Winner Medical Co. Ltd. Class A · SZSE:300888
Winner Medical Co. Ltd. Class A — Roth China Discover Tour (May 2007)
29 slides from Winner Medical Co. Ltd. Class A's conference presentation, May 16, 2007
Slide 1: Roth China Discover Tour
Roth China Discover Tour May 17, 2007 Winner Medical Group Inc. (OTCBB: WMDG)
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 o
Slide 3: Investment Highlights
Investment Highlights Premier manufacturer of cotton surgical dressings and disposable medical products Patented comprehensive product portfolio with significant competitive advantages Leading Chinese exporter of medical disposables #1 ranked Chinese exporter of cotton wadding, gauze and bandage sup
Slide 4: Current Main Customers
Current Main Customers Strong Base of Existing Business ~75% total sales generated through OEM channels World-class customer base ~55% of FY 2006 total sales derived from top 10 customers ~62% of revenues in first six months of FY 2007 derived from customers in Europe and Japan U.S. & Australia Neth
Slide 5: Medical Disposable Supplies Market – U.S.
$ $ Medical Disposable Supplies Market – U.S. Total U.S. medical disposable supplies market was $54 billion 2002 Non-woven and wound management disposables accounted for 7% and 10% respectively Total U.S. medical disposable supplies market is expected to grow to $79 billion by 2007 Source: Freedonia
Slide 6: Medical Disposable Supplies Market – Europe
Medical Disposable Supplies Market – Europe The EU medical disposable supplies market increased from €6.5 billion in 1998 to € 12.4 billion in 2003 Chinese imports accounted for ~6% of the total EU imports of cotton wadding, gauze and bandages Source: CBI - the Centre for the Promotion of Imports fr
Slide 7: Growth Strategy
Growth Strategy Nano assisted antibiotic materials (Projected to be additive to future woven gauze products) Revenue anticipated FY 2008 Cohesive and Self-Adhesive bandage materials Revenue generation effective first quarter of CY 2006 PurCotton ™ NEW - Non-woven, cotton spunlace product Revenue exp
Slide 8: Growth Strategy – Market Expansion
Growth Strategy – Market Expansion International Strategy Leverage existing OEM partnerships to aggressively market new Winner Medical products in Japan, Europe and the U.S. Shift product focus to higher margin, sterilized products Develop new OEM relationships Continually seek new distributors to e
Slide 9: Chinese Export Growth Potential
Chinese Export Growth Potential Total US and EU cotton wadding, gauze and bandage supplies market was ~$5.3 billion in 2004 Chinese exports accounted for ~11% of this market, or ~$600 million Winner Medical has commanded the leading China export position since 2002 Source: CBI, Freedonia Group, Chin
Slide 10: Product Portfolio Highlights
Product Portfolio Highlights Wide-ranging portfolio of medical supply products Surgical dressings, dressing packs, wound care dressings, protective products, medical instruments, dental products and hygiene products for the institutional and home care markets PurCotton™ – patented, potential “catego
Slide 11: Sample Product Offering
Sample Product Offering
Slide 12: Sample Product Offering
Sample Product Offering
Slide 13: Sterilized Products
Sterilized Products Higher margin products U.S. FDA approved for direct export of sterilized surgical dressings One of few Chinese companies approved for direct export to U.S. Direct shipment allows for customers to take advantage of Winner Medical’s lower labor costs and more efficient workflow pro
Slide 14: PurCotton™
PurCotton™ Patented, potential “category killer” cotton product Revolutionary new manufacturing process makes the PurCotton™ technology proprietary to Winner Medical Anticipate PurCotton patent in China will be issued by end of Q3 2007 Non-woven spunlace material utilizing cotton rather than petroch
Slide 15: PurCotton™ Target Markets
PurCotton™ Target Markets Traditional woven cotton market Significant product and cost advantages of PurCotton™ are expected to generate immediate interest and demand for the product Global medical disposables market is expected to grow 5-6% annually through 2010, with the non-woven segment growth p
Slide 16: PurCotton™ Sample Product Offering
PurCotton™ Sample Product Offering
Slide 17: Additional Product Opportunities
Additional Product Opportunities Self-Adhesive and Cohesive Bandages Technologically superior products at lower cost Product design enables uniform tearing without use of ancillary tools (weaving technology) Product cost advantages: Fully integrated production in low cost Winner Medical factories Re
Slide 18: Facilities
Facilities 2 Winner industrial parks (Shenzhen and Huanggang) 8 factories in Hubei Province, Shanghai, and Zhuhai All facilities in China: nearly 600,000 square meters New PurCotton ™ facility in Huanggang ISO 9001: 2000, ISO 13485: 2003 and CE certification R&D efforts Joint research program with H
Slide 19: Winner Medical
Weimer WINNER MEDICAL ES
Slide 20: Selected Quarterly Income Statement Highlights
Fiscal Year 2006 09/30/06 Second Quarter FY 2006 03/31/06 Second Quarter FY 2007 03/31/07 Selected Quarterly Income Statement Highlights $ 5.8 M $ 6.3 M $ 6.5 M $ 11.3 M $ 17.5 M $ 63.9 M $ 1.4 M $ 1.2 M Net Income (including Minority Interest) $ 1.5 M $ 0.98 M Pre-tax Income $ 1.5 M $ 1.1 M Operati
Slide 21: Revenue Mix and Sources
Revenue Mix and Sources Winner Medical’s products are exported to approximately 80 countries and 120 firms worldwide Distribution channels U.S., Japan and Europe: OEM suppliers Developing countries: Winner brand
Slide 22: Q2 Net Sales – Past Three Years
Q2 Net Sales – Past Three Years
Slide 23: Net Sales – Fiscal Year Comparison
Net Sales – Fiscal Year Comparison
Slide 24: Q2 Net Income – Past Three Years
Q2 Net Income – Past Three Years * Q2’05 net income includes one time gain of approximately 1.05 M from the disposable of a subsidiary
Slide 25: Net Income – Fiscal Year Comparison
Net Income – Fiscal Year Comparison * FY’05 net income includes one time gain of approximately 1.05 M from the disposable of a subsidiary ** FY’06 includes the first three quarters that Winner Medical was a U.S. listed company
Slide 26: Selected Quarterly Balance Sheet Highlights
September 30 2006 March 31 2007 Selected Quarterly Balance Sheet Highlights $ 67.2 M $ 52.3 M $ 0.1 M $ 14.7 M $ 67.2 M $ 35.8 M $ 29.8 M $ 11.3 M $ 4.3 M $ 41.4 M Property, Plant & Equipment, net $ 13.1 M Inventories, net $ 29.4 M Total Current Assets $ 72.5 M Total Liabilities and Stockholders’ Eq
Slide 27: Capital Market Summary
Capital Market Summary Ticker Symbol WMDG Market & nbsp; OTC Bulletin Board Fiscal Year End September 30 Recent Price (as of May 11, 2007) $3.50 Shares Outstanding 44.7 million Market Capitalization $156.5 million Cash Position (as of Mar 31, 2007) $4.2 million Working Capital (as of Mar 31, 2007) $
Slide 28: Summary
Summary Winner Medical is the “best in class” manufacturer of cotton surgical dressings and disposable medical products with a strong base of revenues, customers and capabilities Global surgical dressings and medical disposable supplies market is expected to continue to generate strong demand Winner
Slide 29: Thank you
Thank you investors@winnermedical.com www.winnermedical.com
Winner Medical Group — Roth China Discover Tour (May 2007) on 6ix