China Yuchai International Limited · NYSE:CYD
China Yuchai International — Evercore ISI Annual Industrial Conference (March 2021)
41 slides from China Yuchai International's conference presentation, March 2021
Slide 1: China Yuchai International Ltd. [NYSE: CYD]
China Yuchai International Limited China Yuchai International Ltd. [NYSE: CYD] March 2021
Slide 2: Forward-looking statements
China Yuchai International Limited This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe”, “expect”, “anticipate”, “project”, “targets”, “optimistic”, “confident that”, “continue to”, “predict”, “intend
Slide 3: China Yuchai International Ltd.
China Yuchai International Ltd. Truck and Bus engines applications Off-road and Agriculture applications Marine engines applications 3
Slide 4: Company Structure
Company Structure Hong Leong Asia Ltd. (Listed on Singapore SGX) China Yuchai International Limited (Listed on NYSE) Engine Business: Hospitality Business: Guangxi Yuchai HL Global Enterprises Ltd Machinery Co. Ltd (GYMCL) (Listed on Singapore SGX) 4
Slide 5: Corporate Summary
Corporate Summary • GYMCL was founded in 1951 • Leading manufacturer of a wide array of light-duty, medium-duty and heavy-duty engines for various applications • One of the top commercial engine suppliers in annual unit sales as ranked by the China Association of Automobile Manufacturers (“CAAM”) •
Slide 6: Vehicle Engine OEMs
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Slide 7: Off Road /Marine Engine OEMs
Off Road /Marine Engine OEMs 7
Slide 8: 2020 Market Overview
2020 Market Overview Market Statistics China’s economy rebounded and increased 2.3% for the year after declining in the first quarter due to the lockdowns and travel restrictions from the Covid-19 infection in early 2020 According to CAAM, commercial vehicle unit sales (diesel & others): 1. CV indus
Slide 9: Commercial Vehicles 2016-2020
Market Overview: Commercial Vehicles 2016-2020 China Truck Market China Bus Market 4000 500 3500 400 3000 2500 300 2000 1500 200 1000 100 500 0 0 HD MD LD Mini Total Large Medium Small Total 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Source: China Automotive Industry Newsletter (Powered by Di
Slide 10: China Yuchai Unit Sales: 2016-2020
China Yuchai Unit Sales: 2016-2020 500,000 450,000 400,000 Sales Volume 350,000 300,000 250,000 200,000 150,000 100,000 50,000 - 2016 2017 2018 2019 2020 On Road Engine 241,312 270,737 268,317 259,005 275,398 Off Road Engine 79,112 96,360 107,414 117,143 154,922 Total 320,424 367,097 375,731 376,148
Slide 11: Operations Strategy
Operations Strategy 1. Product Strategy • Ensure all products meet current stringent emission standards and be among the first engine manufacturers compliant with future emission standards • Expand HD products into marine, power gen and construction markets • Develop New Energy products for hybrid a
Slide 12: Operational Overview
China Yuchai International Limited China Yuchai International Ltd. [NYSE: CYD] Operational Overview
Slide 13: GYMCL Strategic Locations
GYMCL Strategic Locations Shenyang Urumqi Beijing Beijing Jining Xi’an Wuhu Suzhou Wuhan Shanghai Chongqing Wuhan Chengdu Suzhou Kunming Guangdon Guangzhou Yulin g Facilities & JVs 13
Slide 14: National VI Engine Assembly Plant
National VI Engine Assembly Plant Engine Plant No. 5 - HD Engine Assembly Line • Yulin facility is the primary manufacturing facility • Independent R&D facilities for engine development and testing • Production of diesel and natural gas for various applications • Production of high horsepower engine
Slide 15: Nat VI Engine Manufacturing Plant
Yulin Facility Nat VI Engine Manufacturing Plant Engine Component Machining Plants Engine Assembly Plant 微正压、恒温、恒湿车间 Micro-positive pressure, constant temperature and humidity workshop. 15
Slide 16: Component Foundry
Component Foundry Foundry Phase 1 Foundry Phase 2 Foundry Phase 1 and 2 are in full operation for the casting of engine blocks and heads for all engine models Large Casting Foundry is fully operational since early 2015, mainly producing the casting for HHP engines Total annual capacity over 1
Slide 17: High Horsepower Engine Plant
High Horsepower Engine Plant Engine Assembly Line Gantry CNC milling center A • Designed for HHP engine (16 liter and above) machining and assembly • HHP engines are mainly used for marine and power generation applications • Installation of Gantry CNC milling centers for cylinder block and head mach
Slide 18: Wuhu Y&C Power
Wuhu Y&C Power Engine Assembly Line Machining Center • Latest designed engines (10L – 13L) comply with China National V and VI emission standards • Production and machining lines are fully commissioned • Existing capacity for 30,000 units per annum (single shift operation) • Gas version YC6K engine
Slide 19: MTU Yuchai Power Company Ltd.
MTU Yuchai Power Company Ltd. Our JV partner MTU A diesel engine manufacturer specializing in high-speed, large-rating diesel engines for power generation, oil & gas, railway, marine and mining applications MTU is a wholly owned subsidiary of Rolls-Royce Power Systems The Joint Venture The Joi
Slide 20: Existing Products Meeting Stringent Emissions Standard
Existing Products Meeting Stringent Emissions Standard Engine Series 6C/12VC/16VC CCS, ZC, ZY, IMO Certified, Tier 2, Tier 3 Certified 6T/6TD CCS, ZC, ZY, IMO certified, Tier 2 /T3 Certified 6K National 5 Certified for both diesel and gas engines 6MK National 5 , Tier 2 Certified, Tier 3 certificati
Slide 21: China National VI Emission Standard Compliant Engines
21 China National VI Emission Standard Compliant Engines China National VI Emission Standard Compliant Engines K13/K15 (500－650PS) Engine K09/K11 (350－460PS) K05/K08 (190－350PS) S04/S06 (140－270PS) Y30 (150－160PS) Y20/Y24 (100－140PS) 100 200 300 400 500 600 700 Power Rating (PS) •Implementation of N
Slide 22: LD and MD National VI Engines
LD and MD National VI Engines Y24 – 100-150 PS Y30 – 130-180 PS S04 – 140-200 PS S06 – 200-270 PS 22 22
Slide 23: MD and HD National VI Engines
MD and HD National VI Engines K05 – 190-240 PS K08 – 300-350 PS K09 – 360-400 PS K13 – 530-600 PS K11 – 430-500 PS K15 – 600-650 PS 23 23
Slide 24: Marine and Power Generation Engine Platform
Marine and Power Generation Engine Platform (Tier 3 & 4) Marine and Powergen Engine t 技术来源 Ricardo FEV FEV AVL AVL AVL AVL FEV FEV FEV Source 技术平台 F A K TD C Main Platform 产品平台 F36 A05 A08 K11 K13 TD20 TD40 12VC 16VC 20VC Product Platform 20VC （2646~4640） 16VC （2005~3310） 12VC （1120~2205） TD40 （715~
Slide 25: HHP Marine and Power Generation Engines
HHP Marine and Power Generation Engines YC12VT YC6C YC12VC YC16VC • YC6T/6TD - 16/19.5L with 550 - 900 Ps power rating, available for IMO and T2/T3 standard • YC6C/6CL – 40-54L with 600 - 1520 Ps power rating, available for IMO and T2/T3 standard • YC12VT – 12 cylinders, 33L, rated at 750 - 900 Ps,
Slide 26: China Distribution Network
China Distribution Network China Distribution Network • 3,146 services stations in China • Regional sales centers • 28 on road engine sales centers • 12 off road engine sales centers • 10 marine & power gen sales centers •As of 31 December 2020 26
Slide 27: International Sales and Service Network
International Sales and Service Network GYMCL International Offices Global Sales and Service Network • 13 international offices • 248 authorized overseas service stations * As of 31 December 2019 27
Slide 28: Green Technology
Green Technology • National VI Emission Standards (Equivalent to Euro VI) Full suite National VI-compliant Diesel and Natural Gas Engines are available from beginning of 2019. National VI-a emission standard for gas engine was implemented from 1st July 2019 National VI-a standard to be nationa
Slide 29: Cost & Technology Improvement
Cost & Technology Improvement Lean Manufacturing Promote lean manufacturing across all machining shop and engine assembly plants Machining processes outsourcing to reduce capital investment Supply Chain Improvement Reduce number of suppliers through stringent vendor selection policy and establ
Slide 30: R&D Capability
R&D Capability Self established the National Engineering Laboratory, an efficient, energy-saving and environment-friendly internal combustion engine testing laboratory in China, which is rated at top tier in Chinese Diesel Industry. Installation of 84 engine test benches and 16 parts & component
Slide 31: R&D capability and Engine innovations
R&D capability Approximately 700 engineers including PhDs and Master Degree holders in the R&D team Over 2,000 patents have been registered since 2004 Nanning R&D Institute commenced operations from October 2013 Engine innovations 2017: Newly developed National VI and Tier 4 compliant engine
Slide 32: GYMCL New Energy Products
GYMCL New Energy Products New energy power Fuel cell system High efficiency: maximum efficiency＞70% Integrated bridge system High integration, high power density, Highly integrated motor, motor controller, and ultra-low starting temperature. TCU, oil pump and sensor. Wide application field Red
Slide 33: GYMCL Recent Awards & Recognitions
GYMCL Recent Awards & Recognitions • GYMCL National VI engine family (up to 13L) has passed certification for National VI-b emission testing. • GYMCL YCK13 diesel engine won the First prize in “2020 China International Truck Fuel Saving Competition” • GYMCL was ranked No.5 in National Enterprise Tec
Slide 34: GYMCL Awards & Recognitions
34 GYMCL Awards & Recognitions 34
Slide 35: Business and Finance Overview
China Yuchai International Limited China Yuchai International Ltd. [NYSE: CYD] Business and Finance Overview
Slide 36: Financial Performance Review
Financial Performance Review Y2016 Y2017 Y2018 Y2019 Y2020 Un-Audited Engines sold (units) 320,424 367,097 375,731 376,148 430,320 Revenue (RMB Million) 13,643 16,198 16,263 18,016 20,581 EPS (US$ per share) $1.91 $3.44 $2.54 $2.09 $2.06 Sales units: Chart 1: Engine unit sales (Unit) • Y2016 @ 320.4
Slide 37: Financial Performance Review
Financial Performance Review Y2016 Y2017 Y2018 Y2019 Y2020 Un-Audited Engines sold Units 320,424 367,097 375,731 376,148 430,320 Revenue RMB Million 13,643 16,198 16,263 18,016 20,581 Gross Profit RMB Million 2,972 3,356 3,092 3,106 3,190 Operating Profit RMB Million 980 1,604 1,283 1,146 1,182 PAT
Slide 38: Financial Indicators Review
Financial Indicators Review Currency: RMB Million Y2016 Y2017 Y2018 Y2019 Y2020 Un-Audited Operating Profit 979.5 1,604.4 1,282.5 1,146.1 1,182.0 EBITDA 1,400.7 1,943.2 1,569.2 1,434.0 1,509.6 Gross Profit % 21.8% 20.7% 19.0% 17.2% 15.5% Operating Profit % 7.2% 9.9% 7.9% 6.4% 5.7% PAT % 5.4% 8.2% 6.
Slide 39: Balance Sheet Review
Balance Sheet Review Currency: RMB Million Y2016 Y2017 Y2018 Y2019 Y2020 Un-Audited Total Assets 18,516 21,015 21,658 23,854 26,291 Equity for CYD 7,736 8,334 8,396 8,768 9,015 Cash & Bank Balance 4,053 6,029 6,129 6,391 6,448 Total Loans 910 1,626 2,016 2,055 2,230 Gearing Ratio 9.1% 14.8% 18.1% 17
Slide 40: Financial Return Review
Financial Return Review Y2016 Y2017 Y2018 Y2019 Y2020 Un-Audited Return on Equity % 7.3% 12.0% 8.7% 7.4% 6.8% Dividend / EPS, Ratio 47.1% 64.2% 33.5% 40.7% NA EPS, US$ per share $1.91 $3.44 $2.54 $2.09 $2.06 Dividend, US$ per share $0.90 # $2.21 $0.85 $0.85 NA 70.0% 64.2% Note # Shareholders can ele
Slide 41: Thank You
China Yuchai International Limited China Yuchai International [NYSE: CYD] Thank You
China Yuchai International — Evercore ISI Annual Industrial Conference (March 2021) on 6ix