2016 Annual Results Announcement
Company Declaration
All information presented here is publicly available and for the
purpose of understanding the operation and development
planning of the Company. The Company might adjust the
contents without pre-note in any forms. Besides, investors
should note that the data presented in this document does not
constitute an invitation to trade the Company’s stock and does
not guarantee the performance of the stock in the future.
2
Content
1
2016 PRC Auto Industry Overview
2
2016 DFG Business Performance
3
2016 DFG Finance Performance
4
2017 Business Outlook
3
1
2016 PRC Auto Industry Overview
4
2016 PRC Auto Industry Overview
Sales Highlights
PRC Economy Operated within an
Appropriate Range
800000
9.5%
700000
7.7%
7.7%
7.3%
600000
6.9%
6.7%
500000
400000
300000
200000
100000
0
2011
2012
2013
2014
GDP (RMB 100mn)
2015
Industry Growth Higher than Expected
10%
9%
8%
7%
6%
5%
4%
3%
2%
1%
0%
3000.0
12%
2000.0
800
8.8%
-8.7%
600
400
-37.8%
200
0
Sedan
SUV
MPV
Cross
Sales Volume('0000)
Truck
YoY
数据来源：国家统计局、中国汽车工业协会
4.7%
4.3%
1000.0
8%
Bus
6%
4%
2.5%
500.0
2%
0.0
0%
2011
2012
2013
2014
2015
Sales Volume('0000)
18.4%
3.4%
6.9%
YoY
1200
1000
10%
1500.0
2016
44.6%
16%
14%
2500.0
PV Reached Historical High
CV Achieved Strong Rebound
1400
13.9%
13.9%
2016
YoY
NEV Sales Top the Global Market
Growth Rate Slowed down
50%
40%
30%
20%
10%
0%
-10%
-20%
-30%
-40%
-50%
60
324%
50
400%
340%
350%
300%
40
250%
30
200%
50.7
20
60%
78%
33.1
10
1
1.8
7.5
2012
2013
2014
53%
150%
100%
50%
0
0%
2015
NEV Sales volume('0000)
2016
YoY
2016 PAuto Industry Overview
Operation Highlights
Own Brand Market Share further Increased
owing to Improved Capability
Purchase Tax Policy Boosted
Smaller-displacement Vehicle Sales
2000
1800
1600
1400
1200
1000
800
600
400
200
0
19.9%
30%
20%
10%
0.1%
0%
-10%
-20%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
-30%
>1.6L
57.8%
58.2%
59.7%
61.6%
58.7%
56.8%
42.2%
41.8%
40.3%
38.4%
41.3%
43.2%
2011
2012
2013
2014
2015
2016
<1.6L
JV market share as of PV
Own Brand('0000)
JV Brand('0000)
YoY
Consumption Upgrade Led to Continuous
Improvement of SUV Market Share
Own Brand market share as of PV
Regulation Change & Improvement of
Transportation Efficiency Promoted HDT Sales
72.5%
140000
80%
70%
120000
60%
100000
44.7%
38.3%
28.5% 25.2%
60000
25.0%
21.6% 22.9%
16.9%
40000
8.2%
20000 0.6%
0
80000
数据来源:公司数据、乘联会数据
Monthly sales volume of 2016
Monthly sales volume of 2015
50%
35.6%
40%
30%
20%
10%
0%
YoY
2
2016 DFG Business Performance
7
2016 DFG Business Performance
Sales Performance
2016 Sales
（unit）
YoY Growth
（%）
Market Share
（%）
PV
2,787,756
10.6
11.4
Sedan
1,387,480
2.6
11.4
SUV
1,154,860
23.9
12.8
MPV
245,416
4.1
9.8
CV
369,054
6.9
10.1
Truck
327,300
10.4
10.5
Bus
41,754
-14.5
7.7
Total
3,156,810
10.1
11.3
Source: Company Data
2016 DFG Business Performance
JV & Own Brand Forge Ahead Together
JV Business: Continued Development
DF Nissan: Achieved 1.1mn
Sales , i3 Business Plan
launched, with focus
on intelligent driving
DPCA: Managed to achieve
600K units sales under a
difficult circumstance.
Launched“5A+”
mid-term business plan.
DF Honda: Achieved
500K units sales,
boosting sales & profit
performance to
a new high. Started
construction of 3rd plant.
Own Brand Business: Steady Growth
Own Brand PV: Total sales
reached 549K units,
representing a
YoY growth
of 10.4%
Own Brand CV:
Total sales reached
358K units,
representing a YoY
growth of 8%
2016 DFG Business Performance
NEV Business Performance
Facing the Future, Proactively Advance NEV Business
NEV PV: Total sales of
7292 units, triple that
of 2015
•
•
•
•
NEV CV: Total sales
of 16980 units, 28%
YoY growth
5 Core resources mastered, with
development in 8 key technology and
innovation in 3 business modes.
Strategic Agreement signed with CATL &
Shenzhen Hangsheng
25 NEV Models Entered 4th batch
National NEV Catalogue
•
•
Optimize NEV Management
Structure and Function
Centralize NEV Business
Management & Coordinate
Resources
2016 DFG Business Performance
Continuous Innovation in New Technology
Mastered Core Technology in 4 Major Areas
PV
Capable of developing whole vehicle
& power train, with improved car
body designing capability
CV
Capable of developing whole series
of HDT,MDT, LCV. CV
comprehensive R&D capability
taking a domestic leading position.
NEV
Military
Vehicle
Mastered NEV key technology such
as the whole vehicle control technology
and NEV core components matching
& testing capability.
Capable of developing a whole series
of high mobility off-road military
vehicles, key parts & components and
systems.
Explore Automatic Driving Technology
Mastered Vehicle
Control Technology
2016 DFG Business Performance
International Business
Continuously Advance International Cooperation and Opening up
 PSA auto business made a breakthrough upon successfully
completing “Back in the Race” business plan. “Push to
Pass”plan is now in function.
 Continuously enhancing the Group’s global R&D layout,
with joint development of CMP and eCMP platforms with
PSA.
 Major breakthrough achieved in the Group’s overseas
business transition. DF Fengshen constructed its overseas KD
assembly line.
 Carry out strategic talent-training project , dispatching staff
to work temporarily in Nissan and Renault, exchanging staff
between DFG and PSA, aiming to train and introduce more
high level talents from both home and abroad.
Source: Company Data
2016 DFG Business Performance
Auto Finance Business
Steady and Sustainable Development of Auto Finance Business
Steady Growth of Profitability
2014
2015
DF Auto Finance Co.,
DF Nissan Auto Finance Co.,
Source: Company Data
Continuous Improvement of Penetration Rate
2016
DF PSA Auto Finance Co.,
2014年
2015年
DF Auto Finance Co.,
DF Nissan Auto Finance Co.,
2016年
DF PSA Auto Finance Co.,
3
2016 DFG Finance Performance
2016 DFG Finance Performance
Highlights
The Group（Equity ）
Unit: RMB mn
2016
2015
rate
Revenue
122,422
126,566
-3.3%
Selling Cost
104,905
109,637
-4.3%
Shares of profits & losses of
JVs
11,665
10,422
11.9%
Shares of profits & losses of
Associates
1,897
1,297
46.3%
Profit before Tax
15,739
14,065
11.9%
Net profit attributable to
equity holders of the parents
13,355
11,550
15.6%
Source: Company Data
2016 DFG Finance Performance
Sales Revenue
Equity Method
140,000
25.0%
22.3%
19.0%
20.0%
120,000
15.0%
100,000
10.0%
80,000
5.0%
60,000
0.0%
-3.3%
40,000
-5.0%
20,000
-10.0%
-13.1%
0
-15.0%
CV
PV
Finance
2015
Source: Company Data
2016
YoY
Total
2016 DFG Finance Performance
Equity
Steady Improvement of Profitability
Control Cost on a Rational Level
30.0%
7.0%
6.6%
6.2%
6.1%
5.8%
6.0%
28.3%
20.0%
5.6%
5.0%
25.0%
5.1%
5.0%
15.0%
4.0%
3.0%
2.9%
10.0%
3.3%
3.1%
3.2%
2.9%
12.6%
5.0%
0.0%
2.0%
2014
2015
2016
Selling&distribution cost as pct of revenue
Administration cost as pct of revenue
R&D as pct of revenue
Labor cost as pct of revenue
14.7%
15.4%
13.0%
13.4%
14.3%
1.6%
9.1%
1.7%
2014
2015
10.9%
2.1%
-1.5%
2013
2013
14.6%
15.0%
4.5%
4.4%
4.0%
16.2%
2016
-5.0%
GP margin
EBIT margin
NP margin
Healthy Debt Ratio
Capex
单位：亿元
2016
2015
48.7%
2014
44.8%
(34.57)
44.0%
43.1%
(37.95)
(39.16)
Source: Company Data
2016
2015
2014
2013
ROE
4
2017 Business Outlook
2017 Business Outlook
Industry Growth Guidance
5% Industry Growth in 2017
Opportunities：
 Supply-side structural reform will be further
deepened, with industry & market structure
further optimized
 Urbanization process will be accelerated
 After 80’& 90’generation becoming major
force of consumption
 Improved sales of household second cars
 Intelligent and connected cars becoming the
future trend
Source: company data
1851
1931
2010
2011
2012

Increased uncertainty of global economy
prospects, with rising trade protectionism
 Slow down domestic GDP growth
 Price hike of bulk commodity and raw materials
 Fast expanding of middle class
1806
Challenges:
 Unstable foreign exchange rate
 Change of travel modes
 More stringent emission regulations
 Intensified market competition
 Increased purchase tax and reduced NEV subsidy
2198
2349
2460
2013
2014
2015
新车销量（万辆）
2803
2900~3000
2016
2017E
2017 Business Outlook
DFG Sales Guidance
2016 Sales
（0,000）
2017 Target
（0,000）
Growth
Rate
DFG
315.7
> 335.6
> 6.3%
PV
278.8
> 297.3
> 6.6%
DF Nissan
100.4
> 101
> 1.0%
P02F
DF Venucia
11.4
> 14
> 34.8%
322/341
DF Infinite
2.6
> 2.6
> 0%
DPCA
60.0
> 63
> 5.0%
C84/P87
DF Honda
57.0
> 63
> 10.5%
2LD/CRV换代
DF Fengshen
15.1
> 16.3
> 7.7%
D27
DF Liuqi PV
26.1
> 27
F700
DF Renault
3
> 6
> 3.4%
> 100%
36.9
> 38.3
> 3.8%
CV
Source: company data
2017
New Models
2017 Business Outlook
Key Work Points
Major Focus
Enhance Independent Innovation &
Strengthen Own Brand Development
Quickly respond to market change and
continuously advance the development of
strategic products
Speed up the rebuilding of DFG’s CV
leading edge
Greatly improve own brand PV core
capability
•
•
•
Promote Healthy and Fast
Development of Clean Energy Vehicle
•
•
•
Intensify accumulation and control of core
technology
Speed up demonstration and promotion of
NEV business
Construct the Group’s CAFC and NEV
credit management system
Speed up Strategic Layout
•
•
•
•
Accelerate development of auto related
business, parts & components business ,
intelligent and connected cars business
Strengthen strategic brand management
Reinforce scientific and technological
innovation capability
Deepen cooperation and opening up
Strengthen competitive edge
Upgrade Marketing
Capability
•
•
•
Oriented by customer value, strengthen
market research and clearly identify product
positioning, product definition , pricing and
proper launch time.
Construct the Group’s marketing capability
evaluation system
Provide all-around high quality auto
products and service to the consumers