Chinasoft International Ltd. · HKEX:354
Chinasoft International — FY2012 Earnings Presentation
26 slides from Chinasoft International's earnings presentation, Apr 2, 2013
Slide 1: ChinaSoft International 2012 Annual Result Conference Call
ChinaSoft International (0354.HK) 2012 Annual Result Conference Call April 2, 2013
Slide 2: Disclaimer
Disclaimer These presentations and/or other documents have been written and presented by Chinasoft International Limited (“ChinaSoft International” or “the Company”). The information presented or contained in these materials is subject to change without notice and its accuracy is not guaranteed.
Slide 3: Agenda
Agenda 1 Company Background 2 2012 Annual Financial Highlights 3 Business Review and Development 4 Future Outlook 5 Appendix 3
Slide 4: Snapshot of ChinaSoft International
Snapshot of ChinaSoft International Headcount 18946 Service Professional Services (48.4%) 14496 Offering Outsourcing Services (47.9%) 10940 (% of service revenue1) Training (3.7%) 7759 4816 4363 2382 477 1055 238 Government & Manufacturing (24.2%) 2003 2004 2005 2006 2007 2008 2009 2010 2011
Slide 5: Business Distribution
Business Distribution Service Revenue by Industry Verticals Service Revenue by Service Type ESG: Others Training 4.5% Gov't & 3.7% MFG 24.2% OSG: Telecom IT 28.6% Outsourcing PSG: Services IT 47.9% Consulting & Solutions 48.4% BFSI 17.3% Hi-Tech Charging mode: Charging mode: 16.0% Public time and ma
Slide 6: Business Development History
Business Development History Leading China based IT Services platform 2012 2010 that serves the world with deep domain expertise Headcount: 18,946 New Industries: and end-to-end service offerings Headcount: 10,940 New Industries: Energy, Insurance Telecommunications New Offering: New Off
Slide 7: Core Strengths
Core Strengths Focused on both organic growth and M&A ResourceOne® Proprietary middleware to become the Leading IT Services Company in platform based on SOA and cloud computing, fast-growing China IT Services market supporting application software Leading Innovative development for various verticals
Slide 8: Agenda
Agenda 1 Company Background 2 2012 Annual Financial Highlights 3 Business Review and Development 4 Future Outlook 5 Appendix 8
Slide 9: Key Financial and Operating Data
Key Financial and Operating Data RMB’000 2012 2011 Growth% Revenue 2,768,171 2,243,754 23.4% Service Revenue 2,551,395 1,959,885 30.2% Gross Profit 915,341 729,491 25.5% EBITDA* 328,838 293,184 12.2% Non-GAAP Operating Profit** 293,805 281,686 4.3% Profit for the Year 150,142 121,076 24.0% Net Profi
Slide 10: Key Financial and Operating Ratio
Key Financial and Operating Ratio Gross Margin Business Contribution Profit Margin Service Gross Margin Total Gross Margin Service Operating Margin Total Operating Margin 17.0% 16.5% 36.9% 36.6% 37.3% 37.2% 35.9% 14.6% 14.1% 14.4% 14.0% 30.5% 32.1% 32.5% 33.1% 12.7% 12.9% 27.9% 10.6% 10.5% 2008 2009
Slide 11: Financial and Operating Ratio Analysis
Financial and Operating Ratio Analysis Per Per Service Per Per Service RMB’000 2012 2011 Growth% Revenue% revenue% Revenue% revenue% Revenue 2,768,171 2,243,754 23.4% Service Revenue 2,551,395 92.2% 1,959,885 87.3% 30.2% Cost of sales (1,852,830) -66.9% -72.6% (1,514,263) -67.5% -77.3% 22.4% ——Salar
Slide 12: Segment Revenues
Segment Revenues Revenue Service Revenue RMB'000 2012 2011 Growth 2012 2011 Growth Professional Services 1,452,782 1,214,957 19.6% 1,236,006 931,088 32.7% Business (PSG) Outsourcing Services 1,221,800 959,458 27.3% 1,221,800 959,458 27.3% Business (OSG) Training Business 93,589 69,339 35.0% 93,589 6
Slide 13: Customers Analysis
Customers Analysis Top Customers Concentration Customer Analysis Top 10 Clients % • For the 2012, the service revenue from the top 5 customers accounted for 38.5% of the Group’s total service 77.0% revenue, slightly better than 2011’s 38.4%. 65.0% • For the 2012, the service revenue from 58.0% 57.0%
Slide 14: Agenda
Agenda 1 Company Background 2 2012 Annual Financial Highlights 3 Business Review and Development 4 Future Outlook 5 Appendix 14
Slide 15: Professional Services Business (PSG)
Business Review and Development • Leading position as a service provider in the auditing industry, and move on to the Golden Auditing Project III in certain provinces. • Awarded the tender for Early Warning System for National Public Emergencies for China Meteorological Administration and for a tria
Slide 16: Business Review and Development
Business Review and Development • The JV with Huawei officially began and started operation, achieved stable growth in performance, and the synergy effects of the joint venture has started to emerge. • Awarded “2011 Microsoft Preferred Supplier Program Excellence Awards—Value Excellence Award” by Mi
Slide 17: Agenda
Agenda 1 Company Background 2 2012 Annual Financial Highlights 3 Business Review and Development 4 Growth Strategy 5 Appendix 17
Slide 18: Growth Strategies
Growth Strategies • Identify industry sectors with native and dominating customer (tobacco, electricity) Strategic • Forge strong strategic relationships with this customer, first through projects, Relationships then programs and finally partnership (3P); goal: become the IT service arm of client •
Slide 19: Growth via Acquisition
Growth via Acquisition Growth by acquisition has been, and will continue to be, a significant part of ChinaSoft International’s growth strategy. We typically acquire to 1) expand presence in a specific industry sector (around a strategic customer) or 2) obtain new service capability or 3) expand reg
Slide 20: Moving Up the Value Chain
Moving Up the Value Chain Strengthening core competitiveness Moving up the value chain Enhancing profitability ESG Intelligence focused Emerging (Analytics, BI) Services Group 智慧型服务 PSG Experience focused Professional Service Group 经验型服务 Efficiency focused OSG 效率型服务 Outsourcing Service Group 20
Slide 21: Thank You
THANK YOU IR Contacts Janet Lai Tel +852 2915-2830 Email ir@chinasofti.com
Slide 22: Reconciliations of GAAP Profit for the Year to Business Contribution Profit
Reconciliations of “GAAP Profit for the Year” to “Business Contribution Profit” Per Per Per Per RMB’000 2012 Revenue Service 2011 Revenue Service Growth% % revenue% % revenue% Profit for the Year 150,142 5.4% 5.9% 121,076 5.4% 6.2% 24.0% Adjustment: +Loss in FV changes of p shares 0 0.0% 0.0% 37,287
Slide 23: Days Receivable Comparison with Peers
Days Receivable Comparison with Peers 185 119 156 151 142 137 134 126 157 206 156 2006 2007 2008 2009 2010 2011 2012 23
Slide 24: Aging Analysis of Accounts Receivables
Aging Analysis of Accounts Receivables (Audited) (Audited) RMB’000 % % 2012 versus 2011 31 Dec,2012 31 Dec,2011 Within 90 days 601,133 43% 483,793 48% 117,340 24% Between 91-180 days 116,221 8% 80,316 8% 35,905 45% Between 181-365 days 54,822 4% 39,804 4% 15,018 38% Between 1-2 years 56,828 4% 30,29
Slide 25: Balance Sheet
Balance Sheet (Audited) (Audited) (Audited) (Audited) RMB’000 RMB’000 31 Dec, 2012 31 Dec, 2011 31 Dec, 2012 31 Dec, 2011 Current liabilities Non-current assets Trade and other payables 668,918 613,149 Property, plant and equipment 132,853 131,456 Bills payable 7,071 21,525 Intangible assets 159,330
Slide 26: Shareholdings Structure
Shareholdings Structure % of As of 2012 Dec. 31 No. of Shares Ordinary Shares Hony Capital 335,076,453 19.5% Dr. Chen Yuhong 170,230,136 9.9% Greater Pacific Capital 119,268,639 6.9% Far East Holdings 113,399,822 6.6% International Microsoft 97,250,000 5.7% Others 883,138,248 51.4% Total 1,718,364,6
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