China Yuchai International Limited · NYSE:CYD
China Yuchai International — 16th Annual Evercore ISI Industrial Conference 2024
41 slides from China Yuchai International's conference presentation, March 2024
Slide 1: China Yuchai International Ltd. - 16th Annual Evercore ISI Industrial Conference
China Yuchai International Limited China Yuchai International Ltd. [NYSE: CYD] 16th Annual Evercore ISI Industrial Conference March 2024
Slide 2: Forward-Looking Statements
China Yuchai International Limited This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe”, “expect”, “anticipate”, “project”, “targets”, “optimistic”, “confident that”, “continue to”, “predict”, “intend
Slide 3: China Yuchai International Ltd.
China Yuchai International Ltd. Truck and Bus engines applications Off-road and Agriculture applications Marine and Power Generator applications 3
Slide 4: Company Structure
Company Structure Hong Leong Asia Ltd. (Listed on Singapore SGX) China Yuchai International Limited (Listed on NYSE CYD) Engine Business: Hospitality Business: Guangxi Yuchai HL Global Enterprises Ltd Machinery Co. Ltd (GYMCL) (Listed on Singapore SGX) 4
Slide 5: Corporate Summary
Corporate Summary • GYMCL was founded in 1951 • One of the top commercial vehicle engine suppliers in annual unit sales as ranked by the China Association of Automobile Manufacturers (“CAAM”) • Leading manufacturer of a wide array of light-, medium- and heavy-duty; and high horsepower engines includ
Slide 6: Subsidiaries, Joint Ventures and Alliances
Subsidiaries, Joint Ventures and Alliances • Y&C Engine Co., Ltd. (“Y&C”) is a 45%-owned JV with Jirui United Heavy Industry Co., Ltd., specializing in heavy-duty vehicle engines. • MTU Yuchai Power Company Limited (“MTU Yuchai”) is a 50-50 JV of Yuchai and MTU Friedrichshafen GmbH (“MTU”), a subsid
Slide 7: Subsidiaries, Joint Ventures and Alliances
Subsidiaries, Joint Ventures and Alliances • Suzhou Yuxing Automobile Technology Co., Ltd. is a 30%-owned JV with certain engine service firms to provide vehicle monitoring, vehicle and engine maintenance and repairs solutions. • Guangxi Xing Yun Cloud Technology Co. Ltd. (“Xing Yun Cloud”) a new su
Slide 8: Vehicle Engine OEMs
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Slide 9: Off Road / Marine Engine OEMs
Off Road /Marine Engine OEMs 9
Slide 10: 2023 Market Overview
2023 Market Overview Market Statistics China’s economy reported a 5.2% GDP growth for 2023 up from 3.0% in 2022, but real estate activities struggled with new construction down by 20.4% and property developers becoming impaired, business and consumer confidence weakened as deflationary pressures ros
Slide 11: Market Overview: Commercial Vehicles 2019-2023
Market Overview: Commercial Vehicles 2019-2023 unit in ‘000 China Truck Market unit in ‘000 China Bus Market 5000 450 4500 400 4000 350 3500 300 3000 250 2500 200 2000 150 1500 1000 100 500 50 0 0 HD MD LD Mini Total Large Medium Small Total 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Source:
Slide 12: Sales Volume
China Yuchai Unit Sales: 2019-2023 500,000 450,000 400,000 350,000 Sales Volume 300,000 250,000 200,000 150,000 100,000 50,000 - 2019 2020 2021 2022 2023 On Road Engine 259,005 275,398 251,575 129,896 132,048 Off Road Engine 117,143 154,922 205,216 191,360 173,388 Total 376,148 430,320 456,791 321,2
Slide 13: Operations Strategy
Operations Strategy 1. Product Strategy • Ensure all products meet current stringent emission standards and be among the first engine manufacturers compliant with future emission standards • Extend HD products into construction and mining applications • Expand High Horsepower (“HHP”) products into m
Slide 14: Operational Overview
China Yuchai International Limited China Yuchai International Ltd. [NYSE: CYD] Operational Overview
Slide 15: GYMCL Strategic Locations
GYMCL Strategic Locations Shenyang Urumqi Beijing Beijing Xinshunda Xi’an Jining Wuhu Wuhan Shanghai Chongqing Wuhan Suzhou Wuxi Chengdu Hydrogen Kunming Guangdon Yulin Xinlan Guangzhou g Facilities & JVs 15
Slide 16: Engine Assembly Plants
Manufacturing Capability Engine Assembly Plants 16 16
Slide 17: Intelligent Digital Factory
Manufacturing Capability Intelligent Digital Factory Casting Machining Assembly and Testing Core making Robot Machining centre from International Enclosed and constant temperature and Domestic Suppliers workshop Molten Iron Pouring Robot Logistics + auxiliary tools are fully Robot + vision + full- a
Slide 18: Fully Automated Machining Centre
Manufacturing Capability Fully Automated Machining Centre ➢ 恒温、恒湿、微正压、无尘车间环境 Constant temperature, constant humidity, slight positive pressure, dust-free workshop environment ➢ 从上下料、加工，到检测全过程自动化，属于无人化”黑灯”工厂 The whole process from loading and unloading, processing to inspection is automated, belongin
Slide 19: Foundry Centre
Manufacturing Capability Foundry Centre Automatic molten iron pouring Automatic core making center 19 The world's first robot core setting 19
Slide 20: 3D Printing for Trial Production
Manufacturing Capability 3D Printing for Trial Production New Product Trial Production Centre 20 Additive printing technology Subtractive printing application technology application 20
Slide 21: Nat VI Engine Manufacturing Plants
Yulin Facility Nat VI Engine Manufacturing Plants Engine Component Machining Plants Engine Assembly Plant 微正压、恒温、恒湿车间 Micro-positive pressure, constant temperature and humidity workshop. 21
Slide 22: MTU Yuchai Power Company Ltd.
MTU Yuchai Power Company Ltd. Our JV partner MTU A diesel engine manufacturer specializing in high-speed, large-rated diesel engines for power generation, oil & gas, railway, marine and mining applications MTU is a wholly owned subsidiary of Rolls-Royce Power Systems The Joint Venture Operatio
Slide 23: Yuchai National VI-b Emission Standard Compliant Engines
23 Yuchai National VI-b Emission Standard Compliant Engines Yuchai National VI–b Emission Standard Compliant Engines K13 (600－660) K12 (530－600) K11 (430－460) K09 (350－380) K08 (280－350) Engine S06 (200－260) K05 (190－230) S04 (140－200) Y30 (150－180) Y24 (120－165) 0 100 200 300 400 500 600 700 Power
Slide 24: Yuchai National VI-b Compliant Natural Gas Engines
Yuchai National VI-b Emission Standard Compliant Natural Gas Engines Yuchai National VI Emission Standard Compliant Gas Engines K15N （500~560） K13N （400~500） K11N （340~400） Engine K08N （260~300） A07N （190~260） K05N （185~210） S04N （140~160） 0 100 200 300 400 500 600 Power Rating (PS) •Implementation
Slide 25: Yuchai Tier-4 Emission Standard Compliant Off Road Engines
Yuchai Tier-4 Emission Standard Compliant Off Road Engines 20 engine series with Power range: 15~2550 hp 16VTD 1800-2550 12VTD 1000-1620 6TD 765-950 K16 580-775 K13 480-580 K11 350-480 K09 220-400 K08 300-350 A08 220-320 A07/A07K 125-300 K05/A05/A05K 110-240 A04 110-175 F36 75-175 功率/PS F39 80-160 F
Slide 26: Marine and Power Generation Engine Platform (Tier 3 & 4)
Marine and Power Generation Engine Platform (Tier 3 & 4) 20VC(132L) 2808 3610 16VC(105L) 2205 2808 20VTF(104L) 3300 4000 16VTF(83L) 2420 3300 12VC(79L) 1680 2005 TD65(65L) 1680 2005 12VTF(63L) 2005 2420 TD52(52L) 1520 1680 TD40(40L) 900 1345 6TH(28L) 715 1016 TD20(20L) 441 668 K13(13L) 365 441 6MJ(1
Slide 27: LD and MD National VI Engines
LD and MD National VI Engines Y24 – 120-165 PS Y30 – 150-180 PS S04 – 140-200 PS S06 – 200-260 PS 27
Slide 28: MD and HD National VI Engines
MD and HD National VI Engines K05 – 190-230 PS K08 – 260 - 300 PS K09 – 360- 380 PS K12 – 530-600 PS K11 – 430-460 PS K13 – 600-660 PS 28
Slide 29: HHP Marine and Power Generation Engines
HHP Marine and Power Generation Engines YC12VTD YC6C YC12VC YC16VC • YC6T - 6 cylinders, 16/19.5L, with 360 - 600 Ps power rating • YC6C/6CL – 6 cylinders, 40-54L, with 700 - 1200 Ps power rating • YC8CL – 8 cylinders, 72.8L , rated at 692 - 1176 Ps power rating • YC12VTD – 12 cylinders, 39L, rated
Slide 30: Overseas Sales and Service Support
Overseas Sales and Service Support OUR SERVICE PRESENCE Guang=) Yocha: Machenery Company Limes Ps = LSE te oy mE eS : 3.335 authorizes Gommestic customer service stations 30
Slide 31: Green Technology
Green Technology • National VI Emission Standards (Equivalent to Euro VI) ▪ National VI-a emission standard for gas engine was implemented from July 1, 2019 ▪ National VI-b emission standard for gas engine was implemented from January 1, 2021 ▪ National VI-a standard for all engines was implemented
Slide 32: Cost & Technology Improvement
Cost & Technology Improvement Lean Manufacturing ➢ Promote lean manufacturing across all machining and engine assembly plants ➢ Machining processes outsourced to reduce capital investment Supply Chain Improvement ➢ Reduced number of suppliers through stringent vendor selection policy and establish l
Slide 33: R&D Capability
R&D capability ❑ Approximately 650 engineers including PhDs and Master Degree holders ❑ Nearly 3,000 patents have been registered as of December 2023 ❑ New Energy R&D and Production facilities were set up in Nanning R&D center Powertrain innovations ❑ Late 2018: Model K08 engine was first domestic d
Slide 34: R&D Capability
R&D Capability ➢ Self-established nationally–recognized engineering laboratory, an efficient, energy- saving and environmentally-friendly internal combustion engine testing laboratory in China, rated as top tier in Chinese Diesel Industry. ➢ Installation of 84 engine test benches and 16 parts & comp
Slide 35: GYMCL New Energy Products
GYMCL New Energy Products New energy power Fuel cell system: ➢High efficiency: maximum efficiency＞70% Integrated bridge system: ➢High integration, high power density, ➢ Highly integrated motor, motor controller, and ultra-low starting temperature. TCU, oil pump and sensor. ➢Wide application fields.
Slide 36: Business and Finance Overview
China Yuchai International Limited China Yuchai International Ltd. [NYSE: CYD] Business and Finance Overview
Slide 37: Financial Performance Review
Financial Performance Review Y2019 Y2020 Y2021 Y2022 Y2023* Units of engine sold (in thousands) 376 430 457 321 313 Revenue (in billion RMB) 18.0 20.6 21.3 16.0 18.0 RMB, billions (*Unaudited) Units in ‘000 Revenues Engine Sales 500 457 25.0 450 430 21.3 20.6 400 376 20.0 18.0 18.0 350 321 313 16.0
Slide 38: Financial Performance Review
Financial Performance Review Profit Performance Y2019 Y2020 Y2021 Y2022 *Y2023 Gross Profit % 17.2% 15.5% 13.9% 15.6% 16.2% Operating Profit % 6.4% 5.7%. 3.1% 3.2% 3.4% EBITDA (RMB Billion) 1.4 1.5 1.2 1.0 1.2 Profit After Tax % 4.8% 3.8% 1.9% 2.1% 2.3% Profit After Tax (RMB Billion) 0.9 0.8 0.4 0.3
Slide 39: Financial Performance Review: Financial Indicators
Financial FinancialPerformance Review Indicators Review Y2018 Y2019 Y2020 Y2021 Y2022 *Y2023 Dividend per share (USD) $0.85 $0.85 $1.70 $0.40 $0.28 TBD Earnings per share (USD) $2.54 $2.09 $2.08 $1.06 $0.77 $0.99 Dividend / EPS, Ratio 33.5% 40.7% 81.7% 37.7% 36.4% TBD Div/EPS % $4.00 Y2018 33.5% $3.
Slide 40: Financial Performance Review: Key Financial Ratios
Financial Performance Review Financial Indicators Review Key Financial Ratios Y2019 Y2020 Y2021 Y2022 *Y2023 Debt/Equity Ratio 18.3% 19.2% 19.3% 20.3% 21.3% Current Ratio 1.55 1.48 1.42 1.52 1.59 ➢ Financial Ratios remain strong (* Y2023 numbers are unaudited) (*Y2023 numbers are unaudited) 40
Slide 41: Thank You
China Yuchai International Limited China Yuchai International [NYSE: CYD] Thank You
China Yuchai International — 16th Annual Evercore ISI Industrial Conference 2024 on 6ix