 1,869 1,714 1,573 468 606 697

Q1 Q2 Q3 Q4 Year 2014 2015

Source: Bright Intelligence investigate Copyright(c) SNE Research. All Rights Reserved. 30 2.3 Battery Business Revenue NEV/ESS Battery Shipment

 BYD is in the TOP1 position in China NEV market. The NEV battery is only for BYD NEVs, and the ESS battery is most exported to US and European.

 EV holds % of BYD NEV/ESS battery, PHEV holds % and ESS holds %. 4,265 Unit: MWh NEV/ESS Battery Shipment

2,018

1,294 1,045

625 577 678 156 217 243

Q1 Q2 Q3 Q4 Year 2014 2015

Source: Bright Intelligence investigate Copyright(c) SNE Research. All Rights Reserved. 31 CONTENTS

1. Company Introduction 2. Finance 3. Technology 3.1 R&D Overview 3.2 Product Portfolio 3.3 Cell Material Suppliers 3.4 Cell Performance 3.5 Roadmap 4. Production 5. Existing Projects

Copyright(c) SNE Research. All Rights Reserved. 32 3.1 R&D Overview Development History

Copyright(c) SNE Research. All Rights Reserved. 33 3.1 R&D Overview Why LFP?

 BYD internal investigate shows that LFP has better thermal performance and cycle life. So BYD will keep using LFP on BEV. Due to energy density reason, BYD is planning to use NCM on PHEV.

Item LFP NCM

Decompostion ~480oC ~160oC Temperature

Gas Rate 5mL/(wh*s) 60mL/(wh*s)

Energy Denisty <140Wh/kg >140Wh/kg

• Can be made to large capacity • Small cell Safety cell • Strict special design • Good chemistry safety • More safety protection • Scene that is not so sensitive to • Scene sensitive to energy density Usage Scenes energy density • Low loading energy • High loading energy

BYD’s Choice BUS, BEV, PHEV PHEV

Copyright(c) SNE Research. All Rights Reserved. 34 3.1 R&D Overview Why LFP?

Copyright(c) SNE Research. All Rights Reserved. 35 3.1 R&D Overview Why LFP?

Copyright(c) SNE Research. All Rights Reserved. 36 3.2 Product Portfolio Cell

Energy Energy Power Battery Capacity Size Weight DCIR Density Density Density type (Ah) (mm) (kg) (ohm) (Wh/kg) (Wh/L) (W/kg)

C15 270 416*58*146 6.5 135 245 1,860 0.3

C17 70 173*45*121 1.8 133 254 1,760 1.1

C19 130 420*40*110 3.5 130 246 1,800 0.8

C20 25 173*20*120 0.8 103 196 2,200 2.2

C25 18.5 173*15*120 0.6 102 196 2,000 2.8

C26 21 150*15*154 0.7 105 194 2,000 2.6

C20M 32.5 173*20*120 0.8 141 286 2,600 1.6

C25M 22 173*15*120 0.6 127 263 2,600 2.2

 C27 & C28 are under developing, which thickness is 2 times and 3 times of C26, while length and height are same as C26.

Copyright(c) SNE Research. All Rights Reserved. 37 3.2 Product Portfolio VDA vs BYD Dimensions

Copyright(c) SNE Research. All Rights Reserved. 38 3.3 Cell Material Suppliers CE Cell Material

BYD CE Cell Material Purchase Amount in Second Half of 2015

Material Supplier Purchase Amount (Ton) Type

Shanshan 100 (36%) NCM

Easpring 65 (23%) LCO Cathode Reshine 60 (22%) LCO

B&M 53 (19%) LCO

Shanshan 65 (48%) Artificial Graphite

Anode BTR 50 (37%) Artificial / Natural Graphite

Xingcheng Weijing 21 (15%) Artificial Graphite

BYD 81 (58%)

Electrolyte Capchem 31 (22%)

Shanshan 28 (20%)

BYD 1,243 (70%) Separator Celgard (Asahi) 530 (30%)

Copyright(c) SNE Research. All Rights Reserved. 39 3.3 Cell Material Suppliers NEV/ESS Cell Material

BYD NEV/ESS Cell Material Purchase Amount in Second Half of 2015

Material Supplier Purchase Amount (Ton) Type

BYD 2,180 (75%) LFP Phostech 223 (8%) LFP Cathode STL 180 (6%) LFP Jinhe 34 (1%) NCM Others 273 (9%) LFP Xingcheng Weijing 756 (57%) Artificial Graphite Anode Shanshan 474 (36%) Artificial Graphite Others 100 (7%) Artificial Graphite Electrolyte BYD 1,505 (100%) Mingzhu 6,710 (33%) Jinhui 5,880 (29%) Separator Senior 4,700 (23%) Green 2,440 (12%) Others 709 (3%)

Copyright(c) SNE Research. All Rights Reserved. 40 3.4 Cell Performance Charge & Discharge

 More than 98% capacity ratio at 2C.

 Wide temperature endurance

Copyright(c) SNE Research. All Rights Reserved. 41 3.4 Cell Performance Cycle Life

 More than 5 years’ continuous cycle test

 Long cycle life and low inner resistance increase

 Stable energy efficiency during cycling

Copyright(c) SNE Research. All Rights Reserved. 42 3.4 Cell Performance Storage Life

 Long storage life is improving via new electrolyte, graphite and new cell design.

Copyright(c) SNE Research. All Rights Reserved. 43 3.4 Cell Performance Temperature Performance

Copyright(c) SNE Research. All Rights Reserved. 44 3.4 Cell Performance DCIR

 DCIR data from C20 @ 60A/10s

Copyright(c) SNE Research. All Rights Reserved. 45 3.4 Cell Performance Cell Safety

Copyright(c) SNE Research. All Rights Reserved. 46 3.4 Cell Performance Module Safety

Copyright(c) SNE Research. All Rights Reserved. 47 3.4 Cell Performance Pack Safety

Copyright(c) SNE Research. All Rights Reserved. 48 3.5 Roadmap Energy Density Plan

2015 2016 2017 Battery type Application (Wh/kg) (Wh/kg) (Wh/kg)

C15 (270Ah) Bus & BYD E6 135 150 156

C17 (70Ah) Power storage 133 140 147

C19 (130Ah) 130 142 150

C20 (25Ah) PHEV Qin & Tang 103 115 120

C25 (18.5Ah) Power storage 102 113 117

C26 (21Ah) Start up battery 105 115 120

C20M (32.5Ah) PHEV 141 148 155

C25M (22Ah) Power storage 127 134 141

 2015: Graphene Technology, New Binder

 2016: New Anode Additive, Improved Space Utilization

 2017: High Density Electrode, Higher Compacted LFP, Higher Ni at NCM

Copyright(c) SNE Research. All Rights Reserved. 49 3.5 Roadmap C15 Example

Copyright(c) SNE Research. All Rights Reserved. 50 3.5 Roadmap VDA Cell Plan

Copyright(c) SNE Research. All Rights Reserved. 51 3.5 Roadmap VDA Cell Plan

PHEV_CELL_ENERGY/DENSITY _BYD BEV_CELL_ENERGY/DENSITY_BYD

Volumetric Energy Density (Wh/L) Gravimetric Energy Density (Wh/kg)

Volumetric Energy Density (Wh/L) Gravimetric Energy Density (Wh/Kg) SDI (Wh/L)

462

498

486

426

360 360

338

326

318

368

296

264

259

250

295

267

161

192

157

156

186

151

143

171

137

157

142 133

2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020

Based on VDA PHEV_2 (G38) cell format with NCM cathode Based on VDA BEV_2 (i01) cell format with LFP cathode

 For PHEV, BYD will gradually change to NCM cathode material.

 For BEV, BYD will stick to LFP cathode material with lower energy density but better safety behavior on cell level.

 Battery module will be as much kept the same design, only change the battery pack.

 Future PHEVs’ E-range would be the same level as Tang (60-80km).

 Except Qin & Tang, all coming models will change to NMC, including Tang (next generation), Song, Yuan, Shang, Ming.

Copyright(c) SNE Research. All Rights Reserved. 52 CONTENTS

1. Company Introduction 2. Finance 3. Technology 4. Production 4.1 Production Information 4.2 Production Capability Plan 4.3 Production Technology 5. Existing Projects

Copyright(c) SNE Research. All Rights Reserved. 53 4.1 Production Information

Item Contents

Company name BYD company Limited.

3000 workers in 3 battery plants (Huizhou & Worker number Kengzi, Shanghai)

R&D engineer 150 people

Production Cell: 10Gwh, Module:11Gwh, Pack:12Gwh capacity in 2015 (16GWh in 2016)

Construction 160,000 m2 in total, 120,000 m2 for production area

2 shifts (10 hours/shift for worker, but machine will Working shifts not stop), 26 working days/month

Outsourcing Cathode & anode material, Bin & cap, Alu. film material/part

4 cathode coating lines, 4 anode coating lines, No. of 10 cell lines(7 in production), 4 module & pack lines production lines (2 in production)

Cost of LFP cell 1.2 RMB/Wh

Investment 7 Billion RMB for 8 GWh capacity (Kengzi plant)

Financing By Group company

Copyright(c) SNE Research. All Rights Reserved. 54 4.2 Production Capability Plan

CE Cell Production Capability Plan Location Type 2014 2015 2016 2018 Pouch 4.0 6.0 6.0 6.0 Shanghai Prismatic 14.6 14.6 14.6 14.6 Pouch 6.0 6.0 6.0 6.0 Shenzhen Cylinder 0.6 0.6 0.6 0.6 Prismatic 18.0 18.0 18.0 18.0 Total (Million Cells / Month) 43.2 45.2 45.2 45.2

NEV/ESS Cell Production Capability Plan Location Type 2014 2015 2016 2018 Huizhou Prismatic 960 960 960 960 Shanghai Prismatic 40 40 40 40 Shenzhen Prismatic 2,500 6,000 15,000 21,000 Total (MWh / Year) 3,500 7,000 16,000 22,000

 BYD is taking contraction strategy on CE cell. There is no new capacity investment plan in the following years.

 BYD has SEO for 15 BRMB in the capital market in 2015, which mostly will invest in NEV cell capacity expandation. Copyright(c) SNE Research. All Rights Reserved. 55 4.3 Production Technology Anode & Cathode Production

Machine No. of Process Speed Machine type Investment Supplier worker

Carbon coating on 120m/min Coating machine Japan 2 Al. film

Cathode coating 70m/min Coating machine Japan 35 Mio. RMB/line 3

Drying 70m/min Oven Japan 1

Anode coating 70m/min Coating machine Japan 3 30 Mio. RMB/line Drying 70m/min Oven Japan 1

10 Mio. Pressing 100m/min Roller machine Korea 3 RMB/Machine

1 Mio. Slitting 100m/min Slitting machine Korea 2 USD/Machine

Based on the latest production line in Shenzhen Kengzi. Copyright(c) SNE Research. All Rights Reserved. 56 4.3 Production Technology Cell Production

Machine Investme No. of Process Speed Machine type Supplier nt worker 700mm/sec. Winding Winding machine Korea Cycle time<15sec. Single J/R 720 cores/Hr. J/R inserting 2 Welding protection Al/Cu tab Ultrasonic welding China Cover (Tab) welding Ultrasonic welding 1 Spot welding Spot laser welding Germany 1 (cap pre-welding) Cap & Can welding Laser welding Germany 1 (He test, leaking test) Auto. drying 10 Hr./ cart, 48 cells/cart, 30min/cart Total Liquid filling 40g/sec., totally 400s 1 investment 6 Binding billion RMB, 1 totally 10 Soaking >2 days lines 2 Formation 8 Hr. Final sealing 1 Storage 5-7 days Charging High temperature 5-7 days 2 storage Discharge, capacity test Storage 1 day OCV test, DCIR Sorting 1

Based on the latest production line in Shenzhen Kengzi. Copyright(c) SNE Research. All Rights Reserved. 57 4.3 Production Technology Module & Pack Production

Machine No. of Process Speed Machine type Investment Supplier worker

For PHEV& Denza:36000 cells/day/line Module line Production line Japan 4 For bus & E6 :9000 cells/day/line Total investment 500 Mio. RMB, totally 4 lines.

Pack 200 packs/day for bus battery Manual assembly 10 production

Based on the latest production line in Shenzhen Kengzi. Copyright(c) SNE Research. All Rights Reserved. 58 CONTENTS

1. Company Introduction 2. Finance 3. Technology 4. Production 5. NEV Projects

Copyright(c) SNE Research. All Rights Reserved. 59 5 NEV Projects

Car Cell Pack

Model Type Capacity Type Energy Supplier F3DM PHEV 57Ah LFP 17KWh BYD e6 BEV 270Ah LFP 82KWh BYD PHEV 26Ah LFP 13KWh BYD M3DM PHEV 30Ah NCM 14.26KWh BYD e5 BEV 75Ah LFP 47.5KWh BYD PHEV 26Ah LFP 13KWh BYD QIN BEV 75Ah LFP 47.5KWh BYD PHEV 26Ah LFP 13.3KWh BYD TANG PHEV 26Ah LFP 16.6KWh BYD PHEV 26Ah LFP 18.5KWh BYD SONG PHEV 30Ah NCM 15.4KWh BYD YUAN PHEV 30Ah NCM 15KWh BYD K9 BEV BUS 270Ah LFP 435KWh BYD Denza BEV 100Ah NCM 47.5KWh BYD

Copyright(c) SNE Research. All Rights Reserved. 60