China Communications Construction Company Limited

STRICTLY CONFIDENTIAL

China Communications Construction

Company Limited

2006 Annual Results Presentation

11 April 2007

1

Disclaimer

This document has been prepared by China Communications Construction Company Limited

(the "CCCC“ or “Company”) solely for use at the results announcement presentation. 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 person into

whose possession comes inform themselves about, and observe, any such restrictions. The

information contained in this document has not been independently verified. 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 will in possession of this document shall aware that no

reliance should be placed on the content contained herein. The information and opinions

contained in this document are provided as at the date of this presentation and are subject to

change without notice. The Company or any of their respective affiliates, advisors or

representatives shall 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 contains forward-looking statements that reflect the risks and uncertainties.

These forward-looking statements are generally expressed in forward-looking expressions, such

as expectations, estimation, planning, projections, goals, possibilities, probabilities or so on to

reflect the actions that expect to or may take in future or the results incurred from these actions.

You should not have excess reliance on these forward-looking statements that are only

applicable on the date of the presentation. These forward-looking statements 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

2

Senior Management

Mr. ZHOU Jichang

Chairman, Executive Director

Mr. LIU Wensheng

Secretary of the Board, Chief Economist

Mr. FU Junyuan

Chief Financial Officer, Executive Director

Mr. CHEN Yun

Vice President

3

Agenda

Performance Highlights

Agenda Presenter

Financial Performance

2007 Outlook

Mr. FU Junyuan

Mr. FU Junyuan

Mr. FU Junyuan

Q & A Mr. ZHOU Jicang, Mr. FU Junyuan,

Mr. CHEN Yun and Mr. LIU Wensheng

SECTION 1

Performance Highlights

5

Financial Highlights

Robust financial performance with net income up 45.8%

2005 2006 Change % RMB millions

(except for per share data)

Turnover

Operating Profit

Net Income

Diluted EPS

EBITDA

114,881 83,265

3,809

5,746

2,195

0.20

6,488

8,693

3,199

0.29

38.0%

70.3%

51.3%

45.8%

45.0%

6

Business Highlights

Strong and sustainable business growth

New Contracts Backlog

New contract amounts grew from RMB106.8

billion to RMB154.0 billion in 2006

Year-on-year growth reached 44.1%

Backlog amounted to RMB125.6 billion in 2005

Backlog amounted to RMB155.0 billion as at 31

December 2006, up 23.3% since 2005

YoY increase = 23.3%

87,91399,260

125,649

154,957

0

40,000

80,000

120,000

160,000

2003 2004 2005 2006R

MB

millio

ns

YoY increase = 44.1%

60,292

75,463

106,841

153,936

0

40,000

80,000

120,000

160,000

2003 2004 2005 2006

RM

B m

illio

ns

7

Contribution by Segment

Infrastructure construction, being the large business segment of the company, maintained its leading

position and continue to increase its profit contribution

Dredging business achieved considerable growth with continuous increase in its contribution to

turnover and profit

Note：(1) All total figures are before elimination and unallocated costs.

(2) The numbers for port machinery manufacturing are fully consolidated

Turnover (2006) (1) Operation Profit (2006) (2)

Other

4.4%

Infrastructure

Design

4.7%

Dredging

9.0%

Infrastructure

Construction

65.5%

Port

Machinery

16.4%

Infrastructure

Construction

29.3%

Dredging

20.0%

Infrastructure

Design

13.1%

Other

2.1%

Port Machinery

35.5%

8

Infrastructure Construction Business

New Contracts (RMB millions) Backlog（RMB millions）

CAGR = 38.4% CAGR =14.5%

Completed projects with RMB76,220 million of contract value

Ports Roads and Bridges Railways

68,497 69,984

83,178

102,711

0

20,000

40,000

60,000

80,000

100,000

120,000

2003 2004 2005 2006

39,72347,807

68,382

105,214

0

20,000

40,000

60,000

80,000

100,000

120,000

2003 2004 2005 2006

Business

New

Contract

s and

Backlog

Hydraulic Construction for

Qingdao International Sailboat

Center of the 29th Olympic Games

Project

Yangluo Bridge Wuhe Railway

9

3,905

5,507

6,641

7,740

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2003 2004 2005 2006

Infrastructure Design Business

CAGR = 25.6% CAGR = 23.8%

Completed projects with RMB5,502 million of contract value

3,619

5,0905,418

6,868

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2003 2004 2005 2006

Ports Railways Roads & Bridges

100,000 tons container terminal

and large jetty in Gaolan harbor

area of Zhuhai Port

Ganghongye petrochemical

terminal in Guangzhou port

Longmen operation section of

Wenling in Taizhou Port

Public harbor area of Changxing

Island in Dalian and harbor area

in Dalian Chemistry Base

Preliminary design for Nanjing Belt

Highway of Hurong National Trunk

Expressway

Feasibility and preliminary design

for Ningbo Xiangshan Port

Feasibility study on Hongkong-

Zhuhai-Macao Bridge project

Pre-feasibility study, preliminary

design,construction documents

survey and design for Xiamen

Jimei Bridge

Feasibility study on Xi'an Baoji

passenger-dedicated line

Feasibility study and two-stage

design for Pinyi Railway in

Shandong

Construction project for Lujiang-

Tongling

Island Railway in Dalian

Liaocheng-Tai'an Railway in

Shangdong

Business

New

Contracts

and

Backlog


10

Dredging Business

CAGR = 36.9% CAGR = 28.7%

Completed dredging volume of 428 million cubic meters,

accounting for 80% of the total domestic coastal dredging volume

5,341

7,810

9,890

11,392

0

2,000

4,000

6,000

8,000

10,000

12,000

2003 2004 2005 2006

4,412

7,469

10,62511,321

0

2,000

4,000

6,000

8,000

10,000

12,000

2003 2004 2005 2006

Business

New

Contracts

and

Backlog


Tangshan Caofeidian Steel

Reclamation Project

“Xin Hai Long” Self-propelled trailing

hopper suction dredger

11

9,604

15,238

22,921

28,585

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2003 2004 2005 2006

Port Machinery Manufacturing Business

CAGR = 43.8%

CAGR = 35.7%

ZPMC: Produced 261 units of quayside container cranes and 500 units of gantry container

cranes in 2006, accounting for approximately 70% market share of the global large quayside

cranes

SPMP: Produced 138 units of products including quayside cranes and gantry cranes in 2006

Extended Operation: Breakthrough achieved in the steel structure, heavy marine equipment

and bulk material handling machinery markets


New

Contracts

and

Backlog

Business

10,354

14,383

21,600

25,868

0

4,000

8,000

12,000

16,000

20,000

24,000

28,000

2003 2004 2005 2006

12

Distribution and Dividends

Special

Distribution

Special

Dividend

Final

Dividend

Pursuant the regulations issued by the Ministry of Finance of the PRC, in

November 2006, the Board declared and paid a special distribution to our

promoter, China Communications Construction Group (Limited) (CCCG), in

an aggregate amount of RMB1,556 million

During 2006, the Board also declared a special dividend to CCCG, being our

then sole shareholder, in and estimated amount of RMB374 million, subject

to a special audit that is expected to complete by 30 April 2007

We will only pay the special dividend to CCCG after completing that special

audit, following which we will publish an announcement of the outcome of

that special and the actual amount of the special dividend

Distribution of special dividend was approved at the Annual General Meeting

held on 25 November 2006

The Board has proposed a final dividend of RMB0.005 per share (totaling

approximately RMB74 million) which is subject to approval by the

shareholders of the Group

SECTION 2

Financial Performance

14

Summary Income Statement

RMB millions 2005-12-31 2006-12-31 Increase（%）

Turnover 83,265 114,881 38.0

Gross profit 8,155 11,815 44.9

Operating profit 3,809 6,623 73.9

Profit before income tax 3,563 5,514 54.8

Income tax expense (592) 1,228 107.3

Profit for the year 2,971 4,286 44.3

Profit attributable to the Equity Holders of the Company 2,195 3,199 45.8

Diluted earning per share 0.20 0.29 45.0

15

Summary Balance Sheet

RMB millions 2005-12-31 2006-12-31 Increase（%）

Non-Current Assets 25,202 37,910 50.4

Current Assets 53,857 89,042 65.3

Current Liabilities 57,222 75,470 31.9

Net Current Assets (3,365) 13,572 -503.3

Total Assets 79,059 126,952 60.6

Owner’s Equity 12,447 37,223 199.1

16

Summary Cash Flow Statement

RMB millions 2005-12-31 2006-12-31

Cash flow from operating activities 2,914 3,494

Cash flow from investing activities (4,942) (8,167)

Cash flow from financing activities 2,884 24,741

Net increase/decrease in cash and cash equivalents 856 20,068

Cash, cash equivalents at the end of the year 10,797 30,793

17

38.3% 38.6%

23.0% 25.0%

8.7% 7.4%4.1% 3.1%

4.3%

16.6% 16.3%

4.9%

2005 2006

Operating Cost Structure

As % of sales As % of operating costs (1)

Improving Cost Structure Cost Breakdown (31 Dec 2006)

(1) Operating costs = total cost of sales + selling and marketing expenses + administrative expenses

95.7% 94.7% 17.20%

26.30%

40.70%4.60%

3.30%

7.90%

Others

Change in contract work-in-progress

Equipment usage costs

Employee benefits

Subcontracting

Raw materials and consumables used

18

Segment Turnover and Results

Infrastructure Construction Business

941

1,932

2005 2006

Turnover Segment Result(1)

RMB millions RMB millions

DRIVER

Higher demand for construction services

Growth of infrastructure spending by PRC

RESULTS

Turnover grew 39.3% from 2005 to 2006

Segment result grew 105.3% from 2005 to 2006

(1) Segment result represents operting profit before unallocated costs

Segment result = turnover – cost of sales – selling and marketing expenses – administrative expenses + other income/

(expenses), net

54,744

76,220

2005 2006

19


863

716

2005 2006

4,441

5,502

2005 2006

DRIVER

Rise in aggregate value of contracts

Increase in comprehensive contracts

RESULTS


Segment result grew 20.6% from 2005 to

2006

Infrastructure Design Business

Turnover


Segment Result(1)

(1) Segment result represents operating profit before unallocated costs


(expenses), net

20


1,317

540

2005 2006

10,450

6,823

2005 2006

DRIVER

Increase port development activities and market demand

Our industry leading position implies stronger bargaining power

RESULTS



Dredging Business

Turnover


Segment Result (1)

(1) Segment result represents operating profit before unallocated costs


(expenses), net

21


1,577

2,339

2005 2006

13,947

19,028

2005 2006

Port Machinery Manufacturing Business

Turnover


Segment Result(1)

DRIVER

Global container transportation and market demand grows

Further capacity expansion

RESULTS



(1) Segment result represents operting profit before unallocated costs


(expenses), net

22

Debt Profile

45.20%

64.30%

2005 2006

3.9x

3.5x

2005 2006

(1) Capitalization includes total borrowing, minority interest owner’s equity

(2) Total debt includes short-term borrowing and long-term borrowing, EBITDA is earnings before interest, taxes,

depreciation and amortization

Total Debt/ Total Capitalization(1) Total Debt/EBITDA(2)

23

691

2017

186

271676

12931,606

3,241

121

100

2005 2006

5,328

8,496

2,739 3,591

Capital Expenditure

Infrastructure

Construction

Business

Infrastructure

Design

Business

Dredging

Business

Mainly used in construction of

plants and purchase of

equipment

Mainly used in [ ]

Mainly used in purchase and

improving of dredger

Port Machinery

Manufacturing

Business

Mainly for construction of

new production base

RMB million

Source: Company financials

Note:

(1) BOT Investment is included in infrastructure construction segment’s capital

expenditure

BOT Investment Infrastructure construction

Infrastructure design Dredging

Port machinery Manufacturing Others

(1)

SECTION 3

2007 Outlooks

25

Committed to maximizing its corporate value and to create

shareholders superior value from outstanding results

2007 Outlooks

Innovating

profitability

model and

expanding

into relevant

market;

further

enriching

product &

service

offerings

Enhance leading

position

Capture CCCC’S

growing

opportunities

Strengthen

corporate

management ;

further expand

production and

project

execution

capacity

Improving operation

efficiency by further

cost reduction

Delivering a service

worthy of trust

High quality returns

to shareholders

and Consistent

over-performance

SECTION 4

Q & A

China Communications Construction Company Limited

Documents

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