#1中国交通建设股份有限公司 CHINA COMMUNICATIONS CONSTRUCTION COMPANY LIMITED 01800.HK Investor Meetings#2Disclaimer ◆ This document has been prepared by China Communications Construction Company Limited ("CCCC" or the "the Company") solely for use at the investor meetings. Copying or redistribution of this document to any person is strictly prohibited. The distribution of this document in other jurisdictions may be restricted by laws where it locates, and persons into whose possession it comes informing themselves about, and observing, any such restrictions. The information contained in this document has not been independently verified and for illustration purpose only. No representation or warranty express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such information or opinions contained herein. The purpose of this document is not for complete or fully analysis made to the financial or trading position or prospect, and any person who in possession of this document shall be aware that no reliance should be placed on the content contained herein. The information and opinions contained in this document are subject to change without notice. This presentation document is not intended to constitute an offer to, or a solicitation for offer to, sell, purchase, or subscribe the securities of the Company. The Company or any of their respective affiliates, advisors or representatives shall not have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document. This document may contain forward-looking statements that reflect risks and uncertainties. These forward-looking statements are generally expressed in forward-looking expressions, such as expectations, estimation, planning, projections, goals, the possibilities, probabilities or so on to reflect the actions that the Company expect to or may take in future or the results from these actions. You should not have excess reliance on these forward-looking statements, which are based on our own information and other source of information that we consider reliable. Our actual results may differ from these forward-looking statements which may lead to the price fluctuation of our H shares. ·中国交建 CHINA COMMUNICATIONS CONSTRUCTION 1#3Basic Stock Information IPO Information Share Capital structure H Share(1800.HK) Listed in the HKEx in December 2006 ◆ A Share(601800.SH) Listed in Shanghai Stock Exchange in March 2012 ◆ Amount of shares: 16,175 million. Among which: (1) CCCG holds 9,374.6 million shares, accounting for 57.96% of the total share capital. (2) H Share holders hold 4,427.5 million shares, accounting for 27.37% of the total share capital. (3) A Share holders hold 2,372.6 million shares, accounting for 14.67% of the total share capital. Market Cap: approximately USD16,779 million¹ Notes: 1 Based on CCCC closing price of 31 March 2020 at RMB8.26 and HKD5.40. The exchange rate is determined at RMB7.0851 equivalent to USD1.00 as the middle rate of RMB to USD as announced by the People's Bank of China on the same day. ·中国交建 CHINA COMMUNICATIONS CONSTRUCTION 2#4Business Structure The Company has more than 30 wholly-owned or controlled subsidiaries, with businesses throughout China, Hong Kong and Macau, and globally 139 countries and regions. The Company is capable of providing integrated solutions throughout each stage of infrastructure projects for its customers. Infrastructure Construction Largest port construction company in China ◆ Leading road & bridge, railway construction company in China Leading rail transport and municipal construction company in China Leading international contractor Dredging Largest dredging company in china ◆Largest dredging company in the world1 中国交建 CHINA COMMUNICATIONS CONSTRUCTION Note: 1 In terms of total capacity of suction hopper dredgers and cutter suction dredgers 中国交建 CHINA COMMUNICATIONS CONSTRUCTION Infrastructure Design Largest port design company in China Leading road & bridge design company in China Largest International design company 3#5Financial Summary RMB million (except per share data) 2019 Year Ended 2018 Change Revenue 552,542 488,666 13.1% Gross Profit 69,131 64,611 7.0% Operating Profit 34,071 33,321 2.3% EBITDA1 46,299 43,453 6.5% Profit before income tax 27,462 26,046 5.4% t Profit attributable to owners of 20,094 the parent 19,819 1.4% EPS2 1.16 1.16 In line Notes: 1 EBITDA is calculated by adding back depreciation and amortisation to the operating profit. 2 In calculating the amount of basic earnings per share, the interests/dividends with an aggregate amount of approximately RMB1,284 million shall be excluded from profits 中国交建 CHINA COMMUNICATIONS CONSTRUCTION 2#6(RMB million) New Contracts and Backlog by Business Segments New Contracts Backlog 1,500,000 890,873 1,200,000 Growth rate = 18.3% 1,999,086 8,660 95,017 Growth rate = 8.1% 962,683 2,100,000 1,689,738 1,800,000 6.890 79,312 77,171 1,500,000 10,467 900,000 13,809 52,783 47.509 56,983 49.087 600,000 851,924 770,994 300,000 0 2018 中国交建 CHINA COMMUNICATIONS CONSTRUCTION 2019 (RMB million) 1,200,000 85,062 900,000 1,810,347 1,526,365 600,000 300,000 0 2018-12-31 Infrastructure Construction Infrastructure Design Dredging Others 2019-12-31 3#7New Contracts of Infrastructure Construction Business New Contracts of Infrastructure Construction Business (2019) 2019 2018 Change RMB | million % of RMB total million % of total RMB million Growth Overseas Construction 22.0% Port Construction 3.3% Domestic Construction 664,140 78.0% 619,962 80.4% 44,178 7.1% Road & Bridge Construction Port Construction | 28,405 3.3% 27,284 3.5% 1,121 4.1% 32.0% Road & Bridge 272,622 32.0% 317,534 41.2% (44,912) (14.1%) Construction Railway Construction 16,941 2.1% 8,678 1.1% 8,263 95.2% Municipal & Environmentall 346,172 40.6% 266,466 34.6% 79,706 29.9% Municipal & Environmental 40.6% Railway Construction 2.1% Overseas Construction 187,784 22.0% 151,032 19.6% 36,752 24.3% 中国交建 CHINA COMMUNICATIONS CONSTRUCTION Total 851,924 100.0% 770,994 100.0% 80,930 10.5% 4#8Contribution by Business Segments - Revenue Revenue (2019) 1 2019 2018 Change RMB % of Business million RMB total million % of RMB total million Growth Dredging Others 6.0% 1.4% Infrastructure 492,814 86.0% 431,817 85.0% 60,997 14.1% Construction | Infrastructure Design Dredging | 34,578 Infrastructure Construction 86.0% Others Total (before elimination) 38,018 6.6% 31,557 6.2% 6,461 20.5% | 6.0% 32,796 6.4% 1,782 5.4% 8,286 1.4% 12,402 2.4% (4,116) (33.2%) 573,696 100.0% 508,572 100.0% 65,124 12.8% Infrastructure Design 6.6% Note: 1 All figures are before elimination of inter-segment transactions and unallocated costs 中国交建 CHINA COMMUNICATIONS CONSTRUCTION 15#9Contribution by Business Segments - Segment Result Infrastructure Design 11.0% Segment Result (2019) 1 Dredging 5.1% Others 1.1% Infrastructure Construction 82.8% 2019 2018 Change Business | RMB million % of RMB total million % of RMB total million Growth Infrastructure Construction 28,336 82.8% | 27,726 82.5% 610 2.2% Infrastructure| Design 3,761 11.0% 3,510 10.4% 251 7.2% Dredging | 1,761 5.1% 1,769 5.3% (8) (0.5%) Others 362 1.1% 604 1.8% (242) (40.1%) Total (before elimination) 34,220 100.0% 33,609 100.0% 611 1.8% Note: 1 All figures are before elimination of inter-segment transactions and unallocated costs 中国交建 CHINA COMMUNICATIONS CONSTRUCTION 6#10Operating Cost Structure Cost Breakdown (2019) As % of operating costs¹ Rentals 2.5% Other expenses 20.9% Cost Structure (2019) As % of sales Raw materials and 100% 93.5% 94.0% consumables used 29.7% 20.4% 19.6% 80% 2.7% 2.3% 9.1% 9.0% 60% 33.6% 35.1% 40% Employee benefits 20% 27.7% 9.6% 0% 2018 Subcontracting costs 37.3% Raw materials and consumable used Employee benefits Note: 1 Operating costs = cost of sales + selling and marketing expenses + administrative expenses 中国交建 CHINA COMMUNICATIONS CONSTRUCTION Others 28.0% 2019 Subcontracting costs Rentals 7#11Infrastructure Construction - Business Performance Key Projects New Contracts and Backlog 中国交建 CHINA COMMUNICATIONS CONSTRUCTION (RMB million) 1,200,000 Completed projects with RMB492,814 million of contract value Nairobi-Malabar Railway in Kenya successfully put into operation New Contracts Growth rate = 10.5% Project of Integrated Urban Development in Jianzhou New Town, Chengdu City (Effect Picture) Backlog Growth rate = 18.6% 1,810,347 900,000 770,994 600,000 300,000 851,924 0 2018 2019 (RMB million) 2,000,000 1,526,365 1,500,000 1,000,000 500,000 2018-12-31 2019-12-31 8#12(RMB million) (RMB million) Infrastructure Construction - Financial Performance Revenue¹ Growth rate = 14.1% Gross Profit¹ Growth rate = 9.3% 500,000 400,000 300,000 200,000 100,000 0 431,817 2018 2019 Segment Result1,2 Growth rate = 2.2%. 492,814 80,000 8.0% 6.4% 5.7% 60,000 6.0% 40,000 4.0% 27,726 28,336 20,000 2.0% 0.0% 2018 2019 Notes: 1 2 中国交建 CHINA COMMUNICATIONS CONSTRUCTION - Segment result margin (RMB million) 100,000 15.0% 12.1% 11.6% 80,000 57,270 10.0% 60,000 52,404 40,000 5.0% 20,000 0 0.0% 2018 2019 Gross profit margin REMARKS The revenue increased by 14.1% was mainly due to the increase of revenue generated from road construction projects and municipal projects. Gross profit margin decreased to 11.6% primarily due to the decrease of high profit margin overseas projects, and the estimated loss of certain projects. All figures are before elimination of inter-segment transactions and unallocated costs Segment result = revenue - cost of sales - selling and marketing expenses - administrative expenses + other income/ (expenses), net 9#13Infrastructure Design - Business Performance Completed projects with RMB 38,018 million of contract value Key Projects New Contracts and Backlog 中国交建 CHINA COMMUNICATIONS CONSTRUCTION (RMB million) Pingtang Extra Large Bridge in Guizhou, the highest concrete tower bridge in the world New Contracts Growth rate = (3.2%) Karakoram Highway Phase II Project in Pakistan open to traffic Backlog Growth rate = 10.2% 80,000 60,000 49,087 47,509 40,000 20,000 0 2018 2019 (RMB million) 100,000 85,062 77,171 80,000 60,000 40,000 20,000 0 2018-12-31 2019-12-31 10 10#14(RMB million) (RMB million) Infrastructure Design - Financial Performance Revenue¹ Growth rate = = 20.5% 40,000 31,557 30,000 20,000 10,000 0 2018 2019 Segment Result 1,2 Growth rate = 7.2% 38,018 11.1% 8,000 12.0% 9.9% 6,000 9.0% 3,761 4,000 3,510 6.0% 2,000 3.0% 0.0% 2018 2019 - Segment result margin Notes: 1 中国交建 2 CHINA COMMUNICATIONS CONSTRUCTION (RMB million) Gross Profit¹ Growth rate = 9.1% 20.9% 12,000 19.0% 20.0% 9,000 7,210 6,608 15.0% 6,000 10.0% 3,000 5.0% 0.0% 2018 2019 Gross profit margin REMARKS ◆ The increase in revenue and decrease in gross profit margin was mainly due to the increased proportion of revenue generated from comprehensive contracts which have lower profit margin. All figures are before elimination of inter-segment transactions and unallocated costs Segment result = revenue - cost of sales - selling and marketing expenses - administrative expenses + other income/ (expenses), net 11#15Dredging - Business Performance Key Projects New Contracts and Backlog 中国交建 CHINA COMMUNICATIONS CONSTRUCTION (RMB million) Completed projects with RMB 34,578 million of contract value 新海夏 DERL "Xin Hai Feng" is working in Yangtze River Estuary Deepwater Channel New Contracts = Growth rate (7.4%) Dredging and Backfilling Project of New Container Terminal at Diba Bay in East Timor Backlog Growth rate = 19.8% 80,000 56,983 60,000 52,783 40,000 20,000 0 2018 2019 (RMB million) 100,000 95,017 79,312 80,000 60,000 40,000 20,000 0 2018-12-31 2019-12-31 12#16(RMB million) (RMB million) Dredging Financial Performance - Revenue¹ Growth rate = 5.4% 40,000 32,796 30,000 20,000 10,000 2018 34,578 2019 Segment Result 1,2 Growth rate = (0.5%) 4,000 5.4% 5.1% 6.0% 3,000 4.0% 2,000 1,769 1,761 2.0% 1,000 0 2018 0.0% 2019 Notes: 1 中国交建 2 CHINA COMMUNICATIONS CONSTRUCTION -Segment result margin (RMB million) Gross Profit¹ Growth rate (7.7%) = 14.4% 8,000 12.6% 15.0% 6,000 4,717 4,356 10.0% 4,000 5.0% 2,000 0.0% 2018 2019 Gross profit margin REMARKS ◆ The decrease in gross profit and gross profit margin was primarily attributable to the fluctuation of market environment, and large projects not entering construction peak. All figures are before elimination of inter-segment transactions and unallocated costs Segment result = revenue - cost of sales - selling and marketing expenses - administrative expenses + other income/ (expenses), net 13#17Capital Expenditure Infrastructure Construction Business ◆ Mainly used in investments in BOT projects, purchases of self-use property, Capital expenditure Growth rate = 15.0% machinery, equipment and vessels 50,000 46,914 470 40,788 1.313 704 926 40,000 44,427 1,503524 Infrastructure Design Business ◆ Mainly used in the purchase of equipment 37,835 31,840 30,000 Dredging Business ◆ Mainly used in the purchase of new dredgers and upgrade of existing dredgers Other Business Mainly used in purchase of self-use property (人民币百万元) 23,829 20,000 I | 10,000 | | 2018 Infrastructure Construction Infrastructure Design 2019 BOT Investment Dredging Note: Others 1 Capital expenditure is implemented by means of both cash purchase and financial lease ·中国交建 CHINA COMMUNICATIONS CONSTRUCTION 14#18(RMB million) (RMB million) Summary Income Statement Data Revenue Growth rate = 13.1% 600,000 488,666 400,000 200,000 0 2018 2019 Operating Profit Growth rate = 2.3% 552,542 60,000 6.8% 8.0% 6.2% 6.0% 40,000 33,321 34,071 4.0% 20,000 2.0% 0 0.0% 2018 2019 - Operating profit margin 中国交建 CHINA COMMUNICATIONS CONSTRUCTION (RMB million) (RMB million) Gross Profit Growth rate = 7.0% 120,000 16.0% 13.2% 12.5% 90,000 12.0% 69,131 64,611 60,000 8.0% 30,000 4.0% 0 0.0% 2018 2019 Gross profit margin Profit attributable to Owners of the parent Growth rate = 1.4% 50,000 5.0% 4.1% 3.6% 40,000 4.0% 30,000 3.0% 19,819 20,094 20,000 2.0% 10,000 1.0% 0 0.0% 2018 2019 -Net profit margin 15#19Summary Balance Sheet Data RMB Million Non-current assets Property, plant and equipment Intangible assets Equity instruments designated at fair value through other comprehensive income Investments in joint ventures and associates Trade and other receivables Contract Assets Current assets Inventories Trade and other receivables Contract Assets Cash and cash equivalents Total Asset Non-current liabilities Borrowings Current liabilities Trade and other payables Contract liabilities Borrowings Total liabilities Total equity Total Liabilities / Total Assets Net debt / Total Capital² As at 2019-12-31 As at 2018-12-31 Change 591,631 | 478,974 23.5% 57,471 56,365 2.0% 219,227 188,370 16.4% 25,018 21,257 17.7% 52,058 41,665 24.9% 178,008 118,967 49.6% 30,268 28,698 5.5% 528,769 481,502 9.8% 62,070 | 46,861 32.5% 223,832 | 195,887 14.3% 116,236 | 103,981 11.8% 118,812 127,413 (6.8%) 1,120,400 960,476 16.7% 298,005 | 240,925 23.7% 264,415 215,384 22.8% 526,016 479,869 9.6% 362,773 314,496 15.4% 82,808 81,953 1.0% 74,372 79,243 (6.1%) 824,021 720,794 14.3% 296,379 239,682 23.7% As at 2019-6-30 As at 2018-12-31 Change 73.6% 75.0% 42.6% 41.1% (1.4%) 1.5% Notes: 中国交建 1 Item adjusted due to changes in accounting policies. CHINA COMMUNICATIONS CONSTRUCTION 2 Net debt is total borrowings less cash and cash equivalents. Total capital is total equity plus net debt. 16#20Summary Balance Sheet Data Total Liabilities/Total Assets 80% 75.0% 60% 40% 20% 0% 2018-12-31 Total Liabilities/Net Assets 73.6% 400% 300.7% 278.0% 300% 200% 100% 0% 2019-12-31 2018-12-31 2019-12-31 Total Debt/Total Capitalization¹ Net Debt/Total Capital² 80% 80% 55.1% 60% 53.3% 60% 41.1% 42.6% 40% 40% 20% 20% 0% 0% 2018-12-31 2019-12-31 2018-12-31 2019-12-31 Notes: 1 Total capitalization is total equity plus total borrowings 2. Net debt is total borrowings less cash and cash equivalents. Total capital is total equity plus net debt. 中国交建 CHINA COMMUNICATIONS CONSTRUCTION 17#21(RMB million) (RMB million) 20,000 Summary Cash Flow Statement Data Cash Flow from Operating Activities Cash Flow from Investing Activities 15,000 9,098 10,000 5,931 5,000 0 2018 2019 (RMB million) 0 -20,000 -40,000 -60,000 (50,312) (65,713) -80,000 2018 2019 REMARKS Cash Flow from Financing Activities 80,000 60,000 38,631 40,000 20,000 50,923 0 2018 2019 Net cash generated from operating activities was RMB5,931 million, primarily due to the increase in contract assets and inventories in 2019. Net cash used in investing activities in 2019 increased to RMB65,713 million, primarily attributable to the increase of investment in long-term investment projects. Net cash generated from financing activities increased to RMB50,923 million, primarily due to the increase in proceeds from bank and other borrowings, and introduction of third-party investors for capital contribution to certain subsidiaries. 中国交建 CHINA COMMUNICATIONS CONSTRUCTION 18#222020 Q1 Results Summary All Financial data is in accordance with Chinese Accounting Standard and unaudited RMB million 1Q2020 (unaudited) 1Q2019 (unaudited) Change Revenue 95,443 102,245 6.7% Gross profit 11,537 12,742 T 9.4% Operating profit 3,064 4,667 34.3% Profit attributable to 2,341 3,930 40.4% parent of the Company New Contracts 1Q2020 1Q2019 Change Infrastructure Construction 198,142 172,671 14.8% Infrastructure Design 5,157 5,821 11.4% Dredging 22,870 22,273 2.7% Other businesses 1,329 2,549 47.9% Total 227,498 203,314 11.9% ·中国交建 CHINA COMMUNICATIONS CONSTRUCTION 2#23中国交建 CHINA COMMUNICATIONS CONSTRUCTION Thank You Investor Relations Team YU Jingjing, TAN Lu, ZHAO Yang, CONG Ning Tel: +86-10-8201 6562 Fax: +86-10-8201 6524 Email: [email protected]