Announcem ent 20 February 20 14 20 13 Annual Results - PDF document

1 Announcem ent 20 February 20 14 20 13 Annual Results

FORWARD-LOOKI NG STATEMENTS Certain statements contained in this presentation maybe viewed as forward-looking statements. Such forward- looking statements represent the Company’s expectations or beliefs concerning future events and involve known and unknown risks and uncertainty that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. 2

AGENDA 2013 Annual Results Announcement • Performance Highlights • Financial Review • Operation Review and Outlook • Corporate Objective and Strategies 3

FY2013 Performance Highlights 4

PERFORMANCE HIGHLIGHTS Group turnover HK$’M 60,000 -12.0% 48,014 50,000 46,109 42,261 40,000 32,211 30,000 22,209 19,496 20,000 16,050 10,000 0 2007 2008 2009 2010 2011 2012 2013 Year ended 31 December 5

PERFORMANCE HIGHLIGHTS PERFORMANCE HIGHLIGHTS (cont’d) Profit attributable to shareholders HK$’M 1,422 Non-operating profit 1,323 1,400 Adjusted net profit -13.8% 361 92 1,045 901 1,000 101 12 704 558 25 520 1,231 600 1,061 85 944 889 679 566 435 200 (8) 2007 2008 2009 2010 2011 2012 2013 -200 Year ended 31 December 6

PERFORMANCE HIGHLIGHTS (cont’d) Dividend per share HK Cents 30 Final dividend 25 I nterim dividend 12.74 20 12.77 8.88 15 10.72 11.29 10 2.95 14.30 11.78 10.68 5 8.68 6.43 4.51 2.13 0 2007 2008 2009 2010 2011 2012 2013 Year ended 31 December 7

FY2013 Financial Review 8

FY2013 FINANCIAL REVIEW For the year ended 31 Dec 2013 HK$'M FY2013 FY2012 yoy % Change Turnover 42,261 48,014 -12.0% Profit from operations 1,451 1,775 -18.3% Operating margin 3.4% 3.7% -0.3% pt Profit attributable to shareholders 901 1,045 -13.8% Adjusted net profit * 889 944 -5.8% Note: * The adjusted net profit for the year excluding non-operating items such as net gain on remeasurement of investment properties and property held for sale and other non-operating items. 9

FY2013 FINANCIAL REVIEW (cont’d) For the year ended 31 Dec 2013 HK$'M FY2013 FY2012 yoy % Change Basic earnings per share (HK cents) 49.21 57.24 -14.0% Final dividend per share (HK cents) 10.72 8.88 + 20.7% Total dividend per share (HK cents) 19.40 20.66 -6.1% NAV per share (HK$) 5.12 4.87 + 5.1% Return on equity 10.3% 12.7% -2.4% pt Return on capital employed 7.3% 9.0% -1.7% pt 10

TURNOVER * - BY BUSINESS SEGMENTS FY2012 FY2013 Food & Consumer Others Food & Products 0.1% Consumer Others 22.7% Products 0.2% Motor & 19.4% Motor Related Motor & 77.2% Motor Related 80.4% Note: * For sales to third parties only 11

TURNOVER * - BY MARKETS FY2012 FY2013 Other Markets Hong Kong & 6.9% Macao Other Hong Kong & 25.5% Markets Macao Mainland 5.3% 20.2% China Mainland 67.6% China 74.5% Note: * For sales to third parties only 12

CONSOLIDATED BALANCE SHEET HIGHLIGHTS HK$'M 31 Dec 2013 30 Jun 2013 31 Dec 2012 Non-current assets 6,465 6,405 6,034 Current assets * 15,161 13,711 14,272 Current liabilities 10,194 8,459 8,218 Net current assets 4,967 5,252 6,054 Current ratio 1.49 1.62 1.74 Non-current liabilities 2,059 2,519 3,184 Net assets 9,373 9,138 8,904 Non-controlling interests 379 404 393 Shareholders' funds 8,994 8,734 8,511 * I ncluding I nventories 6,259 5,680 5,536 13

LIQUIDITY ANALYSIS HK$'M 31 Dec 2013 30 Jun 2013 31 Dec 2012 Cash and bank deposits 2,173 2,465 3,225 Total debt 7,424 6,008 6,409 Net debt 5,251 3,543 3,184 Shareholders' funds 8,994 8,734 8,511 Total capital 14,245 12,277 11,695 Net gearing ratio 36.9% 28.9% 27.2% 14

CONSOLIDATED CASH FLOW STATEMENT HIGHLIGHTS HK$'M FY2013 FY2012 Profit before taxation 1,274 1,526 Depreciation, Amortisation & other non-cash items 693 690 Operating profit before changes in working capital 1,967 2,216 Changes in working capital: - (I ncrease) / decrease in inventories (599) 598 - (I ncrease) / decrease in trade and other receivables (1,186) 497 - Decrease in trade and other payables (307) (1,503) Cash (used in) / generated from operations (125) 1,808 I ncome tax paid (387) (555) Net cash (used in) / generated from operating activities (512) 1,253 Dividends paid to shareholders of the Company (321) (447) Net cash generated from other financing activities 624 126 Net cash used in investing activities (848) (354) Net (decrease) / increase in cash and cash equivalents (1,057) 578 15

FY2013 Operation Review and Outlook 16

MOTOR AND MOTOR RELATED BUSINESS HK$’M Segment Turnover HK$’M Segment Result From Operations 37,183 38,613 1,672 32,627 1,339 1,301 1,184 24,643 815 15,652 641 12,800 483 10,183 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 Segment Turnover Segment Result From Operations Segment Margin % of % of HK$'M FY2013 FY2012 Change % FY2013 FY2012 Change % FY2013 FY2012 Change % total total Mainland China 24,650 75.5% 31,959 82.8% -22.9% 597 1,046 -42.9% 2.4% 3.3% -0.9% pt Hong Kong & Macao 5,827 17.9% 4,988 12.9% 16.8% 483 303 59.4% 8.3% 6.1% +2.2% pt Other Markets 2,150 6.6% 1,666 4.3% 29.1% 104 -10 1140.0% 4.8% -0.6% +5.4% pt 32,627 100.0% 38,613 100.0% -15.5% 1,184 1,339 -11.6% 3.6% 3.5% +0.1% pt 17

FOOD & CONSUMER PRODUCTS BUSINESS Segment Turnover HK$’M HK$’M Segment Result From Operations 9,598 324 9,318 301 8,779 7,466 240 6,622 6,471 203 5,802 166 167 136 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 Segment Turnover Segment Result From Operations Segment Margin % of % of HK$'M FY2013 FY2012 Change % FY2013 FY2012 Change % FY2013 FY2012 Change % total total Mainland China 3,921 41.3% 3,822 41.6% 2.6% 117 115 1.7% 3.0% 3.0% -- Hong Kong & Macao 4,930 52.0% 4,681 51.0% 5.3% 273 236 15.7% 5.5% 5.0% +0.5% pt Other Markets excl. GDVTR 637 6.7% 676 7.4% -5.8% 10 31 -67.7% 1.6% 4.6% -3.0% pt 9,488 9,179 400 382 4.2% 4.2% 100% 100% 3.4% 4.7% -- GDVTR 110 1.1% 139 1.5% -20.9% -76 -81 6.2% -69.1% -58.3% -10.8% pt 9,598 100.0% 9,318 100.0% 3.0% 324 301 7.6% 3.4% 3.2% +0.2% pt 18

MOTOR AND MOTOR RELATED BUSINESS – FY2013 Operation Review Motor Business Mainland China No. of new vehicles sold DCH dealership network * PRC Market FY2013 FY2012 FY2013 FY2012 Change % Change % 77,600 67,400 17.9M 15.5M Passenger Cars +15.1% +15.7% Commercial Vehicles 6,700 6,900 -2.9% 4.1M 3.8M +6.4% Total 84,300 74,300 +13.4% 22.0M 19.3M +13.9% Note: * Figures included Subsidiaries only 19

MOTOR AND MOTOR RELATED BUSINESS – FY2013 Operation Review (cont’d) Mainland China Dealership (4S shops) 1H2013 Brands Locations 7 greenfield added Chevrolet (2) Kunming, Chaozhou FAW Audi (2) Kunming, Foshan FAW Toyota (2) Xinyu, Chuxiong Lexus (1) Changsha FAW Toyota (1) Shenzhen 2 newly acquired GAC Toyota (1) Shaoxing 6 shops closed FAW Jilin, FAW Mazda, Qingling (2), Renault (2) 2H2013 3 greenfield added FAW Toyota (1) Wuhan Lexus (2) Shenzhen (2 stores in SZ) Total no. of 4S shops by the end of 2013: 75 shops (by the end of 2012: 69) 20

MOTOR AND MOTOR RELATED BUSINESS – FY2013 Operation Review (cont’d) Mainland China Dealership (4S development) 12 greenfield projects in progress: Mercedes-Benz (2) DF Honda (1) SGM Buick (1) FAW Toyota (5) Lexus (1) Existing Bentley (2) In Progress 21

MOTOR AND MOTOR RELATED BUSINESS – FY2013 Operation Review (cont’d) Mainland China Same Store Growth: FY2013 vs FY2012 FY2012 vs FY2011 New car sales unit +8.6% -9.9% Service unit +2.4% +4.6% After-sales service revenue +7.1% +21.1% Dealership sales breakdown: % of dealership turnover FY2013 FY2012 New car sales 89.7% 89.7% After-sales service 10.3% 10.3% FY2013 y.o.y. growth by units by revenue New car sales +14.3% +8.4% After-sales service +3.3% +8.4% Note: All figures included Subsidiaries and JCE 22

MOTOR AND MOTOR RELATED BUSINESS – FY2013 Operation Review (cont’d) Hong Kong & Macao No. of new vehicles sold: HK Market DCH FY2013 FY2012 FY2013 FY2012 Change % Change % 9,700 8,200 38,100 35,700 Passenger Cars +17.9% +6.8% 3,200 2,600 12,200 9,600 Commercial Vehicles +20.0% +26.8% Total 12,900 10,800 +18.4% 50,300 45,300 +11.1% DCH market share in Hong Kong 2013: Overall: 20.8% +1.4% point (FY12: 19.4%) 23

MOTOR AND MOTOR RELATED BUSINESS – Outlook Mainland China PRC market : expects to grow at around 10% in 2014 Distributorship: • Recovery in Isuzu heavy duty truck sales with the rolling out of infrastructure projects Dealership: • Annual target to open 10-15 shops • Adopt a balanced approach to expand the new dealership network • Work with strategic partners to open full scale 4S shops and showrooms • More M&A opportunities available in the market • Enhance operational efficiency and effectiveness of 4S shops from a brand and regional management • Continue to improve after-sales service capabilities 24