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Far East Horizon LimitedFar East Horizon Limited

20122012 Full YearFull Year ResultsResults2012 2012 Full Year Full Year Results Results PresentationPresentation

March 2013March 2013

- 1 -

► 1 Financial Performance► 1. Financial Performance

2. Operational Analysis► 2. Operational Analysis

3 Future Outlook► 3. Future Outlook

- 2 -

Asset Growth Remains Robust

Total AssetsNet Lease Receivables

9 6379,038(US$ million)(US$ million)

7,475

9,637

6 524

,

6,524

2,084

3,824

1,971

3,658

2,0841,971

- 3 -

2009 2010 2011 20122009 2010 2011 2012

Steady Leasing Business with SlightIncrease in Net Interest Spread

Net Interest Spread (NIS) Net Interest Margin (NIM)

p

2.95%3.16% 4.33% 4.30%

2.30% 2.97%3.18%

2.75%2.56%*

1.21%1.65%

2009

2010

2011

2012

mm

erci

alba

nks 20

09

2010

2011

2012

mm

erci

alba

nks

- 4 -

Com

b

Com

b

Source: CBRC, 3Q'12 NIS used for commercial banks

Steady Revenue Growth

Service Fee Income RatioOperating Income

40 7%

(US$ million, before business tax)

614 40.7%

242

34419

19.8%17025

224338

Far East Commercial banks2011 2012Interest income Service fee income Trading and other income

- 5 -

Note: 1. Calculated based on interest income and feeincome before the deduction of business tax andsurcharge Source: CBRC, 2012 data

Asset Quality Remains Healthy

0.38% 0.34% 0 30%1.20%

NPA Ratio 30-Day Lease Overdue Ratio

0.14%0 08%

0.30%1.20%0.99%

0.60% 0.73%0.08%

2009 2010 2011 2012H1 20122009 2010 2011 2012 2009 2010 2011 2012H1 20122009 2010 2011 2012

NPA Write-off Provisions / ProvisionCoverage Ratio

0.2360.92%

Coverage Ratio

84 6

141.0

109% 116%214% 214%

(US$ million) (US$ million)

0.0350 0

0.15%0.00% 0.00% 25.8 42.2

84.6109% 116%

- 6 -

2009 2010 2011 2012 2009 2010 2011 2012Provision Provision coverage ratio

Net Profit Continues to Grow Strongly

Net Profit

(US$ million) 241

171

10469

- 7 -

2009 2010 2011 2012

Superior Profitability

Return on Assets (ROA) Return on Equity (ROE)

3.96%

3.50%28 82%

86.8% 86.2% leverage ratio

3.04%2.82%

28.82%25.75%

19 85%

80.3%78.8%

1.59% 1.56%1.28%

17.13%13.69% 13.17%

19.85%

5.69%

2009

2010

2011

2012

Boh

aiLe

asin

g

easi

ngom

pany

vera

ge

Ban

kve

rage*

2009

2010

2011

2012

Boh

aiLe

asin

g

easi

ngom

pany

vera

ge

Ban

kav

erag

e*

- 8 -

L Le co av a

Source: CBRC, 2012 data* Leasing company average is the average of top 10financial leasing companies

L L c o a a


2. Operational Analysis► 2. Operational Analysis

3 Future Developments► 3. Future Developments

- 9 -

Operational Analysisp y

Operating EnvironmentOperating EnvironmentII Operating EnvironmentOperating EnvironmentII

Operating FocusOperating FocusIIII Operating FocusOperating FocusIIII

- 10 -

Steady Growth of China Economyy y

GDP Growth Rates Comparison

12 7%14.2%

16%100

(RMB trn)

11.3%12.7%

9.6% 9.2% 10.3% 9.2% 7.8% 10%

16%

80

100

4.5% 5.1% 5.2%

3.0%3.9% 3.9%

4%

10%

40

60

-0.6%3.2%

-2%

4%

0

20

2012 2%02005 2006 2007 2008 2009 2010 2011

China GDP China GDP growth rate Global GDP growth rate

2012

- 11 -

Source: National Bureau of Statistics of China, Wind, IMF

Tremendous Financing Needs from SMEgMisallocation of Financial Resources in China

Leads to Underserved SME Sector

37%

99%80%

60%

20%40%

63%

Numbers Employment GDP Bank loans1%

SMEs Large enterprises

Note: Definition of SMEs in China: less than 1,000 employees, revenue less than RMB400 millionSources: World Bank lit research McKinsey Global Research Institute Beijing Heading Century Consulting

- 12 -

Sources: World Bank, lit research, McKinsey Global Research Institute, Beijing Heading Century Consulting

Different Development among Target IndustriesDifferent development trend for each of target

segments due to changes in macro economy and

p g g

g g ygovernment policy

IndustryHigher growth and

Industry prosperity

Healthcare strong demand

Education Construction

PrintingMachinery ShippingTextile

Steady growth gy Shippingand stable demand

- 13 -

Industry

Operational Analysisp y


Operating FocusOperating FocusIIII p gp gIIII

- 14 -

Operating Focus

C ti t f t t i d t iC ti t f t t i d t i

p g

Continue to focus on target industries Continue to focus on target industries and and optimize suboptimize sub--segmentssegments

Provide diversified services and Provide diversified services and strengthen integrated capabilitiesstrengthen integrated capabilitiesstrengthen integrated capabilitiesstrengthen integrated capabilities

Reinforce asset management and Reinforce asset management and i i h l h lii i h l h limaintain healthy asset qualitymaintain healthy asset quality

Optimize funding channels and ensureOptimize funding channels and ensureOptimize funding channels and ensure Optimize funding channels and ensure financial structure stabilityfinancial structure stability

- 15 -

Operating Focusp g

C tiC ti t f t t i d t it f t t i d t iContinue Continue to focus on target industries to focus on target industries and and optimize suboptimize sub--segmentssegments

Provide diversified services and enhance Provide diversified services and enhance and enhance integrated capabilitiesand enhance integrated capabilitiesand enhance integrated capabilitiesand enhance integrated capabilities

Reinforce asset management and Reinforce asset management and i i h l h lii i h l h limaintain healthy asset qualitymaintain healthy asset quality

Optimize funding channels and ensureOptimize funding channels and ensureOptimize funding channels and ensure Optimize funding channels and ensure financial structure stabilityfinancial structure stability

- 16 -

Operating Strategy: Continuous Focus on Target IndustriesFocus on Target Industries

Case Study of Prohibited Industry

Prudent Industry Selection and Entry Conditions

Steel and steel trade

Prohibited IndustryFundamental industriesRelated to consumer d d

SeCr

and Entry Conditions

steel tradedemandRoom for growthDiversified market

election riteria

PhotovoltaicparticipantsStable cashflow……

Real estateExcess production capacity Pi

Immature industrySubject to high level of government policy influence

Prohibitedndustries

Cement, wind power equipment, non-ferrous

- 17 -

influence……

d s q p

metal, coal chemical industry etc.

Adjustment of Industry Expansion Strategy

Industry Breakdown of Newly Originated Leasing Assets (2012)

Industry Expansion Strategy in 2012 Originated Leasing Assets (2012)

准

Strategy in 2012

Adjust expansion strategy of certain segments based on the准

入条件

Others44%

Healthcare18%

certain segments based on the external environment

44% 18%

Education21%21%

Construction17%

- 18 -

Optimization of Sub-segments

Expand in Safe and Stable Sub-segments of Traditional IndustriesTraditional Industries

Non dry bulk carriers such as logistics,Non dry bulk carriers such as logistics,ocean engineering etcocean engineering etc..

乘用车及客车配套零部件乘用车及客车配套零部件市场等市场等

Asset Composition of Shipping Industry(as of December 31, 2012)

包装等终端消费市场等包装等终端消费市场等

14%23%

New sub-

印染工业用印染工业用无纺布等无纺布等

New subsegments

Dry bulk i印染、工业用印染、工业用无纺布等无纺布等 carrier

- 19 -

信息网络应用信息网络应用领域等领域等2011 2012

Adequate Enhancement in the Quality of Customer Basey

New Customers in 2012 Clients' Average Income Level

Target Customer Profiling

(RMB 100 million)

13.7 2010Target Customer Profiling 20112012Industry average

1 4

1.8

2.7

1.6 1.6 1.4

0.1 0.8 0.6 1.1 1.4 1.3

65 ~ 85% 70 – 90% Note: 1 Number of new customers in 2012 used for Far East

- 20 -

65 85% 70 90% Note: 1. Number of new customers in 2012 used for Far East2. 2011 numbers used for industry average. Data source:

National Bureau of Statistics and industry website

Operating Focus

Continue to focus on target industriesContinue to focus on target industriesContinue to focus on target industries Continue to focus on target industries and optimize and optimize subsub--segmentssegments

Provide diversified services and enhance Provide diversified services and enhance integrated capabilitiesintegrated capabilitiesg pg p

Reinforce asset management and Reinforce asset management and maintain healthy assetmaintain healthy asset qualityqualitymaintain healthy asset maintain healthy asset qualityquality

Optimize Optimize funding channels and ensure funding channels and ensure pp ggfinancial structure stabilityfinancial structure stability

- 21 -

Provide Diversified Services and Enhance Integrated Capabilityg p y

Financial needs

Non-financial needs

Industry clients Purchase of Management skill dequipment

Upgrade in technology

upgrade Equipment operating

and managementtechnology Factory building

construction

g Professional

engineering construction

Working capital Supply chain

fi i

construction Equipment purchase

and trading

- 22 -

financing………

g Acquisition

………

Provide Diversified Services and Enhance Integrated Capability

Diversified Financial Products

Integrated Industrial Services

g p y

Products Provide tailored made financial

solutions based on each client’s unique needs and own operational /

Services Client-focused and provide tailor-

made integrated servicesunique needs and own operational / financial characteristics

— Tenure: Domin MedicalE i i

Establish professional platform and provide enhanced services

long term, medium term, short term— Type:

Engineering(medical

engineering)

Horizon Equipment

2010

Type:direct lease, sale-leaseback,

factoring……St t i

Horizon Equipment(operating lease)

Xiangrui Limited(shipping brokerage

2011

2012— Structuring:Tenure, repayment schedule

& repayment type, transaction

(shipping brokerageand rental services)

Horizon HospitalManagement

2012

2012

- 23 -

structureg

(healthcare managementand advisory)


Healthcare Case Study

g p y

Diversified and Complementary Services

Diversified revenue sources(2012)

Financial Services

Purification engineering and

others

Management Consulting

Medical Engineering

Advisory48%

3%

Healthcare Institution

H it lFi i l Hospital Management

…

Financial Advisory

Financial services49%

- 24 -


Customer Case Study

g p y

Customer Highlights Recent Cooperation in 2012

-- Largest local hospital-- Largest local hospital— Engages medical care, healthcare,

h d d i

Facilitate the hospital in improving quality and operations management

ManagementManagementConsultingConsulting

recovery, research, and educationbusinesses in one entity— 2012 income of c.RMB400

level

Operating room2012 income of c.RMB400 million— Cooperated with FEH on 6 leasing projects in the past

MedicalMedicalEngineeringEngineering

Operating room sanitization projections, satisfying the hospital's expansion plans

leasing projects in the past

FinancialFinancialMatching hospital construction, and

- 25 -

LeasingLeasing providing financial advisory/services

Operating Focus





- 26 -

Effective Risk Management System

Asset Management

Industry Selection

Operating Control

Customer Screening

Medium-to-top industry ranking and leading players in sub-

Independent front, middle and back-office operations

Segregation of duties in stages ith appropriate

Centralized lease payment management, real-time monitoring on collection

Industry Research

players in subsegments

History of operations

Stable sources of

stages, with appropriate audits

Control protocol: Credit / financing ratio

f 70%

monitoring on collection

Regular customer onsite visits

Asset monitoring through

Preliminary Market Test

Initial Evaluation

1.5 Stable sources of

earnings

Meaningful scale of assets and equipment

of 70% Leased object as core

asset, service life of 10 years

Asset monitoring through GPS, suppliers, peers, industry associations, and third-party professionals

Evaluation

Extensive Market Test

to2

yearsassets and equipment

Stable funding sources

Complete cash flow

Leasing tenure of 3 years

Monthly rental payment Other guarantee, pledge

p y p

Timely litigation settlement, leveraging industry clients network to execute asset

Final Evaluation

coverageg , p g

etc. disposalsNew Industry Entry

- 27 -

Stable Sectors Quality Customers Qualified Projects Healthy Assets

Strengthen Asset Managementand Control

Adjusted annual risk control policies for all industries, prudent approach for Leasing Assets in Machineryp ppindustry segments such as machinery and printing, stringent control on riskier regions

Leasing Assets in Machinery, Printing etc. Amount to Only

35%

Very close monitoring of assets in specific high-risk regions such as Zhejiang (Wenzhou) and

2%

8%

Strengthened industry research and

Zhejiang (Wenzhou) and Guangdong

8%11%

65%

Textile

Construction

Shippingstudy，stringent monitoring of industry-specific systematic risks

Conducted targeted investigations

14%65%

Printing

Non-privateg g

on specific private segments such as machinery, with timely monitoring of customer operations

- 28 -

g p

Superior Asset Disposal Capability

Responsive Risk Neutralization Measures

Recover Rates for Lease A t d Liti ti > 99 %Measures

Precise list of high-risk customers

Decisive actions, timely use of legal

Assets under Litigation> 99 %

Expand Asset Disposal

measures

Methods and Enhance Value Recovery System

Expand equipment disposal channels

Assets recovered

Cumulativelitigation

p q p p

(equipment distributors, second-hand

equipment sellers etc.)

Diversified asset sales (public

Cumulative write-offs lessDiversified asset sales (public

auctions, negotiated sales)

Credit insurance claims

write-offs less than 0.01% of total lending

- 29 -

Operating Focus





- 30 -

Diversify Funding Channels and EnsureFunding Sufficiencyg y

Funding Mix By Type of Institutions

Credit Utilization(2012)

Utilized funding onlyaccounted for 53.8% of totalTotal number of institutions

idi f di 100

Institutions(2012)

(2012)

11%7% 政策性

accounted for 53.8% of totalcredit facilityproviding funding>100

Policy8%

国有

其他中资

SOE

Other

53.8%34%25%其他中资

外资

Other domestic

Foreign

W lth

15%

理财机构

投资者

Wealth management

Investors

- 31 -

Optimize Funding Structures and Lower Funding Cost

Onshore Offshore Direct Indirect

Onshore vs. Offshore Financing Direct vs. Indirect Financing

g

886

1,142 547

(US$mn) (US$mn)

3,820 4,705

4,284

5,300 422

2011 2012 2011 2012Currency mix Cost of Financing

712 RMB USD

6.65%6.39%

PBOC benchmark (1-3 yrs) Cost of financing

(US$mn)

4 308

5,133 397

%

6.20%5 61%

- 32 -

4,308

2011 2012

4706 58475.61%

2011 2012

Sound Financial StructureMatching Asset-Liability Mix

Financial assets vs. financial li biliti i i

6242 金融资产

liabilities mix comparison（Dec 2012）(US$ million)

Fi i l t

4 137

金融资产

金融负债

Financial assets

Financial liabilities

3229 2 719

4,137

1103

2,719

249 114 9 1,097

35

- 33 -

即期

<3个

月

3-12

个

月 1-5年 >5年

Dem

and

Less

than

3

mon

ths

3-12

m

onth

s

1-5

year

s

Mor

e th

an 5

ye

ars


► 2. Operational Analysis2. Operational Analysis

3.Future Developments►► 3.Future Developments

- 34 -

Future Developmentsp


Development StrategyDevelopment StrategyIIII Development StrategyDevelopment StrategyIIII

- 35 -


II Operating EnvironmentOperating Environment

11..Economic environmentEconomic environment

Operating EnvironmentOperating Environment

22..Financial environmentFinancial environment

11..Economic environmentEconomic environment

33..Industry developmentIndustry development

44..Competitive landscapeCompetitive landscape

- 36 -

Economic Environment #1: Economy Growth Remains Steadyy

— Economy scale: continues to grow

— Growth trend：trending towards stability

Historical China GDP Growth Rate vs. Government Projected Growth Rate

%12%

15%Actual GDP Growth Rate

8%

9.2%7.8%9%

12%

8% 7.5%3%

6% Government GDP Growth

Target

- 37 -

0%2005 2006 2007 2008 2009 2010 2011 2012 2013

Source：National Bureau of Statistics, Historical PRC Government Work Reports

Economic Environment #1: Secondary Industries Still Holds an Important Position

— Contribution of secondary industries to total

— Fixed assets and new equipment investment maintain steady growth

yGDP remains stable

GDP Mix（Three Major Industries）

y g— Urbanization, industrialization, and industry upgrade

GDP Mix（Three Major Industries）

41% 41% 42% 42% 43% 43% 43% 45%

47% 47% 47% 45%

12% 11% 11% 11% 10% 10% 10% 10%

47% 48%47%

47% 46% 47% 47% 45%

- 38 - Source: Wind

2005 2006 2007 2008 2009 2010 2011 2012

第一产业第二产业第三产业Primary Industry Secondary Industry

Tertiary Industry



1.Economic environment1.Economic environment


2.Financial environment2.Financial environment


33..Industry developmentIndustry development


- 39 -

Interest Rate Liberalization— Direction of financial reform：interest rate liberalization、diversified market participants、

Renminbi internationalization— Future development of financial industry: better serve the real economy and industry

tcustomers

Interest Rate Liberalization Reform Traditional Financial Industry at a Turning Point

Loan business interest margin to

continue to narrow

Turning Point

End of the era of high business

volume and earnings growth

Market Reform Favorable for FEH

Lending rate Deposit rate

Business front：have always operated in

market driven environment yield

Market Reform Favorable for FEH

Expanding floating band market-driven environment，yield

expected to be unaffected

Financing：financing cost to continue

Expanding floating band twice

- 40 -

trending down

Source：PBOC







3.Industry development3.Industry development


- 41 -

Enormous Potential for the Leasing Industryg yVolume of Financial Leasing Transactions in

ChinaVolume of Financial Leasing Transactions (2011)

269269 (US$ billion)

93

135(US$ billion)

9360 59

33 23 23 22 15 12 12

S a y n e y a a K n a 622

41

65

Financial Leasing Penetration Ratio (2011) Number of Leasing Companies

US

Chi

na

Ger

man

y

Japa

Fran

c

Ital y

Rus

si

Can

ada

UK

Switz

erla

nd

Aus

tral

i a 6

2007 2008 2009 2010 2011 2012Source: World Leasing Yearbook Source: World Leasing Yearbook, Industry associations

Financial Leasing Penetration Ratio (2011) Number of Leasing Companies

28%21% 21% 21% 20%

15%12%

560

12% 11% 11%7% 5%

ussi

a

US

nada

tral

ia UK

man

y

Italy

ance

rlan

d

apan

Chi

na 70

186 208286

- 42 -

Ru

Can

Aus

t

Ger

m

Fra

Switz

er Ja C

2008 2009 2010 2011 2012

Source: National Bureau of Statistics, World Leasing Yearbook 2010Note:(1)penetration ratio=financial leasing transaction volume / fixed equipment investment

Source: China Leasing Association, CAEFI Leasing Committee

Leasing industry regulatory environment requires further improvement

— Current status: rapid growth in number of leasingcompanies, a popular industry for investments

— Regulatory environment: different standards by CBRCand MofCom

Asset side：highly competitive Funding：increased risks

Homogeneous nature with bank L d d f d d Homogeneous nature with bank

lending

Overly exposed to risky industry

Long-dated assets funded

by short-dated liabilities:

apparent liquidity risks Overly exposed to risky industry

and customers

"Virtualization" of assets

apparent liquidity risks

Over-leveraged，highly

risky …… "Virtualization" of assets …… risky ……

- 43 -







3.Industry development3.Industry development

4.Competitive landscape4.Competitive landscape

- 44 -

Competitive Landscape

Non- 教育医疗 EducationHealthcaremanufacturing 教育医疗

Construction

ShippingTextilePrinting Machinery Electronics

- 45 -Manufacturing

Healthcare and Education Segments

84

China Historical Healthcare ExpendituresUnit：RMBtrn Unit：%

— Industry characteristics

4.6 5.2 5.0 5.1 5.5 5.5 6.5

4

6

2

3 Strong demand, low cyclicality

Obvious social benefits, efforts led

0

2

1

2

— Development trend

by fiscal policy

(2)02008 2009 2010 2011 2012 2015E 2020E

中国卫生费用占GDP比重

China Historical Fiscal Expenditure on

China Healthcare Expenditure

As % of GDP Shift from external expansion to

intrinsic improvement

3.3 3.6 3.7 3.4 4.2

4

5

3

4

China Historical Fiscal Expenditure on EducationUnit：RMBtrn Unit：% Funding needs may gradually reach

bottleneck, with non-funding

2.2 3.3

1

2

3

1

2

service needs to increase over time

- 46 -0

1

0

1

2008 2009 2010 2011 2012

国家财政性教育经费占GDP比重Source: Bureau of Statistics, Ministry of Health, CSSN, Education Bureau China Fiscal Expenditure

on Education As % of GDP

Construction Segment

14 30018000

Transportation Fixed Asset Investment & Growth

Unit；RMB100mn— Industry characteristics 14,300

9000

12000

15000Unit；RMB100mny

Investment-driven

0

3000

6000

2004 2005 2006 2007 2008 2009 2010 2011 2012

More correlated with

economic cyclesSource：Wind

Construction industry Value-Added/GDP

China's Construction Industry with Potential for Long Term Growth

%

— Development trend

U b i i illChina GDP Per Capita

Just Surpassed US$6,000

% 20,000 Urbanization will support

infrastructure

7.0

GDP Per3 000 6 000

construction incl. roads,

bridges, municipal and

- 47 -Source：Broker research, summarizing

data of 50 countries under World Bank

GDP Per Capita（US$）3,000 6,000public utilities

Printing, Textile, Machinery, Shipping, Electronics

2012 Wage Increase Cross-Industry Comparison

20% 20% 20%— Current status of the industry 20% 20% 20%15% 15%

Gradual over-capacity,

intensifying competition

纺织印刷电子汽车船舶Textile Printing Electronics Automobiles Shipping

intensifying competition

Major costs continue to rise

68Industry concentration

纺织印刷电子汽车船舶Source: Industry Associations

— Development trend68

44 美国中国U.S. China Slowing growth in number

of enterprises

14 20 17 20.5 19.3 5.9 0.7 0.4

of enterprises

Clear trend in scale,

concentration technology

- 48 -汽车船舶印刷纺织电子

Electronics Textile Printing Shipping Automobiles

Source：U.S. Census Bureau，Wind

concentration, technology

upgrade



Development StrategyDevelopment StrategyIIII p gyp gyIIII

- 49 -

Development Strategyp gy

Objective: to become the integrated j gservice provider for quality clients in target industries

Industry focusIndustry focusIndustry focusIndustry focus

Integrated servicesIntegrated services

- 50 -

Industry Focus— Professional segment selection and stringent entry admission management system

— Selected industries are all essential industries for the prosperity and stability of the

y

Chinese economy

2012 GDP by SegementsIndustry Selection y g

13.5

y Stringent industry selection standards

Systematic entry admission

Unit；RMBtrn

6 9Total：RMB34 trillion

Systematic entry admission management mechanism

— Similar to "Operation License" management

— Systematic industry research and evaluation 6.9 5.8

2 9 2 2

— Complete entrance and exit management

procedures

2.9 2.2 2.1 0.8

Healthca

Shippin

Construct

Machine

Educatio

Textile

ElectronInform

at

………………

- 51 -

建设工装纺织医疗教育印刷航运

are

ng tion

ery

on

e nic ion

2003 2005 2007 2007 2008 2008 2011 2012

…… Textile PrintingConstruction Machinery EducationHealthcare Shipping

Source: Bureau of Statistics, Ministry of Health, Education Bureau, Ministry of Industry

Industry focus— Conduct financial services business with an industry-focused perspective, forming a

balanced asset mix by industry

y

Transacted Customers

— With many years of solid roots in each segment, Far East has accumulated an enormous

and solid industry customer base

L i A t S t l B kd

2227

Transacted Customers by Segments

（Year-end 2012）

Leasing Assets Segmental Breakdown（Year-end 2012）

1630 7,141transacted

印刷

14%纺织

2%

电子及

其他Textile

Electronics & others Printing

1189

650

transacted customers

14%

医疗

航运

11%

2%11%Shipping

Healthcare650

493 481250 186

35

21%

工装建设

教育

18%

Education

MachineryConstruction

- 52 -印刷医疗工装建设航运教育电子纺织业发

工装

8%

建设

15% Printing Healthcare Machinery Construction Shipping Education Electronics Textile Other

Machinery

Industry focus

Division by industry, with Team with extensive

y

y y,each overseeing national operations

industry experience5-year average industry experience across all teams

6.3 6.2 6.1 5.9 5 8 5 7

Unit：yearFar East Horizon

5.8 5.7

4.7

ivis

ion

ivis

ion

ivis

ion

ivis

ion

visi

on

visi

on

tion

isio

n Strategy management

Business operation

alth

care

d

ucat

ion

di

chin

ery

di

ctro

nic

di

ippi

ng d

iv

intin

g di

v

Con

stru

ct

extil

edi

vi

Asset management

Treasury

航运印刷工装教育医疗建设纺织

Hea Ed

u

Mac

ElecSh

i

Pr

C Te ……

Shipping Printing Machinery Education Healthcare Construction Textile

- 53 -

Note：as of year-end 2012

Development Strategyp gy

Objective: to become the integrated j gservice provider for quality clients in target industries

Industry focusIndustry focusIndustry focusIndustry focus

Integrated servicesIntegrated services

- 54 -

点击添加标题Integrated Services

— Based on industry dynamics, find quality customers that represent the future of each segments

Draw common needs of clients over different stages based on a large customer base

g

— Draw common needs of clients over different stages, based on a large customer base

Service Demands over Corporate Development CycleService Demands over Corporate Development CycleScale M&As /

consolidationEquipment investment, Factory

Technology upgrade

VC investmentMarket

ybuildingSupply-chain financing

Management improvement

C it l

Stage of

research……

financing……

Capital markets

……

- 55 -

development

Early-stage Rapid growth Upgrade ……

点击添加标题Integrated Services

— Focus on needs of clients during different stages of development, providing diversified and multi-dimensional integrated service offering

g

diversified and multi dimensional integrated service offering— Establish distinct capability differing from those of the banks and other

providers of similar products, forming differentiated competitive landscape

Types of Integrated Services

Financial Services

Advisory

ClientServices

Medical

Trading, Brokerage

engineeringHospital managementOperating lease……

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……

Integrated Services

MultiMulti--dimensional Services Offering Highlightsdimensional Services Offering Highlights

g

Healthcare─ Leverage hospital management company as the core, gradually establish integrated business model comprising financial services, advisory, engineering, and hospital operationsg g, p p

C t ti─ Systematically execute operating lease business leveraging Horizon

ConstructionConstruction Engineering as the platform

MachineryPrinting

─ Seek corporations that have potential for future industry leadership, execute

M&A and reorganizations, technological upgrade, industrial consolidation and

other systematic services for them

Shipping─ Increase efforts on ship rental and brokerage business, and provide deeply

integrated services for clients

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integrated services for clients

…… ……

Financial Planning

Lift ROA based on ROE returns to 20% based

g

资产负债率

reinforcing integrated services

on reasonable leveraging

资产负债率FEH ROA

ROE=20%Gearing ratio 85%

FEH ROE Liabilities / Assets

Lift by integrated

Gearing ratio 85%

Banking average ROA

services

2009 2011 201X ……

Banking average ROA

2009 2011 201X ……

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2012 Key Financial Indicators-Balance Sheet

Dec 31, 2011 Dec 31, 2012 % changeFinancial indicators (US$ 000’s)

Total assets 7,474,702 9,636,509 28.9%

Net lease receivables 6,524,480 9,038,257 38.5%

Total liabilities 5,998,442 7,591,398 26.6%

Interest-bearing liabilities 5,495,364 7,024,076 27.8%

Shareholders’ equity 1,475,622 2,043,510 38.5%

Net assets per share 0 52 0 62 19 2%Net assets per share 0.52 0.62 19.2%

Non-performing assets ratio 0.60% 0.73% 13bps

Special mention assets ratio 15.79% 15.10% 69bps

Provision coverage ratio 214.34% 213.60% 74bps

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Leverage ratio 80.25% 78.78% 147bps

2012 Key Financial Indicators-Income Statement

Revenue 419,391 614,616 46.5%

Dec 31, 2011 Dec 31, 2012 % changeFinancial indicators (US$ 000’s), ,

Net interest income 224,021 337,696 50.7%

Fee income 170,199 242,439 42.4%

T di d th i ( t) 25 171 34 481 36 5%Trading and other income (net) 25,171 34,481 36.5%

Operating expenses1 150,441 228,953 52.1%

Profit before tax and provision 268,950 385,663 43.4%

Net profit attributable to owners of the parent 171,412 241,305 42.9%

EPS (USD cents) 6.56 7.59 15.7%

Net interest margin (NIM) 4.33% 4.30% 3bps

Service fee income ratio 41.73% 40.71% 102bps

Cost to income ratio 32.56% 33.98% 142bpsp

Cost of credit 0.77% 0.71% 6bps

Return on average assets (ROAA) 3.04% 2.82% 22bps

R t it (ROAE) 17 13% 13 69% 344b

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Return on average equity (ROAE) 17.13% 13.69% 344bps

1. including business tax and surcharges and other expenses

Q&AQ&AQ&AQ&A

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Far East Horizon Limited 2012 Full YearFull Year Results ... · solutions based on each client’s...

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