Chinasoft International Ltd. · HKEX:354
Chinasoft International — H1 2012 Earnings Presentation
28 slides from Chinasoft International's earnings presentation, August 2012
Slide 1: ChinaSoft International 2012 Interim Investor Presentation
ChinaSoft International (0354.HK) 2012 Interim Investor Presentation August 2012
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 Interim Financial Highlights 3 Business Review and Development 4 Looking Forward 5 Appendix 3
Slide 4: Snapshot of ChinaSoft International
Snapshot of ChinaSoft International Headcount 17053 Service Professional Services (47.3%) 14496 12476 Offering 10940 Outsourcing Services (49.6%) (% of service 7759 revenue1) Training (3.1%) 4363 4816 2382 477 1055 238 2003 2004 2005 2006 2007 2008 2009 2010 2011 2010 2011 June June Governme
Slide 5: Business Distribution
Business Distribution Service Revenue by Industry Verticals Service Revenue by Service Type ESG: Others Training 6.4% Gov't & 3.1% MFG 24.3% Hi-Tech 17.5% OSG: IT PSG: Outsourcing IT Services Consulting 49.6% & Solutions 47.3% BFSI 16.0% Telecom 28.6% Charging mode: Charging mode: Public Services ti
Slide 6: Business Development History
Business Development History Leading China based IT Services platform 2011 2010 that serves the world with deep domain expertise Headcount: 14,496 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 Interim Financial Highlights 3 Business Review and Development 4 Looking Forward 5 Appendix 8
Slide 9: Financial Highlights
Financial Highlights RMB’000 2012 H1 2011 H1 Growth% Revenue 1,173,504 945,595 24.1% Service Revenue 1,110,874 852,382 30.3% Gross Profit 360,700 308,448 16.9% EBITDA 141,776 127,262 11.4% Profit for the Period 65,437 7,532* 768.8% EPS (RMB cents) 3.65 0.54* 575.9% * Profit for the period for 2011 i
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% 16.3% 36.9% 36.6% 37.3% 37.2% 36.2% 14.6% 14.7% 14.1% 14.4% 30.5% 32.1% 32.5% 32.6% 32.5% 12.7% 13.1% 12.4% 27.9% 30.
Slide 11: Financial and Operating Ratio Analysis
Financial and Operating Ratio Analysis Per Per Per Per Per Service RMB’000 2012 H1 Revenue Service 2011 H1 Revenue Service Growth% Revenue % revenue% % revenue% G% Revenue 1,173,504 945,595 24.1% Service Revenue 1,110,874 852,382 30.3% Cost of sales 812,804 69.3% 637,147 67.4% 27.6% ——Salary Costs 5
Slide 12: Segment Revenues and Results
Segment Revenues and Results Revenue Service Revenue Results* RMB'000 2012 H1 2011 H1 Growth 2012 H1 2011 H1 Growth 2012 H1 2011 H1 Growth Professional Services 587,908 493,384 19.2% 525,278 400,171 31.3% 55,134 48,294 14.2% Business (PSG) Outsourcing Services 551,124 422,823 30.3% 551,124 422,823 3
Slide 13: Customers Analysis
Customers Analysis Top Customers Concentration Customer Analysis Top 10 Clients % • For the 2012 H1, the service revenue from the top 5 customers accounted for 36.7% 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 42.7% of t
Slide 14: Agenda
Agenda 1 Company Background 2 2012 Interim Financial Highlights 3 Business Review and Development 4 Looking Forward 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: Outsourcing Service Business (OSG) Review
Business Review and Development • The JV with Huawei officially began and started operation. • Awarded “2011 Microsoft Preferred Supplier Program Excellence Awards—Value Excellence Award” by Microsoft’s headquarter. • Achieved the first rank in Sony Mobile’s business KPI assessment. Outsourcing • Pr
Slide 17: Agenda
Agenda 1 Company Background 2 2012 Interim Financial Highlights 3 Business Review and Development 4 Looking Forward 5 Appendix 17
Slide 18: Moving Up the Value Chain
Moving Up the Value Chain Strengthening core competitiveness Moving up the value chain Enhancing profitability Intelligence focused 智慧型服务 Experience focused 经验型服务 Efficiency focused 效率型服务 18
Slide 19: Vision and Development Objective of ChinaSoft International
Vision and Development Objective of ChinaSoft International Vision Grow together with China as a global IT service company rooted in China with end-to-end service capability. Become a world-class enterprise in booming China market with abundant human resources as competitive advantage. Values Missio
Slide 20: Thank You
www.chinasofti.com THANK YOU
Slide 21: Reconciliations of Non-GAAP Net Profit to Business Contribution Profit
Reconciliations of “Non-GAAP Net Profit” to “Business Contribution Profit” Per Per Per Per Per Service Service Service RMB’000 2012 H1 Revenue 2011 H1 Revenue Revenue Growth% revenue revenue % % G% % % Non-GAAP Net Profit* 65,437 5.6% 5.9% 60,589 6.4% 7.1% -1.2% 8.0% +Taxation 17,102 1.5% 1.5% 15,22
Slide 22: Service Revenue by Contract Model
Service Revenue by Contract Model RMB'000 2012 H1 2011 H1 Growth Fixed Price 548,271 49.4% 422,101 49.5% 29.9% T&M 511,412 46.0% 398,310 46.7% 28.4% Volume Base 51,191 4.6% 31,971 3.8% 60.1% Total 1,110,874 100.0% 852,382 100.0% 30.3% 22
Slide 23: Operating Cash flow
Operating Cash flow Net Cash flow from Operating Activities 192 (In RMBmm) 30 -7 -11 -94 -277 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 2012 Q2 23
Slide 24: Aging Analysis of Accounts Receivables
Aging Analysis of Accounts Receivables (Unaudited) (Audited) 2012 Jun versus 2011 RMB’000 % % Dec 30 Jun,2012 31 Dec,2011 Within 90 days 556,275 42.8% 483,793 48.2% 72,482 15% Between 91-180 days 138,341 10.6% 80,316 8.0% 58,025 72% Between 181-365 days 132,555 10.2% 39,804 4.0% 92,751 233% Between
Slide 25: Balance Sheet
Balance Sheet (Unaudited) (Audited) (Unaudited) (Audited) RMB’000 RMB’000 30 Jun, 2012 31 Dec, 2011 30 Jun, 2012 31 Dec, 2011 Current liabilities Non-current assets Trade and other payables 545,636 613,149 Property, plant and equipment 136,104 131,456 Bills payable 10,018 21,525 Intangible assets 14
Slide 26: Case Study: Government – The Nationwide Auditing Program
Case Study: Government – The Nationwide Auditing Program Our Position The only Strategic Partner Total solution provider Core application developer 11 Years of relationship Achievements National Auditing Office Implementation of national audit office Central Government 18 Special Offices s
Slide 27: Case Study: Manufacturing – Nationwide Tobacco Program
Case Study: Manufacturing – Nationwide Tobacco Program Our Position Only Strategic Partner 9 Years of relationship Achievements Business & Decision System, Management Execution System, Logistics Execution System, Warehouse Management System, ERP, RFID, etc Nationwide service network: 31 capi
Slide 28: Case Study: Public Service – Smart Card Solution
Case Study: Public Service – Smart Card Solution Our Position Leading solution provider 9 Years of relationship No 1. Market share in one card pass solution nationwide, dominate in Beijing and Shanghai Achievements Solution for public transportation in subway, bus, rental, parking, highway,
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