Kingdee International Software Group Co., Ltd. · HKEX:268
Kingdee International Software — H1 2019 Earnings Presentation
57 slides from Kingdee International Software's earnings presentation, Aug 14, 2019
Slide 1: Kingdee International Software Group 2019 Interim Results Announcement
Kingdee International Software Group 2019 Interim Results Announcement Stock Code: 268.HK 14 August 2019
Slide 2: Business Highlights
Business Cloud Market Cloud Strategy CFO Report Appendix Highlights Update Update 2
Slide 3: Business Highlights
Business Cloud Market Cloud Strategy CFO Report Appendix Highlights Update Update 3
Slide 4: 2019 1H Business Highlights
2019 1H Business Highlights +16.1% YoY -35.4% YoY -28.4% YoY Revenue Net Profit to Equity Holders Operating Cash Flow 1,485 268 170 1,279 192 110 1H18 1H19 1H18 1H19 1H18 1H19 (RMB mn) (RMB mn) (RMB mn) 4
Slide 5: Business Growth Driven by Cloud Services
Business Growth Driven by Cloud Services Revenue +1.2% YoY Revenue +54.9% YoY 63% 37% Management Software Cloud Services* Stimulate clients to the Cloud Established Market Leadership in Enterprise SaaS *Included in cloud services consists of internet finance big data service income amounting to RMB1
Slide 6: Growth of Cloud Services in 2019 1H
Growth of Cloud Services in 2019 1H +54.9% 27.8% 25% 37.0% Cloud Services in 2018 1H Cloud Services in 2019 1H 6
Slide 7: Kingdee Cloud Galaxy
e °. Kingdee *. KingdeeCloud galaxy
Slide 8: Leading the Digital Transformation of Enterprises
Leading the Digital Transformation of Enterprises Directly connect to the clients Connect to create the by controlling the channels Omni-channel Smart Retail ultimate experience Marketing Activate everyone Digital factory for Manufacturing to be the CEO customization Amoeba R&D upgrading， Efficient
Slide 9: Preferred Choices of the Enterprises
Preferred Choices of the Enterprises 10,000 金砖新开发银 行 5,000 2H15 1H16 2H16 1H17 2H17 1H18 2H18 1H19 > 11,500 customers, >50% YoY Customer Growth, 90% of new customers 9
Slide 10: Kingdee Cloud Galaxy Analysis
Kingdee Cloud Galaxy Analysis 94% 10% 13% 48% 18% 77% 3% 1% New ERP Clients users never use ERP Clients from competitors Finance Cloud Supply Chain Manufacturing Omni-channel Catering Cloud Cloud Cloud Cloud Kingdee exsiting clients 48% 21% 82% of customers have of customers have of top 100 customer
Slide 11: The Most Comprehensive Cloud Solutions
The Most Comprehensive Cloud Solutions Retail 16% 51% Revenue Service 14% Growth Manufacturing 14% IT 8% Building Materials 5% 53% Customer Growth Mechanical & Electrical 4% Government, Medical & Public Service 4% Education & Media 3% 90% Dollar Retention Mordern Agriculture 2% Rate 11
Slide 12: Kingdee Cloud Cosmic
e °. Kingdee . KingdeeCloud cosMiICc
Slide 13: Epochal Cloud Services Platform
Epochal Cloud Services Platform Experience Ecosystem Everyone 13
Slide 14: Three Innovative Technologies
Three Innovative Technologies • Flexibility • Automated bookkeeping • Preset model • Distributed architecture • Speech recognition • Modelling • Micro-services • Image recognition • Customized Cloud services • Modularized services • Deep learning • Multi-tenants Cloud Native Original Dynamic Corpora
Slide 15: Enterprises Upgrading to Cosmic
Enterprises Upgrading to Cosmic 2018: 15 Clients 2019 1H: 28 new clients Total contract size in 2019 1H HKD33mn Average contract size HKD1.2 mn 15
Slide 16: Cosmic Clients Analysis
Cosmic Clients Analysis 43% 57% 5% 2% Public Cloud Private Cloud 7% 17% 14% 29% 38% 17% 19% 26% 28% 24% 12% 62% Finance Cloud Platform Cloud Marketing Cloud Projects Delivered Developing Period Implementation Period Blueprint Period EAS K/3 Competitors Procument Cloud RealEstate Cloud Others Testing
Slide 17: New Platform: Support Internal and External Ecosystem
New Platform：Support Internal and External Ecosystem Kingdee Cloud galaxy Kingdee Cloud cosmic Real estate ,manufacturing , Finance, insurance, Business, Image, E commerce, government, modern agriculture, port, logistics, trade Finance , Social security Front-end catering, steel, new retail product
Slide 18: New Platform: High Productivity PaaS for Enterprises
New Platform：Hgh productivity PaaS for Enterprises (Enterprise Performance, Financial, Capital , Human , Collaborative , Project , Channel , Supplier Collaboration , SaaS Supply Chain , Manufacturing , Industry ) Cloud. High Kingdee Cloud APPLICATION APPLICATION Cosmic SaaSCORPORATE INTEGRATION + Pa
Slide 19: Cosmic VS Peers
Cosmic VS Peers Cosmic Peers Cloud Native Traditional Technology Architecture Monolithic Architecture Supreme UE Not very friendly Flexibility Standardization Multi-tenants Single-tenant Easy to customize Expensive to customize Connect to Cloud-Hub No social platform 19
Slide 20: Cloud Market Update
Business Cloud Market Cloud Strategy CFO Report Appendix Highlights Update Update 20
Slide 21: New Technologies Bring us a New Digital World
Mobile Cloud Edge Quantum Big Data Internet Computing Calculation Communication Internet of Block AI 5G Things Chain New Technologies Bring us a New Digital World
Slide 22: Market Leader in China's Enterprise SaaS Market
Market Leader in China's Enterprise SaaS Market Top 5 ERM SaaS Vendors Market Share and Growth Maintained leading position since 2016 Rate, 2018 (US $M) 18% 16% Kingdee, $83 #1 in SaaS ERM Market ~15.2% 14% Market Share % 12% #1 in Finance Cloud Market ~34.0% 10% SAP, $51 Yonyou 8% Network, $39 6% B
Slide 23: Trend of ERM SaaS Market of China
Trend of ERM SaaS Market of China ERM SaaS market CAGR in PRC ERM SaaS Market Forecast, 2018-2023 (US $M) 2018-2023 2018-2023: 28.5% 2000 CAGR 1800 42% 271 Total: • Build Ecosystem through PaaS 1600 33% 34% 28.5% 1400 30% 238 • More start-up SaaS vendors 1200 536 24% 23% 204 • Local SaaS vendors inc
Slide 24: International Business
金蝶云星空国际化 International Business Kingdee Cloud Galaxy 8 Languages 46 Countries and Regions 24
Slide 25: Cities and Provinces Coverage
25 Cities 17 Provinces Strategic partner of the Ministry of Industry and Information Technology for promoting cloud services for one million enterprises 25
Slide 26: Cloud Strategy Update
Business Cloud Market Cloud Strategy CFO Report Appendix Highlights Update Update 26
Slide 27: 5 Key Aspects of the Group's Strategy
5 Key Aspects of the Group’s Strategy 27
Slide 28: Key 1: Kingdee Strategy 3.0
Key 1: Kingdee Strategy 3.0 Product design Robert’s Reach out to our customers and Technology Brands and Markets Power their Success research and development Consulting and Operations and solutions Maintains services Pay Sales 28
Slide 29: Key 2: Reconstruct the Industrial Value-chain
Key 2: Reconstruct the Industrial Value-chain Portal Cloud-Hub / WeChat / Web SSC Wens Distribution Mall Wens Procurement Mall Farmer Service Platform User Front-end HR / Club Member Farmer Supplier Data of Order Mall Business Coordin Finance Management Coordination Farmer ation Farmer Business Midd
Slide 30: Key 3: Drive the Transformation of Kingdee Service System
Key 3: Drive the Transformation of Kingdee Service System Quarter Yearly Product Development & Demand Management (Quick Product Maintenance ERP Product Product iteration) and Operation Roadmap Version (Data Driven: R&D Data Visualization) (Data Driven: User Behavioral Data) Planning Customer Impleme
Slide 31: Key 4: Kingdee Cloud Strategy
Key 4: Kingdee Cloud Strategy Service Government & Cloud Administrative Manufacturing Cloud Cloud HR Cloud Coordination Cloud Operational Conglomerate Cloud Cloud Industry Applications PaaS IaaS 31
Slide 32: Key 5: Building up the Cloud Ecosystem with Software Vendors
Key 5: Building up the Cloud Ecosystem with Software Vendors Service Manufacturing Consulting Government & Public Service Finance Operation HR Coordination 32
Slide 33: Our Target
e °. Kingdee Our Target
Slide 34: Cloud on Track to Reach 60% of Total Revenue by 2020
Cloud on Track to Reach 60% of Total Revenue by 2020 Cloud revenue contribution ¥ 3.5-4.5bn Total Revenue(2020) ¥ 2.8bn Total Revenue(2018) 30% 60% Management Software Cloud services 34
Slide 35: Cloud Services Revenue Guidance
Cloud Services Revenue Guidance RMB mn 800 700 600 Guidance: 500 2019 Cloud 400 services revenue 300 up by 50%+ y-o-y 200 100 0 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19 35
Slide 36: CFO Report
Business Cloud Market Cloud Strategy CFO Report Appendix Highlights Update Update 36
Slide 37: Management Software Business Review
Management Software Business Review Management Software KIS K/3 EAS Implementation Maintenance +1% YoY -11% YoY +2% YoY +7% YoY +2% YoY • KIS revenue +1% YoY as small enterprises moving to the cloud • K/3 revenue -11% YoY due to the cloud migration of medium enterprises • EAS revenue +2% YoY as larg
Slide 38: Cloud Business Review
Cloud Business Review Cloud Services Other Cloud Kingdee Cloud Services +57% YoY +51% YoY Jingdou Accounting Finance Supply chain Guanyi E-commerce Manufacturing Omni-channel 38
Slide 39: Kingdee Cloud Galaxy Highlights
Kingdee Cloud Galaxy Highlights 51% >80% YoY Revenue Growth Customer Retention Rate >11,500 >90% Customers Dollar Retention Rate 39
Slide 40: Kingdee Cloud Cosmic Highlights
Kingdee Cloud Cosmic Highlights 28 43 New wins in 2019 H1 Total customers 26% 50+ from competitors SaaS applications 40
Slide 41: Jingdou Cloud Highlights
Jingdou Cloud Highlights 96% > 80% YoY Revenue Dollar Retention Rate Growth >95,000 >65% Customers * YoY Paying Customer Growth * excluding customers of WiseNote, which has been included in the customer base presentation in previous years. 41
Slide 42: Guanyi E-Commerce Highlights
Guanyi E-Commerce Highlights 25% >80% YoY Revenue Growth Dollar Retention Rate >4500 >29% Paying Customers * YoY Customer Growth * Only including the online paying customers 42
Slide 43: Financial Overview
Financial Overview (RMB’000) 2019 1H 2018 1H Change Revenue 1,485,156 1,279,103 16.1% Cost of Sales -304,727 -253,230 20.3% Gross Margin 79.5% 80.2% -0.7pts Total Operating Expenses -1,198,483 -1,010,389 18.6% Other Income & Gains 141,976 151,966 -6.6% Operating Profit 123,922 167,450 -26.0% Operati
Slide 44: Operating Expenses Breakdown
Operating Expenses Breakdown S&M R&D G&A as a % of total revenue as a % of total revenue as a % of total revenue 51.4% 17.0% 11.0% +0.9PP +1.4PP -0.4PP RMB 763mn RMB 405mn RMB 163mn 44
Slide 45: Investment Highlights
Investment Highlights Market Leader in Enterprise Cloud Services in China Leader in SaaS ERP and SaaS financial software in China Significant leadership in both scope of services offering and product maturity vs. competitors Broad direct sales and distributor networks Market-leading Cloud Ecosystem
Slide 46: Appendix
Business Cloud Market Cloud Strategy CFO Report Appendix Highlights Update Update 46
Slide 47: Total Revenue by Segments
Total Revenue by Segments % of Total % of Total (RMB’000) 2019 1H 2018 1H Change Revenue Revenue Management Software 934,913 63.0% 923,955 72.2% 1.2% business - Sales of software license 493,208 33.2% 500,055 39.10% -1.4% - Implementation 220,088 14.8% 205,483 16.10% 7.1% - Maintenance 216,133 14.5%
Slide 48: Software License by Segments
Software License by Segments % of Total % of Total (RMB’000) 2019 1H 2018 1H Change Revenue Revenue KIS 208,370 14.0% 205,765 16.1% 1.3% K/3 103,077 6.9% 115,461 9.0% -10.7% EAS 159,746 10.8% 157,282 12.3% 1.6% Others 22,015 1.5% 21,547 1.7% 2.2% Total software license 493,208 33.2% 500,055 39.1% -1
Slide 49: Cloud Services Business – Recognised VS Contracted
Cloud Services Business – Recognised VS Contracted (RMB’000) 2019 1H 2018 1H Change Revenue - Cloud services business 550,243 355,148 54.9% Contract liabilities – Cloud services 361,491 259,771 39.2% business Contract liabilities – Cloud subscription 289,611 168,773 71.6% revenue 49
Slide 50: Other Gains
Other Gains (RMB’000) 2019 1H 2018 1H Change VAT refund 80,468 84,708 -5.0% Government projects 22,767 16,035 42.0% Rental income - net 36,902 34,877 5.8% Others 1,839 16,346 -88.7% Total 141,976 151,966 -6.6% VAT % of Total Revenue 5.4% 6.6% 50
Slide 51: Selling & Marketing Expenses
Selling & Marketing Expenses (RMB’000) 2019 1H 2018 1H Change Advertising and marketing 137,824 127,799 7.8% Sales promotion 57,384 53,820 6.6% Salary of sales persons 372,367 297,501 25.2% Project cooperation fees 126,469 105,902 19.4% Traveling 25,739 21,508 19.7% Fixed costs 33,540 29,985 11.9% O
Slide 52: R&D Expenses
R&D Expenses (RMB’000) 2019 1H 2018 1H Change Salaries and staff welfare 224,889 170,058 32.2% Option & restricted stock expense 10,126 15,861 -36.2% Fix costs 12,516 10,652 17.5% Travelling costs 3,369 2,135 57.8% Others 1,555 717 116.9% Total 252,455 199,423 26.6% R&D % of Total Revenue 17.0% 15.6
Slide 53: Administrative Expenses
Administrative Expenses (RMB’000) 2019 1H 2018 1H Change Salaries and staff welfare – G&A 106,199 86,159 23.3% Option & restricted stock expense 25,624 30,008 -14.6% Professional service fee 9,450 9,424 0.3% Traveling 2,415 1,921 25.7% Meeting expenses 1,224 1,198 2.2% Fixed costs 14,159 13,723 3.2%
Slide 54: Balance Sheet Overview
Balance Sheet Overview (RMB’000) 30 Jun. 2019 31 Dec. 2018 Change Trade and other receivables 310,565 286,615 8.4% Cash at bank and in hand 2,085,361 2,101,021 -0.7% Total assets 7,609,719 7,578,553 0.4% Current assets 2,984,636 3,159,513 -5.5% Borrowings 260,625 301,125 -13.4% Trade and other payab
Slide 55: Thanks
ありがとう 感謝 ขอบคุณ Thanks 谢谢 terima kasih ① 绝密信息 严禁泄露
Slide 56: Contact Us
Contact Us Fredrick Law Director Investor Relations & Securities Dept. fredrick_law@kingdee.com Summer Gan Director Investor Relations & Securities Dept. summer_gan@kingdee.com Yoriko Huang Manager Investor Relations & Securities Dept. yanni_huang@kingdee.com
Slide 57: 特别声明
特别声明 没有金蝶软件国际软件集团有限公司的特别许可，任何人不能以任何形式或为任何目的复制或传播本文档的任何部分。本文档中包含的信息如有更 改，恕不另行通知。 由金蝶软件（中国）有限公司和其分销商所销售的某些软件产品包含有其它软件供应商版权所有的软件组件。 Microsoft®、WINDOWS®、NT®、EXCEL®、Word®、PowerPoint® 和SQL Server® 是微软公司的注册商标。 IBM®、DB2®、DB2 通用数据库、OS/2®、Parallel Sysplex®、MVS/ESA、AIX®、S/390®、AS/400®、OS/390®、OS/400®、iSeries、p
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