Trans-china Automotive Holdings Ltd. · SGX:VI2
Trans-china Automotive — IPO Roadshow (November 2021)
26 slides from Trans-china Automotive's IPO roadshow presentation, Nov 3, 2021
Slide 1: Gearing Up for Greater Growth
GEARING UP FOR GREATER GROWTH C O R P O R AT E P R E S E N T AT I O N 3 November 2021
Slide 2: Disclaimer
Disclaimer NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES OR ANY OTHER JURISDICTION. This presentation has been prepared by Trans-China Automotive Holdings Limited (the "Company"). This presentation is for information only and
Slide 3: Disclaimer
Disclaimer markets are not necessarily indicative of the future or likely performance of the Group. Past performance is not necessarily indicative of future performance. You are cautioned not to place undue reliance on these forward looking statements, which are based on the Company’s current view o
Slide 4: Disclaimer
Disclaimer NOTHING IN THIS PRESENTATION CONSTITUTES AN OFFER OF SECURITIES FOR SALE IN SINGAPORE, UNITED STATES OR ANY OTHER JURISDICTION. THIS PRESENTATION DOES NOT CONSTITUTE OR FORM A PART OF ANY OFFER OR SOLICITATION TO PURCHASE OR SUBSCRIBED FOR SECURITIES IN THE UNITED STATES. SECURITIES MAY N
Slide 5: Issue Statistics
Issue Statistics Listing Status Catalist Board 85,000,000 Invitation Shares Invitation Size 2,900,000 Offer Shares 82,100,000 Placement Shares Post-Invitation Share Capital 584,323,950 shares Market Capitalisation (Post-IPO) S$134.4 million Launch: 1 November 2021 Indicative Timeline Close: 9 No
Slide 6: Highly Experienced Management Team in the Auto Dealership Industry
Highly Experienced Management Team in the Auto Dealership Industry >20 >30 >10 >10 Francis Tjia Roger Chan Raymond Woo Michael Cheung Chairman & CEO COO (BMW) COO (Premium Luxury) Chief Financial Officer • Over 20 years of experience • Responsible for the • Oversees the operations of • Oversees and
Slide 7: About TCA
(Tans cama VE SE OK OE ABOUT TCA Our Journey So Far
Slide 8: Dealership Model
Dealership Model Anchored by new automobile sales which is one of the 4 BMW Dealerships Extend invitations to customers to buy multiple business 4 McLaren Showrooms pre-owned automobiles which meet segments 1 Lotus Showroom New Pre-Owned certain criteria Automobile Automobile Sales Sales Mul
Slide 9: Ranked 3rd for the Highest Number of 4S/5S Automobile Dealerships in Greater Bay Area in FY20
Ranked 3rd for the Highest Number of 4S/5S Automobile Dealerships in Greater Bay Area in FY20 Foshan Dealership 4S BMW dealership ~20,000 sqm Shenzhen Dealership 5S BMW dealership ~24,000 sqm Guangzhou Dealership 4S BMW dealership ~12,600 sqm 8
Slide 10: Our Other Dealerships within PRC
Our Other Dealerships within PRC Chongqing Dealership McLaren Showrooms 5S BMW dealership 4 showrooms ~11,100 sqm Guangzhou Wuhan Shenzhen Shenzhen Changsha 9
Slide 11: A Leading Automobile Dealership Group in the Greater Bay Area
A Leading Automobile Dealership Group in the Greater Bay Area 1 Strategic presence in key automobile 2 High earnings visibility driven by markets in PRC After-Sales Services business Key player in the Greater Bay Area In 2020, TCA averaged 2,516 automobile sales of units TCA’s BMW dealerships
Slide 12: GBA Income Growth, Wealth and Disposable Income All Outperform the National Average
GBA Income Growth, Wealth and Disposable Income All Outperform the National Average TCA’S DEALERSHIPS LOCATED IN CITIES WITH HIGHER INCOME LEVELS VS. NATIONAL AVERAGE - PRC GDP CONTINUES ROBUST GROWTH PATH Nominal GDP per Capita of PRC Nominal GDP per Capita (RMB ‘000) (RMB ‘000) 157.6 133.9 106.8 1
Slide 13: PRC Wealth, Income Growth and Automobile Growth Rate
PRC Wealth, Income Growth and Automobile Growth Rate PRC PREMIUM AUTOMOBILE PENETRATION IS STILL LOWER THAN DEVELOPED NATIONS, MAKING UP APPROXIMATELY 12% OF US PENETRATION Overall Automobile Penetration Rates, 2020 Premium and Ultra-Premium Automobile (per 1,000 people) Penetration Rates, 2019 (per
Slide 14: Strategic Presence in Key Automobile Markets in PRC
Strategic Presence in Key Automobile Markets in PRC Our BMW Dealerships Dealership No. of Cars Sold Year TCA in FY20 Commenced Operations All 4 BMW dealerships rank in the top 5 in their respective cities 1 Foshan 3,328 2009 in 2020 in terms of sales volume 2 Shenzhen 2,817 2010 TCA sales per de
Slide 15: New Car Sales Leads to Recurring Income for After-Sales Services
New Car Sales Leads to Recurring Income for After-Sales Services Avg No. of Automobiles Sold Per BMW Dealership in 2020 3,000 2,500 2,516 2,000 1,500 1,342 1,000 500 - New Automobile Sales TCA PRC Nationwide Service Absorption Ratios (2020) After-Sales and Services 200% 172% 180% 160% 140% 120% 112%
Slide 16: Proposed IPO
PROPOSED IPO Investment Highlights Industry Outlook 15
Slide 17: TCA's Dealerships - New Automobile Sales
TCA’s Dealerships - New Automobile Sales OUR BMW DEALERSHIPS RANK HIGHLY NATIONWIDE AND AMONGST TOP CONTRIBUTING DEALERSHIPS WITHIN RESPECTIVE CITIES BMW Dealership Market Share in 2020 Avg No. of Cars Sold Per BMW Dealership 45.0% 40.0% 38.1% 3,000 87% higher than 35.0% Amongst top 2,500 2,516 aver
Slide 18: TCA's Dealerships - After-Sales
TCA’s Dealerships - After-Sales AFTER-SALES BUSINESS LEADS TO VERY HIGH ABSORPTION RATE FOR TCA, PROVIDING GREAT EARNINGS VISIBILITY Avg After-Sales Ticket Size (RMB) TCA Store-Level Absorption Ratios (FY20) 5,000 4,388 172% 4,500 3,954 4,000 3,769 3,304 3,500 112% 106% 3,000 98% 2,500 2,000 1,452 1
Slide 19: Expansion Strategy
Expansion Strategy Build or acquire additional dealerships New Dealerships Expand to other premium/ultra- premium brands Expansion Strategy Expand in Existing Expand in existing and to other regions of and Diversify to PRC New Regions Diversify to Expand pre-owned automobile sales Complement
Slide 20: BMW's EV Releases
BMW’s EV Releases 1. EV Expansion Strategy BMW has launched EV Introduction of i3 Introduction of Introduction of iX and i4 models in 2021 and 2022 models with additional model in 2013 PHEV hybrid models models in the pipeline, introduction of the brand new iX in 2021 and the i4 in 2022 2. Our BMW D
Slide 21: McLaren and Lotus Strategy
McLaren and Lotus Strategy 4 showrooms since 2014 1 showroom in Shenzhen Our McLaren and Lotus track since 2019 record raises our profile and capability to cater to the burgeoning ultra-premium segment in PRC Locations: Shenzhen, Wuhan, Guangzhou, Location: Shenzhen Changsha. Models Offered:
Slide 22: Summary
SUMMARY Income Statement Operating Statistics Tr ansac t i on St at i st i c s 21
Slide 23: Snapshot of Income Statement
Snapshot of Income Statement REVENUE BREAKDOWN1 (%) REVENUE (RMB MN) BMW contributes to 83% of revenue and the sales of automobiles segment Topline growth has been growing healthily, achieving a 9.2% CAGR from accounts for 88% of revenue 2018-2020 Revenue by Brand Revenue by Segment 200.0% (FY20) (F
Slide 24: Financial Performance
Financial Performance SALES OF AUTOMOBILES GROSS PROFIT MARGINS PROVISION OF AFTER-SALES SERVICES GROSS PROFIT MARGINS 200.0% 200.0% 0.9% 2.1% 2.9% 5.0% 41.5% 41.6% 40.9% 43.1% 100.0% 100.0% 0.0% 0.0% -100.0% 215 209 -100.0% 188 -200.0% -200.0% 108 -300.0% -300.0% 70 59 54 -400.0% -400.0% 28 -500.0%
Slide 25: Use of Proceeds
Use of Proceeds Net Proceeds = S$16.3 million Increase dealerships, showrooms and service centres in cities where we are currently operating S$2.3m Grow dealership network to new regions, S$11.0m diversify to other premium and ultra-premium automobile brands, expand and diversify into complement
Slide 26: Thank You
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