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Corporate Presentation January 2016

January 2016 - Geely...J.D.Power Asia Pacific 2015 China Initial Quality StudySM (IQS) Vehicle Dependability StudySM (VDS) Source: J.D.Power Asia Pacific # based on evaluations from

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Page 1: January 2016 - Geely...J.D.Power Asia Pacific 2015 China Initial Quality StudySM (IQS) Vehicle Dependability StudySM (VDS) Source: J.D.Power Asia Pacific # based on evaluations from

Corporate Presentation

January 2016

Page 2: January 2016 - Geely...J.D.Power Asia Pacific 2015 China Initial Quality StudySM (IQS) Vehicle Dependability StudySM (VDS) Source: J.D.Power Asia Pacific # based on evaluations from

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332,367 units +45% YoY

59,950 units -5% YoY

Overall: 509,863 units, +22% YoY Domestic: 484,129 units +35% YoY

Exports: 25,734 units -57% YoY

Sales Performance Jan. - Dec. 2015

A-segment Sedans

(EC7+New Emgrand+GC7+SC7+Vision)

SUVs (GX7+SX7+GX9)

Page 3: January 2016 - Geely...J.D.Power Asia Pacific 2015 China Initial Quality StudySM (IQS) Vehicle Dependability StudySM (VDS) Source: J.D.Power Asia Pacific # based on evaluations from

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Sales Performance Jan. - Dec. 2015

KingKong

(55,837 units -21%YoY)

Vision

(118,996 units +373%YoY)

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

201

0 4 7

10

201

1 4 7

10

201

2 4 7

10

201

3 4 7

10

201

4 4 7

10

201

5 4 7

10

exports

domestic

Monthly Sales Volume

Page 4: January 2016 - Geely...J.D.Power Asia Pacific 2015 China Initial Quality StudySM (IQS) Vehicle Dependability StudySM (VDS) Source: J.D.Power Asia Pacific # based on evaluations from

4

Domestic Market

• Sales volume in China fell 17% in 2014 due to the reshuffle of the sales and marketing system and the major model upgrading cycle, but started to recover since mid-2014

• Sales volume so far in 2015 was boosted by the good response to new models like New Emgrand, New Vision and GC9.

-60%

-40%

-20%

0%

20%

40%

60%

80%

201

1 5 7 9

11

201

2 3 5 7 8

11

201

3 3 5 7 9

11

201

4 3 5 7 9

11

201

5 3 5 7 9

11

Domestic Sales Volume (3MMA+/-%)

Page 5: January 2016 - Geely...J.D.Power Asia Pacific 2015 China Initial Quality StudySM (IQS) Vehicle Dependability StudySM (VDS) Source: J.D.Power Asia Pacific # based on evaluations from

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Dealer/Brand Restructuring

2 brands & 2 dealer networks

3 brands & 3 dealer networks

(2008)

1 brand & 1 dealer network

(2014)

941 976 973 981

1068

943

838

751

694

500

600

700

800

900

1000

1100

Number of Dealers in China

Page 6: January 2016 - Geely...J.D.Power Asia Pacific 2015 China Initial Quality StudySM (IQS) Vehicle Dependability StudySM (VDS) Source: J.D.Power Asia Pacific # based on evaluations from

Key Model – New Emgrand

• Enhanced safety & comfort

• New turbo engines with larger power & better fuel efficiency

• New 6-speed manual gearbox

• NVH noise cancellation technology

• Enhanced storage space

• Bosch’s V9.0 ABS+EBD

• HHC (Hill Hold Control)

• ESC (Electronic Stability Control)

• G-Netlink infotainment system with voice control

• G-Link mobile connectivity system

6

0

5,000

10,000

15,000

20,000

25,000

2014 9 11 2015 3 5 7 9 11

Monthly Sales Volume of New Emgrand

Page 7: January 2016 - Geely...J.D.Power Asia Pacific 2015 China Initial Quality StudySM (IQS) Vehicle Dependability StudySM (VDS) Source: J.D.Power Asia Pacific # based on evaluations from

Key Model – New Vision

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• Enhanced safety & comfort

• More efficient turbo engines

• New 6-speed manual gearbox

• 360O 3-sensor parking assist system

• PEPS (Passive Entry/Passive Start)

• NVH noise cancellation technology

• 4 Wheel Disc Brakes

• Bosch’s V9.0 ABS+EBD

• Enhanced storage space

• G-Link mobile connectivity system

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2,014 10 12 2 4 6 8 10 12

Monthly Sales Volume of Vision

Page 8: January 2016 - Geely...J.D.Power Asia Pacific 2015 China Initial Quality StudySM (IQS) Vehicle Dependability StudySM (VDS) Source: J.D.Power Asia Pacific # based on evaluations from

New Product – GC9

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• New brand image, market positioning & design philosophy

• New 1.8T and 3.5L V6 engines

• Fastback & sporty design

• Top international suppliers

• New manufacturing facilities

• Harman Infinity@ Entertainment

• City Safety, ACC Cruising, PAS Parking, LDW Alert, HUD Display, EPB Brake & AQS Air Quality Control

JLE-4G18TD

0

1,000

2,000

3,000

4,000

5,000

6,000

2015 4 5 6 7 8 9 10 11 12

Monthly Sales Volume of GC9

Page 9: January 2016 - Geely...J.D.Power Asia Pacific 2015 China Initial Quality StudySM (IQS) Vehicle Dependability StudySM (VDS) Source: J.D.Power Asia Pacific # based on evaluations from

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Other New Products

• “Emgrand EV” (launched Nov. 2015)

• Mid-size SUVs (1H2016)

• Cross Vehicles (1H2016)

• 4-door Sedans (1H2016)

• Compact SUVs (2H2016)

+ upgraded versions of New Emgrand, SC7, GC7, Kingkong, Geely Panda

2016 sales volume target at 600,000 unis (+18% over 2015)

Page 10: January 2016 - Geely...J.D.Power Asia Pacific 2015 China Initial Quality StudySM (IQS) Vehicle Dependability StudySM (VDS) Source: J.D.Power Asia Pacific # based on evaluations from

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Financial Performance

-

100,000

200,000

300,000

400,000

500,000

600,000

2005 2007 2009 2011 2013

Annual Sales Volume

-

10,000

20,000

30,000

40,000

50,000

60,000

2005 2007 2009 2011 2013

Average Ex-factory Price

0

500

1,000

1,500

2,000

2,500

3,000

2005 2007 2009 2011 2013

Net Profit

14%

20%

13%

21%

19% 17%

16% 16%

17%

8%

0%

5%

10%

15%

20%

25%

2005 2007 2009 2011 2013

Return on Equity

-

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

2005 2007 2009 2011 2013

Cash Dividend Per Share (HK Cents)

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

2005 2007 2009 2011 2013

Export Sales Volume

Page 11: January 2016 - Geely...J.D.Power Asia Pacific 2015 China Initial Quality StudySM (IQS) Vehicle Dependability StudySM (VDS) Source: J.D.Power Asia Pacific # based on evaluations from

2015 Interim Results

6M to June (RMB m) 2015 2014 YoY change

Sales volume (units) 252,107 187,296 +35%

Turnover/Revenue 13,121 10,158 +29%

Gross profit margin ratio* 18.6% 20.3% -9%

Operating margin ratio** 13.3% 14.4% -8%

Profit after tax 1,420 1,126 +26%

Attributable profit 1,405 1,113 +26%

Diluted EPS (RMB cents)# 15.90 12.65 +26%

June-2015

Dec-2014

Shareholders’ equity 18,544 17,288 +7%

Net cash## 5,781 4,739 +22%

* Gross profit margin ratio = gross profit / turnover

** Operating margin ratio = (pre-tax margin before net finance costs , share-based payments and share of results of associates and joint venture) / turnover

# Diluted EPS = profit attributable to equity holders of the Company (diluted) / weighted average number of ordinary shares (diluted)

## Net cash = all cash /bank deposits – all bank borrowings – senior notes

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Page 12: January 2016 - Geely...J.D.Power Asia Pacific 2015 China Initial Quality StudySM (IQS) Vehicle Dependability StudySM (VDS) Source: J.D.Power Asia Pacific # based on evaluations from

Strategy

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Products • Platform and modular architecture;

• Focus on powertrain technology;

• In-house international design capabilities;

• Joint product architecture with Volvo Car;

• Gradual transition from hybrid to pure electric;

• Focus on EV, PHEV & HEV to speed up new energy product

offerings

• Strategic alliance to upgrade technologies

Services

• 694 dealers in China;

• 31 sales agents, 464 sales and service outlets in 31 oversea

countries;

• Vehicle finance JV with BNP Paribas Personal Finance

Branding

• 3-year transition period from three brands to single brand;

• Single brand for export markets

Page 13: January 2016 - Geely...J.D.Power Asia Pacific 2015 China Initial Quality StudySM (IQS) Vehicle Dependability StudySM (VDS) Source: J.D.Power Asia Pacific # based on evaluations from

Brand Points# Overall Rank Sector Rank*

Geely 715 13 5

Mass Market Average 664

J.D.Power Asia Pacific 2015 China Customer Service Index (CSI) StudySM

Source: J.D.Power Asia Pacific 2015 China Customer Service Index (CSI) StudySM

# based on a 1,000-point scale and study of 68 passenger vehicle brands in China

* ranking amongst Chinese domestic brands

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Customer Service Satisfaction

Page 14: January 2016 - Geely...J.D.Power Asia Pacific 2015 China Initial Quality StudySM (IQS) Vehicle Dependability StudySM (VDS) Source: J.D.Power Asia Pacific # based on evaluations from

Study Segment Model Segment

Rank

IQS# Compact Geely Kingkong 3

VDS^ Mass Market Geely 14 (152 pp100 vs. average of 160)

VDS^ Compact Mini Geely Panda 1

J.D.Power Asia Pacific 2015 China Initial Quality StudySM (IQS)

Vehicle Dependability StudySM (VDS)

Source: J.D.Power Asia Pacific

# based on evaluations from 21,707 owners of new vehicles purchased between October 2014

and June 2015, including 270 different models from 71 different brands;

^ based on evaluations from 17,534 owners of vehicle purchased between May 2011 and August

2012, including 160 different models from 59 different brands

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Vehicle Quality & Dependability

Page 15: January 2016 - Geely...J.D.Power Asia Pacific 2015 China Initial Quality StudySM (IQS) Vehicle Dependability StudySM (VDS) Source: J.D.Power Asia Pacific # based on evaluations from

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Auto Finance Joint Venture

80% 20%

• Located in Shanghai

• RMB900m registered

capital

• Wholesales financing

solutions to dealers

• Retail financing solutions

to end-customers

• Focusing on Tier-1 & -2

cities initially

• Supporting both Geely

and Volvo Car brands

• Progressively covering the

whole China market

Page 16: January 2016 - Geely...J.D.Power Asia Pacific 2015 China Initial Quality StudySM (IQS) Vehicle Dependability StudySM (VDS) Source: J.D.Power Asia Pacific # based on evaluations from

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New Energy Vehicles

JL7001BEV

KD-5011

Zhidou

EC7 - EV

EC7 – Petro

Hybrid

Emgrand Cross

Plug-in Hybrid

• Kandi JV

• Xindayang JV

Partnership to Speed up Electrication

Offerings

Pure Electric

+

Plug-in Hybrids

Page 17: January 2016 - Geely...J.D.Power Asia Pacific 2015 China Initial Quality StudySM (IQS) Vehicle Dependability StudySM (VDS) Source: J.D.Power Asia Pacific # based on evaluations from

New Energy Strategy

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Energy Efficiency < 5.0L/100Km

by 2020

Affordable PHEVs at Prices of Traditional Cars

New Energy Vehicles = 90% of Total Sales

(PHEV/HEV:65% EV:35%)

Successful Development of Hydrogen/Metal Fuel Battery Vehicles

Leading New Energy, Smart Car and Light Weight Technologies

Page 18: January 2016 - Geely...J.D.Power Asia Pacific 2015 China Initial Quality StudySM (IQS) Vehicle Dependability StudySM (VDS) Source: J.D.Power Asia Pacific # based on evaluations from

New Product – Emgrand EV

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• Power: 95kw

• Torque: 250 Nm

• Top Speed: 140km/h

• Acceleration: 4.3s (0-50km/h)

• Range: 330km @ 60km/h

• Range: 253km (combined)

• Battery Capacity: 45kWh (NCM)

• Two Charging Ports: Slow (14 hours) / Fast (48 minutes)

Page 19: January 2016 - Geely...J.D.Power Asia Pacific 2015 China Initial Quality StudySM (IQS) Vehicle Dependability StudySM (VDS) Source: J.D.Power Asia Pacific # based on evaluations from

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Geely Automobile in Figures

Year started: 1998

Total workforce: 19,217 (on 30/6/2015)

Manufacturing facilities: 7 plants in China + 1 JV plant in

Belarus + 1 JV plant in Uruguay

Products: 13 major models under 5 platforms

Distribution network: 694 dealers in China;

31 sales agents, 464 sales and service

outlets in 31 oversea countries

2014 sales volume: 417,851 units (86% in China market)

2014 revenues: US$3.5 billion

Market Capitalization: US$4.3 billion (5 January 2016)

Page 20: January 2016 - Geely...J.D.Power Asia Pacific 2015 China Initial Quality StudySM (IQS) Vehicle Dependability StudySM (VDS) Source: J.D.Power Asia Pacific # based on evaluations from

Important Notice

The information contained herein is meant for presentation purposes only and may not be used

and relied upon by any other party. It is not to be taken in substitution for the exercise of judgement. You shall be solely responsible for making your own independent investigation of the merits of the discussions mentioned in this presentation. Geely Automobile Holdings Limited does not make any representations, warranty or guarantee as to the accuracy, completeness or correctness of the contents contained herein. The reproduction and/or dissemination of the contents herein is prohibited without our prior approval. Geely Automobile Holdings Limited and its officers, directors and employees accept no liability whatsoever for any direct or consequential loss howsoever arising from any use of this presentation or further communication given in relation to this presentation or its contents or otherwise arising in connection therewith.

Note: Sources of all data contained in this presentation are from Geely Automobile Holdings Ltd., except specified otherwise.

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