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2016.01
1
1978
1980
1993 2000
2001
Large-scale mergers and acquisitions
2012
Brand registered
Organization restructured
Publicly listed
MBO completed Handover completed
Established
1968
The reform and opening-up policy
DENG Xiaoping’s southern tour
State-owned enterprises withdrew and private-owned enterprises entered
China joined the WTO
1997
Economic transformation and upgrade
1992
2011
Strategic transformation
2002
Abstract
2013
Wholly listed
2014
Xiao Mi introduced as an investor; collaborated with Alibaba, JD and Huawei
GONG Li as spokesperson
Three listed companies: Midea Group (000333.SZ) , Little Swan (000418.SZ), Welling Holding (00382.HK)
Multi-brand operation:
2
2015
JV established with Carrier , YASKAWA, and SIIX, etc.
Abstract
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200
400
600
800
1,000
1,200
1,400
1,600
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Publicly listed since 1993
In 1998, acquired compressor companies, acquired Liguang in 1999, rights issue to raise money, develop commercial air conditioners
JV with Toshiba, Carrier in 2004; Acquired Rongshida & Chunhua in 2006
In 2007, acquired hualing, and JV with Qinghu Water purification In 2008, acquired Little Swan and raised issuance in Rongshida.
In 2011, PPE to acquire Carrier Latin America, introduced strategic investors in 2012, JV with Carrier India.
Public issuance and integrated washing machine business in 2009; Acquired Miraco (Egypt) and Guiya Lighting in 2010
Wholly listed in 2013; PPE to Xiaomi; increased stake in Little Swan; stock incentive schemes in 2014
In 2015, JV with Bosch, Carrier and SIIX; Partnership Program
Major appliances
Small appliances
Parts
Foster industries
Microwaves, Rice cookers, Induction cookers Electronic fans, Electronic kettles, Soymilk machines Water heaters, Water dispensers, Cooker hoods Vacuum cleaners, etc.
Compressors Magnetron pipes Motors Castings
Financial service Logistics Illumination Water purifier, etc.
Major products include white goods, motors, logistics, financial service and other related areas
4
Abstract
Household air conditioners
Central air conditioning Refrigerators, washing machines Dishwashers, etc.
5
Abstract
5
(100mn Rmb) Source：Company data
Small appliances, 193,
24%
Electrical machinery, 38,
5%
Logistics, 21, 3%
Air conditioners , 428, 54%
Refrigerators 60, 7%
Washing machines, 57,
7%
Concentrate on better quality and customer experience; upgrade business structure by developing high-end products
Midea’s online sales revenue amounted to Rmb 11 billion, taking the crown in the whole home appliance industry with 11 categories ranking first by sales.
Source: China Market Monitor (2015.01-09)
1st 1st 1st 1st 1st 1st 2nd 2nd 3rd 3rd 4th 4th 4th
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1st
0%5%
10%15%20%25%30%35%40%45%50%
Ele
ctro
magnetic
ovens
Mic
row
ave
ovens
Ric
e c
ookers
Ele
ctric
pre
ssure
cookin
g
saucepans
Ele
ctric
fans
Wate
r
pro
cessin
gequip
ments
Ele
ctric
kettle
s
Air-c
onditio
ners
Washin
g
machin
es
Vacuum
cle
aner
Wate
r heate
rs
Refrig
era
tors
Cooker h
oods
Cookin
g
ute
nsils
Abstract
Handan: Household AC
Shunde, Guangzhou, Zhongshan： Household AC, commercial AC, refrigerators, microwaves, stoves, ovens, disinfection cabinets, small appliances, compressors, motors, illumination
Hefei, Wuhu： Household AC, commercial AC, refrigerators, cooker hoods, water heaters, compressors, motors
Guixi: Illumination
Wuxi, Suzhou, Huai’an, Changzhou： Washing machines, vacuum cleaners, heaters, motors
Wuhan, Jingzhou: Household AC
Chongqing: Household AC, central AC
7
14 bases:
Shunde / Wuhu /
Zhongshan / Hefei /
Wuhan / Guangzhou /
Huai'an / Chongqing /
Suzhou / Jingzhou /
Wuxi / Handan / Guixi /
Changzhou
China
Abstract
Overseas
7 production bases
in 6 countries：
Vietnam / Belarus /
Egypt / Brazil /
Argentina / India
Saudi Arabia
Household AC, commercial AC, washing machines, refrigerators, induction cookers,
rice cookers, electric fans
Vietnam
All categories
China
Household AC
India
Egypt
Household AC, commercial AC
Brazil
Household AC
Argentina
Microwaves, long-range stoves
Belarus
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Abstract
Household AC, commercial AC
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Midea Majority
shareholders 36%
Strategic investors
12%
MIUI Tech 1%
Senior executives
6%
Tradable shareholders
45%
China Securities Finance Corp. and Central Huijin Investment Co., Ltd are Midea’s third largest
shareholder and take 281mn tradable shares , 6.62% of all shares.
Abstract
annual cash dividends will be no less than 1/3 of the net profit for that year.
Accumulated dividends of Rmb19.1bn so far, of which Rmb13.8bn is in cash. Dividend payout was Rmb1.0/share in 2014.
Long-term stock buy-back scheme
The condition to exercise the equity incentive scheme is that net profit growth should be no less than 15%
Promote transition from "professional managers" to "business partner". Provide more effective long-term incentives to be aligned with the interests of shareholders, enhancing the overall value of the company.
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Abstract
11
Organization restructuring
Business upgrade
Internet+ Business
innovation
Globalization
——Business upgrade: product structure, product
innovation, efficiency drive, sustainable profit growth
——Internet+: digitalization, delayering, automation,
disintermediation.
——Business innovation: business upgrade/ second
racetrack/ new exploration
——Globalization: promote Midea brand and businesses in
various development phases
Customers Products
Development strategy
12
Smart home strategy is right on the way. Midea has developed over 80 intelligent products with others; and launched M-smart system to connect with 3 major e-commerce platforms: Alibaba, JD.com and Suning. Midea also developed Meiju 2.0 to help manage smart home.
Midea is actively deploying in the intelligent manufacturing
industry. To improve its professional level and market position in the field, Midea has cooperated with YASKAWA and established a joint venture to produce robots for both industrial and domestic uses.
Development strategy
13
Build the big data information system and the mobile terminal system to implement the information technology through the entire value chain. Link users, products and providers together. Future management, business processes, information technology will all be transplated to the mobile terminal.
Development strategy
Integration
to boost
efficiency
E-commerce platform
International
platform
Large logistics platform
Funding platform
After-sales platform
Supply chain platform
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Promote the “Midea” brand to enhance high overseas growth
Connecting the company and the terminal to achieve a “last-mile” logistics capacity
A consistent and efficient user-centric system
Maximizing corporate interests and value-added financial operations
Establish a consistent platform to enhance corporate value
Standardization and collaborative procurement Reduce hidden costs
In the planning phase
Development strategy
15
Development strategy
Midea has set up an innovation center to incubate qualified projects and broken up the old R&D organization. This innovation platform has promoted not only programs in the fields of healthcare, intelligence , cosmetology, nutrition and environmental protection, but also new projects related to current products.
New platform for old products
New start-over
New products Incubator
Intelligent products Innovation programs
Develop hot products
Cultivate new industries
Allow future early access
Products R&D
participation
Innovative business incubation
Technology solutions sharing
Multidimensional technology cooperation
Customer involvement in product R&D and tests
Internal and external resource integration
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937
40
320
976
1091
90
381
1158 1114
110
477
1343
0
200
400
600
800
1000
1200
1400
1600
Revenue Net Profit Net Assets Total Assets
3Q2013
3Q2014
3Q2015
Financial Data
17
23.3% 25.4% 26.3%
4.3%
8.2% 9.9%
3Q2013 3Q2014 3Q2015
GPM
NPM
22.5%
25.4% 25.5%
3Q2013 3Q2014 3Q2015
ROE(Weighted)
Financial Data
18
54
139 180
231
421
693
3Q2013 3Q2014 3Q2015
Operating cash flow
Equity funds
Financial Data
THANKS