Geely Automobile Holdings Limited · HKEX:175
Geely Automobile — H1 2019 Earnings Presentation
16 slides from Geely Automobile's earnings presentation, Aug 21, 2019
Slide 1: 2019 Interim Results
2019 Interim Results 21 August 2019
Slide 2: Important Notice
Important Notice The information contained herein is meant for presentation purposes only and may not be used and relied upon by any other party. It is not to be taken in substitution for the exercise of judgement. You shall be solely responsible for making your own independent investigation of the
Slide 3: 2019 First Half Results
2019 First Half Results • Attributable profit -40% to RMB4.01bn • Wholesale volume -15% YoY due to proactive destocking at dealers • Retail sales volume +5% YoY • Average selling price +3% • Lower margins due to price pressure (GP at 17.8%; OP at 9.2%) • Strong growth at Genius AFC more than offset
Slide 4: 2019 Interim Highlights
2019 Interim Highlights • Higher retail market share at 6.5% for passenger vehicles in China(6.3% in 1H 2018) • Successful launch of pure electric brand “Geometry” and its first sedan model “Geometry A” • Profit contribution from joint- ventures (mainly Genius AFC & Lynk&Co) up 26% • NEEV sales volu
Slide 5: Profitability
Profitability 25% 7% 6% 20% 5% 15% 4% 3% 10% 2% 5% 1% 0% 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Gross margin Operating margin Selling expenses % T/O Administrative expenses % T/O 5
Slide 6: Genius AFC
Genius AFC • Provision of automobile financing for 3 key auto brands under Zhejiang Geely Group • Additional capital injection of RMB2 billion by shareholders to support growth • Loan assets increased from RMB19.3bn by end of 2018 to RMB23.6bn by end of June 2019 • Negligibly low default rate • Net
Slide 7: Lynk&Co
Lynk&Co • Sales volume +21% to 55,877 units in 1H 2019 • Launch of “NEEV” version for “02” and “03” and two brand new models in next 12 months • Net profit down 22% YoY to RMB266.2mn • 243 “LYNK&CO Centres” and 20 “LYNK&CO Spaces” in China 7
Slide 8: New Energy and Electrified Vehicles
New Energy and Electrified Vehicles New NEEV models NEEVs - Sales Volume (units) 2019 2019 2018 2017 Xingyue MHEV Xingyue PHEV Geometry A 2016 • Jan-Jul 0 20000 40000 60000 80000 EV - Range Per Charge(km) Binyue MHEV Binyue PHEV Jiaji MHEV/PHEV 2019 2018 2018 2017 Borui GE MHEV Borui GE PHEV 01 PHEV
Slide 9: Sales Volume Breakdown
Sales Volume Breakdown (6M to June) Units 2019 2018 YoY change Total * 651,680 766,630 -15% -Domestic * 613,061 757,931 -19% -Exports 38,619 8,699 344% Sedans 255,700 316,945 -19% SUVs 379,728 449,685 -16% MPVs 16,252 - - Geely 591,668 720,378 -18% Geometry 4,135 - - Lynk&Co 55,877 46,252 21% NEEVs
Slide 10: Sales Volume Breakdown (continue)
Sales Volume Breakdown (continue) Sales by Locations Sales by Segments 5.9% 2.5% 39.2% 58.3% 94.1% Domestic Exports Sedan SUV MPV Key Models: **Source = China Association of Automobile Manufacturers (“CAAM”) Sedan: New Emgrand, Vision, Emgrand GL, Lynk&Co 03 SUV: Boyue, Binyue, Vision X3, Emgrand GS
Slide 11: 2019 Interim Results
2019 Interim Results 6M to June (RMB mn) 2019 2018 YoY change Sales Volume (units) 651,680 766,630 -15% Revenue 47,559 53,709 -11% Gross profit margin ratio* 17.8% 20.2% - Operating margin ratio** 9.2% 14.4% - Profit after tax 4,047 6,736 -40% Attributable profit 4,009 6,670 -40% Diluted EPS (RMB ce
Slide 12: Financial Analysis
Financial Analysis 6M to June 2019 2018 YoY change Sales of vehicles (RMB mn)# 44,979 52,810 -15% Average unit price (RMB)# 75,494 73,308 3% Return on equity 17.2% 34.2% - EBITDA ratio* 13.1% 16.6% - Selling expenses (% of T/O) 4.7% 4.2% - Admin. expenses (% of T/O) 5.2% 3.0% - * EBITDA margin ratio
Slide 13: Financial Summary
Financial Summary • Healthy financial position despite lower revenue and operating profit • Strong net cash level at RMB10.6bn • US$300mn club loan facility extension after end of June 2019 • Moody’s credit rating outlook upgraded to “Baa3”/stable 13
Slide 14: New Products
New Products “Geely” brand: • A MPV model targeted at business and corporate users • A compact SUV model • A compact sedan model • “NEEV” versions for major existing models “Geometry” brand: • A brand new model 14
Slide 15: New Products
New Products “Lynk&Co” brand: • Two brand new models • “NEEV” versions for “02” and “03” models 15
Slide 16: 2019 Outlook
2019 Outlook • Still uncertainties for passenger vehicle demand in China in 2H 2019 • Revised target sales volume down 10% to 1.36mn units • New product offerings at high levels • Significantly increase in NEEV models • Oversea sales continue to recover and boost growth further • YTD (first 7 months
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