Yongmao Holdings Limited Results Presentation 27 May 2008
Agenda About Yongmao FY08 Performance Review Outlook & Strategy 2
Company Overview Leading designer and manufacturer of tower cranes and accessories in the PRC Successfully developed four series of high-tonnage tower cranes, marketed under brands : 永茂 First Chinese tower crane maker to attain European "CE" marking and one of the first to enter the US market Major overseas customers: Jin Long Europe 3
Our Products Product Type Topless STT ST Luffing STL Derrick Q Components & Accessories Application and Advantage Streamlined design minimizes space for jib overflight Suitable for large-scale projects with space constraints Requires shorter time for erecting and dismantling Suitable for use in construction sites of all sizes Structural design reduces stress on jib Small slewing working radius Suitable for use in congested worksites surrounded by tall buildings Designed specially for dismantling internal climbing tower cranes safely Installed directly on top of buildings Enables customers to replace worn out or faulty components and to extend height of tower cranes and length of jibs Luffing STL Derrick Q Topless STT ST 4
Where We Are Production facility: located in Fushun City, Liaoning total land area of 160,000 m² Current production capacity: Beijing Fushun FY2008 FY2007 Capacity (units) 200 200 Utilisation Rate (%) 100 73 5
Competitive Strengths Good control over critical stages of the value chain: Design Manufacture Sales & Marketing Industry-wide recognition for quality and reliability won several brand awards and attained European CE marking products used in prominent commercial / infrastructure projects overseas Good exposure to overseas markets exports mainly to Middle East, Asia and Eastern Europe Strong R&D focus in-house capabilities to develop new products to cater to market demand Wide product offering variety of tower cranes with lifting capacity ranging from 80 500 tonne metres Depth and breadth of management experience 6
Agenda About Yongmao FY08 Performance Review Outlook & Strategy 7
Revenue & Gross Profit Revenue (FY08 vs. FY07) Gross Profit (FY08 vs. FY07) RMB m 700 600 135% 652.8 RMB m 300 250 129% 242.2 500 400 300 278.3 200 150 105.7 200 100 100 50 0 FY07 FY08 0 FY07 FY08 Record jump in revenue and gross profit driven by : growing industry recognition of Yongmao s brand of tower cranes global construction boom and robust demand for construction services 8
Net Profit After Tax RMB m 140 120 100 80 60 40 20 Net Profit (FY08 vs. FY07) 122.5 107% 59.2 Two-fold jump in net profit attributable to shareholders In line with revenue surge, but partially offset by: expiry of full tax exemption commencing 1 Jan 08 one-time IPO expenses writeoff 0 FY07 FY08 9
Revenue Breakdown Product Segment FY08 FY07 Std ST 29.8% Derrick Q 0.3% Components /Accessories 11.2% Topless STT 50.4% Derrick Q 0.2% Std ST 31.3% Components/ Accessories 16.5% Topless STT 49.9% Luffing STL 8.3% Luffing STL 2.1% Bulk of revenue derived from higher margin Topless STT series 10
Revenue Breakdown - Geography FY08 FY07 PRC 25% Asia & Middle East* 43% PRC 22% Asia & Middle East* 48% USA & Europe 32% USA & Europe 30% 75% of FY08 revenue derived from overseas markets * Revenue classified under Asia & Middle East excludes revenue from the PRC 11
Balance Sheet and Key Ratios (RMB m) @ 31 Mar 2008 2007 Total non-current assets 176.1 47.3 Cash & cash equivalents 200.3 50.3 Other current assets 342.4 175.5 Total Assets 718.8 273.1 Total equity 445.2 141.8 Total liabilities 273.6 131.3 Total Equity & Liabilities 718.8 273.1 Ratios FY08 FY07 ROE 27.5%* 41.8% Debtor Turnover Days 6 6 Creditor Turnover Days 37 32 Inventory Turnover Days 72 60 * based on enlarged equity base following Company s IPO on 21 Feb 08 12
Cash Flow (RMB m) @ 31 Mar 2008 2007 Operations 92.5 34.4 Investments (150.5) (33.0) Financing 208.0 36.1 Opening balance 50.3 12.8 Closing balance 200.3 50.3 13
Agenda About Yongmao FY08 Performance Review Outlook & Strategy 14
Outlook Demand to remain strong in FY09 Globally, driven by booming construction activities, particularly in Middle East, Asia, Russia and Ukraine In the PRC, driven by infrastructure investment projects, such as nuclear power plants Expected shortage in supply of high-class tonnage tower cranes Healthy order books as at 31 March 2008 amounting to RMB 525 million 15
Strategy Strengthen position in new markets Russia, Ukraine, Malaysia, Australia Minimize rising cost of steel by adjusting selling prices where appropriate Explore strategic investment or acquisition opportunities to expand capacity through acquisitions, JVs or strategic alliances 16
New Facility Land parcel : - approximately 240,000 m² Construction in Progress Built-up area : - approximately 100,000 m² Production use : - tower cranes - crawler cranes Artist s impression 17
Yongmao Holdings Limited Results Presentation 27 May 2008