2008 Annual Results Presentation
April 15th, 2009
P.1
Content
PRC Auto Industry Overview
DFG Business Overview
DFG Financial Performance
Outlook of PRC Auto Industry and DFG in 2008
P.2
PRC Auto Industry Overview
PRC Auto Market Recorded Stable Growth
Total PRC Auto Sales Volume and Composition
Unit:0,000
1000
721.6
800
600
400
200
938.1
879.2
575.8
178.7
397.1
204
28.27%
517.6
71.73%
249.4
28.37%
629.8
71.63%
262.5
27.98%
675.6
72.02%
31.04%
68.96%
0
2005
2006
Total Sales Volume
2008
2007
PV
CV
P.4
PV :
Rapid Growth of Sedan and SUV
PV Consumption Demand Transferring to Mid-western Region
Midwestern Region’s share in PV demand is Rising
Rapid Growth of Sedan and SUV
PRC PV Registration Composition by Region
100.00%
90.00%
4.94%
80.00%
2.92%
100%
4.60%
3.59%
5.67%
6.63%
90%
17.74%
15.69%
15.75%
80%
3.69%
3.93%
20.93%
70.00%
70%
60.00%
60%
50.00%
50%
40.00%
70.20%
74.70%
75.06%
73.98%
7.2%
7.1%
7.0%
29.2%
31.4%
32.8%
61.6%
60.2%
7.3%
36.4%
40%
30.00%
30%
20.00%
20%
10.00%
10%
63.6%
56.3%
0%
0.00%
2005
Sedan
2006
Cross type PV
2007
2008
SUV
2005
MPV
Eastern Region
Note:
2006
2007
Central and Western Region
Eastern Region:
Northeastern Region:
Central and Western Region:
2008
Northeastern Region
Beijing, Tianjin, Hebei, Shandong,
Jiangsu, Shanghai, Zhejiang, Fujian,
Guangdong, and Hainan
Liaoning, Jilin, Heilongjiang
Other Provinces in PRC Mainland
P.5
CV: Sales Volume Steadily Grows, HDT in the Limelight
Rising HDT share in Trucks
Steadily Growing CV Market
CV Sales Volume
Truck Sales Volume Composition
Unit: 0,000
300
120.0%
250
100.0%
200
80.0%
150
60.0%
100
262.5
178.7
15.3%
16.6%
14.7%
15.8%
56.3%
54.3%
51.5%
51.5%
12.8%
11.5%
11.0%
9.1%
22.8%
23.6%
40.0%
249.4
204.0
50
20.0%
17.5%
15.6%
0
0.0%
2005
2006
2007
CV Sales Volume
2008
2005
HD truck
2006
2007
2008
MD truck
LD truck
Mini-van
P.6
DFG Business Overview
DFG : Sales Growth Rate Higher than Industry Average
Market Share Steadily Increases
Unit：0，000
DFG
Sales Volume & Sales Growth Rate
Steady Expansion of Market Share
Unit:0,000
11.40%
1000
938.1
40.66%
900
721.6
35.00%
700
575.7
26.22%
500
400
59.5
75.1
94.95
105.8
6.70%
0
2005
10.80%
25.00%
10.60%
11.43% 15.00%
13.51%
2006
2007
2008
DFG Sales Volume
Industry Sales Volume
Industry Sales Grow th
DFG Sales Grow th
11.00%
30.00%
20.00%
21.84%
200
100
26.43%
25.34%
300
11.20%
40.00%
800
600
45.00%
879.2
10.00%
10.40%
`
10.20%
5.00%
10.00%
0.00%
9.80%
2005
2006
11.30%
10.80%
10.40%
10.30%
2007
2008
DFG Market Share
P.8
DFG : Extensive PV Product Mix,
Remarkable Performance of New Models
Remarkable Performance of New PV Models
DFG PV Sales Volume & Market Share
Unit:0,000
Unit:0,000
80
70
10.8%
10.1%
9.6%
12.0%
New Elysee
4.68
10.0%
8.8%
60
8.0%
50
40
6.0%
30
New Teana
4.4
X-Trail
0.42
72.7 4.0%
63.8
49.5
35.1
Qashqai
2.4
20
2.0%
10
0
0.0%
2005
2006
DFG PV Sales Volume
2007
2008
Mar Apr
Jun
Nov
Market Share
P.9
DFG：CV Sales Volume Steadily Grows,
Good Performance in Sub-segments
Steady Growth of HDT and MDT Sales Volume
Rapid Growth of LCV Sales Volume
Unit:0,000
Unit:0,000
Unit:0,000
20
15.5
15.2
15
12.8
11.7
16
11.50%
11.10%
10.60%
12
11.00%
10.60%
10.50%
10
8
10.00%
9.70%
5
4
10.1
8.3
0
2005
2006
2007
2008
DFG HD truck &MD truck sales volume
13.1
11.7
9.50%
0
9.00%
2005
2006
DFG LD Truck Sales Volume
2007
2008
Market Share
Strong Performance of Kinland
Unit:0,000
5
4.01
4
3
2.2
2
1
0
2007
Dongfeng Kinland HDT was launched
in May,2006. Sales volume reached
22,000 units in 2007 and exceeded
40,000 units in 2008. Other CV models
such as Tianjin and Chenglong are all
well received in the market.
2008
Kinland Sales Volume
P.10
DFG :Constant Upgrading and Expansion of Sales Network
Utilization Rate Maintains at a Comparatively High Level
Constant Effort in Network Construction
Comparatively High Level of Utilization Rate
Unit:0,000
Unit:0,000
2500
2,066
2000
2,056
1,897
2,282
2,083
140
100
1500
1000
80
1,219
80.30%
120
74.5
71.6
80.03%
111.7
95.88
94.5
59%
131.2
85.84%
80.53%
90%
105.65 80%
70%
75.63
60%
50%
59.82
60
40%
42.24
628 699
100%
30%
40
20%
500
20
0
10%
0
2005
2006
CV Distribution Netw ork
2007
2008
PV Distribution Netw ork
0%
2004
2005
Production Capacity
2006
Prodution
2007
2008
Utilization Rate
P.11
DFG Financial Performance
DFG: Strong Revenue Growth due to Distinctive Competitive Edge
Strong Revenue Growth
Unit:RMB mn
75000
70,569
70000
65000
60000
59,318
55000
50000
2007
2008
Revenue
CV Revenue
PV Revenue
Unit:RMB mn
50000
48,660
Unit:RMB mn
25000
48000
20000
46000
15000
44000
42000
20,980
16,901
10000
41,655
5000
40000
0
38000
2007
2008
2007
2008
revenue of CV segment
Revenue of PV Segment
P.13
DFG: Constant Improvement of Profitability Driven by Improved Product Mix
EBIT and EBIT Rate
Gross Profit and Gross Margin
Unit:RMB mn
14000
12000
10000
8000
6000
4000
2000
0
Unit:RMB mn
18.0%
17.0%
16.8%
16.5%
17.0%
14.6%
2005
9,815
8,206
6,096
2006
2007
Gross profit
11,881
6000
16.0%
5000
4000
15.0%
3000
14.0%
2000
1000
13.0%
0
7.4%
7.0%
6.4%
7.0%
6.3%
5,190 6.0%
4,131
3,029
2,670
5.0%
2008
2005
2006
Gross profit margin
EBIT
Net Profit and NP Margin（Recurring）
2007
2008
EBIT Rate
ROE（Recurring）
Unit:RMB mn
Unit:RMB mn
5000
5.7%
5.5%
4000
3000
8.0%
4.3%
3.8%
5.0%
4.0%
3.0%
4,040 2.0%
2000
1000
1,601
3250
2,081
1.0%
0.0%
0
2005
7.0%
6.0%
2006
Net profit
2007
NP margin
2008
25000
20000
15000
13.10%
15.70%
25.0%
20.70%
18.34%
20.0%
15.0%
10000
10.0%
12,207
5000
14,288
21,366
17,713
0
5.0%
0.0%
2005
2006
2007
Shareholders` Equity
2008
ROE
P.14
DFG: Further Improvement of Financial Structure and Operating Efficiency
EBIT Interest Coverage Ratio
Liability-to-Asset Ratio
61.5%
61.0%
13.5
60.9%
13.2
13.0
12.5
60.5%
12.0
60.0%
59.5%
59.5%
11.5
11.3
11.0
59.0%
10.5
58.5%
10.0
2007
2007
2008
Debt to Capital Ratio
29.0%
2008
EBIT Interest Coverage Ratio
Assets-Liabilities Ratio
Accounts Receivable Turnover Days
Unit: Day
28.8%
70
28.5%
63
60
28.0%
45
50
27.5%
40
27.0%
26.4%
26.5%
30
20
26.0%
10
25.5%
0
25.0%
2007
Debt to Capital Ratio
2008
2007
2008
Receivables Turnover Days
P.15
DFG: Significant Increase of Cash Flow from Operation,
Return Value to Investors through Stable Dividend Policy
Significant Increase of Cash Flow from Operation
Unit:RMB mn
Unit:RMB mn
Dividend
Unit:RMB
mnPayout in the Past 3 Years
Unit:RMB mn
9000
7,748
8000
400
390
7000
388
388
2007
2008E
380
6000
5,102
370
5000
4000
360
3000
350
2000
340
1000
330
345
320
0
2007
2008
Cash Flow from Operation
2006
Stable Dividend Policy
P.16
Outlook of PRC Auto Industry and DFG in 2008
Growth Prospect for PRC Auto Industry in 2009
PRC Per Capita GDP
PRC Auto Sales Volume in Recent Years
Unit:0,000
Unit: USD
3500
3000
2500
2000
1500
1000
500
0
1200
>3000
2,553
945
1,273
1,041 1,135
1,490
1,739
800
2,052
879
1000
576
622
2005
2006
938
1,000
600
400
200
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2007
2008
2009E
Total Industry Sales Volume
Per Capita GDP -China
Comparative Low Auto Penetration Rate in PRC
Auto Sales Volume Growth in Major Auto Markets
10.0%
unit/1000 People
1000
0.0%
800
-10.0%
600
-20.0%
China
400
Japan
South Korea
USA
-30.0%
200
-40.0%
0
China
USA
Japan
South Korea
-50.0%
2008 YoY Growth
1Q2009 YoY Growth
Passenger Car Penetration Rate Per thousand People in 2007
P.18
DFG: Business Plan for 2009
1Q2009
4Q2008
1Q2009
Q-to-Q Growth
DFG Total
264,695
243,150
8.86%
PV
198,255
187,970
5.47%
CV
66,440
55,180
20.41%
Dongfeng Nissan PV
95,834
105,886
-9.49%
DPCA
51,864
37,138
39.65%
Dongfeng Honda
43,069
37,688
14.28%
New Sylphy
C-Quatre Sedan
Hatchback 207
C5
Hatchback Elysee
PSA Peugeot Citroën
New CIVIC
New Car
P.19
Q &A
Investor Relations Enquiry:
Securities Affairs Department
Dongfeng Motor Group Co., Ltd.
Tel: +8627 8428 5031
Fax: +8627 8428 5057
Email: chenliqiu@dfmc.com.cn