Antelope Enterprise Holdings Limited · NASDAQ:AEHL
Antelope Enterprise — China Ceramics — Investor Presentation (September 2011)
30 slides from Antelope Enterprise's investor presentation, Sep 22, 2011
Slide 1: China Ceramics Co., Ltd. Investor Presentation
CHINA CERAMICS CO., LTD. China Ceramics Co., Ltd. WWW.CCERAMICS.COM Investor Presentation Séptember 2011
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements and management may make additional forward-looking statements in response to your questions. Such written and oral disclosures are made pursuant to the Safe Harbor provision of the Private Securities Litigation Reform Act of
Slide 3: Company Overview
Company Overview bust Growth >» Founded as Jinjiang Hengda Ceramics in 1993 FYE Dec 31 460 159.2 USD in MM >» Manufactures six different types of 140 ceramics tiles used for exterior siding 120 >» Ceramic tile market growth correlates mo with the strong construction and bia urbanization trends in Ch
Slide 4: Equity Snapshot
Equity Snapshot NasdaqGM: CCCL FYE: Dec. 31 Price (9/8/11) $3.64 Primary Shares Outstanding* 18.25 MM Market Capitalization $66.4 MM Cash (June 30) $8.0 MM Debt (June 30) $21.2 MM Revenue (TTM June 30 ) $189.9 MM Net Income (TTM June 30) $ 38.1 MM Fully Diluted EPS ( TTM June 30) $2.09 PIE Ratio 1.7
Slide 5: Company history and milestones
Introduced state-of-the-art equipment from abroad; recently expanded Hengda capacity to 32.2M sq. meters with 9 production lines Received the certification of ISO9002, ISO9001 and 1$014001 in 1999; Gradually built up brand reputation Founded in 1993 as a manufacturer of outdoor ceramics tiles in ian
Slide 6: Investment Highlights
Investment Highlights « Prominent manufacturer of exterior ceramic tiles «Intent upon capitalizing upon China’s construction and urbanization trend * Plant capacity expansion enables capture of market share + Motivated distributors and direct sales drive revenue + Product customization enables premi
Slide 7: China's urban population and urbanization trend
> China’s total urban population reached 666 million in 2010 vs. 450 million in 2001 » The scale and pace of China’s urbanization trend is unprecedented: 219 cities of more than 1 million and an aggregate urban population nearing 1 billion are projected by 2025 > Tier | cities are expected to accoun
Slide 8: A Long-Term Trend of Strong Real Estate Growth in China
A Long-Term Trend of Strong Real Estate Growth in China » The scale of construction in China is immense: the expected future increase in cities is equal to the residential floor space of a number of European cities today Vv Strong underlying demand for housing is expected throughout the next decade;
Slide 9: Key Market Trends
Vv Key Market Trends Beneficiary of China’s long-term urbanization trend Product trend — New outdoor ceramic tiles products are “Green”, lighter, heat insulating and noise-reducing Potential of Tier Il and Ill Cities + Much of the growth in China’s GDP is being driven by economic activity in Tier Il
Slide 10: Competitive Landscape
Competitive Landscape » China’s outdoor ceramics tile industry is highly fragmented with hundreds of manufacturers >» More than 200 manufacturers are located in Jinjiang, with a combined annual production volume of 70% of China’s total production volume » Others are mainly located in Foshan, Zibo, L
Slide 11: Product types and share of sales
Porcelain Glazed Rustic 74% of Sales 10% of Sales 7% of Sales Pete Glazed Porcelain Ultra Thin Polished Glaze 5% of Sales 4% of Sales New product launched in Q2 2011 Wide array of standardized made-to-order products
Slide 12: Research & Development
Research & Development >» R&D is an integral component of the Company's culture and a key to its competitive advantage >» The 85 person team has developed over 2,000 types of different product combinations » Awarded Asia's 500 Most Influential Brands of 2010, one of China’s Most Valuable Brands in 2
Slide 13: Plant's ISO 9001:2000 accreditation
Plant’s ISO 9001:2000 accreditation signifies high quality control processes 13
Slide 14: Established and Loyal Customer Base
Established and Loyal Customer Base Real estate developers 11% of sales Domestic distributors 82% of sales » 89% of products sold to 40 exclusive domestic distributors and 6 international distributors > 11% of products sold directly to larger real estate developers via own sales ora » The top ten cu
Slide 15: Sales process with distributors
Discuss design and Sign product contracts specifications Introduction to After-sales customers Delivery service » Excellent communication between our sales force and distributors avoids overlapping of sales » Distributors required to make monthly reports on customer requirements » Provide installati
Slide 16: Representative projects
China Resources / The 11th National Land Limited Lanxi Town Games Village Hangzhou Redbud \ Xiamen Blue Shenyang Institute of Garden Gulf Peninsula Aeronautical Engineering 133,000 sq. meters 97,000 sq. meters 16 53,000 sq. meters
Slide 17: Stable Supplier Base
Stable Supplier Base Vv Clay and coal are the two major raw materials for tile production, accounting for 47% of COGS >» Over 10 years’ cooperation with key suppliers ensures on-time supply and reasonably stable pricing > All raw materials are inspected on delivery for quality control Raw Material %
Slide 18: Sustainable Gross Margins
tainable Gross Margins » Continued steady demand — backlog and channel checks indicate a steady pace of new construction projects. > Customized product — nearly all production is built to order for specific projects. > High quality manufacturing — ISO certified; international manufacturing equipment
Slide 19: Plant Expansion and Fully Funded Capital Expenditures
Plant Expansion and Fully Funded Capital Expenditures (Al Capacity figures in Square Meters) \Capacity as of Dec. 2010 28.0M 10.0 M 38.0M Current Capacity 42.0M 10.0M 42.2M [Anticipated Completion Date Expansion Completed Q3 2011 [Targeted Utilization Timeline Q3/Q4 2011 Q4 2011 (Q1 2011 Expenditure
Slide 20: Growth Strategy
x Growth Strategy — » Continue to capitalize upon strong brand awareness » Utilize the near doubling of production capacity >» Reach new markets — new Gaoan facility extends reach while reducing costs >» Continue to broaden product suite — through innovative R&D > Penetrate new markets — via a broad
Slide 21: Robust Revenue Growth
Robust Revenue Growth FYE: Dec 31 (USD In millions) 180 160 140 120 100 100 80 60 104.1 159.2 “ 73.4 20 0 T 2007 2009 2010 H12010 H12011 For statements of financial postion data, translation of RMB into U.S. dollars has been made using historic spot exchange rates published by ov. For statements of
Slide 22: Margins and profitability
35% 30% 25% 20% 15% 10% 5% Qi 2011 Q2 2011 Q1 2010 HM Net Profit M@ Profit Before Tax ™@ Gross Margin
Slide 23: Balance sheet summary
As of June 30 As of Dec 31 (USD In millions) 2011 2010 Cash 8.0 39.9 Debt 21.2 14.7 Total Working Capital 41.5 62.7 Shareholders’ Equity 157.5 133.7 Days Sales Outstanding 117 95 Inventory Turnover 83 73 ROE (TTM) 24% 25% 23
Slide 24: Capital Markets: Key Differentiators
Capital Markets: Key Differentiators Management Oversight * CEO founded the company and is well-known industry expert * CFO an English-speaking CPA formerly at Deloitte Touche * Independent Board directors with prominent business backgrounds * Former long-time partner at Price WaterhouseCoopers is y
Slide 25: Purchase Agreement Pay-Out
Purchase Agreement Pay-Out ee bala a Implied Growth | Shares Released to Seller 2009 223 1,214,127 on 5/26/10 2010 314 ~ 40% 4,794,800 on 4/7/11 2011 43.5 ~ 40% (a) (a) 2,176,836 shares are being held in escrow and remain to be released based on earnings targets; 3,008,927 shares have been released
Slide 26: Management team
Founder of Jinjiang Hengda Ceramics Co., Ltd. In 1993 Jiadong 20 years of experience in the China ceramic tile industry Huang CEO Vice Chairman of Fujian Province Ceramic Industry Association and Executive Director of Jinjiang City Chamber of Import and Export Trade Former CFO of a Sichuan switchgea
Slide 27: Board of directors
Founder and CEO of both Knox & Co., an investment bank, and The Westgate Group, an advisory firm which emphasizes business opportunities in China and Asia Paul K. Kelly Non-Executive A Served in senior management positions at several Wall Street investment banks Chairman Was the founder of CHAC, the
Slide 28: China Ceramics is a key competitor in a highly fragmented space
China Ceramics is a key competitor in a highly fragmented space Plant expansion and doubled capacity production will enable more dominant market positioning Sustainable competitive advantage due to capacity expansion, R&D, exclusive distributor relationships and world-class brands Construction mater
Slide 29: Appendix: Corporate Structure
Appendix: Corporate Structure China Ceramics Co. Ltd. (CCCL:NASDAQ) (BVI) Nov 2009 Nov 2009 100% v Success Winner Limited (BVI) May 2009 Jun 2009 100% v Stand Best Creation Limited (HK) Jan 2008 Apr 2008 100% wv Jinjiang Hengda Ceramics Co., Ltd. Sep 1993 Jan 2010 J 100% Jiangxi Hengdali Ceramic Mat
Slide 30: CCG Investor Relations
CCG Investor Relations Edmund Hen CFO David Rudnick Email: ami om. Tel: (1) 646 626 4172 Email: rudnick« SEC Attorney Loeb & Loeb Grant Thornton PRC Mitchell Nussbaum, Partner Tel: (86) 21 2322 0200 Tel: (1) 212 407 iso Email: Giovanni Caruso, Partner Tel: (1) 212 407 S566 Email: geez This Presentat
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