2013 interim results - gwm-global.com · disclaimer. 2 . this presentation is prepared by great...

August 2013

长城汽车股份有限公司 Great Wall Motor Company Limited *

2013 Interim Results

* For identification purpose only

Disclaimer

2

This presentation is prepared by Great Wall Motor Company Limited (the “Company”) and is solely for the purpose of corporate communication and general reference only. The presentation is not intended as an offer to sell, or to solicit an offer to buy or form any basis of investment decision for any class of securities of the Company in any jurisdiction. All such information should not be used or relied on without professional advice. The presentation is a brief summary in nature and do not purport to be a complete description of the Company, its business, its current or historical operating results or its future prospects.

This presentation is provided without any warranty or representation of any kind, either expressed or implied. The Company specifically disclaims all responsibilities in respect of any use or reliance of any information, whether financial or otherwise, contained in this presentation.

3

Sales volume of automobiles reached 370,000 units, representing a 41.3% YoY growth

Operating revenue amounted to RMB26.42 billion, representing a 44.5% YoY growth

Net profit attributable to shareholders of the Company amounted to RMB4,09 billion, representing a 73.7% YoY growth

Average monthly sales volume of Haval M4 amounts to 10,000 units

Average monthly sales volume of Haval H6 amounts to 15,000 units

Results highlights - Overview

4

Contents

Financial Review 一

二

三 Future Prospects

Operations Review

四 Q&A

5

Balance Sheet

As at 31 December

2010

As at 31 December

2011

As at 31 December

2012

As at 30 June 2013

Changes as at the end of 2013 interim period compared to

end of 2012 (%)

Current assets 14,825 20,374 25,848 26,200 1.4

Including: cash and bank balances

3,095 7,107 6,337 7,364 16.2

Bills receivable 7,726 8,703 14,791 13,658 -7.7

Non-current assets 8,873 12,761 16,721 18,682 11.7

Total liabilities 13,298 16,113 20,926 20,983 0.3

Total assets 23,698 33,135 42,569 44,882 5.4

Total shareholders’ equity

10,400 17,022 21,643 23,899 10.4

RMB million

Financial Review Operations Review Future Prospects

6

Income statement

2011 2012 2012 1H 2013 1H

% change in 2013 1H compared to 2012 1H

Revenue 30,089 43,160 18,288 26,417 44.5

Gross profit 7,496 11,598 4,811 7,651 59.0

Operating profit 4,012 6,663 2,811 4,873 73.3

Net profit attributable to shareholders of the parent company

3,426 5,692 2,354 4,087 73.7

Basic earnings per share (RMB) 1.22 1.87 0.77 1.34 73.7

RMB million


7

Cash Flow Statement

2011 2012 2012 1H 2013 1H

% change in 2013 1H compared to 2012 1H

Net cash flow from operating activities 4,449 4,337 2,432 4,953 103.7

Net cash flow from investing activities -3,491 -3,936 -2,333 -2,179 -6.6

Net cash flow from financing activities 3,283 -1,104 -918 -1,680 82.9

Effect of foreign exchange rate changes on cash and cash equivalents

-8 -8 2 -9 -480.9

Net increase in cash and cash equivalents 4,233 -711 -817 1,085 232.8

Cash and cash equivalents at the end of the period 6,306 5,596 5,489 6,681 21.7

Financial Review Operations Review 未来发展 Future Prospects

RMB million

24.2% 26.1% 26.3%

29.0%

20%

22%

24%

26%

28%

30%

10-1H 11-1H 12-1H 13-1H

Overall gross margin

8

Other Financial Indicators

12.0% 15.0% 15.4%

18.4%

0%

5%

10%

15%

20%

25%

30%

10-1H 11-1H 12-1H 13-1H

Operating profit margin

Financial Review Operations Review 未来发展

5.0%

3.7% 3.5% 3.2% 3.7%

3.8% 3.8% 3.9%

0%

2%

4%

6%

10-1H 11-1H 12-1H 13-1H

Selling expenses as a % of revenue Administrative expenses as a % of revenue

Expenses as a % of revenue for the Period

15.5% 15.4% 15.6%

18.7%

0%

5%

10%

15%

20%

25%

30%

10-1H 11-1H 12-1H 13-1H

EBIT Margin

Future Prospects

9

Other Financial Indicators-Cont Financial Review Operations Review 未来发展

89.6

104.3 103.7 101.6

80

85

90

95

100

105

110

10 11 12 13-1H

Accounts receivable turnover (Day) (including bills receivable)

98.3 109.4 96.1 89.2

0

20

40

60

80

100

120

10 11 12 13-1H

Accounts payable turnover (Day) (including bills receivable)

10.9%

16.9% 13.3%

17.6%

0%

5%

10%

15%

20%

10-1H 11-1H 12-1H 13-1H

Weighted average return on net

assets 53

43 41

26

0

10

20

30

40

50

60

10-1H 11-1H 12-1H 13-1H

Inventory turnover (Day)

Future Prospects

10

Revenue by car segment

0

5,000

10,000

15,000

20,000

25,000

30,000

Pick-up SUV Sedan Other Total

4,260

14,398

6,045

317

25,020

11-1H 12-1H 13-1H

0

9,000

18,000

27,000


3,226

13,171

5,714

316

22,427

0

2,000

4,000

6,000


1,034 1,227 331 1

2,593

Overall analysis

Domestic sales

Export


RMB million

RMB million

RMB million

70.8%

9.5% 30.4%

46.5%

16.9%

86.7%

32.9%

57.6%

10.8%

0.9%

8.7%

8.9%

Future Prospects

11

目录


二


Operations Review

四 Q&A

12

Automobile industry vs. Company’s performance


Source: China Association of Automobile Manufacturers, GWM’s data

25.3%

47.1%

101.3%

20.2% 25.5% 41.6%

6.8%

48.1%

27.0% 6.6% 6.1% 11.7% 0%

20%

40%

60%

80%

100%

120%

2008 2009 2010 2011 2012 2013/1H

Total

SUV

Sedan

Growth rate of automobile industry

6.7%

45.5%

32.4%

2.5% 4.3% 12.3%

11.7%

74.2% 73.2%

27.3% 34.3%

41.3%

0% 10% 20% 30% 40% 50% 60% 70% 80%

0

5000

10000

15000

20000

25000

2008 2009 2010 2011 2012 2013/1H Industry sales volume GWM sales volume

Industry growth rate GWM growth rate

Industry

25.3% 47.1%

101.3%

20.2%

25.5% 41.6%

-15.1% 16.5%

167.1%

7.6%

90.0% 78.0%

-50%

0%

50%

100%

150%

200%

0

500

1000

1500

2000

2500

2008 2009 2010 2011 2012 2013/1H

Industry GWM Industry growth rate GWM growth rate

SUV

Future Prospects

‘000 units ‘000 units

13


SUV market competition

Sources: China Association of Automobile Manufacturers, GWM’s data

0 50 100 150 200

Chery

Changan Ford

DF Nissan

FAW Toyota

FAW VW

DF Yueda KIA

DF Honda

Shanghai VW

Beijing Hyundai

GWM

The top 10 enterprises in terms of SUV sales volume in 2013 1H

0 20 40 60 80 100

Santa Fe

JAC S5

Haima Qishi

Geely GX7

Changan CS35

Haval H5

ZhonghuaV5

BYD S6

Chery Tiggo

Haval H6

The top ten ranked localbrand middle-level SUV's sales volume models in 2013 1H

‘000 units ‘000 units

14


Great Wall Motor’s sales volume in past 5 years

63.0 75.0 99.0 122.0 137.0 68.0 72.0

44.0 51.0

137.0 147.0

280.0

105.0 186.0

10.0

77.0

123.0

188.0

199.0

87.0

108.0

3.0

6.0

5.0

6.0

6.0

2.0

4.0

0

100

200

300

400

500

600

700

2008 2009 2010 2011 2012 2012 1H

2013 1H

Pick-up truck SUV Sedan Others

52.5%

35.9% 27.1% 26.3% 22.0% 26.1%

19.5%

36.5%

24.4% 37.7% 31.9% 45.0% 39.9% 50.3%

8.1%

36.6% 33.8%

40.5% 32.0% 33.4% 29.0%

2.9% 3.1% 1.4% 1.3% 0.9% 0.6% 1.2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2008 2009 2010 2011 2012 2012 1H

2013 1H

Pick-up truck SUV Sedan Others

‘000 units Sales volume by car segment Sales volume contribution by car segment

15


Great Wall Motor -- Domestic sales and export volume in past 5 years

68.2

177.2

313.5

383.4

525.9

216.6

328.4 52.2

32.7

50.0

79.3

95.5

45.4

41.9

0

100

200

300

400

500

600

700

2008 2009 2010 2011 2012 2012 1H

2013 1H

Domestic sales Export

56.6%

84.4%

86.3%

82.9%

84.6%

82.7%

88.7%

43.4%

15.6% 13.7%

17.1% 15.4%

17.3% 11.3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2008 2009 2010 2011 2012 2012 1H

2013 1H

Domestic sales Export

‘000 units Export and Domestic sales volume The proportion of export and domestic sales

16


-

50

100

150

200

250

300

350

Pick-up truck

SUV Sedan Others Total

54.00

169.70

100.30

4.40

328.40

2011 1H 2012 1H 2013 1H

Domestic sales and export analysis Domestic sales

11.9%

95.4%

25.6%

51.6%

‘000 units Export

0

10

20

30

40

50

Pick-up truck

SUV Sedan Others Total

18.20 16.40

7.30

-

41.90

2011 1H 2012 1H 2013 1H

9.0%

7.6%

4.1%

7.8%

‘000 units

17

Key models 哈弗H6

Specification Dimension (mm) 4640*1825*1690

Wheelbase (mm) 2680

Displacement 1.5T/2.0L/2.4L

Transmission 5MT 6MT 4AT

Price (RMB’000) 100.8-151.8

0 2 4 6 8

10 12 14 16 18

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2012 2013 ‘000 units

Haval H6


18

Key models 哈弗M4


Wheelbase (mm) 2383

Displacement 1.5L

Transmission 5MT

Price (RMB’000) 63.9-71.9

0 2 4 6 8

10 12 14 16 18


2012 2013 ‘000 units

Haval M4


19

Key models 长城C30

Specification

Dimension (mm) 4452*1705*1480

Wheelbase (mm) 2610

Displacement 1.5L

Transmission 5MT CVT

Price (RMB’000) 64.5-83.5

0 2 4 6 8

10 12 14 16 18


2012 2013 ‘000 units

Great Wall C30


20

Key models 长城C50


Wheelbase (mm) 2700

Displacement 1.5T

Transmission 5MT

Price (RMB’000) 78.8-91.8

0 2 4 6 8

10 12 14 16 18


2012 2013 ‘000 units

Great Wall C50


21

Key models 风骏5


Wheelbase (mm) 3350

Displacement 2.2L/2.4L/2.8L

Transmission 5MT

Price (RMB’000) 67.8-122.8

0 2 4 6 8

10 12 14 16 18


2012 2013 ‘000 units

Wingle 5


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目录


二


Operations Review

四 Q&A

23

Increase R&D investment

0%

1%

2%

3%

4%

5%

6%

7%

2010 2011 2012 2013 (E)

Great Wall Motor Hyundai KIA Toyota Honda GM Ford BMW

R&D expenses as a % of revenue

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

2010 2011 2012 Great Wall Hyundai KIA Toyota

Honda GM Ford BMW

Comparison of R&D expenses of GWM with those of overseas automobile manufacturers USD million


24


New R&D facilities

New technology center New testing grounds

25


Innovative Marketing Strategies – Independent Brand

Great Wall Brand HAVAL Brand

Great Wall Motor Corporate brand

Product brand

Model

HAV

AL

H5

HAV

AL

H6

Subs

eque

nt S

UV

mod

els

Gre

at W

all C

30

Gre

at W

all C

50

Gre

at W

all M

4

Win

gle

pick

-up

truc

k

Oth

er s

edan

and

pi

ck u

p tr

uck

26

First season

2011.07-2011.11

Detailing standard procedure

Second season

2012.06-2012.10

Manage sales service procedure

Third season

2012.11-2013.05

Enhance customer satisfaction level

Improve customer relationship

Fourth season

2013.07-

Enhance management of staff and facility

Improve the relation among Company Dealer and customer

Decisive advantage in sales service


Innovative Services - Improving sales service quality

27

New Model - Haval H6, sporty version

Specification

Dimension (mm) 4640*1825*1690

Wheelbase (mm) 2680

Displacement 1.5T/2.0L/2.4L

Transmission 5MT 6MT 4AT


28

New Model - Haval H2 Specification

Dimension (mm) 4330*1815*1700

Wheelbase (mm) 2560

Displacement 1.5T

Transmission 6MT


29

New Model - Haval H8 Specification

Dimension (mm) 4806*1975*1794

Wheelbase (mm) 2915

Displacement 2.0T

Transmission 6AT



30

Capital Expenditure

Year Amount （RMB billion） Applications

2011 3.8 • Investment in Tianjin production base • Expansion of production capacity of automotive

parts and components • New product development

2012 4.4 • Investment in automobile production base • Expansion of production capacity of automotive

parts and components • New product development • Research and development center

2013 1H 2.5 • Investment in automobile production base • Expansion of production capacity of automotive

parts and components • New product development • Research and development center

2013 2H 2.6 • Expansion of production capacity of automobile

and automotive parts and components • Investment in research and development

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Q&A Session

2013 interim results - gwm-global.com · disclaimer. 2 . this presentation is prepared by great...

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