Geely Automobile Holdings Limited · HKEX:175
Geely Automobile — FY2018 Earnings Presentation
18 slides from Geely Automobile's earnings presentation, Mar 21, 2019
Slide 1: 2018 Final Results
2018 Final Results 21 March 2019
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: 2018 Full Year Results
2018 Full Year Results • Attributable profit +18% to RMB12.55 billion • Sales volume +20% • Average selling price +1% (+8% if including Lynk&Co sales) • Higher margins (GP at 20.2%; OP at 13.6%) • Cash dividend +21% to HK35 cents 3
Slide 4: Sales Performance
Sales Performance Sales Volume (Units) Average Ex-factory Prices（RMB） 1,500,838 1,600,000 80,000 1,400,000 70,000 10-year CAGR*: 22.1% 10-year CAGR*: 6.4% 1,200,000 60,000 49% 1,000,000 50,000 800,000 40,000 600,000 30,000 400,000 20,000 200,000 10,000 - - 2009 2010 2011 2012 2013 2014 2015 2016 201
Slide 5: Shareholders’ Return
Shareholders’ Return Net Profit （RMB Million） Cash DPS** (HK cents) 14,000 40 35 12,000 10-year CAGR*: 36.1% 10,000 10-year CAGR*: 30.5% 30 25 8,000 20 6,000 15 4,000 10 2,000 5 - - 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 *CAGR: Compound An
Slide 6: Profitability
Profitability 25% 9% 8% 20% 7% 6% 15% 5% 4% 10% 3% 5% 2% 1% 0% 0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Gross margin Operating margin Selling expenses % T/O Administrative expenses % T/O 6
Slide 7: 2018 Highlights
2018 Highlights • Growth driven by new models • Full year contribution from Lynk&Co JV • Successful launch of Geely Smart Ecosystem “GKUI” • Market share for passenger vehicles in China (from 5% to 6.2%) • Substantial growth at Genius AFC • NEV sales volume up 165% 7
Slide 8: Genius AFC
Genius AFC • Additional capital injection of RMB1.1 billion by shareholders • Provision of automobile financing for 3 key auto brands under Zhejiang Geely Group • Loan assets doubled from RMB9.7 billion by end of 2017 to RMB19.3 billion by end of 2018 • Negligibly low default rate • Net profit of RM
Slide 9: Lynk&Co
Lynk&Co • “01” well received at better than expected sales volume and retail prices • Net profit of RMB668 million (Net loss of RMB70 million in 2017) • Launch of PHEV version for “01” and two new models (i.e. “02” & “03”) • Ranked number 3 in J.D. Power 2018 China Initial Quality study (IQS)-mass m
Slide 10: New Energy & Electrified Vehicles (NEEVs)
New Energy & Electrified Vehicles (NEEVs) New NEEV models NEEVs - Sales Volume (units) 2018 2018 2017 Borui GE PHEV 01 PHEV 2016 Borui GE MHEV 0 20000 40000 60000 80000 EV - Range Per Charge (km) *2018 Emgrand EV350 Emgrand EV450 GSe 2017 2017 2016 - 200 400 600 Emgrand EV300 Emgrand PHEV Price Rang
Slide 11: Sales Volume Breakdown
Sales Volume Breakdown (Y/E December) 2018 2017 YoY change Total * 1,500,838 1,247,116 20% -Domestic * 1,473,070 1,235,361 19% -Exports 27,768 11,755 136% Key Models: Boyue 226,160 271,485 -17% New Emgrand 223,068 214,075 4% Vision 160,168 165,996 -4% Emgrand GS 152,338 161,385 -6% Emgrand GL 144,18
Slide 12: Sales Volume Breakdown (continue)
Sales Volume Breakdown (continue) Sales by Locations 2% (Geely+Lynk&Co) - Market Share in China PV Market** 7.0% 6.0% 5.0% 98% 4.0% Domestic Exports 3.0% 2.0% Sales by Segments 1.0% 0.0% 43% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 57% Sedan SUV Key Models: Sedan: New Emgrand, Vision, Emgra
Slide 13: 2018 Final Results
2018 Final Results Y/E December (RMB m) 2018 2017 YoY change Revenue 106,595 92,761 15% Gross profit margin ratio* 20.2% 19.4% 4% Operating margin ratio** 13.6% 13.2% 3% Profit after tax 12,674 10,735 18% Attributable profit 12,553 10,634 18% Diluted EPS (RMB cents)# 136.83 116.14 18% Cash DPS (HK c
Slide 14: Financial Analysis
Financial Analysis Y/E December 2018 2017 YoY change Sales of vehicles (RMB m)# 102,651 91,283 12% Average unit price (RMB)# 74,362 73,550 1% Average unit price (including Lynk&Co) 79,510 73,895 8% (RMB) Return on equity 27.9% 30.9% -10% EBITDA ratio* 15.8% 15.3% 3% Selling expenses (% of T/O) 4.2%
Slide 15: Financial Summary
Financial Summary • Profit grew faster at 25% after excluding one off items • Positive free cashflow despite much higher capex • High net cash level at RMB12.33 billion level • Issuance of US$300m bonds • Interest expenses down 30% • Moody’s credit rating outlook upgraded to positive 15
Slide 16: New Products
New Products “Geely” brand: • Two multi-purpose vehicle (MPV) models (including Jiaji) • A new version of mid-size sporty SUV under the “Boyue” family • A new A0 segment SUV • A pure electric sedan model • Upgraded versions of all major existing models • “NEEV” versions for all major existing models
Slide 17: New Products
New Products “Lynk&Co” brand: • A brand new model of “Lynk&Co” • “NEEV” versions for “02” and “03” models 17
Slide 18: 2019 Outlook
2019 Outlook • Target sales volume flat at 1.51 million units • New product offerings at high levels • Significantly increase in NEEV models • Oversea sales continue to recover and boost growth further 18
Geely Automobile Holdings — FY2018 Earnings Presentation on 6ix