China Railway Construction Corporation Limited 2010 H Share Annual Results Presentation

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1 China Railway Construction Corporation Limited 2010 H Share Annual Results Presentation

2 Meeting Agenda 1. Overview Operating Highlights 3. Growth Drivers and Development Strategy 3

3 I. Overview

4 Increasing Global Influence and Brand Awareness the World s Largest Construction Contractor in 2010 Improving Industry Ranking in 2010 Ranking rose to the No. 133 rd in the Fortune 500 in 2010 Ranked No. 1 largest contractor globally out of a league of 225 for the year 2010 by the ENR Magazine No. 133 No. 1 No. 356 No. 252 No. 4 No. 4 No. 485 No. 384 No. 6 No Increasing Global Influence and Brand Awareness The World s Most Admired Companies Rank No.8 in Top 500 PRC Enterprises Top 100 China Investor Relationship Management Top 100 HK- Listed PRC Companies The Fith China Investor Relations Annual Conference Best Disclosure Award 5

5 New Contract Value Reached Record High with a Strong Growth Momentum New Contract Value Backlog YoY Growth: 24.3% 747,198 YoY Growth: 37.8% 972, , ,744 Revenue Net Profit 344,976 YoY Growth: 32.3% 456,339 6,732 YoY excl. the Saudi project: 21.4% 8,171 4,317 Note: indicates net profits excluding the impact from the Saudi Arabia project. 6

Breakthrough in R&D and Innovation In 2010, CRCC made numerous significant R&D achievements and won various awards Nanjing Yangtze River Tunnel: a

number of technological difficulties in the world, was open for traffic Shanghai-Chengdu West Highway Zhijinghe River Bridge: was successfully

Advancement Awards Highest recognition for innovation capability of China enterprises State Intellectual Property Office of PRC Won 1 Excellence

ballastless track bridge with the longest span, the highest speed accommodation limit (350km/h) and the maximum rotation weight among similar

486.1km/h was created on the trial sections of the Beijing-Shanghai High-speed Railway Top award in the patent field of Chinese enterprises

of Finance Won 2 Innovative Central Construction Projects Awards Shanghai-Hangzhou High-speed Railway: In May 2010, the Company broke the

6 Breakthrough in R&D and Innovation In 2010, CRCC made numerous significant R&D achievements and won various awards Nanjing Yangtze River Tunnel: a shield tunnel managed, designed and constructed by the Company and posed the gravest challenge to construction and overhaul and the greatest number of technological difficulties in the world, was open for traffic Shanghai-Chengdu West Highway Zhijinghe River Bridge: was successfully open to traffic and became the top-bear arch bridge with the largest span in the world The State Council Won 4 National Science & Technology Advancement Awards Highest recognition for innovation capability of China enterprises State Intellectual Property Office of PRC Won 1 Excellence Award in the 12 th China Patents Award Arch Bridge for Shanghai-Hangzhou High-Speed Railway Spanning Shanghai-Hangzhou Express way: the ballastless track bridge with the longest span, the highest speed accommodation limit (350km/h) and the maximum rotation weight among similar bridges for high-speed railways to date Beijing-Shanghai High-speed Railway: in Oct 2010, a new record of the world s maximum operating speed of 486.1km/h was created on the trial sections of the Beijing-Shanghai High-speed Railway Top award in the patent field of Chinese enterprises Ministerial and provincial levels under the State Council Won 50 Provincial & Ministerial Science and Technology Advancement Awards The Ministry of Finance Won 2 Innovative Central Construction Projects Awards Shanghai-Hangzhou High-speed Railway: In May 2010, the Company broke the operating speed record of railways worldwide at a maximum speed of 416.6km/h in the trial operation of Shanghai- Hangzhou High-speed Railway SASAC Special Award for Science & Technology Innovation 7

7 II Operating Highlights

8 Robust Growth in Construction Operations New Contract Value Hit a Record High Revenue Growth Remains Strong 555,314 YoY Growth: 22.0% 677,592 YoY Growth: 31.9% 415,433 No.1 Our market share of railway new contracts signed ranked No. 1 in the industry in ,937 Industry-Leading Backlog Secures Baseline Revenue YoY Growth: 36.4% 933, ,598 9

Leading Survey, Design & Consultancy Operations CRCC undertook over 60% of the survey and design business in

New Contract Value Grew Steadily Landmark Projects Awards Won in 2010 6,225 YoY Growth: 21.

Survey and Design Awards in 2010 CRCC obtained 38 awards, accounting for over half of them 7,337 Revenue

9 Leading Survey, Design & Consultancy Operations CRCC undertook over 60% of the survey and design business in the domestic railway market, continuing to lead the industry. New Contract Value Grew Steadily Landmark Projects Awards Won in ,225 YoY Growth: 21.7% 7,579 Qiantang River Underwater Tunnel The Ministry of Railways issued 69 Railway High Quality construction Survey and Design Awards in 2010 CRCC obtained 38 awards, accounting for over half of them 7,337 Revenue Increased Steadily YoY Growth: 9.4% 8,026 Wuhan-Guangzhou Passenger Line 6 Awards National Survey & Design 4A Awards 49 Awards Wuhan-Yangtze River Tunnel Provincial Survey & Design 4A Awards 10

10 Ongoing Innovation in Equipment Manufacturing Operations New Contract Value Grew Significantly New Product Launch via Technical Innovation YoY Growth: 53.8% 8,736 5,680 Shield Tunneling Machine High Speed Turnout (350 km) Revenue Grew Steadily Pneumatic Girder Gantry Crane (900t) YoY Growth: 14.0% 9,158 High-speed Spring Bar Fastener 8,036 Girder Conveying Machine High-speed Rail Welding Machine Girder Erecting Machine 11

Real Estate Business Achieved Rapid Growth We develop real estate business in 26 cities including

Hefei, Changchun, Jinan and Xiamen As of the end of 2010, total construction site area reached 6.

12 million sqm GFA Sold Contract Sales Revenue (10,000 sqm) YoY Growth: 141.

11 Real Estate Business Achieved Rapid Growth We develop real estate business in 26 cities including Beijing, Tianjin, Guangzhou, Hangzhou, Chongqing, Xi an, Changsha, Guiyang, Nanning, Chengdu, Hefei, Changchun, Jinan and Xiamen As of the end of 2010, total construction site area reached 6.46 million sqm and total planned GFA reached million sqm GFA Sold Contract Sales Revenue (10,000 sqm) YoY Growth: 141.3% YoY Growth: 257.7% 3,550 12,700 2,447 YoY Growth: 101.4% 4,927 Landmark Projects CRCC Yuanxiang Town CRCC International City CRCC Show City 中国铁建原香小镇中国铁建国际城中国铁建青秀城 12

Rapid Growth in Logistics Business Rising Industry

Reserve Base Refined Oil Depot for Railway Construction

12 Rapid Growth in Logistics Business Rising Industry Ranking Landmark Logistics Bases Top 50 Logistics Enterprises in China No. 15 No. 9 No Northeast Warehouse & Logistics Base Heavy Rail Reserve Base Refined Oil Depot for Railway Construction New Contract Value Revenue 27,946 YoY Growth: 44.0% 40,247 YoY Growth: 62.9% 25,848 15,869 13

Breakthrough in Capital Operations Landmark BT, BOT and BOO Projects

Chengdu-Chongqing Express Highway Channel III (Chongqing Section) We,

, jointly established CRCC- Tongguan Investment Co., Ltd.

13 Breakthrough in Capital Operations Landmark BT, BOT and BOO Projects Mining Projects Acquired Ecuador Copper Mine Guiyang North 2 nd Ring Road Chengdu-Chongqing Express Highway Channel III (Chongqing Section) We, together with Tongling Nonferrous Metals Group Holdings Co., Ltd., jointly established CRCC- Tongguan Investment Co., Ltd. and completed the acquisition of 100% equity of the Canadian-based Corriente Resources Inc. ( Corriente ) in 2010 At present, the Company is undergoing mining negotiations Chongqing Yudong Yangtze River Bridge Beijing-Shanghai Expressway Leling-Jinan Section 14

14 Financial Strength Improved Further Total Assets Net Assets Cash and Cash Equivalents* YoY Growth: 23.7% 350,194 YoY Growth: 7.7% 58,231 YoY Growth: 1.5% 54,079 55,070 55, , *Excluding pledged deposits. 15

15 Further Improved Operating Efficiency Turnover Days of Total Assets Turnover Days of Trade Receivables Turnover Days of Trade Payables (day) (day) (day)

4% 16,727 296 872 514 Equipment Manufacturing Survey & 5% Design Consultation 3%

16 Capital Expenditure Remains Stable Capital Expenditure Capital Expenditure Breakdown by Segment (2010) 15, , YoY Growth: 7.4% 16, Equipment Manufacturing Survey & 5% Design Consultation 3% Others 2% Construction 90% 13,844 15,045 Construction Equipment Manufacturing Survey & Design Consultation Others 17

17 Cash Flow Statement Analysis Cash Flow from Operating Activities Cash Flow from Investing Activities 17,474-13,629-15,525 Cash Flow from Financing Activities 6,253 10,359 1,407 18

18 III. Growth Drivers and Development Strategy

19 Growth Drivers 1 China s total railway operating mileage will reach 120,000 km by 2015 Total mileage of high-speed railway will increase to 20,000 km, accounting for 17% Railway Infrastructure Investment (RMB 100 million) 1,790 Railway Construction 3,376 6,006 7,091 7, E Source: The Ministry of Railways. 3 Public Housing Construction Government to invest RMB1.3 tn to complete 36m units of social housings during 2011~2015 and 10m units in 2011 We as one of the central enterprises designated by the SASAC to take real estate as main business, will be provided with further construction and investment opportunities Public Housing Development (million sq m) E 2011E Replacement Economic Housing Low-Rent Source: Ministry of Housing and Urban-Rural Development, National Bureau of Statistics, Broker reports. Western Development 23 new Western Development projects started in with a total investment of RM682.2 bn, which are expected to be completed by around 2015 Investment in Western Development in Railw ay 47% Highw ay 4% Airport 24% Mining Pow er 1% 22% Water Conservancy Source: The Xinhua News Agency. 2% Water Conservancy Construction According to the No.1 document of CPC in 2011, PRC government will increase investments in water conservancy over the next 5 to 10 years Investment to reach RMB4 trillion in 2011~2020 Water Conservancy Investment (RMB 100 million) 1,088 1,894 2,000 4,000 4, E 2011E 2020E 4 Urban Rapid Transit Construction It is estimated that the total investment of the urban rapid transit within the next 10 years will reach RMB3 tn By 2020, the rail operating mileage will reach 7,395km, becoming a new investment hotspot after large-scale railway construction Cumulative Operating Mileage of China s Urban Rapid Transit (km) 7, Overseas Expansion Over the next 5 years, the global construction market will grow at a CAGR of 4.7%, reaching USD 2.46 trillion in 2015 China s overseas construction contracting market will continue to grow at a CAGR of around 20% till The Company has huge development potential in the overseas market Meanwhile, during overseas business development process in the future, we will be more cautious and attentive in risk control, and will continue to make efforts to improve the financial performance and speed up business transformation, in order to bring favorable returns to the investors 6 Source: 2011 No.1 document of CPC E Source: China City Metro. 20

growth model, accelerate the business adjustment towards the upper stream businesses with higher profit

20 Development Strategy Continue to enhance the strength of our construction operations, implement structural adjustment and expand further into overseas markets Speed up the transformation of the growth model, accelerate the business adjustment towards the upper stream businesses with higher profit margin Construction Survey, Design and Consultancy Equipment Manufacturing Real Estate Logistics Capital Operation 21

21 Q&A 22

Report, construction machinery can be produced, and some of these products are exported.

Report, construction machinery can be produced, and some of these products are exported. China Railway a Equipment Industry Report, 2009 Railway transport is the main artery of China's economic development. Over a century of development, China railway equipment industry is self-sufficient