Transcript Slide 1

2006 Annual Results
19 April 2007
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I、PRC Auto Industry in 2006
II、DFG 2006 Business Overview
III、DFG Financial Performance in 2006
IV、Outlook of DFG and PRC Auto Industry in 2007
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I. PRC Auto Industry in 2006
1. Rapid Growth of PRC Auto Industry
2. PRC Auto Industry Position in the Global Market
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Rapid Growth of PRC Auto Industry
PRC Total PV Sales Volume1
PRC Total Vehicle Sales Volume
000’units
6,000
000’ units
8,000
7,216
2,000
5,758
6,000
5,176
4,000
7,000
5,072
3,271
3,971
0
5,000
2004
2005
2006
PRC Total CV Sales Volume
4,000
3,000
000’units
2,500
2,000
2,000
1,500
1,000
500
0
1,000
0
2004
2005
2006
1,801
1,787
2004
2005
2,040
2006
China Association of Automobile Manufactures (CAAM)
Note1：According to CAAM’s segmentation, passenger vehicles include passenger car, MPV, SUV and cross-over vehicles
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PRC Auto Industry Position in the Global Market
China Has Become the World’s 2nd Largest Auto
Consumption Market
2001
1 US
1747
2 Japan
581
3
Germany
364
4 UK
277
2002
US
1714
Japan
578
Germ any
352
…
…
…
…
……
……
2004
2005
US
1730
US
1700
Japan
585
Japan
585
China
512
China
575
Steady Increase of PRC Auto Global Market Share
2006
Global Market Share of PRC Auto Industry
China
721
7.40%
8.00%
6.00%
8.10%
9.00%
5.70%
4.30%
4.00%
2.00%
0000’ units
0.00%
5 France
275
2001
6 Italy 269
2002
2003
2004
market share
7 China
244
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11.00%
10.00%
China
338
12.00%
2005
2006
II. DFG Business Performance in 2006
1. Business Continued to Maintain Strong Growth Momentum
2. Sales and Market Share of DFG in Different Segments
3. Rapid Growth of PV business
4. Business Promoted by Constant Launch of New PV Models
5. Steady Production Expansion Plan
6. Continuous Rise of Local Content Ratio
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Business Continued to Maintain Strong Growth Momentum
Steady Growth of Aggregate Sales
Rapid development of PV Business
600
In 2006,the Company’s total sales reached
751,000 units, representing a YoY growth of
26.26%, among which PV business
achieved rapid development while the CV
sector grew steadily.
000’ units
495
500
400
351
300
177
200
100
000’ units
0
800
2004年
751
2006年
Steady growth of CV business
700
595
600
500
2005年
000’ units
300
423
400
250
300
200
200
246
244
2004年
2005年
256
150
100
100
0
2004
2005
2006
50
0
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2006年
Sales and Market Share of DFG in Different Segments
Bus
38
33.5
■ 13.1% ■ 12.4%
101
82.6
Light truck
50
55.9
67
71.7
Medium truck
Heavy truck
■ 24.8% ■ 28.8%
■ 21.8% ■ 30.3%
218
210.1
256
243.6
Truck
CV
33.3
34.5
23.5
18.8
SUV
MPV
■ 12.5% ■ 13.8%
■ 12.5% ■ 13.6%
■ 14% ■17.6%
■ 12.3% ■12.1%
sedan
297.9
PV
438
351.2
495
■ 11.4% ■ 10.7%
■ 9.6% ■ 8.8%751
total
594.8
0
200
2005 400
2006
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000` unit
■ 10.6% ■ 9.7%
■ 10.4% ■ 10.3%
600
800
Rapid Growth of PV business
Dongfeng Pegeot Citroen Automobile
Co., Ltd
The Company’s rapid PV growth in
2006 benefited from strong PV
performance of its three major JCEs.
400,000
140,399
200,000
201,318
0
2005
Dongfeng Honda Automobile Co., Ltd
Dongfeng Motor Company Ltd
100,000
400,000
200,000
184,576
230,155
50,000
63,373
26,244
0
0
2005
2005
2006
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2006
2006
PSA Peugeot Citroën
Business Promoted by Constant Launch of New
PV Models
Selection of Newly Launched PV Models in
2006
New Models were Well-received by the Market
Dongfeng Peugeot Citroen
On March 6th, Dongfeng Peugeot 206 was
launched to the market.
车型
 On May 16, improved Dongfeng Peugeot 307
with brand new CMS technology was launched
C2
 On April 28, Dongfeng Citroen C-Triomphe
rolled off the production line and on May 28, the
first batch were delivered to customers.
Sylphy
Livina
Geniss
In October, Dongfeng Citroen C2 was launched
Dongfeng Nissan
Civic
On April 20, new Teana equipped with Nissan’s
new 2.0L engines was launched to the market
and began to participate in the 2.0L PV subsegment competition
New
307
New
TEAVA
On August 24th, Dongfeng Nissan Sylphy went
to market
C-Triomphe
In October, brand new MPV Livina Geniss made
its global debut in PRC market
Dongfeng
Peugeot 206
Dongfeng Honda
2006
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On April 22, newly launched Honda Civic
simultaneously went on sale in 81 Dongfeng
Honda dealer shops with positive market
Steady Production Expansion Plan
Comparatively High Level of
Production Utilization Rate
Steady Production Expansion Plan
900
820
800
700
DFG Production Capacity and Utilization Rate
625
1000
900
800
700
600
500
400
300
200
100
0
600
500
400
413
320
425
320
300
200
100
745
716
59%
80.30%
CV
2005A
PV
2006A
2008E
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90%
80.03%
756.3
598.2
80%
70%
60%
50%
422.4
40%
30%
20%
10%
0%
2004
production
capacity2005
utilization rate
0
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945
production 2006
Constant Increase of Utilization Rate
General Situation of DFG’s Utilization Rate
Utilization Rate of Major PV Models
90.00%
85.00%
80.00%
75.00%
70.00%
65.00%
60.00%
55.00%
In 2006, localization rate of
auto products manufactured by
Dongfeng Honda reached 75%,
and expects to reach 80% in
2007;
2005
2006
206和C2
C-Triomphe
2007
TEANA
2008
TIIDA
DF Honda
Localization rate of all PV
models expects to increase by
another 5-10% in 2007;
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III. 2006 Financial Performance
1. Steady Growth of Major Business
2. Stable Growth of Gross Profit Margin
3. Continuous Improvement of Profitability
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Steady Growth of Major Business
Increased Sales Revenue
Million RMB
Million RMB
60,000.00
50,000.00
Composition and Proportion of Sales Revenue
48,264
41,735
30,000.00
20,000.00
0
10,000.00
2006
系列1
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12989
27915
13215
34219
2005
0.00
2005
48234
60000
40000
20000
40,000.00
41735
PV
CV
2006
Stable Growth of Gross Profit
PV Gross Profit Margin
DFG Overall Gross Profit & Gross Profit Margin
10,000
20%
9,000
8,206
17.0%
8,000
7,000
16%
14.6%
6,096
20.0%
15.8%
18.9%
10.0%
0.0%
6,000
2005
12%
5,000
4,000
2006
CV Gross Profit Margin
8%
3,000
2,000
4%
20.0%
0%
10.0%
1,000
0
2005
2006
GP
12.0%
2005
2006
0.0%
G P M argin
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11.3%
Continuous Improvement of Profitability
EBIT
Increased Net Profit and NP Margin
EBITI RMB Million
3100
3000
2900
2800
2700
2600
2500
2400
3030
3000
2670
2000
1000
2005
13.00%
8.00%
2005
2006
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3.50%
Net Profit
14.56%
4.50%
4.00%
3.84%
2005
Improved ROE
13.12%
4.31%
0
EBIT（百万元）
18.00%
1601
2081
2006
NP Margin
IV. Growth Prospect
1. Growth Prospect of PRC Auto Industry in 2007
2. Growth Prospect of DFG
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Growth Prospect of PRC Auto Industry in 2007
According to industry forecast made by CAAM,
PRC auto sales will continue to grow by 17.8%
10,000
8,000
6,000
8,500
PRC PV sector will maintain a fast development
momentum, with a growth rate of 21.72%
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
6,300
5,176
2006年
7,216
2007年预测
PRC CV sector will develop steadily, with a
growth rate of 7.85%
4,000
2,000
2,500
2,000
0
2006A
2007E
1,500
2,040
2,200
1,000
500
0
2006
Source: Forcast of China Association of Automobile Manufactures (CAAM)
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2007E
Sales Arrangement of DFG in 2007
Sales Target
Measures to be Taken
PV
In 2007, the Company aims to
achieve an aggregate sales of
900,000 – 950,000 units, with the
composition of PV and CV market
weights of 7:3
Business：
DFG
major JCEs will launch no less
than 4 new PV models;
Further
improve localization rate
and reduce cost through
advancement of technology,
management and central
procurement, so as to improve
competitive edge of our products
in the market.
CV
Business：
Strengthen marketing of newly
launched models and safeguard
competitiveness of old models so
as to enhance our products’
competitiveness in their respective
segment

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Thank You
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