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. 2 Improving little by little every day 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 3 Improving little by little every day Contents 1 Financial Review 2 Operations Review 3 Future Prospects 4 Q&A 4 Improving little by little every day 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 5 Improving little by little every day 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) 6 Improving little by little every day 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 7 Improving little by little every day 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 10 Improving little by little every day 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 11 Improving little by little every day 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 12 Improving little by little every day Financial Review Operations Review Future Prospects 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 13 Improving little by little every day Financial Review Operations Review Future Prospects 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 14 Improving little by little every day 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 大 罗马 吉 40 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 律 地 洪 巴 布基 曼 多 塞 苏 也 老 宾 马 都 纳法 埃 泰 越 30 哥 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 19 Improving little by little every day Financial Review Operations Review Future Prospects 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 20 Improving little by little every day 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 21 Improving little by little every day Financial Review Operations Review Future Prospects 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 23 .