Geely Automobile Holdings Limited · HKEX:175
Geely Automobile — Investor Presentation (April 2015)
32 slides from Geely Automobile's investor presentation, Apr 1, 2015
Slide 1: Geely in Transformation
Geely in Transformation 1st April 2015
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: The Geely Group
The Geely Group Geely – volume Zhejiang Geely Holding Group manufacturer targeting mass market segment in China and other > CEVT developing markets Geely > London Taxi Volvo Car – Automobile > Emerald Auto. premium brand that Holdings Volvo Car + Others combines innovation Limited Group and leadersh
Slide 4: Geely Automobile
Geely Automobile Year started: 1998 Total workforce: 18,481 (on 31/12/2014) Manufacturing facilities: 6 plants in China + 1 plant in Belarus + 1 plant in Uruguay Products: 13 major models under 5 platforms Distribution network: 751 dealers in China; 38 sales agents, 476 sales and service outlets in
Slide 5: Financial Performance
Financial Performance Annual Sales Average Ex-factory Net Profit (RMB m) Volume Price (RMB) 3,000 600,000 60,000 2,500 500,000 50,000 2,000 400,000 40,000 1,500 300,000 30,000 1,000 200,000 20,000 100,000 10,000 500 - - 0 2005 2007 2009 2011 2013 2005 2007 2009 2011 2013 2005 2007 2009 2011 2013 Ret
Slide 6: Strategies
Strategies Products • Platform and modular architecture; • Focus on powertrain technology; • In-house international design capabilities; • Joint product architecture with Volvo Car; • Gradual transition from hybrid to pure electric; • Partnership to speed up electrification offerings; • Strategic al
Slide 7: Most Popular Models
Most Popular Models 70% 60% 58% % of total sales volume 50% 43% 39% 40% 38% 36% 35% 34% 32% 28% 29% 30% 23% 22% 20% 10% 0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Haoqing Free Cruiser EC7/Xindihao 1.0L, 1.3L 1.0L,1.3L 1.3T, 1.5L, 1.8L RMB30-43K RMB35-45K RMB70-114K 7
Slide 8: New Product - Xindihao
New Product - Xindihao Monthly Sales Volume of Xindihao 25,000 20,000 15,000 10,000 5,000 0 2014/7 8 9 10 11 12 2015 2 • Enhanced safety & comfort • New turbo engines with larger power & better fuel efficiency • New 6-speed manual gearbox • NVH noise cancellation technology • Enhanced storage space
Slide 9: New Product – New Vision
New Product – New Vision Monthly Sales Volume of Vision 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 2014/8 9 10 11 12 2015 2 • Enhanced safety & comfort • More efficient turbo engines • New 6-speed manual gearbox • 360O 3-sensor parking assist system • PEPS (Passive Entry/Passive Start) • NVH noi
Slide 10: New Product – GC9
New Product – GC9 Engine: 1.8T, 2.4L, 3.5L V6 Transmissions: 6AT Dimension: 4956/1861/1513 Wheelbase: 2850 Power: 120Kw (1.8T) 180Kw (3.5L V6) Max. Torque: 250/1500 N.m/rpm(1.8T) 326/4700 N.m/prm(3.5L) MSRP: RMB146,800-178,800 • New brand image, market positioning & design philosophy • New 1.8T and
Slide 11: Product Development
Product Development Reverse Product Modular Engineering Platform Architecture 11
Slide 12: Geely + Volvo Car = ?
Geely + Volvo Car = ? Volvo Cars Geely • Technologies • China Market • Design CEVT • Purchasing • Safety • Cost control • Branding • Finance Improved efficiency & significant cost effectiveness 12
Slide 13: China Euro Vehicle Technology
China Euro Vehicle Technology Synergy through sharing of resources, competence, technologies without jeopardizing brand integrity and corporate autonomy • Located in Gothenburg • 300 full time staff • + 600 consultants • C-segment Modular Architecture (CMA) • Architecture development • Top hat devel
Slide 14: Dealer/Brand Restructuring
Dealer/Brand Restructuring Number of Dealers in China 1100 1000 1068 976 973 981 900 941 943 800 838 700 751 600 500 3 brands & 1 brand & 2 brands 3 dealer 1 dealer & 2 dealer networks network networks (2008) (2014) 14
Slide 15: Post Restructuring Recovery
Post Restructuring Recovery Domestic Sales Volume (3MMA+/-%) 50% 40% 30% 20% 10% 0% 2011 5 7 9 11 2012 3 5 7 8 11 2013 3 5 7 9 11 3 5 7 9 11 2015 2014 -10% -20% -30% -40% JLB-4G13T G-Netlink 15
Slide 16: Recent Performance
Recent Performance First Two Months of 2015 A-segment Sedans (EC7+Xindihao+GC7+SC7+Vision) 60,706 units +89% YoY New Vision SUVs (GX7+SX7+GX9) 12,136 units +124% YoY GX7 SUV 16
Slide 17: Automaker Brand Websites
Automaker Brand Websites J.D.Power Asia Pacific 2014 China Brand Website Evaluation (BWES) StudySM Brand Points# Overall Rank Sector Rank* Geely 802 2 1 Industry Average 752 # based on a 1,000-point scale and study of 3,677 new-vehicle intenders and 29 brand websites * ranking amongst Chinese domest
Slide 18: Auto Finance
Auto Finance 80% • Located in Shanghai Auto • RMB900m registered Finance capital JV in • Wholesales financing China solutions to dealers • Retail financing solutions 20% to end-customers • Focusing on Tier-1 & -2 cities initially • Supporting both Geely and Volvo Car brands • Progressively covering
Slide 19: New Energy Vehicles
New Energy Vehicles EC7 - EV JL7001BEV • Kandi JV Partnership to Speed up • Xindayang Electrication JV Offerings EC7 – Petro Hybrid Gradual Transition from Hybrid to Pure Electric KD-5011 Emgrand Cross Plug-in Hybrid Zhidou 19
Slide 20: Finance
Finance Cash Position (RMB m) 8,000 • Issue of US$300M 5.25% 6,000 5-year senior notes to 4,000 reduce funding costs and widen funding sources 2,000 net cash cash - • Asset disposals to optimize asset size and improve -2,000 operating efficiency Deprecia(on/Amor(za(on (RMB m) • Intangible assets up
Slide 21: Outlooks
Outlooks • Restructuring of dealer network has strengthened our execution capability in delivering quality services and products to customers • Cooperation with Volvo Car has helped to narrow brand, technology and service quality gap with international players • Product offerings should be further e
Slide 22: Appendix
Bi Appendix a
Slide 23: China Vehicle Market
China Vehicle Market China Passenger Vehicle Market, (sales volume, ‘000 units) 20,000 SUV 18,000 MPV 16,000 sedan 14,000 12,000 10,000 8,000 6,000 4,000 2,000 -‐ 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: China Association of Automobile Manufacturers 23
Slide 24: The Passenger Vehicle Market
The Passenger Vehicle Market Passenger Vehicle, (+/-% YoY growth) 50% 47% 45% 40% 35% 34% 35% 30% 25% 25% 25% 23% 20% 15% 13% 10% 8% 8% 7% 5% 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: China Association of Automobile Manufacturers 24
Slide 25: The Sedan Market
The Sedan Market Sedan, (+/-% YoY growth) 60% 50% 48% 40% 37% 30% 27% 25% 23% 20% 12% 10% 7% 7% 6% 3% 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: China Association of Automobile Manufacturers 25
Slide 26: The SUV Market
The SUV Market SUV, (+/-% YoY growth) 120% 101% 100% 80% 60% 50% 49% 47% 40% 36% 25% 25% 21% 21% 20% 20% 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: China Association of Automobile Manufacturers 26
Slide 27: The MPV Market
The MPV Market MPV, (+/-% YoY growth) 180% 165% 160% 140% 120% 100% 79% 80% 60% 47% 43% 40% 23% 26% 18% -‐12% 20% 12% -‐1% 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 -‐20% -‐40% Source: China Association of Automobile Manufacturers 27
Slide 28: The Passenger Vehicle Market
The Passenger Vehicle Market China Passenger Vehicle Sales, (3MMA +/-% YoY growth) 300% sedans 250% MPVs SUVs 200% 150% 100% 50% 0% 5 9 5 9 5 9 2011 5 9 5 9 5 9 5 9 2015 2008 2009 2010 2012 2013 2014 -‐50% Source: China Association of Automobile Manufacturers 28
Slide 29: The Key Segments
The Key Segments Breakdown by Engine Sizes 100% 90% 80% 70% 60% > 2.0L 50% 1.6-‐2.0L 1.0-‐1.6L 40% <= 1.0L 30% 20% 10% 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: China Association of Automobile Manufacturers 29
Slide 30: The Shift Towards AT
The Shift Towards AT Breakdown by Transmission Types 100% 90% 80% 70% 60% Others 50% Manual 40% AutomaGc 30% 20% 10% 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: China Association of Automobile Manufacturers 30
Slide 31: The indigenous Brands
The indigenous Brands Market Share of Indigenous Brands 100% 90% 80% 70% French 60% Korean 50% American 26% 26% German 40% 26% 30% 31% 29% Chinese 28% 28% 30% 22% Japanese 20% 10% 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: China Association of Automobile Manufacturers 31
Slide 32: www.geelyauto.com.hk
Ma So nliZS BERS ABR Sl GEELYAUTOMOBILE HOLDINGS LIMITED GEELY www.geelyauto.com.hk
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