Winland Holdings Corporation · OTC:WELX
Winland — Winland Electronics — Investor Presentation (April 2001)
33 slides from Winland's investor presentation, Apr 10, 2001
Slide 1: Winland Electronics Is On the Move!
“Winland Electronics Is On the Move!” Position Statement: Winland universally recognized as a leading designer and manufacturer of custom electronic controls and assemblies in the Midwest. Kirk Hankins 4-10-01
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements that involve risks and uncertainties relating to future events, including but not limited to the statements under the headings "Business Strategy," "Goals for 2001" and " Highlights of 3-Year Plan." These statements are subj
Slide 3: Presentation Outline
Presentation Outline • About Winland • Valued OEM Partners • Value Added Electronic Manufacturing Services (EMS) • Industry Trend Analysis • Size of Target Market • Selling The “Right” Customer • OEM’s Rate Contract Manufacturers Highly • Market Opportunities - DC Motor & GPS • Industry Recognition
Slide 4: About Winland
About Winland • Based in Mankato, Minn. • Founded in 1972. • Focus changed to design and manufacture of custom electronic controls in 1984. • 115 employees. • AMEX listed: WEX
Slide 5: Valued OEM Partners
Valued OEM Partners: • Select Comfort • Johnson Worldwide Associates • Rimage Systems Group • Assembled Products • CIC Systems • Certified Power • Squid Ink • Leisure Life Limited • St. Croix Medical • Hypro Corporation • APG Cash Drawer • Infrared Solutions
Slide 6: Select Comfort Corporation, Minneapolis, Minn.
Select Comfort Corporation Minneapolis, Minn. "We have come to rely on Winland for their expertise in design and manufacturing for the best electronic solutions for Select Comfort's applications." – Kathleen J. Graber, Vice President Supply Chain Management Winland is only the second company to be a
Slide 7: Increase Value Added
Value Added Services increase Customer Confidence, Loyalty... and Result in Higher Gross Margins ...Winland offers all of the value added services below Product Design After Sale Multiple Disciplines Documentation Support Services Lowest Gross Margins Final Assembly Value Engineering ("Box Build") O
Slide 8: Industry Trends and Growth Drivers
Industry Trends and Growth Drivers 1. Continued Proliferation of Electronics... Since 1975 electronic equipment production has grown at a rate three times that of gross domestic production 2. Strong Markets support Electronic Manufacturing Services (EMS) Growth - • Medical Device Equipment Manufactu
Slide 9: Markets Served by the EMS Industry
Markets Served by the EMS Industry Computer 34.9% Communications 25.3% Industrial 19.4% Instruments 7.5% Automotive 4.5% Business Retail 4.3% Consumer Electronics 3.2% Gov. 0.9% Source: Circuits Assembly, "EMS Industry 2000" October, 1999
Slide 10: Multiple Trends Have Driven OEMs To Transfer Design & Manufacturing to EMS Partners
Multiple Trends Have Driven OEM’s To Transfer Design & Manufacturing to EMS Partners... • Rapid Technology Shifts • Speed to Market...A Key to Success • Focus on Core Competencies • Maximize Return on Capital • Mergers/Acquisitions & Downsizing As a Result... OEM’s Are Focusing on Front-End Processe
Slide 11: Size of Target Market
Size of Target Market • The Total Available Market (TAM) for worldwide Electronics Manufacturing Services (EMS) was $925 billion in 1998 and is forecasted to grow to $1.475 trillion by 2004.1 Fueled by this huge TAM, the current forecast shows the global market for contract EMS services growing from
Slide 12: The Bait...
The Bait... Our highly skilled employees, a world class facility, and our mix of value added services. Winland outserviced the competition & took these OEM customers away from them • Select Comfort • APG Cash Drawer • Certified Power • Infrared Solutions • Rimage Systems
Slide 13: Strong Growth for CEMS is Forecasted to Continue
Strong Growth for CEMS is Forecasted to Continue $260 Billion CAGR=28% $209.4 Billion $163.6 Billion $127.8 Billion $99.8 Billion $78 Billion 1999 2000 2001 2002 2003 2004 Eric Miscoll, Ph.D., "The EMS Industry: A Wall Street Darling." Circuits Assembly (October, 2000): 35-36. James Carbone, "Growth
Slide 14: Selling The "Right" Customers...
Selling The “Right” Customers... Winland Continues to Seek out and Capture OEM Customers that Require Services Beyond Traditional Contract Manufacturing 82% of sales came from customers who started a design project in the first year of the relationship. Scottsman Assem. Products CIC Systems Johnson
Slide 15: Profile Characteristics of The "Right Customer"
Profile Characteristics of The "Right Customer" • Likely to develop a high degree of technological dependence on Winland by relying on our engineering expertise. • Often a marketing driven company with a weak in-house electronic engineering department or rely on outside consultants. • Speed to marke
Slide 16: OEM's Rate Contract Manufacturers Highly
OEM's Rate Contract Manufacturers Highly How would you rate How much buyers spend the performance of your CM? with CMs. 20% Less Than 75% 20% $100,000 Good $1 Million 22% or More Excellent 10% 50% $500,001 $100,000 to 3% to $1Million $500,000 Fair 0% Poor Source: James Carbone, "What Buyers Look For
Slide 17: Buyers Role in Outsourcing
Buyers Role in Outsourcing (Multiple Responses Allowed) Evaluates Performance of CM's 70% Evaluates Capabilities of Potential New CM's 66% Make Site Visits 65% Recommends Which CM's to Use 62% Develops List of CM's 59% Part of Team That Selects CM 59% Selects CM 29% Source: James Carbone, "What Buye
Slide 18: Why OEM's Outsource
Why OEM's Outsource (Multiple Responses Allowed) Manufacturing Cost Savings 81% Avoid Capital Equipment Investment 57% Improve Time-to-Market 38% Increase Demand for Product 38% Obtain Technical Expertise 32% Design Assistance 16% Improve Quality 16% Source: James Carbone, "What Buyers Look For." Pu
Slide 19: What Gets Outsourced
What Gets Outsourced (Multiple Responses Allowed) Cable Assemblies 49% Sub-System Boards 43% Sub-Assemblies 32% Motherboards 30% Entire System Build 27% Design 21% Source: James Carbone, "What Buyers Look For." Purchasing (March 23, 2000): 32-38
Slide 20: DC Motor Controls
DC Motor Controls The WMC120 Series Motor Controls are designed for use with battery powered brush type permanent magnet DC (PMDC) motors. The controls offer precise single direction variable speed operation in a cost-effective, compact design. Several standard models are available to meet the volta
Slide 21: Market Opportunities for Current & Future Proprietary DC Motor Controls
Market Opportunities for Current & Future Proprietary DC Motor Controls • Personal Mobility Market - Electric Wheelchairs, personal carts, scooters, and hospital carts - Assembled Products, Batsey, Dane Industries • Floor Care Market - Motorized Scrubbers and Sweepers - Tenant • Electric boats and O
Slide 22: SatSource GPS Antennas
SatSource ™ GPS Antennas The SatSource GPS Antennas are designed for the rugged trucking environment and a wide range of other applications. The GPS antennas offer high performance in an economical, weatherproof, UV resistant package. Several standard mounting and cable configurations are available
Slide 23: World GPS Market (non-military)
World GPS Market (non-military) According to Bill Britton who is ABI’s $14.0 Billion senior research analyst, “the market is for hundreds of millions of GPS-enabled $13.0 Billion phones over the next 5 years” $11.8 Billion $9.8 Billion $8.0 Billion $7.0 Billion 2000 2001 2002 2003 2004 2005 Source:
Slide 24: Market Opportunities for Current & Future GPS Engines & Antennas
Market Opportunities for Current & Future GPS Engines & Antennas Wireless Handheld Products Automotive Products • Smart phones with GPS capabilities • Car Navigation Systems • Pagers with GPS capabilities • Car Security Systems • Emergency 911 & SOS Phones • Auto Emergency Response Systems • Asset T
Slide 25: Industry Recognition for Excellence
Industry Recognition for Excellence MACQ Awards- In October 1999 Winland received three quality awards at the Minnesota Area Council for Quality Awards Banquet. Awarded ISO-9001 Registration Status - In September 1999 Winland was awarded ISO-9001 registration status. CityBusiness Book of Lists Recog
Slide 26: Sales Revenues
Sales Revenues (in millions) 20 19.9 19.5 18.2 16 12 12.4 8 8.4 5.8 4 1995 1996 1997 1998 1999 2000
Slide 27: A Record Level of Sales Activity Occurred in 2000
A Record Level of Sales Activity Occurred in 2000 49 12 20 52 Sales Calls Visits & Tours Visits & Tours Sales Calls in 1st Qtr. in 1st Qtr. in 4th Qtr. in 4th Qtr. 65 18 46 Sales Calls Visits & Tours 28 Sales Calls in 2nd Qtr. in 3rd Qtr. Visits & Tours in 3rd Qtr. in 2nd Qtr. 212 Out of Town 78 In
Slide 28: A Record 109 Request for Quotation Packages Received During 2000
A Record 109 Request for Quotation Packages were Received During the Year 2000 48RFQ's 16 From Current 10 No Bids Customers Pending 6 N/A 38 Losses 61 RFQ's From Potential New customers 39 Wins RFQ Scoreboard Quotation Scoreboard for the Year 2000 for the Year 2000
Slide 29: Goals for 2001
Goals for 2001 • Increase stakeholder value by adding new OEM business and proprietary products to more efficiently utilize excess plant capacity. • Further upgrade quality systems, Winland achieved ISO 9001 registration in September, 1999. • Successfully introduce the new GPS antenna and DC motor c
Slide 30: Company Strengths
Company Strengths • Highly motivated and skilled workforce with a very low turnover rate. • Successful in forming long term relationships with customers. Winland has never lost a customer to the competition. • World class 58,000 square foot facility with automated production lines. • Positioned to c
Slide 31: Core Areas of Expertise
Core Areas of Expertise • global positioning systems (GPS) • analog cellular telephones • data transmission via AC line carrier • fine resolution ultrasonics measurement • ultra low power electronic circuits • DSP - digital signal processing • electro-hydraulic control systems • microprocessor hardw
Slide 32: What makes Winland so successful?
What makes Winland so successful? It is our people their abilities, enthusiasm, follow- through, performance and commitment. All Winland employees, except senior management, are eligible to participate in the company's stock purchase plan.
Slide 33: Vision, Mission and Core Values
V I S I O N Stepping up to the future together. M I S S I O N Winland Electronics is dedicated to providing creative, high quality electronic products and services for a changing world. C O R E VA L U E S P EO P LE Winland Electronics views people as its most valued resource and bases all human inte
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