CIMIC - BACKGROUND

• CIMIC - China Industry

Management &

Investment Company

• Registered in Britain

Virgin Islands in 1989

• Headquarter in CIMIC

Tower

• Estimated sales turnover

in 2005 is 3 billion RMB

CIMIC – MAIN SHAREHOLDERS

• Management Team

• Morgan Stanley

• Taiwan industrialists

CIMIC

     

     

     

CIMIC GROUP

Building Building MaterialMaterial

ElectronicsElectronicsConsumer

Goods Real Estate

Shanghai Cimic Tile Co., Ltd.

Shanghai Delta-CIMIC Electronics Co., Ltd.

Shanghai Orient Champion Tissue Co., Ltd.

Shanghai Suncome CIMIC Real Estate Investment Co., Ltd.

SHANGHAI CIMIC TILE CO., LTD.

Enjoy Fashion Space

Company Brief

• Established in 1993,

which is one of the major

companies of CIMIC group.

• Production started in

1995.

SALES TURNOVER

• Consistent growth after establishment• CIMIC is the leading brand in the Chinese high end

market

• CIMIC shares 10% of Chinese high end market

2. 63. 8

5. 15. 8

7. 07. 2

8. 3

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2

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1998 1999 2000 2001 2002 2003 2004 2005

100 mi l l i on RMB

Financial Performance 财务绩效

501. 1

600. 9 618. 8

716. 5

193. 5231. 5

250. 7291. 9

104. 4145. 1 150. 8

173. 4

0

100

200

300

400

500

600

700

800

2001 2002 2003 2004

Net Sal es

Gross Profi tEBI TDA

RMB mi l l i on人民币百万元

Year 年度

Net Sales 13% - CAGR 销售收入 -复合成长率Gross Profit 15% - CAGR 销售毛利 -复合成长率EBITDA 18% - CAGR 税息折旧摊销前盈余 -复合成长率

CIMIC Industrial Inc.Financial Performance - based on the consolidated financials( Amounts expressed in RMB million )

2001 2002 2003 2004

1 Gross Sales (with VAT) 含增值税销售收入 586. 3 703. 1 724. 0 838. 3

2 Net Sales 销售收入 501. 1 600. 9 618. 8 716. 5

% Growth 12% 20% 3% 16%

3 Gross Profit 销售毛利 193. 5 231. 5 250. 7 291. 9

% Sales 39% 39% 41% 41%

4 Operating cash flows before working capital changes流动资金变动前经营现金流量

112. 0 150. 9 156. 2 181. 1

% Sales 22% 25% 25% 25%

5 EBITDA 扣除利息、所得税及折旧摊销前盈余 104.4 145.1 150.8 173.4

% Sales 21% 24% 24% 24%

6 Earning before taxation and miority interest扣除所得税及少数股权净利前盈余

52. 1 70. 9 84. 1 98. 6

% Sales 10% 12% 14% 14%

7 Net Profit 税后净利润 41. 0 52. 1 68. 7 75. 9

% Sales 8% 9% 11% 11%

8 Purchase of Fixed Assets 固定资产投资 89. 9 80. 1 62. 7 55. 4

9 Inventory days 存货周转天数 214 200 224 233

10 A/R days 应收账款周转天数 33 30 27 22

CERTIFICATES• ISO9001 & ISO14001

• Shanghai Famous Brand

• China Famous Building Materials Brand

• China Top Brand

• National Exempt from Inspection Products

• China Green Building Materials

• National 3C Certificate

R & D TEAM

•R&D Team Design team members with years experiences and strong industrial background lead by Mr. Gian Conti Carlo providing new product designs every year.

PRODUCTION CAPACITY• 9 porcelain lines, 2

monoporosa lines, 1 third firing line and 12 polishing lines

• World advanced equipments & technology

7200-ton press Car-press feeding system

First swing polishing

technology in China

PRODUCTION SITE (1)

72007200-TON PRESS-TON PRESS

The largest roller kilns in the worldThe largest roller kilns in the world

PRODUCTION SITE (2)

PRODUCTION SITE (3)

Glazing linesGlazing lines

PRODUCTION SITE (4)

Polishing linePolishing line

PRODUCTION SITE (5)

Water-jet Cutting factoryWater-jet Cutting factory

Comprehensive sales network with over 50 branches and 150 showrooms in China

DOMESTIC SALES NETWORK

SHOWROOM

CIMIC PLAZACIMIC PLAZA

CIMIC PLAZA is CIMIC PLAZA is the biggest show center the biggest show center with with 3000M3000M22 in in downtown Shanghai.downtown Shanghai.

Providing services of Providing services of CAD design, product CAD design, product display, conferences display, conferences etc.etc.

CIMIC PLAZACIMIC PLAZA

BRANCHES & SHOWROOMS

OVERSEA SALES

Products sold to States, Europe, Japan and Middle East.

Project references:MARRIOTT HOTEL, U.S.A.HYATT HOTEL, OH, U.S.A.O'Hare Suites, Chicago , U.S.A.Hunt Valley, MD , U.S.A.Wyndham Peach Tree, GA , U.S.A.SHOWROOM of Chrysler-Mercedes, SPAINSHOWROOM of TOYOTA LEXUS, JAPANSONY PLAZA, JAPANDAIMARU PORJECT, JAPANTAKASHIMAYA DEPARTMENT STORE, JAPAN4 POINT SHERRATON HOTEL, KUWAIT……

LOGISTIC SYSTEM

Container loading dock and raw material dock

Raw material dockLoading area

The Scale of the Chinese market• The largest tiles-producing base in the world for a

succession of ten years

The production ratio used for china andthe world in 2004.

62.6%

37. 04%

World ProductionChina

2.16 Billion sq.m-China

5.83 Billion sq.m-World

The Scale of the Chinese MarketChina—huge market with great potential sales

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J anpan the U. K U. S. A Chi na France Brazi l I rel and I tal y Portugal Spai n

Average consumption for each person in Sq.m in 2004

•The population of China is 1.3 billion. •It’s economies are developing rapidly. •The steady increase of the average consumption per person will offer an

huge market with great potential sales.

—Huge market, keep growing

—Retail customers shifting to high-end products

—Projects become more competitive

CIMIC Strategies • Marketing Strategy:

– Optimize the CIMIC brand in national high-end market, alliance with international brands by import business

– Export through international alliances – Increase the market shares in high-end market, – entering medium level market – Enhance the leading position in Yangtze Delta region and other important

areas

• Products Strategy: – Continuously enhance product offerings in porcelain and glazed tiles – Enlarge the range for new products ：

• Processed tiles (water jets, counter tops, bullnose, skirting etc…) • Glazed porcelain tile • Lamina • Compound tile with other flooring material • Silstone • Complementary accessories products (tools, adhesive etc…)

CIMIC Strategies（ Continue）• Sales Strategy:

– Gradually shift from company owned direct sales to company owned distribution system

– Strengthen the decoration designs and delivery services

– Upgrade the display effects for CIMIC products to national top level

• Supply Chain Strategy: – Manufacture technical advantaged or specialized products based

on CIMIC strength

– Outsource the necessary products through OEM/ODM

THANK YOU!