Chinasoft International Ltd. · HKEX:354
Chinasoft International — FY2013 Earnings Presentation
32 slides from Chinasoft International's earnings presentation, Mar 27, 2014
Slide 1: ChinaSoft International 2013 Annual Results
ChinaSoft International (0354.HK) 2013 Annual Results Investor Presentation March 27 2014
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 2013 Annual Financial Highlights 3 Business Review and Development 4 Growth Strategy 5 Appendix 3
Slide 4: Snapshot of ChinaSoft International
Snapshot of ChinaSoft International Headcount 23607 Service Professional Services (50.7%) 18946 Offering 14496 Outsourcing Services (46.2%) (% of service 10940 revenue1) Training (3.1%) 7759 4363 4816 2382 477 1055 238 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Government & Manuf
Slide 5: Business Distribution
Business Distribution Service Revenue by Industry Verticals Service Revenue by Service Type Others Training Gov't & 3.1% 3.1% MFG 20.5% OSG: Telecom IT 27.0% Outsourcing Services 46.2% PSG: IT Consulting BFSI & Solutions 16.5% 50.7% Hi-Tech Public Charging mode: Charging mode: 22.6% Services time an
Slide 6: Business Development History
Business Development History Headcount Headcount Headcount Headcount Headcount Headcount Headcount 238 1,055 4,363 10,940 14,496 18,946 23,607 Government Financial & Telecommunic Insurance Manufacturing High-Tech Banking, ations Securities Electricity Transportation Win bid of Fetion JV with HW Gove
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 2013 Annual Financial Highlights 3 Business Review and Development 4 Growth Strategy 5 Appendix 8
Slide 9: Key Financial and Operating Data
Key Financial and Operating Data RMB’000 2013 2012 Growth% Revenue 3,205,985 2,768,171 15.8% Service Revenue 3,067,927 2,551,395 20.2% Gross Profit 1,005,186 915,341 9.8% Profit for the Year 200,028 150,142 33.2% Net Profit attributable to Equity 148,301 133,189 11.3% Shareholders* Basic EPS (RMB ce
Slide 10: Tender chart of main financial index
Tender chart of main financial index Service Revenue Profit for the year 2013VS2012 Increased20.2% 2012VS2011 2013VS2012 Increased30.2% Increased33.2% 2012VS2011 Increased24.0% 2,551,395 3,067,927 1,959,885 200,028 121,076 150,142 2011 2012 2013 2011 2012 2013 Profit for the owners of the company 20
Slide 11: Financial and Operating Ratio Analysis
Financial and Operating Ratio Analysis Per Per Service Per Per Service RMB’000 2013 2012 Growth% Revenue% revenue% Revenue% revenue% Revenue 3,205,985 2,768,171 15.8% Service Revenue 3,067,927 95.7% 2,551,395 92.2% 20.2% Cost of sales (2,200,799) -68.6% -71.7% (1,852,830) -66.9% -72.6% 18.8% Direct
Slide 12: Segment Analysis
Segment Analysis Revenue Service Revenue RMB'000 2013 2012 Growth 2013 2012 Growth Professional Services 1,694,727 1,452,782 16.7% 1,556,669 1,236,006 25.9% Business (PSG) Outsourcing Services 1,416,895 1,221,800 16.0% 1,416,895 1,221,800 16.0% Business (OSG) Training Business 94,363 93,589 0.8% 94,
Slide 13: Customers Analysis
Customers Analysis Top Customers Concentration Customer Analysis Top 10 Clients % • In 2013, the service revenue from the top 5 customers accounted for 41.1% of the Group’s total service revenue. 77.0% 65.0% • The service revenue from the top 10 58.0% 57.0% customers accounted for 46.3% of the Group
Slide 14: Agenda
Agenda 1 Company Background 2 2013 Annual Financial Highlights 3 Business Review and Development 4 Growth Strategy 5 Appendix 14
Slide 15: Major Events in 2013
Major Events in 2013 Stay determined in its •New SMAC based technology enables software services to be delivered quickly and cheaply via mobile networks and over the internet (via SaaS). transformation to suit the •SMAC based technology also creates a new set of demands for new software that is rapi
Slide 16: Professional Services Business (PSG)
Business Review and Development • Leading position as a service provider in the auditing industry, and captured first-mover advantages through completion of the local projects of Golden Auditing Project III. Government • Through close cooperation with Alibaba Cloud, became a cloud integration servic
Slide 17: Business Review and Development
Business Review and Development • The JV with Huawei achieved significant progress in its capability construction. By optimizing organizational structure and rationalizing personnel deployment, the staff utilization efficiency was improved. Through IT platform construction for human resources manage
Slide 18: Agenda
Agenda 1 Company Background 2 2013 Annual Financial Highlights 3 Business Review and Development 4 Growth Strategy 5 Appendix 18
Slide 19: 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 19
Slide 20: New Focus and Growth in New Decade
New Focus and Growth in New Decade FOCUS in the NEXT decade Last Decade Cloud Enabling to Next Decade Cloud Based Services Platform Centric Operations FOCUS in the LAST decade 450 million USD Service Capabilities 2012 2015 2020 Verticals Region Coverage (In RMB mm) 2,768 2,244 1,601 1,10
Slide 21: Corporate Strategy
Corporate Strategy Shifting Landscape of IT Services 21
Slide 22: Embrace the Cloud Platform
Embrace the Cloud Platform Strategic cooperation with Alibaba Cloud back in 2012 to bring our own R1 middleware onto Ali Cloud’s PaaS layer. Founding member as well as the Primary Promoter for Alibaba Cloud's Yunqi Cloud Alliance in October 2013. Also signed an agreement with a leading pharmaceut
Slide 23: Advanced Analytics. Man + Machine
Advanced Analytics. Man + Machine The Company will build collaboration laboratories to focus on driving innovative and emerging technologies in the Chinese domestic Advanced Analytics market by means of the partnership. We have great advantages in: Data analysis experience in several industrie
Slide 24: Joint Force Platform
Joint Force Platform JointForce, the cloud based crowd-sourcing platform, will allow managements to post assignments real-time on its platform and let programmers bid their tasks. It will revamp the traditional model and effectively increase the efficiency of the Group. We plans to launch this pl
Slide 25: Strategic Partners – Riding on the shoulders of Giants
Strategic Partners – Riding on the shoulders of Giants Strategic cooperation with Alibaba Cloud and has since worked closely together on many projects: Li Shui Governmental Project Citic 21CN Yunqi Cloud Alliance Greentown China Won China Mobile 2013 Wireless Fetion contract in June 2013
Slide 26: Thank You
THANK YOU IR Contacts Email ir@chinasofti.com
Slide 27: Detailed Reconciliations
Detailed Reconciliations Per Per Service Per Per Service RMB’000 2013 2012 Revenue% revenue% Revenue% revenue% Profit for the Year 200,028 6.2% 6.5% 150,142 5.4% 5.9% Adjustment: +Impairment loss 0 0.0% 0.0% 28,054 1.0% 1.1% -Gain from FV changes of contingent 0 0.0% 0.0% 5,557 0.2% 0.2% considerati
Slide 28: Days Receivable Comparison with Peers
Days Receivable Comparison with Peers Days Outstanding of AR Days of AR Comparison for 2013 185 183 Pactera 134 156 151 142 137 134 126 ISS 196^ CSI 183 2006 2007 2008 2009 2010 2011 2012 2013 ^ DSO of iSoftStone during 2013 Q3 28
Slide 29: Operating Cashflow
Operating Cashflow Net Cash flow from Operating Activities (In RMBmm) 222 239 210 189 135 93 -49 -55 -97 -101 -288 -300 2008 H1 2008 H2 2009 H1 2009 H2 2010 H1 2010 H2 2011 H1 2011 H2 2012 H1 2012 H2 2013 H1 2013H2 29
Slide 30: Aging Analysis of Accounts Receivables
Aging Analysis of Accounts Receivables (Audited) (Audited) RMB’000 % % 2013 versus 2012 31 Dec,2013 31 Dec,2012 Within 90 days 505,616 27% 601,133 43% -95,517 -16% Between 91-180 days 164,053 9% 116,221 8% 47,832 41% Between 181-365 days 74,929 4% 54,822 4% 20,107 37% Between 1-2 years 69,196 4% 56,
Slide 31: Balance Sheet
Balance Sheet (Audited) (Audited) (Audited) (Audited) RMB’000 RMB’000 31 Dec, 2013 31 Dec, 2012 31 Dec, 2012 31 Dec, 2012 Current liabilities Current assets Trade and other payables 741,528 668,918 Inventories 19,883 23,989 Bills payable 3,387 7,071 Trade and other receivables 1,146,646 1,039,396 Am
Slide 32: Shareholdings Structure
Shareholdings Structure Shareholdings Structure Hony Capital % of 18.1% As of 2013 Dec 31 No. of Shares Ordinary Shares Dr. Chen Hony Capital 335,076,453 18.1% Yuhong 9.2% Dr. Chen Yuhong 170,993,039 9.2% Greater Pacific Capital 119,268,639 6.4% GPC 6.4% Far East Holdings International 113,399,822 6
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