China Yuchai International Limited · NYSE:CYD
China Yuchai International — Evercore ISI Annual Industrial Conference (February 2022)
42 slides from China Yuchai International's conference presentation, February 2022
Slide 1: China Yuchai International Ltd. [NYSE: CYD]
China Yuchai International Limited China Yuchai International Ltd. [NYSE: CYD] February 2022
Slide 2: Forward-looking statements disclaimer
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 engines applications 3
Slide 4: Company Structure
Company Structure Hong Leong Asia Ltd. (Listed on Singapore SGX) China Yuchai International Limited (Listed on NYSE) 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 • Leading manufacturer of a wide array of light-duty, medium-duty and heavy-duty engines for various applications • One of the top commercial engine suppliers in annual unit sales as ranked by the China Association of Automobile Manufacturers (“CAAM”) •
Slide 6: Vehicle Engine OEMs
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Slide 7: Off Road /Marine Engine OEMs
Off Road /Marine Engine OEMs 7
Slide 8: 2021 Market Overview
2021 Market Overview Market Statistics China’s economy has reported a high growth of 8.1% for the year with quarterly performances of 18.3% ， 7.9%, 4.9% and 4.0% between Q1 to Q4, the rapid increase in the first half of the year has reflected a strong rebound from the decline due to Covid-19 impact
Slide 9: Market Overview: Commercial Vehicles 2017-2021
Market Overview: Commercial Vehicles 2017-2021 China Truck Market China Bus Market 4000 500.0 3500 450.0 400.0 3000 350.0 2500 300.0 2000 250.0 200.0 1500 150.0 1000 100.0 500 50.0 0 0.0 HD MD LD Mini Total Large Medium Small Total 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Source: China Auto
Slide 10: Sales Volume
China Yuchai Unit Sales: 2017-2021 500,000 450,000 400,000 350,000 Sales Volume 300,000 250,000 200,000 150,000 100,000 50,000 - 2017 2018 2019 2020 2021 On Road Engine 270,737 268,317 259,005 275,398 251,575 Off Road Engine 96,360 107,414 117,143 154,922 205,216 Total 367,097 375,731 376,148 430,32
Slide 11: 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 for construction and mining application • Expand HHP products into marine and power genera
Slide 12: Operational Overview
China Yuchai International Limited China Yuchai International Ltd. [NYSE: CYD] Operational Overview
Slide 13: GYMCL Strategic Locations
GYMCL Strategic Locations Shenyang Urumqi Beijing Beijing Xi’an Jining Wuhu Wuhan Chongqing Suzhou Shanghai Wuhan Chengdu Suzhou Kunming Guangdon Guangzhou Yulin g Facilities & JVs 13
Slide 14: 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. 14
Slide 15: National VI Engine Assembly Plant
National VI Engine Assembly Plant Engine Plant No. 5 - HD Engine Assembly Line • Yulin facility is the primary manufacturing facility • Independent R&D facilities for engine development and testing • Production of diesel and natural gas engines for various applications • Production of high horsepowe
Slide 16: Component Foundry
Component Foundry Foundry Phase 1 Foundry Phase 2 ▪ Foundry Phase 1 and 2 are in full operation for the casting of engine blocks and heads for all engine models ▪ Large Casting Foundry is fully operational since early 2015, mainly producing the casting for HHP engines ▪ Total annual capacity over 1
Slide 17: High Horsepower Engine Plant
High Horsepower Engine Plant Engine Assembly Line Gantry CNC milling center A • Designed for HHP engine (16 liter and above) machining and assembly • HHP engines are mainly used for marine and power generation applications • Installation of Gantry CNC milling centers for cylinder block and head mach
Slide 18: Wuhu Y&C Power
Wuhu Y&C Power Engine Assembly Line Machining Center • Latest designed engines (10L – 13L) comply with China National VI emission standards • Production and machining lines are fully commissioned • Existing capacity for 30,000 units per annum (single shift operation) • Gas version YC6K engine is ava
Slide 19: MTU Yuchai Power Company Ltd.
MTU Yuchai Power Company Ltd. Our JV partner MTU A diesel engine manufacturer specializing in high-speed, large-rating 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 The Joi
Slide 20: Yuchai National VI Emission Standard Compliant Engines
20 Yuchai National VI Emission Standard Compliant Engines Yuchai National VI Emission Standard Compliant Engines K15 (600－660) K13 (530－600) K11 (430－500) K09 (350－400) K08 (280－350) Engine S06 (200－270) K05 (190－240) S04 (140－200) Y30 (150－165) Y24 (120－165) 0 100 200 300 400 500 600 700 Power Rati
Slide 21: Yuchai National VI Emission Standard Compliant Gas Engines
Yuchai National VI Emission Standard Compliant 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 of Nationa
Slide 22: LD and MD National VI Engines
LD and MD National VI Engines Y24 – 100-150 PS Y30 – 130-180 PS S04 – 140-200 PS S06 – 200-270 PS 22 22
Slide 23: MD and HD National VI Engines
MD and HD National VI Engines K05 – 190-240 PS K08 – 300-350 PS K09 – 360-400 PS K13 – 530-600 PS K11 – 430-500 PS K15 – 600-650 PS 23 23
Slide 24: 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 25: HHP Marine and Power Generation Engines
HHP Marine and Power Generation Engines YC12VT YC6C YC12VC YC16VC • YC6T/6TD - 16/19.5L with 550 - 900 Ps power rating, available for IMO and T2/T3 standard • YC6C/6CL – 40-54L with 600 - 1520 Ps power rating, available for IMO and T2/T3 standard • YC12VT – 12 cylinders, 33L, rated at 750 - 900 Ps,
Slide 26: China Distribution Network
China Distribution Network China Distribution Network • 5,024 services stations in China • Regional sales centers • 23 on road engine sales centers • 15 off road engine sales centers • 13 marine & power gen sales centers •As of 31 December 2021 26
Slide 27: International Sales and Service Network
International Sales and Service Network GYMCL International Offices Global Sales and Service Network • 13 international offices • 276 authorized overseas service stations * As of 31 December 2021 27
Slide 28: Green Technology
Green Technology • National VI Emission Standards (Equivalent to Euro VI) ▪ National VI-a emission standard for gas engine was implemented from 1st July 2019 ▪ National VI-b emission standard for gas engine was implemented from 1st January 2021 ▪ National VI-a standard for all engines was implemente
Slide 29: Cost & Technology Improvement
Cost & Technology Improvement Lean Manufacturing ➢ Promote lean manufacturing across all machining shop and engine assembly plants ➢ Machining processes outsourced to reduce capital investment Supply Chain Improvement ➢ Reduce number of suppliers through stringent vendor selection policy and establi
Slide 30: R&D Capability
R&D Capability ➢ Self-established National Engineering Laboratory, an efficient, energy-saving and environmentally-friendly internal combustion engine testing laboratory in China, which is rated at top tier in Chinese Diesel Industry. ➢ Installation of 84 engine test benches and 16 parts & component
Slide 31: R&D capability
R&D capability ❑ Approximately 700 engineers including PhDs and Master Degree holders in the R&D team ❑ Over 2,000 patents have been registered since 2004 ❑ New Energy R&D and Production facilities were set up in Nanning R&D center Engine innovations ❑ Late 2018: Model K08 engine became the first do
Slide 32: 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 field ➢Red
Slide 33: Yuchai Hydrogen Combustion Engine Continuous Test Running
Yuchai Hydrogen Combustion Engine Continuous Test Running 33 33
Slide 34: GYMCL Recent Awards & Recognitions
GYMCL Recent Awards & Recognitions • GYMCL was named the“Benchmarking Enterprise”published by State- owned Assets Supervision and Administration Commission of the State Council • GYMCL YCA05 and YCA08 engines passed certification for China Tier 4 emission testing • GYMCL Engineering & Research Insti
Slide 35: GYMCL Awards & Recognitions
35 GYMCL Awards & Recognitions 35
Slide 36: China Leader's visit
36 China Leader’s visit Chinese Premier’s Li Keqiang visited GYMCL’s Yulin facility in September 2021 36
Slide 37: Business and Finance Overview
China Yuchai International Limited China Yuchai International Ltd. [NYSE: CYD] Business and Finance Overview
Slide 38: Financial Performance Review
Financial Performance Review Y2017 Y2018 Y2019 Y2020 Y2021 Un-audited Units of engine sold ( '000) 367 376 376 430 457 Revenue (RMB Billion) 16.2 16.3 18.0 20.6 21.3 Off Road Engine Growth Rate YoY ➢ Steady growth in the top line with revenue composition change by engine segments over 32% 32% the la
Slide 39: Financial Performance Review
Financial Performance Review Profit Performance Y2017 Y2018 Y2019 Y2020 Y2021 Un-audited Gross Profit % 20.7% 19.0% 17.2% 15.5% 13.9% Operating Profit % 9.9% 7.9% 6.4% 5.7% 3.1% EBITDA (RMB Billion) 1.9 1.6 1.4 1.5 1.1 Proft After Tax % 8.2% 6.0% 4.8% 3.8% 1.9% Profit After Tax (RMB Billion) 1.3 1.0
Slide 40: Financial Review Financial Performance Indicators
Financial FinancialPerformance Review Indicators Review Y2021 Y2017 Y2018 Y2019 Y2020 Un-audited Dividend per share (USD) $2.21 $0.85 $0.85 $1.70 TBA Earnings per share (USD) $3.44 $2.54 $2.09 $2.08 $1.05 Dividend / EPS, Ratio 64.2% 33.5% 40.7% 81.7% TBA Dividend Per Share and Earnings Per Share Div
Slide 41: Financial Review Financial Performance Indicators
Financial FinancialPerformance Review Indicators Review ➢ Financial Ratio remains strong ➢ Will turn the corner from the return on Capital deployed and extensive Research and Expenditures over the recent years, * 2017 Operating profit and PAT include extraordinary and one-time events 41
Slide 42: Thank You
China Yuchai International Limited China Yuchai International [NYSE: CYD] Thank You
China Yuchai International — Evercore ISI Annual Industrial Conference (February 2022) on 6ix