China High Speed Transmission Equipment Group Co., Ltd. · HKEX:658
China High Speed Transmission Equipment — FY2010 Earnings Presentation
29 slides from China High Speed Transmission Equipment's earnings presentation, Mar 28, 2011
Slide 1: 2010 Annual Results Presentation
2010 Annual Results Presentation 28 March 2011 0
Slide 2: Forward-looking Statements
Forward-looking Statements Forward-looking The presentation is prepared by China High Speed Transmission Equipment Co., Ltd (the “Company”) and is solely for the purpose of corporate communication and general reference only. The presentation is not intended as an offer to sell, or to solicit an offe
Slide 3: Agenda
Agenda 1 2010 2010Annual AnnualReview Reviewand andAnalysis Analysis 2 2010 2010Business BusinessReview Review 3 Industry IndustryOutlook Outlook 4 Future FutureProspectus Prospectus 5 Our OurPlants Plants 6 QQ&&AA 2
Slide 4: 2010 Annual Review & Analysis
1 2010 Annual Review & Analysis 2 2010 Business Review 3 Industry Outlook 4 Future Prospectus 5 Our Plant 6 Q&A 3
Slide 5: Financial Highlights
Financial Highlights Sales revenue increased significantly by 30.9% to approx. RMB 7,392.6 million RMB MM 2010 2009 %Change Sales Revenue 7,392.6 5,647.0 30.9% Gross Profit 2,298.8 1,861.2 23.5% Core EBITDA 2,054.9 1,621.8 26.7% Core EBIT 1,685.5 1,405.7 19.9% Net Profit Attributable to Equity Holde
Slide 6: Continuous Growth in Sales Revenue for Gear Transmission Equipment
Continuous Growth in Sales Revenue for G ear T Gear ransmission E Transmission quipment Equipment Revenue Breakdown by Business Segment RMB MM % of 2010 2009 revenue (% of total revenue) change 8000 7,393 Wind Gear 73.8% .9% 67.4% 43.4% 7000 30 3.2% 11.8% Marine Gear 3.7% 5,647 High-speed locomotive
Slide 7: Consolidated Gross Profit Increased
Consolidated Gross Profit Increased Gross Profit of Wind Gear Transmission Equipment surged 40.2% Gross Profit Breakdown by Business Segment 2010 2009 (% of total gross profit) RMB MM 2,299 Wind Gear 74.1% 65.3% .5% 23 2400 Marine Gear 2.4% 3.3% 2100 1,861 High-speed locomotives and 0.5% 0.3% urban
Slide 8: Gross Profit Margin Analysis
Gross Profit Margin Analysis Analysis Consolidated Gross Profit Margin Product 2010 2009 (%) Wind Gear 31.2% 31.9% Marine gear 23.6% 29.7% High speed locomotives and 33.0% 28.6% 38.9% urban light rails 35 31.1% 30 Numeric Control Series 23.0% N.A 25 High speed heavy duty gear 65.4% 72.8% 20 Gear for
Slide 9: Cost Analysis
Cost Analysis Breakdown of the Cost of Goods Sold (RMB MM) 2009 2010 2.0% 2.1% 10.9% 11.0% 3.2% 3.2% 37.3% 6.9% 12.9% 47.6% (1) Other raw materials Cast iron and forged steel 33.8% 29.1% Subcontracting & processing Direct labor cost Manufacturing fee Total Sales 5,647.0 Total Sales 7,392.6 Cost of G
Slide 10: Balance Sheet Summary
Balance Sheet Summary RMB MM 2010 2009 Fixed Assets 6,789 5,198 2010AR Current Assets 8,142 5,037 1,257 1,313 Fixed assets increased mainly through Inventories investment in wind power capacity Account Receivables 1,954 1,517 enhancement Notes Receivable 1,274 425 Working capital improvement Cash an
Slide 11: 2010 Business Review
1 2010 Annual Review & Analysis 2 2010 Business Review 3 Industry Outlook 4 Future Prospects 5 Our Plant 6 Q&A 10
Slide 12: Diversification of Product-mix
Diversification of Product -mix Product-mix in Each Business Segment Wind Transmission Batch order received and delivered for 3MW large-sale wind gear, Equipment a research agreement for 5MW large-scale wind gear box has been signed with domestic customers. High Speed Seize market opportunities, str
Slide 13: Continuous Growth in Order of Wind Gear Transmission Equipment
Continuous Growth in Order of Wind Gear Transmission Equipment Revenue Breakdown by Products RMB MM 2010 2009 2010 2009 % of revenue 5,458 Unit % of total revenue change of wind power 6,000 5.06 .4% 3 MW Gearbox 5,200 43 562 3 N.A. 0.1% N.A. N.A. 4,400 2MW Gearbox 519 587 10.3% 18.6% (20.3%) 3,805 0
Slide 14: Strong Client Portfolio for Wind Gear Transmission Equipment
Strong Client Portfolio for Wind Gear Transmission Equipment Overseas Customers 3 3 3 3 3 3 Co started： 2005 2006 2007 2007 2008 2009 Domestic Customers 3 3 3 3 3 3 Co started： 2004 2005 2006 2006 2008 2010 13
Slide 15: High-speed Locomotive and Urban Light Rails becomes the Group's New Revenue Growth Point
High-speed Locomotive and Urban Light Rails becomes the Group’s New Revenue Growth Point •The Group’s transmission equipment passed •High-speed locomotive is the priority of the the product quality certification in April 2008 strategic development to a new industry in and launched for sale in 2009.
Slide 16: Industry Outlook
1 2010 Annual Review & Analysis 2 2010 Business Review 3 Industry Outlook 4 Future Prospects 5 Our Plant 6 Q&A 15
Slide 17: The Gear Box Makes Up the Core Part of Wind Turbines
The Gear Box M akes U Makes Upp the C ore P Core art of W Part ind T Wind urbines Turbines Gearbox is the critical component in manufacturing wind turbines Spare Parts Gearbox Wind Turbine Wind Farm • In 2010, the newly installed capacity connected to grid has reached 13.99 million kilowatts, newly
Slide 18: Global Favorable Policies Accelerates Wind Power Development
Global Favorable Policies Accelerates Wind Power Development According to the plan of China National Energy Administration, for the next 10 years from 2011-2020, by opening the market to attract domestic and foreign investment, the direct investment to the domestic new energy industries is expected
Slide 19: Offshore Wind Power Development Drives the Demand for Multi Megawatt Gearbox
Offshore Wind Power Development Drives the Demand for Multi Megawatt Gearbox Offshore wind power will increase domestic installed wind power gearbox capacity to 30GW between 2010 and 2020 China’s accumulated installed capacity (as of end 2010) Heilongjiang 2370.05 Xinjiaing Jilin2940.86 1363.56 Liao
Slide 20: Optimistic View on High-speed Trains and City Light-rail in China
Optimistic View on High-speed Trains and City Light-rail in China and Overseas The Group will further expand both domestic and •The Ministry of Railway: By the end of overseas markets, making this a new source of growth 2010, the operating mileage of the high- speed railway reach 8,358 km, the large
Slide 21: Future Prospects
1 2010 Annual Review & Analysis 2 2010 Business Review 3 Industry Outlook 4 Future Prospects 5 Our Plant 6 Q&A 20
Slide 22: Future Prospects of the Company
Future Prospects of the Company It is expected that PRC government will launch policies to encourage new energy industries which will greatly support the growth of the wind gear business Batch order is received for 3MW wind gearbox equipment, and the 5MW wind gearbox is under development. Proposed l
Slide 23: Our Plant
1 2010 Annual Review & Analysis 2 2010 Business Review 3 Industry Outlook 4 Future Prospect 5 Our Plant 6 Q&A 22
Slide 24: Production Base – Wind Gear Transmission Equipment
Production Base – Wind Gear Transmission Equipment Plant size︰258 acreage (about 172,000sq. m) Annual production：approx. 4,000MW Main product︰ Wind power gearbox Plant Exterior: Spare parts processing Heat treatment Measuring Assembling Finished products 23
Slide 25: Production Base – Wind Gear Transmission Equipment
Production Base – Wind Gear Transmission Equipment Three Dimension Test Bench Measurement Plant exterior Plant size︰400 acreage (about 266,000 sq. m) Annual production︰approx. 6,000MW Main product︰ Wind power gearbox Hobbing Machine Finished wind power gearbox 24
Slide 26: Production Base – Traditional Gear Transmission Equipment
Production Base – Traditional Gear Transmission Equipment Hobbing Machine Plant size︰163 acreage (about 110,000 sq. m) Main products︰ Gear transmission equipment for Construction Gearbox transmission equipment for bar rolling, wire-rolling and plate-rolling mills of metallurgy industry Gear transmis
Slide 27: Production Base – Marine Gear Transmission Equipment
Production Base – Marine Gear Transmission Equipment Factory Exterior Plant size︰ 100 acreage (about 67,000 sq. m) Main product: Marine Transmission system Including︰ Pitch Propeller Marine Gearbox Tunnel Thruster Hydraulic Coupling Full Circle Swinging Fixed Pitch Propeller and Gearbox Tunnel Thrus
Slide 28: Q&A
1 2010 Annual Review & Analysis 2 2010 Business Review 3 Industry Outlook 4 Future Prospect 5 Our Plant 6 Q&A 27
Slide 29: Thank you! Investor Relations Contacts
Thank Thank you！ you！ Investor Investor Relations Relations Contacts Contacts：： Website︰www.chste.com E-mail︰ir@chste.com Tele︰(86) 25 5247 2000 Fax︰(86) 25 5241 2731 28
China High Speed Transmission Equipment Group — FY2010 Earnings Presentation on 6ix