Hong Leong Asia Ltd. · 4/29/2008 · China No. 2 fridge and freezer maker with market share of approximately 12% Total sales volume for 2007 was 2.94m units, 7% more than 2.75m

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Hong Leong Asia Ltd.

CEO’s Presentation

Annual General Meeting

29 April 2008

Hong Leong Asia Annual General Meeting for the Financial Year ended 31 December 2007

Introduction

Listed in SGX Singapore. Group with over 80% of our businesses in China

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Introduction

� Started in 1941 by the late Mr Kwek Hong Png

� Part of Hong Leong Group – one of Singapore’s largest conglomerates with businesses worldwide in properties, hotels, financial services, manufacturing and trading

� Today, HLA business includes home appliances, diesel engines, industrial packaging, green packaging and building materials

� Capitalisation in excess of S$1 billion


Executive Summary

� Group’s revenue reached a record high of $3.23b in 2007, representing a y-o-y increase of 30%

� The main contributors are Home Appliances and Diesel Engines division from China and Singapore based Building Materials Unit

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Executive Summary

0

500

1000

1500

2000

2500

3000

3500

S$ m

illion

Revenue 1883.1 2059.6 2269.2 2481 3233.2

2003 2004 2005 2006 2007

Five Years Revenue Trend


Executive Summary

� Group’s net profit attributable to shareholders improved significantly to $95.4m vs $61.1m in 2006

� Excluding non-operating income, the adjusted net profit would be $88.1m vs$50.8m in 2006, representing a y-o-yincrease of 73%

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Executive Summary

0

20

40

60

80

100

120

S$ m

illion

Net Income 112.6 41.6 23.3 61.1 95.4

2003 2004 2005 2006 2007

Five Years Net Income Trend


Executive Summary

� The China economy grew strongly by 11.4% in 2007 despite the Chinese Government’s austerity measures in controlling new capital investments and inflation

� The Group’s China business units (Xinfeiand Yuchai) continued to perform better in terms of unit sales and revenue growth, but faced keen competition

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Location of Group’s Business Units

Xinfei

YuchaiHome Appliances - Xinfei

Diesel Engines - Yuchai

Industrial Packaging - Rex

Green Packaging - GPac

Building Materials - BMG


Home Appliances - Xinfei

� China No. 2 fridge and freezer maker with market share of approximately 12%

� Total sales volume for 2007 was 2.94m units, 7% more than 2.75m units sold in 2006

� A new factory with investment of Rmb400m to increase production capacity by 1.5m units was completed in March 2008

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Technology Centre

Corporate Office



Assembly Line

Refrigerator Plant Freezer Plant

Air-con / Wine Chiller Plant

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Side-Panel Line Side-Panel Line

“ΠΠΠΠ”Side-Panel Line“ΠΠΠΠ”Side-Panel Line


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Cabinet Thermo Forming Line Powder Coating Line

Cabinet Thermo Forming Line Door Thermo Forming Line



Vacumning Line

Cabinet Foaming Line

Cooling Performance Testing Line

Cabinet Foaming Line


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� One of the largest diesel engine manufacturers in China, mainly for commercial and industrial uses.

� Total unit sales in 2007 of 384k units was 35% higher than 284k units sold in 2006

� According to the Chinese government industry statistics, there was an increase of approximately 23% on the sales of trucks and buses in China in 2007



绿色发展绿色发展绿色发展绿色发展

和谐共赢和谐共赢和谐共赢和谐共赢

Green Development

Win-win in Harmony

China YuchaiInternational Ltd

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Assembly line for heavy-duty engines

Assembly line for light-duty engines



Heavy-duty YC6L

Light-duty YC4F

Medium-duty YC6G

Heavy-duty YC6M

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� Operating in China, Malaysia and Indonesia

� Facing keen competition and pressure on raw materials costs due to increased oil prices

� Realign business to focus on the more profitable products

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� New plant capacity expansion in Dongguan, China (Rmb 21m)



Asia Star 2005 Winners

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� Unable to achieve economies of scale and is still loss making

� In the process of streamlining its product range, to relocate production to Malaysia

� Positive prospect in view of ISPM15 compliance which requires fumigation of all wooden pallets

� World market demand of pallets are 5 billion units per year and currently only 5% is made up of compressed wood


Building Materials Group - BMGIsland Concrete Singapore Cement

Precast Singapore Cement Tasek

Quarry - Karimun

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Building Materials Group - BMG

� Singapore largest building materials group with investments in Malaysia & Indonesia

� Benefit from the increase of new construction projects in Singapore

� According to the Building and Construction Authority, total new construction contracts awarded in 2007 amounted to approximately $24.5b

� The Group’s subsidiary, Island Concrete Pte Ltd, commanded a market share of 25% as at 31 Dec 07.


Outlook

� The outlook for 2008 is positive with forecasted economic growth in China of approximately 8% to 10% and the continuing growth momentum of the property development and construction sectors in Singapore

� Our China operations are expected to grow their sales due to the continued strong domestic demand

� The Group’s BMG, especially the ready-mixed concrete division, will continue to benefit from the continuing growth momentum and shortage of supplies in the construction industry, as well as Tasek’s participation in Iskandar Malaysia and other infrastructure projects in Malaysia

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The End

Thank you!

Documents

Hong Leong Asia Ltd. · 4/29/2008 · China No. 2 fridge and freezer maker with market share of approximately 12% Total sales volume for 2007 was 2.94m units, 7% more than 2.75m