Improving little by little every day
長城汽車股份有限公司 Great Wall Motor Company Limited * 2012 Interim Results
* For identification purpose only August 2012 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.
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Great Wall Motor’s 2012 Interim Results Highlights
Sales volume of automobiles reached 262,000 units, representing a 20.0% YoY growth
Revenue amounted to RMB18.29 billion, representing a 28.8% YoY growth
Net profit attributable to shareholders of the parent company amounted to RMB2.35 billion, representing a 29.9% YoY growth
The newly launched Haval M4 model delivered its best single- month sales volume of over 5,000 units
The best single-month sales volume of Haval H6 model surpassed 11,000 units
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Contents
1 Financial Review
2 Operations Review
3 Future Prospects
4 Q&A
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Financial Review Operations Review Future Prospects
Balance Sheet RMB million Changes as at As at 31 As at 31 As at 31 the end of 2012 As at 30 December December December interim period June 2012 2009 2010 2011 compared to end of 2011 (%)
Current assets 8,177 14,825 20,374 22,077 8.4
Including: cash and bank 2,592 3,095 7,107 6,428 -9.6 balances
Bills receivable 3,238 7,726 8,703 10,696 22.9
Non-current 6,793 8,873 12,761 14,849 16.4 assets
Total liabilities 7,132 13,298 16,113 18,628 15.6
Total assets 14,970 23,698 33,135 36,926 11.4 Total shareholders’ 7,838 10,400 17,022 18,298 7.5 equity
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Financial Review Operations Review Future Prospects
Income Statement RMB million % change in 2012 1H 2010 2011 2011 1H 2012 1H compared to 2011 1H
Revenue 22,986 30,089 14,200 18,288 28.8
Operating 2,968 4,012 2,134 2,811 31.7 profit
Gross profit 5,688 7,496 3,711 4,811 29.6
Net profit attributable to shareholders 2,701 3,426 1,812 2,354 29.9 of the parent company Basic earnings per share 0.99 1.22 0.66 0.77 16.7 (RMB)
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Financial Review Operations Review Future Prospects
Cash Flow Statement RMB million % change in 2012 1H 2010 2011 2011 1H 2012 1H compared to 2011 1H Net cash flow from 3,191 4,449 2,907 2,432 -16.3 operating activities
Net cash flow from -2,307 -3,664 -1,634 -2,333 42.8 investing activities
Net cash flow from -1,212 3,456 -1,192 -918 -23.0 financing activities Effect of foreign exchange rate changes on cash and -18 -8 -8 2 -125.0 cash equivalents Net increase in cash and -346 4,233 73 -817 -1,219.2 cash equivalents
Cash and cash equivalents 2,074 6,306 2,146 5,489 155.8 at the end of the period
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Financial Review Operations Review Future Prospects
Other Financial Indicators Overall gross margin Inventory turnover (day) 30% 60 53 24.2% 26.3% 25% 26.1% 50 41 43 20% 41 20.4% 40 15% 30 10% 5% 20 0% 10 1H 2009 1H 2010 1H 2011 1H 2012 1H 2009 1H 2010 1H 2011 1H 2012
Operating profit margin Expenses as a % of revenue for the Period 5.9% 6% 20% 5.0% 15.0% 15.4% 5.5% 3.8% 3.8% 15% 4% 3.7% 3.7% 12.0% 3.5% 10% 2% 5.6%
5% 0% 1H 2009 1H 2010 1H 2011 1H 2012 0% Selling expenses as a % of revenue 1H 2009 1H 2010 1H 2011 1H 2012 Administrative expenses as a % of revenue 8 Improving little by little every day
Financial Review Operations Review Future Prospects
Revenue by car segment Domestic sales RMB million RMB million Overall analysis 14,231.8 16,000 28.7% 24.5% 18,000 17,078.9 12,000 53.1% 5.2% 16,000 8,000 7,055.7 10.8% 14,000 4,300.5 4,000 2,758.9 12,000 116.7 53.1% 0 10,000 Pick-up truck SUV Sedan Others Total 8,432.0 8,000 RMB million Exports 22.5% 7.0% 2,847.1 3,000 6,000 4,634.0 54.9% 3,891.2 4,000 53.2% 2,000 65.1% 1,376.3 2,000 1,132.3 121.7 36.0% 0 1,000 333.5 Pick-up SUV Sedan Others Total 5.0 truck 0 Pick-up SUV Sedan Others Total 1H 2010 1H 2011 1H 2012 truck 9 Improving little by little every day
Contents
1 Financial Review
2 Operations Review
3 Future Prospects
4 Q&A
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Financial Review Operations Review Future Prospects
Key Models
Specification Haval H6
Dimension (mm) 4640*1825*1690
Wheelbase (mm) 2680
Displacement 2.0L/2.4L/2.0T
five-speed manual six-speed manual Transmission four-speed automatic
Price(RMB’000) 95.8-141.8
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Financial Review Operations Review Future Prospects
Key Models (cont’d)
Haval M4 Specification
Dimension (mm) 3961*1728*1617
Wheelbase (mm) 2383
Displacement 1.5L
Transmission five-speed manual
Price(RMB’000) 63.9-71.9
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Key Models (cont’d)
Great Wall C30 Specification
Dimension (mm) 4452*1705*1480
Wheelbase (mm) 2610
Displacement 1.5L
five-speed manual Transmission CVT
Price(RMB’000) 64.5-83.5
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Key Models (cont’d)
Great Wall C50 Specification
Dimension (mm) 4650*1775*1455
Wheelbase (mm) 2700
Displacement 1.5T
Transmission five-speed manual
Price(RMB’000) 78.8-91.8
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Financial Review Operations Review Future Prospects Sales Volume Sales volume and growth of the automobile industry and Great Wall Motor ’000 units 20,000 80.0% 74.2% 73.2% 18,000 70.0% 16,000 60.0% 14,000 46.5% 12,000 50.0% 45.5% 10,000 40.0% 32.4% 8,000 27.3% 30.0% 6,000 21.8% 20.0% 20.0% 4,000 11.7% 10.0% 2,000 2.5% 6.7% 2.9% 0 0.0% 2007 2008 2009 2010 2011 1H 2012 Industry sales volume GWM sales volume Industry growth rate GWM growth rate Source: China Association of Automobile Manufacturers 15 Improving little by little every day
Financial Review Operations Review Future Prospects
Sales Volume by Car Segment and Month
Sales volume and growth by car Sales volume and growth by month segment ‘000 units ‘000 units 60 70% 300 20.0% 262 60% 50 250 50%
40 40% 200 30% 30 150 45.7% 2.2% 20% 19.5% 105 20 10% 100 87 68 0% 50 10 2 -10% 0 0 -20% SUV Sedan Pick-up Others Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec truck 2010 2011 2012 2012 growth rate 1H 2010 1H 2011 1H 2012 16 Improving little by little every day
Financial Review Operations Review Future Prospects
Domestic Sales Analysis
’000 units Major domestic markets
250 15.7% 216.6 200
150
46.9% 0.0% 100 86.8 79.9 8.6% 48.3 50
1.6 - SUV Sedan Pick-up Others Total truck Provinces with large 1H 2010 1H 2011 1H 2012 sales volume 17 Improving little by little every day
Financial Review Operations Review Future Prospects
Exports Analysis
’000 units Overseas markets 45.8% 50 45.4 俄 罗 斯
英 白俄 国 罗斯乌 蒙 保加 克 古 意 利亚 兰 塔 40 大 罗马 吉 利 希尼亚 克 叙 腊 阿斯 利 伊 伊 坦 以色约 富 阿尔 亚 拉 朗 尼 列 旦 汗 及利 克 泊 利比 埃 阿 孟 亚 亚 及 沙 尔 马 联 加 海 特 危 古 里 酋 阿 拉 菲 地 地 巴 布基 曼 律 洪 多 塞 苏 也 老 马 纳法 埃 泰 越 宾 30 哥 都 米 内 尼 丹 门 挝 拉 索 塞 国 南 斯 拉 尼 苏 加 日 斯 俄 文 达 斯 加 里 尔利 科加 利 喀 里 哥 多 比 莱 南 昂 利 特纳 麦 乌 兰 57.6% 黎 伦 哥 亚 塞 比 迪 干 亚 加 比 加 隆 坦 卡 厄 拉 里 瓦 达 亚 蓬 刚 桑 20.0 瓜 亚 果 尼 39.7% 多 巴布亚 亚 东 新几内 尔 秘 安 莫 帝 亚 鲁 20 17.8 哥 桑 汶 玻 利 拉 比 马 巴 克 达 维 纳 拉 加 亚 米 圭 斯 比 加 澳大利亚 亚 南 34.7% 非 乌 10 7.6 拉 圭
0.1 - SUV Sedan Pick-up Others Total truck Key markets Markets with Markets without established sales our own sales 1H 2010 1H 2011 1H 2012 network network 18 Improving little by little every day
Contents
1 Financial Review
2 Operations Review
3 Future Prospects
4 Q&A
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New Models Launch Plan
Launch Year Model Description
Haval M4 Small SUV
2012 C30, 2013 version 3-compartment compact sedan
An updated Wingle version With partial changes
Haval H6, sporty version Unibody frame SUV
An updated Haval H5 Body-on-frame SUV
Haval H7 Full size SUV 2013 C30, sporty version Compact family sedan
C50, sporty version Compact family sedan
An updated Wingle 5 Extended pick-up truck
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Financial Review Operations Review Future Prospects
Market Expansion- Domestic Market
Domestic market expansion strategies
Strengthen sales network in second-tier and third-tier markets Intensify Establish professional and efforts to highly efficient sales and optimise service network sales network Focus on increasing the value of all product categories
Set customer satisfaction Improve after- objective sales service Provide excellent, fast and quality value for money after-sales service
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Market Expansion- Overseas Market
Overseas market expansion strategies
Establish overseas offices
Russia Australia Leverage pre-production marketing to build brand
Localisation of production and ancillary facilities
Systematic brand building and promotion Chile South Africa 22 Improving little by little every day
Q&A Session
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