Plastec Technologies, Ltd. · OTC:PLTYF
Plastec Technologies — GSME Acquisition Partners I — SPAC Merger (August 2010)
40 slides from Plastec Technologies's SPAC merger presentation, Aug 10, 2010
Slide 1: Proposed Business Combination with Plastec International Holdings Limited
GSME 22244 GSME ACQUISITION PARTNERS | Proposed Business Combination with Plastec International Holdings Limited Summer 2010,
Slide 2: Safe Harbor
Safe Harbor ‘Tis PRESENTATION 16 BEING PRESENTED BY GSME ACGUISTION PARTNERS |(‘GSME* OR THE “COMPANY AND PLASTEC INTERNATIONL HOLDINGS LINTED (-PLASTEC") ‘Ssuen on ron eax MnH Fe SECURTHES sib EXCHANGE CowMIaSiON (SE) 2its (HE “TRANSITION REPORT) aN OTHER REPORTS £8 FLED WITH THE SEC, OR R DESCRIPT
Slide 3: Table of Contents
I 3) 5" << °° Table of Contents \ Executive Summary U1 Transaction Summary lll. Business Overview IV. Summary Financial Information Appendix A. Industry Overview B Financial Sponsors Overview oo.
Slide 4: I. Executive Summary
|. EXECUTIVE SUMMARY
Slide 5: Executive Summary
Executive Summary GSME is pleased to present the details of its proposed transaction with Plastec + GSME has signed a definitive merger agreement with Plastec, a China-based, high-precision plastic injection molding and secondary finishing business — Initial purchase price of 6.5x FYE 4/30/2010 adju
Slide 6: Executive Summary: full service plastic injection manufacturing
Executive Summary Plastec offers full service design, fabrication, injection, finishing and assembly Plastic injection manufacturing 6
Slide 7: Executive Summary: Plastec's products across sub-categories
I 3) 5" << °° Executive Summary Plastec’s products are used across a variety of sub-categories Consumer electronics Electrical home appliances = Mobile Handsets = MP3 Players = Cordless Phone Sets = Remote Controls = LCD Monitors = GPS Devices = Printers = Precision Plastic Educational Products = Ph
Slide 8: Executive Summary
Executive Summary GSME’s management believes that Plastec’s management, operations and consistent financial performance have resulted in it becoming a major player in its space Plastec is led by industry veterans, with an extensive track-record of successful operations, and a history of producing po
Slide 9: II. Transaction Summary
Il. TRANSACTION SUMMARY
Slide 10: Transaction Summary
Transaction Summary GSME has structured a transaction which it believes has compelling valuation metrics + GSME will issue approximately 7.3 million shares to Plastec shareholders at closing and may issue an additional 9.6 million shares upon achievement of certain financial targets — Assuming 15% o
Slide 11: Transaction Summary: Comparable Companies
Transaction Summary: Comparable Companies Based on comparable public companies, the transaction with Plastec has a relatively low valuation povutes areat ota rm tes freveer |e cere ng Captatzaton Lim atenty enterprise TM Tota rar Company tame ares ple SECA Core Motang Tecaroiogis ne (aMexcwT) Latest
Slide 12: Transaction Summary
te Transaction Summary Based on solid operating results, a conservative management style, and targeted acquisitions, Plastec aims to outperform its financial benchmarks and to produce compelling returns + Assuming a discounted P/E multiple to its peers, Plastec remains a strong value investment prop
Slide 13: III. Business Overview
Ill. BUSINESS OVERVIEW
Slide 14: Business Overview
Business Overview Plastec is a leading plastic injection molding and finishing business, which management believes is poised for growth + Plastec manufactures precision plastic parts and components for consumer applications, including: home electronics, appliances, telecommunications and other produ
Slide 15: Business Overview
2 Business Overview cad Plastec has invested the latest technologies to maintain industry leading status Plastec is more profitable than its competitors, across a number of key metrics — Low-defects and high-utilization rates — _ Effective pricing policies — Focus on highest margin business Plastec
Slide 16: Business Overview
3) 5" << °° Business Overview Seasoned, accomplished and reputable management team Mr. Kin Sun SZE-TO Mr. Chin Hien TAN Mr. Ho Leung NING Mr. Wai Keung LAM Founder, Chairman of the Board and CEO Responsible for directing long-term business development strategies and establishing operational objectiv
Slide 17: Business Overview
% cad [ 6) GSME £2 Business Overview Steady growth, and strategic development through the establishment of subsidiaries = Mr. Kin Sun = SunLine m Sun Line (Macao | ™ Dongguan Sun | ™ 20% new shares Sun Line Sze-To (HK) sot up Commercial Chuen Plastic were issued to Pracision founded Sun Dongguan Off
Slide 18: Business Overview
I 3) 5" << °° Business Overview New technology adoption, and effective implementation Strong tooling expertise and Cutting-edge hardware and software for high- know-how precision prototyping, mold design and fabrication Computer aided Computer aided Dedicated team of 125 design system manufacturing
Slide 19: Business Overview
I 3) 5" << °° Business Overview Just-in-time facilities, with significant capacity Location of plants Dongguan Shenzhen Heyuan Kunshan Zhuhai TOTAL Gross floor area(sqm.) _~60,000 61,000 ~10,000 ~13,000 ~25,000 ~159,000 No. of plastic injection 175 220 20 20 0 505 machines No. of tooling machines 50
Slide 20: Business Overview
3) 5" <<" Business Overview Efficient management of high-technology equipment base Rapid expansion of production caj ic ity siscien machines 04/2006 04/2007 04/2008 04/2009 04/2010 04/2006 04/2007 04/2008 04/2009] 04/2010 2390472, 506.517} 505 No. of tooling 40 B76 19 84 machines Max annual capaciti
Slide 21: Business Overview
I 3) 5" << °° Business Overview The business has developed rapidly since inception Quality control at each critical stage of production ‘Mold design and fabrication quality controlthrough documentation control, mold trial, andmold measurement Production quality Outgoing quality control providing con
Slide 22: Business Overview
I 3) 5" << °* Business Overview The business employs a cost-plus pricing model, reducing exposure to market fluctuations Designate Customers Suppliers Raw materials PRC partners [RRR ag = Capital = Wholly foreign owned enterprises arrangements for: | = Manufacturing equipment: = Owns manufacturing e
Slide 23: Business Overview
3) 5" << °° Business Overview OBMs (Original Brand Manufacturers), ODMs (Original Design Manufacturers), OEMs (Original Equipment Manufacturers) Main customers are leading international OBMs/ODMs/OEMs of consumer electronics and appliances Revenue breakdown by customer category usp,000 = % = USD,000
Slide 24: Business Overview
ES 3) 5" << °° Business Overview Sales to top five customers (% of total revenue) xpertise in Proven track design and record in fabrication of ‘manufacturing 04/2006 © 04/2007 04/2008 += 04/2009 + 04/2010 high-precision high quality products Customer J 46.1% 31.6% 19.3% © 23.5% 32.5% “ Stickiness” f
Slide 25: Business Overview
ES 3) 5" << °° Business Overview Plastec outperforms its closest comparable companies in every profitability metric = [| _ sm ‘Netincome Margin Fick -_— = Bi | rete ecerTen we ree =] = 4 Financial 5 Financial year ends on December 31 ‘Source: Company reports ey = J 25
Slide 26: Business Overview
% cad . 6) GSME £2 Business Overview cv2009 sales 2009 sales. cv2009 sales 2010 sales . . Electronics Elactroni Electronics assembly PRIME MDF PIM MDF as assembly, 47% 53k 100% PPIM& = 21% MDF ‘5eh cY2009 EBIT margin 2009 EBIT margin cy2009 EBIT margin CY2010 EBIT margin 3 10.5% y 6. FPIMS MDF Elect
Slide 27: Business Overview
«Gc Business Overview cad The business has developed rapidly since inception Competitive strengths Well-established long-term relationships with multi-national customers Capabilities and expertise in providing high-quality precision plastic component manufacturing services Well-established operation
Slide 28: IV. Summary Financial Information
V. SUMMARY FINANCIAL INFORMATION
Slide 29: Summary Financial Information
cad «Gc " Summary Financial Information Plastec International Holdings, Ltd. Income Statement Audited Audited Estimated FY08 FY09 FY10 USsK USSK USSK Sales 126.437 117,108 123,943, Costs of sales (98.193) (96,103) (103,870) Gross profit 28,244 20,999 20,073 Margin 22.3% 17.9% 16.2% Selling and admin
Slide 30: Summary Financial Information
ee Summary Financial Information * Plastec International Holdings, Ltd. Balance Sheet Audited Audited Estimated FY08 FY09 FY10 uss uss USS Assets Current Assets Inventories 12,838 10,662 9,525 Trade debtors 30,905 22,293 31,038 Other receivables 1,096 1,481 1563 Cash & equivalents 14,788 12.184 19,3
Slide 31: Summary Financial Information
ee Summary Financial Information * Plastec International Holdings, Ltd. Cash Flow Audited Audited Estimated FY08 FY09 FY10 USSK USSK USSK Profit before tax 18,816 8014 7.153 ‘Add back: Depreciation & amortisation 10,229 13,246 15,691 Stock (increase) (2815) 2177 1,137 Debtors (increase) (3,890) 8612
Slide 32: A. Industry Overview
A. INDUSTRY OVERVIEW
Slide 33: Industry Overview
Industry Overview The current timing in China’s plastic component industry benefits from organic growth, as well as a return to normalized activity after 2 years of global downturn + The overall consumer electronics industry has suffered 2 years of negative operating conditions — China's local marke
Slide 34: Industry Overview
I 3) 5" << °° Industry Overview While the global plastic products market is returning to growth, China’s market has continued to develop Global plastic products market (US$bn) CAGR = 3.4% (05-09) = CAGR = 3.2% (10-12) Plastic replacing metal and glass ee ps4 1009.1 1085.0 BEEBEBEEEE 2005 «= «2008 «=
Slide 35: Industry Overview
. 6) GSME ERRA Industry Overview China’s consumer electronics industry will outpace global market Production value of China’s consumer electronics industry (US$bn) is projected to continue steady growth. 4-09) R= 49142 g.tvle 4 cael wes 7065 ros : " r i i i Ul ' oie are mone awe Source: CCID ...larg
Slide 36: Industry Overview
Industry Overview China is the growth engine for the global plastic industry Cost of labor advantage Close proximity to both upstream and downstream players ly growing domestic consumer electronics market Increasing affordability due to development of domestic market Rising outsourcing trend AS Sour
Slide 37: B. Financial Sponsors Overview
B. FINANCIAL SPONSORS OVERVIEW
Slide 38: GSME Management Overview
GSME Management Overview GSME was formed by Mr. Mark Gao and Mr. Eli D. Scher to identify and execute an attractive investment in China and to assist GSME’s partner company in expanding and developing Jing Dong (Mark) Gao has served as our chairman of the board since our inception. Mr. Gao has inves
Slide 39: Cathay Capital Overview
cad Se «)" Cathay Capital Overview OVERVIEW Since 1992, the Cathay Capital Group (‘Cathay’) has completed over 35 investments and has completed initial public offerings ("IPOs’), trade sales and other capital events with a cumulative transaction value over US$5 billion. In 2007 alone, Cathay complet
Slide 40: Contact
Contact GSME S2RA C& co [MEMBER FINRA/SIPC For further information, contact Stuart T. Sugarman (212) 543-1100 ssugarman@cohenandcompany.com David Batalion (212) 543-4400 dbatalion@cohenandcompany.com Cohen & Company Securities, LLC 135 East 57" Street, 21st Floor New York, New York 10022 www.cohenan
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