Kingdee International Software Group Co., Ltd. · HKEX:268

Kingdee International Software — H1 2016 Earnings Presentation

39 slides from Kingdee International Software's earnings presentation, Aug 18, 2016

  1. Slide 1: Kingdee International 2016 Interim Results Announcement

    Kingdee International 2016 Interim Results Announcement Stock Code: HK 268 18 August, 2016 版权所有©1993-2015金蝶软件（中国）有限公司

  2. Slide 2: A New Era of Growth

    A New Era of Growth Record-high 1H Revenues, Net Profit, and Operating Cash Flow Revenue Net Profit Net Op. Cash Flow +20.5% YoY +47.2% YoY +28.9% YoY 913.2 204.1 757.9 158.3 134.8 91.6 (RMB mn) (RMB mn) (RMB mn) 1H15 1H16 1H15 1H16 1H15 1H16 P2

  3. Slide 3: Agenda

    CEO Report 2016 Interim business highlights ERP & Cloud business review Future Outlook Agenda CFO Financial Review 2016 Interim financial highlights ERP & Cloud financial review Investment Highlights Appendix: Financial Results Summary P3

  4. Slide 4: 2016 Interim Business Highlights

    2016 Interim Business Highlights Core ERP business returned to growth while Cloud maintained rapid growth Revenue +6.2% YoY Revenue +138.3% YoY 78.7% 21.3% Big Data ERP Cloud Services Stable profitable growth Fast growing Cloud business Emerging opportunities P4

  5. Slide 5: Cloud Contribution Continues to Grow

    Cloud Contribution Continues to Grow 11% 21% ERP 1H15 1H16 1H162015 Cloud 89% 79% 1H16 revenue reached record high driven by growth in both ERP and Cloud P5

  6. Slide 6: Comprehensive Line of ERP & Cloud Service

    Comprehensive Line of ERP & Cloud Service IT Maturity of Enterprises EAS Corporate group K/3 management control platform Small and medium KIS enterprise growth management Small and micro platform enterprise management software Development stage of enterprise

  7. Slide 7: ERP Business Review

    Kingdee ERP Business Review

  8. Slide 8: ERP Business Review

    ERP Business Review Return to revenue growth ERP KIS K/3 EAS Implementation Maintenance +20.1% YoY -6.3% YoY +5.4% YoY +7.2% YoY +4.7% YoY Solid demand from large enterprise customers Services maintained growth momentum • EAS software revenue +5.4% YoY • Implementation and maintenance revenue both s

  9. Slide 9: Cloud Business Review

    Kingdee Cloud Business Review

  10. Slide 10: Cloud Business Review

    Cloud Business Review Refocusing resources on our core businesses Cloud Cloud ERP Finance Cloud Mobile Office Industry Cloud  Kuaidi100  Finance  Finance  CloudHub  Mobile Internet  Supply chain  Supply Chain Hospital  Manufacturing  Shared Service  Auto4S  Online sales  Financial Data 

  11. Slide 11: Cloud ERP

    Cloud ERP Cloud ERP Highlights  No. 1 Cloud ERP in China  Over 2,000 Cloud ERP customers  Total Cloud ERP revenue +137% YoY  New customers included Tencent, Coca Cola and Jaguar Land Rover +96% YoY 122,000+ users P11

  12. Slide 12: Finance Cloud: Jingdou Cloud

    Finance Cloud: Jingdou Cloud Jingdou Cloud Highlights  No. 1 Accounting Cloud in China  Over 75,000 paying users +29% YoY  Retention rate of paying users is over 75%  Jingdou Cloud revenue +44% YoY P12

  13. Slide 13: Investing in ERP & Cloud Innovations

    Investing in ERP & Cloud Innovations IT Maturity of Enterprises EAS 2015.Aug K/3 EAS V8.1 2015.Oct. KIS K/3 Wise V14.2 2016.Jun EAS V8.2 2015.Nov KIS Flagship V4.1 2016.May 2016.May K/3 WISE(catering) KIS Accounting Platform V14.0 Development stage of enterprise

  14. Slide 14: Future Outlook

    Future Outlook Kingdee

  15. Slide 15: Progressive Move to Mobile Internet

    Progressive Move to Mobile Internet Cloud ERP Accounting Software Since1993- Since 1998- Since 2012- P15

  16. Slide 16: Kingdee Strategy

    Kingdee Strategy CloudHub GuanYi Jingdou Cloud Cloud Cloud ERP Big Data Services ERP+ ERP Kingdee Cloud Application Services Access Operations Cloud.Kingdee.com Platform（KCP） Services Services Data Services P16

  17. Slide 17: Business Growth Strategy

    Business Growth Strategy Big Data Cloud Emerging Opportunities ERP+ Developing Business 全面升级 Core Business Continuous Product Improvement Innovative Growth Exploration and Improving Profitability Scale Expansion Ecosystem Formation P17

  18. Slide 18: Agenda

    CEO Report 2016 Interim business highlights ERP & Cloud business review Future Outlook Agenda CFO Financial Review 2016 Interim financial highlights ERP & Cloud financial review Investment Highlights Appendix: Financial Results Summary P18

  19. Slide 19: 2016 Interim Financial Highlights

    2016 Interim Financial Highlights Profitable ERP growth & Fast growing Cloud business +6.2% YoY 78.7% of Revenue +138.3% YoY 21.3% of Revenue Big Data ERP Cloud Services Solid demand for large enterprise Fast growing Cloud revenue +138.3% YoY Emerging ecosystem products • Cloud ERP revenue +136.5% Y

  20. Slide 20: Financial Highlights

    Financial Highlights (RMB’000) 1H16 1H15 Change Revenue 913,204 757,981 20.5% Cost of Sales -188,687 -158,498 19.0% Gross Margin 79.3% 79.1% +0.2pts Total Operating Expenses -754,375 -573,935 31.4% Other Income & Gains 132,470 104,573 21.2% Earning Before Interests & Tax 101,079 130,036 -24.3% EBIT

  21. Slide 21: Operating Expense Breakdown

    Operating Expense Breakdown 55.2% 52.5% (% of Revenue) S 50.9% 51.6% 50.5% & M 382 403 398 457 472 (RMB mn) +18.6% y/y 1H14 2H14 1H15 2H15 1H16 16.1% 22.7% 15.5% 15.0% 16.3% 14.9% R 14.1% G 14.0% 9.7% 9.2% & & D A 136 112 111 107 128 147 73 129 70 188 1H14 2H14 1H15 2H15 1H16 +37.7% y/y 1H14 2H14 1H

  22. Slide 22: ERP License Revenue Breakdown by Products

    ERP License Revenue Breakdown by Products 180,000 License Revenue 160,000 (RMB’ 000) 140,000 120,000 100,000 1H15 80,000 1H16 60,000 40,000 20,000 0 KIS K/3 EAS Others Growth rate +20.1% -6.3% +5.4% -1.5% KIS & K/3: KIS licensing revenue was up 20% driven by strong SME demand. K/3 revenue decline mi

  23. Slide 23: ERP Revenues by Sales

    ERP Revenues by Sales Continued growth from KIS drove higher indirect sales 39.4% 39.7% • KIS (predominantly indirect) saw solid growth in 1H16 and drove higher revenue contribution from indirect sales channel • Higher indirect sales continued to positively impact margins 60.6% 60.3% 1H16 % of ERP 1

  24. Slide 24: ERP Revenues Breakdown by Segments

    ERP Revenues Breakdown by Segments 1.2% 1.1% 19.3% 16.8% Growth from both licenses and services • License revenue growth driven by KIS and EAS while K/3 Wise decline mitigated 20.1% 17.8% • Implementation and Maintenance both saw solid YoY growth 1H16 % of Total 1H15 % of Total % (RMB’000) Revenue (

  25. Slide 25: Strong Cloud Business Growth

    Strong Cloud Business Growth Total Cloud Revenue of Rmb 195mn,+138.3% YoY Fast growing Cloud business driving incremental revenues and customer engagements +137% +68% +44% +49%(organic growth) Revenue growth Guanyi 1H15 1H16 ERP Cloud Mobile Office Cloud Finance Cloud Industry Cloud P25

  26. Slide 26: Financial Summary

    Financial Summary Cloud momentum accelerated as offline business returned to normal growth  Cloud revenue grew 138% YoY in 1H16 and made up over 20% of total revenue  Cloud ERP revenue made up over 10% of revenue for the first time, up 136% YoY  Traditional ERP business returned to normal stable

  27. Slide 27: Agenda

    CEO Report 2016 Interim business highlights ERP & Cloud business review Future Outlook Agenda CFO Financial Review 2016 Interim financial highlights ERP & Cloud financial review Investment Highlights Appendix: Financial Results Summary P27

  28. Slide 28: Investment Highlights

    Investment Highlights A Leader in enterprise resource planning (ERP) and enterprise Cloud service in China  Market leader with over 6 million ERP and Cloud customers in China  Help companies of all sizes manage their businesses for more than 20 years  A growing ecosystem of over 2,000 partners in

  29. Slide 29: Agenda

    CEO Report 2016 Interim business highlights ERP & Cloud business review Future Outlook Agenda CFO Financial Review 2016 Interim financial highlights ERP & Cloud financial review Investment Highlights Appendix: Financial Results Summary P29

  30. Slide 30: Financial Highlights

    Financial Highlights (RMB’000) 1H16 1H15 Change Revenue 913,204 757,981 20.5% Cost of Sales -188,687 -158,498 19.0% Gross Margin 79.3% 79.1% +0.2pts Total Operating Expenses -754,375 -573,935 31.4% Other Income & Gains 132,470 104,573 21.2% Earning Before Interests & Tax 101,079 130,036 -24.3% EBIT

  31. Slide 31: Total Revenue by Segments

    Total Revenue by Segments % of Total % of Total (RMB’000) 1H16 1H15 Change Revenue Revenue ERP business 718,294 78.7% 676,178 89.2% 6.2% - Sales of software license 392,223 43.0% 368,183 48.6% 6.5% - Implementation 162,933 17.8% 152,026 20.1% 7.2% - Maintenance 153,549 16.8% 146,667 19.3% 4.7% - Oth

  32. Slide 32: Software License by Segments

    Software License by Segments % of Total % of Total (RMB’000) 1H16 1H15 Change Revenue Revenue KIS 155,568 17.0% 129,567 17.1% 20.1% K/3 106,486 11.7% 113,651 15.0% -6.3% EAS 107,992 11.8% 102,450 13.5% 5.4% Others 22,177 2.4% 22,515 3.0% -1.5% Total software license 392,223 43.0% 368,183 48.6% 6.5%

  33. Slide 33: Total Revenue by Sales Channel

    Total Revenue by Sales Channel % of Total % of Total (RMB’000) 1H16 1H15 Change Revenue Revenue ERP business 718,294 78.7% 676,178 89.2% 6.2% - Direct sales 106,816 11.7% 101,846 13.4% 4.9% - Indirect sales 285,407 31.3% 266,337 35.1% 7.2% - Services 316,482 34.7% 298,693 39.4% 6.0% - Implementation

  34. Slide 34: Other Gains

    Other Gains (RMB’000) 1H16 1H15 Change VAT refund 77,077 57,539 34.0% Government contracts 10,473 8,989 16.5% Rental income - net 34,769 35,877 -3.1% Re-measurement of the contingent consideration for business - 1,367 NM combinations Others 10,151 801 1167.3% Total 132,470 104,573 26.7% VAT % of Tot

  35. Slide 35: Selling & Marketing Expenses

    Selling & Marketing Expenses (RMB’000) 1H16 1H15 Change Advertising and marketing 75,625 59,806 26.5% Sales promotion 50,388 44,260 13.8% Salary of sales persons 216,478 187,042 15.7% Project cooperation & outsourcing fees 73,241 57,990 26.3% Traveling 15,287 12,696 20.4% Fixed costs 27,556 30,706 -

  36. Slide 36: R&D & Administrative Expenses

    R&D & Administrative Expenses (RMB’000) 1H16 1H15 Change R&D expense 146,748 106,537 37.7% Salaries and staff welfare – G&A 48,841 34,738 40.6% Option expense 32,057 17,865 79.4% Professional service fee 6,154 3,597 71.1% Traveling 2,982 2,180 36.8% Meeting expenses 667 605 10.2% Provision for doubt

  37. Slide 37: Balance Sheet Overview

    Balance Sheet Overview (RMB’000) 30 June. 2016 31 Dec. 2015 Change Trade and other receivables 336,294 277,875 21.0% Cash at bank and in hand 2,015,693 2,174,100 -7.3% Total assets 5,706,690 5,484,189 4.1% Current assets 2,888,309 3,073,959 -6.0% Borrowings 1,512,418 1,456,518 3.8% Trade and other p

  38. Slide 38: Thanks

    感謝 ありがとう ขอบคุณ Thanks 谢谢 terima kasih 版权所有©1993-2015金蝶软件（中国）有限公司

  39. Slide 39: Contact Us

    Contact Us Steve Zhang General Manager Investor Relations & Securities Dept. 86 (755) 8659 5896 szhang@kingdee.com Summer Gan Director Investor Relations & Securities Dept. 86 (21) 61625518 summer_gan@kingdee.com Yoriko Huang Assistant Manager Investor Relations & Securities Dept. 86 (755) 8607 2591

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