Winner Medical Co. Ltd. Class A · SZSE:300888
Winner Medical Co. Ltd. Class A — Investor Presentation (February 2011)
30 slides from Winner Medical Co. Ltd. Class A's investor presentation, Feb 28, 2011
Slide 1: Winner Medical Group Inc. (NASDAQ: WWIN)
PurCotto Weimer URE BEET & A Winner Medical Group Inc. (NASDAQ: WWIN) A Leading Medical Dressings Manufacturer and Home Care Provider February 2011
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains certain statements that may include "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. All statements other than statements of h
Slide 3: Content
Oak on = Content . Overview . Market and Distribution Channels . Competitive Strengths . Management . Financials . Investment Highlights 3 Weimer
Slide 4: 1.1 Company Overview
1.1 Company Overview Revenue nded in 1991, headquartered in Shenzhen, China and listed in «ss NASDAQ in April 2010 is 15%, Pie jing Chinese manufacturer and exporter of high 2 13% quality cotton-based medical dressings for nine “ 929 25 7 45 consecutive years* 3 [222 {ucts portfolio covers: Medical
Slide 5: 1.2 Company Stock Snapshot
1.2 Company Stock Snapshot NASDAQ GM: WWIN FYE: Sept. 30 Stock Price (02/25/11) $5.22 Shares Outstanding 24.1MM Market Capitalization $125.9MM. Cash and cash equivalents (As of 12/31/10) $10.9MM Short-term bank loan (As of 12/31/10) $6.0 MM Revenue (TTM as of 12/31/10) $119.0MM. Net Income (TTM as o
Slide 6: 1.3 Investment Highlights
1.3 Investment Highlights An established player in the medical dressing market — leading exporter of medical dressings from China* Long-term relationships with key overseas markets using cost and quality advantages of one-stop-shop and tailor-made solutions Gaining domestic market share as more cust
Slide 7: Content
N= Oar w Content . Overview Market and Distribution Channels 2.1 Export of Medical Products 2.2 Domestic Sales in China of Medical Products 2.3 Retail Sales of PurCotton® Products Competitive Strengths Management Financials Investment Highlights : Weimer
Slide 8: 2. Market and Distribution Channels
2. Market and Distribution Channels SN < Medical Dressings Products International Markets: Europe, Americas and Japan serving as major markets Domestic Market: Winner® branded products PurCotton® Consumer Products Domestic Market: PurCotton retail business. Domestic and International: PurCotton raw
Slide 9: 2.1 Medical Product Segment
2.1 Medical Product Segment Medical Care Products Wound Care Products Operating Room Products ¥ Dressing Pad v Procedural Packs ¥ Cotton Products v Protective Products and Gauzes Retention Products and Dental Products (esses ame, eI. MARTY
Slide 10: 2.1 International Sales: Trends and Observations
v v v v v v v 2.1 International Sales: Trends and Observations China export for medical dressings ~ $1.0 billion from Jan. to Oct. 2010 - 16% year over year growth* China maintains No.1 exporter in global medical dressing products ‘WIN has been a leading exporter of medical dressings for 9 consecuti
Slide 11: 2.1 International Sales: Broad Base of International Customers
2.1 International Sales: Broad Base of International Customers emmy g45.0 $923 $39. $2.3 $20.0 $16.6 kL bid $15.0 9.058.0 9,288.1 s $10.0 LL. $s. $50 6 $0.0 Europe China Americas Japan Other BFYO9 wFYI0 mIQFY2011_w1QFY2010 1.6% Y 27.3% \@Europe China @Americas Japan mother Europe China MAMerca eee s
Slide 12: 2.1 International Sales: Broad Base of Customers
2.1 International Sales: Broad Base of Customers Europe Japan North & South America ¥10+ years in the marketplace 15+ years v5+ years BSNewic) tly Germany CardinalHealth NS ius 7/smith&nephew vernoncarus “8 S'™ . ‘ntea Recor Ea covinien United States ® Weimer
Slide 13: 2.2 Domestic Market for Medical Products: Advantages and Opportunities
2.2 Domestic Market for Medical Products: Advantages and Opportunities Domestic medical products represented 11% of sales for Q1 FY 11 v_ Product Differentiation : Focused on sterilized and packs products Y Price Differentiation : Lower price than exported products with same quality but better quali
Slide 14: 2.2 Domestic Sales: Expanded Sales Network
2.2 Domestic Sales: Expanded Sales Network: “N “N ~ “N N As percentage of market share, “Winner®” brand ranks # 3 in China medical dressings* We have been actively building distribution networks in major cities—Eight offices Close cooperation with 7 out of the top 10 drug store chains in China Direc
Slide 15: PurCotton Brand Positioning
RIOR ames < < < < < Philosophy: Let medical products close to your life, let pure cotton take care of your healt Brand Positioning: Healthy, Comfortable and Eco-friendly Target Customers : Females and households with medium to high income bracket Price Positioning : Medium to high Products Different
Slide 16: 2.3 PurCotton® Strong R&D Foundation
2.3 PurCotton® Strong R&D Foundation PurCotton, 100% cotton spunlace nonwoven, is more than an advanced and leading technique; it is a life attitude and inspiration sublimated from the technique. Manufacturing process patented in more than 50 countries and regions Continuous R&D on value-added PurCo
Slide 17: 2.3 PurCotton® Addressable Market
2.3 PurCotton® Addressable Market Products for Consumers & Market Size Medical Practitioners ¥ In 2008, 68% penetration rate domestically for sanitary napkin vs. Feminine products over 90% in developed countries* Baby diapers ¥ 20 million 0-3 yr old infants in . China with less than 2% Adult inconti
Slide 18: 2.3 PurCotton® Domestic Retail Expansion
2.3 PurCotton® Domestic Retail Expansion Retail snapshot: ¥ Established 100%-owned Shenzhen PurCotton Tech. Ltd. ¥ Goal: High-end medical grade PurCotton brand ¥ Products Units: 400 by year end 2011 from 200 v Multi Market Channels: Own-operated retail stores, online sales supermarket and Group Purc
Slide 19: Content
Content 1. Overview 2. Market and Distribution Channels 3. Competitive Strengths 3.1 Quality Control System and R&D Efforts 3.2 Management System 4. Management 5. Financials 6. Investment Highlights nha. amas. ame, » Weimer
Slide 20: Strict quality controls
Strict quality controls Vertically integrated: begins with raw material processing and ends with export of finished products 12 wholly-owned subsidiaries and 3 joint ventures Operating primarily in Hubei Province - one of the homes for cotton Comprehensive procurement solutions to customers Design a
Slide 21: 3.2 Management systems
3.2 Management systems Advanced management systems provide foundation for efficient operations: < < < v SAP and ERP Systems, covering i sales, cost control, finance, human resource and retail Strict Quality Management System FDA Certificates, CE Certificates, Japanese Certificates and 1S013485 Certi
Slide 22: 4.1 Strong and Experienced Management Team
4.1 Strong and Experienced Management Team Name Experience EES Xiuyuan Fang CFO Kang Hu VP -IT Xia Tang VP - Operation Seem, RGR. mee Founded Group in 1991 Developed strategic vision; oversees implementation of business plan 30 years’ of experience in medical dressing industry Personality of passion
Slide 23: 4.2 PurCotton Experienced Management Team
4.2 PurCotton Experienced Management Team Name Experience Yunfei Ye Chain Stores cM Cao Hui Beijing Branch GM Zhenkun Fu Shanghai Branch cm Seem, RGR. mee S608 8 114 years of extensive experience in sales, chain store management and operation 5 years as operating director in ITAT garment chain store
Slide 24: Content
Ook oN = Content . Overview . Market and Distribution Channels . Competitive Strengths . Management . Financials . Investment Highlights a Weimer
Slide 25: 5.1 Segment Analysis & Margins
5.1 Segment Analysis & Margins (sinwmy FY2008 FY2008 Fy2010 QiFY2010 © Qt FY2011 $855 $98.4 $1150 $298 $33.7 Traditional Products 44 929 104.9 273 292 PurCotton Products 10.1 Traditional Products PurCotton Products Traditional Margin PurCotton Margin Gross Profit Margin Net income, 54 4 194 39 ‘Net
Slide 26: 5.2 Balance Sheet
5.2 Balance Sheet Sept 30, 2010 Dec 31, 2010 Cash and Cash Equivalents Accounts Receivables Inventories Fixed Assets Total Assets Short-term Loan Account Payables Total Current Liabilities Total Liabilities Total Shareholders’ Equity
Slide 27: Content
Oak on = Content . Overview . Market and Distribution Channels . Competitive Strengths . Management . Financials . Investment Highlights a Weimer
Slide 28: 6. Investment Highlights- Growth Strategy
6. Investment Highlights- Growth Strategy Market and expand PurCotton® — Medical & consumer products, mid to long term strategy Expand domestic i Develop New Products for existing International Customers distribution network for Winner® Branded products sis, ROR, MRE 2 ‘enmer
Slide 29: 6. Investment Highlights
6. Investment Highlights An established player in the medical dressing market — leading exporter of medical dressings from China* Long-term relationships with key overseas markets using cost and quality advantages one-stop-shop and tailor-made solutions Gaining domestic market share as more customer
Slide 30: Contact Information
Contact Information Corporation Investors Winner Medical Group Inc. HCI International Inc. Ms. Huixuan Chen (Fiona) Scott Powell Tel: (86) 755 2806 6858 Tel: (1) 917 721 9480 Email: investors@winnermedical.com Email: scott powell@hcinternational.net Website: www.winnermedical.com www. purcotton.com
Winner Medical Group — Investor Presentation (February 2011) on 6ix