Shiner International — Investor Presentation (April 2011)
29 slides from Shiner International's investor presentation, Apr 20, 2011
Slide 1: Shiner International, Inc. - Flexible Packaging Solutions Provider
_ = { = SisElin SiR sab SHINER INTERNATIONAL, INC. _—e cad) Shiner International, Inc. April 2011 Flexible Packaging Solutions Provider
Slide 2: Hainan and Zhuhai Facilities
Slide 3: Safe Harbor Statement
Safe Harbor Statement This presentation includes or incorporates by reference statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements relate
Slide 4: Investment Highlights
Investment Highlights Thriving and Fast-growing Industry: China’s food industry surpassed RMB 4 trillion in 2010. As China's food and beverage production industry continues to thrive steadily, the use of packaging products will increase, creating a strong demand for Shiner's products. Customized and
Slide 5: Market Cap, Float, Revenue and Cash
Market Cap (4/4/10) Float (4/4/10) Revenue (12/31/10) Cash (12/31/10) Fiscal Year End 31-December Number of Shares & ‘SHINER INTERNATIONAL, INC.
Slide 6: Corporate History
Corporate History Hainan Plastic industry Co, Ltd, the predecessor of Zhuhai Huanuo Packaging Shiner Industrial acquired Shiny- Shiner international, was founded and the frst Material Co. incorporated in day & Hainan Hi-Tech to achieve ‘production line was introduced from Tokyo. ‘Guangdong Provice e
Slide 7: Company Overview
rT] Eo Company Overview One of the largest flexible packaging manufacturers in China and emerging leader globally, with over 50 customers in 20 countries Focused on value-added, specialty packaging using proprietary film structures Headquarters in Haikou, P.R.C.; facilities in Hainan and Zhuhai R&D
Slide 8: China's Packaging Industry Growth
China’s Packaging Industry Growth = CHINA’S PACKAGING INDUSTRY = The world’s second largest packaging market = Market is worth over USD 81 bill = China's 14" largest industry, contributing about 2.5% of the country’s GDP = GOVERNMENT SUPPORT = 2008 the Mi ry of Finance established fund to support th
Slide 9: International Flexible Packaging Growth Drivers
International Flexible Packaging Growth Drivers WORLDWIDE DEMAND = Converted flexible packaging demand forecasted to grow at 3.6% per year to over 19 million metric tons by 2013 = Environmentally friendly product image, cost advantages compared to rigid containers UNDEVELOPED PACKAGING MARKETS + Pop
Slide 10: Product Categories
Product Categories Food Safe Packaging = Annual Capacity: 15,000 metric tons High bari to vapor and oxygen, longer F = Excellent moisture, oxygen barrier metal packaging, single layer compared * Outstanding flavor and arama barrier: with multilayer * Superior machinability and sealability ————- = Ou
Slide 11: Applications and Benefits
Applications: Benefits: * Commercial Packaging * Reduces waste * Food and Beverage * Lower energy requirements * Medical/Surgical * Extended shelf life * Pharmaceutical * Easy storage * Cosmetics * Lower weight * Consumer Products * Environmentally friendly & ‘SHINER INTERNATIONAL, INC.
Slide 12: Sales by Product Category
Sales by Product Category Advanced film 24.3% Flexible packaging 75.5% + Anti-counterfeiting films + BOPP tobacco films + Coated films + Color printing products The Company made certain reclassifications to its business segment information for the year ended December 31, 2010 in order to more closel
Slide 13: Geographical Sales
Geographical Sales __— a] MiddleAustralia, 4.14% North South East, 2.92% America, 2.96%America, 0.09% ——————Furope, 0.62% Africa, 0.50% — Asia (outside China), 7.65% China Mainland, 81.13 % & ‘SHINER INTERNATIONAL, INC.
Slide 14: Innovative Technology
Innovative Technology + Superior barrier properties + Reduces material volume + Lower product cost + Increased shelf life a UniSpecial i a UniGard iss + Increased properties important solutions to our customers and special functions + Provides anti- counterfeit and other BariCoated film Food Safe Pa
Slide 15: Proprietary Film Manufacturing Technology
Proprietary Film Manufacturing Technology Specialty film using BOPP as a base film for coated, anti-counterfeit, and tobacco BOPP films. Specialization improves water vapor and gas barrier properties, visual quality and printability of films. Customized film based upon customers’ needs COATING FILM
Slide 16: Competitive Advantages
Competitive Advantages + Price - We have a lower operating cost basis than most of our international competitors due to economies of scale and the proprietary design of our own production lines = Quality - In the domestic Chinese market, our products generally exceed accepted industry standards, and
Slide 17: Manufacturing Facilities
Manufacturing Facilities = 2009: Zhuhai manufacturing facility began operations = 2009: Began construction in Hainan on new manufacturing facility 10,000-ton tobacco film production line will be set up, and will become operational in mid-2011 2011: The Company plans to set up a new manufacturing fac
Slide 18: Sales and Distribution Network
Experienced, knowledgeable and _customer- oriented marketing team 30 employees in our marketing group, 10 of whom have worked in the industry for ten years or more and are familiar with buyers’ changing needs and concerns New sales offices opened in Shanghai = Shanghai sales office focuses on the do
Slide 19: Key Customers
Henan Shineway Industry Group Co. The largest meat processing company in China with US$ 6 billion in sales. Tingyi Holdings The leading producer of instant noodles, beverages and baked goods with US$ 6 billion in sales, 549% market share of the instant noodle market in China, Want Want China Holding
Slide 20: Case Study - Shineway
Case Study - Shineway Shineway is the largest meat processing company in China with sales of 6 Billion USD in 2009. Shineway’s high-temperature meat products accounted for sales of 1.4 Billion USD in 2009. ‘ Existing Packaging Problems: Current material used for processed sausage is PET f (polyethyl
Slide 21: Financial Summary
Total Revenue ey a8 ‘Growth Over Prior Year 219% 250% Gross Profit 66 85 Margin 195% 200% ‘BITDA a3 58 ‘Margin De% 136% or 38 52 Margin fre 2% amnings from Cont. Ops. 36 45 ‘Margin 105 106% Dilated EPS on 028 ‘Growth Over Prior Year 169% 91% 20% (33189 685K 46 93 185% 3K 169% 6s 18 6a 125% 42% 110%
Slide 22: Margins and Equity Ratio
1.6 30% 14 25% 1.23 1.24 20% 15 7 eaBvs isl Equity Ratio —Net Margin 10% 5% 2007 2008 2009 2010 & ‘SHINER INTERNATIONAL, INC.
Slide 23: Gross Profit and Net Income
Gross Profit (USS million) 2 oa 38 10 es 3 _ 6 46 a ° : oom ee o/ ° 2006 2007 2008-2008 2010 2006 2007-2008 2009-2010 Net income (US$ milion es 7 (USS milion) ° a3 ° = ° — ° ° _ ° ° 2006 2007 «2008-2009 2010 + Over 68% year-over-year revenue growth in 2010 + Improving profit margins year-over-year &
Slide 24: Balance Sheet
Balance Sheet es Sas i... 7) Balance Sheet ASSETS UABILiEs Cash And Equivalents 3516 3.060.622, Accounts Payable 3799 2668 5380 Total Cash & ST Investments 3816 3.060 8622 Accrued Exp. ot 019 ore ‘Short-term Borrowings 884 aw 6227 Accounts Receivable 7595 6406 10.005 —_Uncamed Revenue, Curent os 023
Slide 25: Growth Strategy
Growth Strategy Growth Strategy Technology & Customer Manufacturing Innovation Focus Excellence SSS a Sa > Focus on material > World class » Focused factory > Complementary science customers strategy products and > Strong RED > Diversified World class. zeporanhies Capabilities geographically manufac
Slide 26: Top Management Team
Top Management Team Mr. Qingtao Xing, CEO & President Mr. Xing became President of Shiner in 2008, prior to serving as Shiner's vice pres 2008, Mr. Xing worked as a project development associate for LaSalle Investment Management. Mr. Xing received his master of professional studies degree from Corne
Slide 27: Awards & Certificates
Awards & Certificates ne el November 2003 "? ISO 9001:2000 Certificate China Certification Center for Quality Mark September 2007 Tech Enterprise of the National Torch Program ‘Ministry of Science and Technology ‘Awarded as one of the Top Ten Leading Enterprises in China CNTV.COM, the website for Ch
Slide 28: Investment Highlights
Investment Highlights ‘Thriving and Fast-growing Industry: China's food industry surpassed RMB 4 trillion in 2010. As China‘s food and beverage production industry continues to thrive steadily, the use of packaging products will increase, creating a strong demand for Shiner’s products. Customized an
Slide 29: Contact Information
Contact Information Company Contact: Dave Gentry, U.S. RedChip Companies, Inc. Tel: +1-800-733-2447, Ext. 104 Tiger Tong, China RedChip Beijing Representative Office Tel: +86-381-083-5002 Auditor: Goldman Parks Kurland Mohidin LLP Joanna Liu, China Investor Relations Department of Shiner Legal Couns
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