Geely Automobile Holdings Limited · HKEX:175
Geely Automobile — FY2017 Earnings Presentation
16 slides from Geely Automobile's earnings presentation, Mar 21, 2018
Slide 1: 2017 Final Results
2017 Final Results 21 March 2018
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: 2017 Full Year Results
2017 Full Year Results • Attributable profit up 108% to RMB10.6 billion • Sales volume up 63% • Average selling price up 7% • Revenue up 73% • Higher operating margin ratio at 13.2% • Cash dividend up 142% to HK29 cents. 3
Slide 4: Sales Performance
Sales Performance Sales Volume (Unit) Average Ex-factory Prices （RMB） 80,000 1,400,000 70,000 10Y CAGR: 7% 1,200,000 10Y CAGR*: 21% 60,000 1,000,000 50,000 800,000 40,000 600,000 30,000 400,000 20,000 200,000 10,000 0 - 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2007 2008 2009 2010 2011
Slide 5: Shareholders’ Return
Shareholders’ Return Net Profit （Million RMB） Cash DPS* (HK cents) 12,000 35.0 10Y CAGR: 43% 30.0 10Y CAGR: 36% 10,000 25.0 8,000 20.0 6,000 15.0 4,000 10.0 2,000 5.0 0 - 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Slide 6: Profitability
Profitability 25.0% 9.0% 8.0% 20.0% 7.0% 6.0% 15.0% 5.0% 4.0% 10.0% 3.0% Gross margin 2.0% selling expenses % T/O 5.0% Operationg margin 1.0% administration expenses % T/O 0.0% 0.0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 6
Slide 7: 2017 Highlights
2017 Highlights • Growth driven by 4 new models launched in 2016 • Comprehensive SUV lineup after adding 3 new SUV/Crossover models in 2017 • Enhanced customer service satisfaction • Technology brand “iNTEC” • Market share in China > 5% • Successful launch of Lynk&Co • NEV sales volume up 47% 7
Slide 8: Lynk & Co
Lynk & Co • Capital contribution of RMB3.75bn for 50% interests in the JV • Lynk&Co 01 well received at better than expected sales volume and retail prices • Net loss of RMB70m • Zhangjiakou plant completed by end of 2017 • On track for achieving business target in 2018 8
Slide 9: Sales Volume Breakdown
Sales Volume Breakdown (Y/E December) 2017 2016 YoY change Total 1,247,116* 765,970 63% - Domestic 1,235,361* 744,191 66% - Exports 11,755 21,779 -46% Key Models: Boyue 271,485 104,911 159% New Emgrand 214,075 213,222 0% Vision 165,996 153,075 8% Emgrand GS 161,385 60,532 167% Vision SUV 127,042 69,
Slide 10: 2017 Final Results
2017 Final Results Y/E December (RMB m) 2017 2016 YoY change Turnover/Revenue 92,761 53,722 73% Gross profit margin ratio* 19.4% 18.3% 6% Operating margin ratio** 13.2% 11.0% 20% Profit after tax 10,735 5,170 108% Attributable profit 10,634 5,112 108% Diluted EPS (RMB cents)# 116.14 57.33 103% Cash
Slide 11: Financial Analysis
Financial Analysis Y/E December 2017 2016 YoY change Sales of vehicles (RMB m)# 91,283 52,846 73% Average unit price (RMB)# 73,550 68,993 7% Return on equity 30.9% 20.9% 48% EBITDA ratio* 15.3% 14.1% 9% Selling expenses (% of T/O) 4.4% 4.7% -6% Admin. expenses (% of T/O) 3.2% 4.8% -34% * EBITDA marg
Slide 12: Financial Summary
Financial Summary • Net profit grew faster at 111% after excluding one-off items • Positive free cashflow despite much higher capex at RMB7.8bn • Net cash at RMB12bn level despite capital contribution to Lynk&Co JV • Early redemption of US$300m senior notes • Genius AFC achieved profitability 12
Slide 13: New Products
New Products “Geely” brand: • The Group’s first MPV • 2 sedans, 2 SUVs, 2 EVs • Upgraded versions of all major existing models • “PHEV” and “HEV” versions for all major existing models 13
Slide 14: New Products
New Products “Lynk&Co” brand: • Lynk&Co 02 Crossover • Lynk&Co 03 Sedan • “PHEV” versions for 01, 02 & 03 14
Slide 15: 2018 Outlooks
2018 Outlooks • Target sales volume up 27% to 1.58m units (including Lynk&Co) • Strongest ever new product pipeline • NEVs & Lynk&Co at full speed • YTD (the first 2Ms in 2018) sales volume up 38% • Oversea sales recovery to boost growth further 15
Slide 16: www.geelyauto.com.hk
ee GEELY www.geelyauto.com.hk a
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