Shengtai Pharmaceutical — Non-Deal Roadshow (October 2010)
19 slides from Shengtai Pharmaceutical's roadshow presentation, Oct 18, 2010
Slide 1: Shengtai Pharmaceutical, Inc. (SGTI) Non-Deal Roadshow October 2010
—>henstai SHENGTAI PHARMACEUTICAL, INC. (SGTI) ad Sl } _ Non-Deal Roadshow October 2010
Slide 2: Safe Harbor Statement
Safe Harbor Statement Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Any statements set forth in this presentation that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially
Slide 3: Business Overview
iness Overview ‘To become a Leading Provider of IEEE Ghicose and Starch Products in| China an Fy Founded February 1999, proven track P record of success 7 : Po ae n 7 Weifang, Shandong Province, within [iments 0900 0 ca Headquarters PARR Net Profit mm) Production eo ee CRE cone-20 000 tonese 2? }/-
Slide 4: Products
Products Pharmaceutical Raw Materials Raw Materials for F&B Industry Pharmaceutical Grade Comstarch, Starch F&B Grade Comstarch, Com Mother Co-Products "om Fibre fi] Corn Meal a Ss hengtai ‘SHENGTAI PHARMACEUTICAL, INC.
Slide 5: Glucose
Glucose Workshop ‘Clean & Dry ZN alization Tspissation Discolor Tiler ‘99% Raw Material Utilization Rate F&B Grade ‘Com-to-starch ratio of 0.69 ‘SHENGTAI PHARMACEUTICAL, INC. ~>hengtai
Slide 6: Experienced Management Team and Boards
Experienced Management Team and Boards iw Hw Ye CEO, Chairman cro ctrl Engineering, Shandong, “MA. in Bonomi, Univesity of Toronto a Universty “inet Sheng in 210 20 years experience nancial industry Feifte faojun Liu Independent Diretor Independent Director ALM, Sten $M. Mia Caos Winfred Lee Indepen
Slide 7: Growth Strategy
Growth Strategy Control Costs Strengthen Position as a Leading Supplier of Glucose and Starch, Products Improve Margins Expand Production pacity < hengtai ‘SHENGTAI PHARMACEUTICAL, INC.
Slide 8: Financial Highlights
Financial Highlights Cash Flow From Operations Gross Profit and Gross Margin ™ a 103% 3 Ea 15.2% = FYO9 FY10 FYOo FY10 ot mom sd 494 135 all ._ Ll >hengtai ‘SHENGTAI PHARMACEUTICAL, INC.
Slide 9: Financial Highlights (Cont'd)
Financial Highlights (Cont'd) Income Statement Balance Sheet For the 12 months For the 12 months Ended june 30, 2009 2010 | 20118 Ended june 30, 2009 2010 (Smitions) (000) ae 733 11595 19000| | Cash&Cash Equivalents 1,779 4,123 Gross Profits 752 17.68 Surrent Assets En ticnd Total Assets 124931 130,
Slide 10: Financial Highlights (Cont'd) - Capitalization Table
Financial Highlights (Cont'd) Capitalization Table Warrants Basie Common Shares % Basie Common | grie rce: $260 Expire: May 1 Founder ingtai Liu 7,378,005 43.60% Public holders, including: Pope Investments, LLC 2,650,000 16.39% See ei 1,025,000 634% Other 5,116,780 31 ‘Total 16,169,805 100.00% 4,398
Slide 11: Market Dynamics - Pharmaceutical Grade Glucose
Market Dynamics - Pharmaceutical Grad luction value of China's pharmaceutical industry is expected to grow at an average MERI yernment announced an RMB 850 billion 1a aged 60 or above will grow to 200 million in 2014 and 300 million by Per capita spending on th care is expected to inerase 18% per ye
Slide 12: Rapid Growth of Chinese Food and Beverage Industry
Rapid Growth of Chinese Food and Beverage Industry = — 2008 Food mBeverage arch products from the F&B industry to grow 10% per year through 2016 Price of White Sugar vs. Cornstarch Sweeteners, —>hengtai ‘SHENGTAI PHARMACEUTICAL,
Slide 13: Market Dynamics - Cornstarch
sof supply from forming in th ouraging ‘ ‘CAGR of 10% from 2007-200, owen from 20% Since 209, reduced output coupled with strong demand has comm prices < hengtai ‘SHENGTAI PHARMACEUTICAL, INC.
Slide 14: Market Dynamics - Cornstarch (cont'd)
Market Dynamics - Cornstarch (contd) Cornstarch Production in China Market Share By Production (mm tons) 1685 Low revenue concentration, consolidation Shenglal Curent Market Shae:1.38% i 8 ‘opportunity ¥ Annual Production capacity of 300,000 tons Majority of customers concentrated in F&B industry “
Slide 15: Proven Record of Execution
ET * Proven Record of Execution YI) - Strong Revenue Management 3 * Effective Cost Control Ss hengtai ‘SHENGTAI PHARMACEUTICAL, INC.
Slide 16: Chinese Operational Headquarters
| Chinese Operational Headquarters < hengtai >! ¥ Obtained stron Core Management team with 10+ years industry experience Built strong reputation within the glucose and comstarch indus customers stich as Shuanghe Built a distribution network extending across all provinees in the PRC except Tibet Expo
Slide 17: Strong Revenue Management
Strong Revenue Managemen Low Revenue Concentration Revenue Contribution from Top 10 Customers Over ‘Good AR collection, with DSO of 45 days in FY 2010 Not dependent on distributors oF middlemen for sales Substantial percentage of revenue is from repeat ‘customers agen (GPRS — Ketun Pharmaceutical @
Slide 18: Effective Cost Control
Effective Cost Co: Shandong: Com production ranks 24 Chinese provinces Favorable Location “St On Site Power and Gas Plant supply of raw materials “Low transportation Costs “Convenient acess to port of Qingdao 1 20P% equity owners aS > 19.7% discount off market price of electricity and heat Located n
Slide 19: Thank You!
<— he ngtai SHENGTAI PHARMACEUTICAL, IN Thank You! October 2010
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