Winner Medical Co. Ltd. Class A · SZSE:300888
Winner Medical Co. Ltd. Class A — Investor Presentation (January 2010)
32 slides from Winner Medical Co. Ltd. Class A's investor presentation, Jan 29, 2010
Slide 1: A Leading Medical and Wound Care Dressings Manufacturer
Weimer winner mepicac ——— A Leading Medical and Wound Care Dressings Manufacturer January 2010
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
Slide 3: Leading worldwide manufacturer and exporter of cotton medical dressing products
Leading worldwide manufacturer and exporter of high quality cotton based medical dressing products including medical care, wound care, home care and PurCotton® products. Rapid expansion in China through sales in hospitals, chain drugstores and distributors. Launching branded consumer products to gai
Slide 4: Company History and Key Milestones
Company History and Key Milestones SteadquaerstoSharan Sextene 2001 Woreeranguang and ‘ene Sune Wma Heng Kong | Were Wore bs! Wine aena (wens | | Purceten mand || Chora Wore ‘tare Medea Grp has a ccc Leng Med iestojesated | | sarmncndapeston | | Hime eat ou 1905 1900 1967 ve renga sng tind i ng Sxti
Slide 5: Select Financials
Select Financials Last-Traded Price (01/26/10) $6.64 224M $148.7 M 82.2% Shares Outstanding Market Capitalization Management Ownership Fiscal Year End September 30 Revenue FY 2009 $98.4M +15.1% Net Income FY2009 $9.1 M +80.2% Cash Flow from Ops -FY09 $9.9M +153.8% Working Capital - FY2009 $23.0 EPS-
Slide 6: Medical Care Products
Medical Care Products - operating room products, procedural packs, protective products and gauze Wamer winner meoicac
Slide 7: Wound Care Products
Slide 8: © 2008 Winner Madi a ‘Ter WINNER MEDICAL
© 2008 Winner Madi a ‘Ter WINNER MEDICAL
Slide 9: International Sales - Top Tier Clients
International Sales - Top Tier Clients Broad Base of Customers ¥ 19+ years of business relationships with BSN) ise \~) leading multinational medical producers and distributors that employ high quality standards Germany Netherlands V Diversified customer base of 150+ clients, with the top 10 customer
Slide 10: International Sales - Continued Global Demand
International Sales - Continued Global Demand Industry demand driven by technological advances and new healthcare industry demands Favorable market trends: ¥ Aging demographics ¥ Hospitals reducing costs, fuelling demand for alternative products that increase efficiency and reduce labor ¥ Environmen
Slide 11: International Sales - Growth in Exports from China
International Sales - Growth in Exports from China Strengthening Overseas Market Penetration Medical Dressing Exports from China & —v Export growth is driven by manufacturing shift US$ millon to lower-cost labor and manufacturing areas b= fF China exported $3.1 billion USD worth of medical dressing
Slide 12: International Sales - Worldwide Marketing and Distribution of Products
International Sales - Worldwide Marketing and Distribution of Products Winner Medical Products Sold in about 80 Countries across the World (2010 Winer Mea 2 Wamer winner meoicac
Slide 13: Increasing Margin Driver
increasing Margin Driver Expanding Domestic Market Demand ¥ Demand in China for disposable medical products has grown 14% per year since 1990" ¥ Demand for China medical dressing was ~$1.Sbillion in 2008, CAGR expected to be >30% from 2009- 2013" ¥ 12.8% of Winner Medical sales were within China in
Slide 14: PurCotton 100% Cotton Nonwoven - New Flagship Product
PurCotton® 100% Cotton Nonwoven - New Flagship Product PurCotton®--Winner Medical manufactured patented# revolutionary manufacturing methodology for 100% cotton nonwoven products New technology lowers production costs ¥ Eliminates about 90% of labor costs ¥ Significantly reduce production lead time
Slide 15: PurCotton Addressable Markets - Consumer Market
PurCotton® Addressable Markets-Consumer Market PurCotton® products can be utilized in the consumer market Products: Feminine products, Baby diapers, Adult incontinence products, Daily wipes, ete Huge Addressable Market Market size of disposable hygiene products in China was ~ $6.0 billion in 2007, a
Slide 16: PurCotton Addressable Markets - Medical Dressing Market
PurCotton® Addressable Markets-Medical dressing Market PurCotton® products can be utilized in the medical dressing and medical disposable markets Products: Gauze products, surgical gowns, etc. Huge Addressable Market World output for medical woven products was 1.5 million tons in 2000, total value o
Slide 17: PurCotton - Revenue Expansion Opportunities
PurCotton® — Revenue Expansion Opportunities PurCotton® product line: Roll out on track ¥ Revenue in FY 2009 increased 302.4% year over year to $5.5 milion ¥ Sell both jumbo rolls and finished medical products ¥ Currently has two production lines operating at full capacity with 200 tons per month; a
Slide 18: PurCotton consumer products go-to-market and retail stores
Objective is to provide customers with medical grade 100% cotton products, commitment to promote environmental protection and sustainable development ¥ Utilizing recognized marketing firm to implement extensive go to market strategy ¥ Various distribution channel: chain stores, supermarkets and dist
Slide 19: Research & Development
Research & Development Driving Innovation through Dedicated R&D ¥ 80+ professionals dedicated to R&D efforts ¥ R&D expenses increased from ~1.5% to ~2.1% of revenue over the past four years ¥ PurCotton ® R&D is enhancing the manufacturing process, shortening the production cycle, reducing waste and
Slide 20: Vertically Integrated and Expanding Production Capacities
Vertically Integrated and Expanding Production Capacities Strict Quality Controls; Advanced Production Technology Y Fully integrated production capabilities from upstream raw material processing to export of finished products ¥ Provides total procurement solutions to customers, including design and
Slide 21: Strong and Experienced Management Team
Strong and Experienced Management Team Jianquan Li - CEO, President and Director ¥ Founder of Winner Group and has served as Chairman and CEO since subsidiary company's formation in 1991 ¥ Key to developing the strategic vision; oversees the implementation of business plan Xiuyuan Fang — CFO, Vice P
Slide 22: Growth Strategy
Growth Strategy Consolidate Product Portfolio & Customer Mix to Drive Margin Growth ¥ Migrating to higher margin products and reducing production and sales of non-core and low growth products ¥ Focus on sales expansion and penetration into high quality, leading international brands who are willing t
Slide 23: Strong Revenue and Profit Growth
Strong Revenue and Profit Growth Revenue Growth (YOY) Cost of revenues 18,530 19316 64,086 70488 Gross profit 6689 854 nag zon Gross profit margin 26.5% 30.2% 25.1% 284% SGBA, and RAD expenses 3.856 4,90 14497 16.874 Operating profit 2139 3.855 6,020 11428 Operating profit margin 25% 13.9% 7.0% 116%
Slide 24: Robust Profit Growth
Robust Profit Growth son7 4907 1008 2008 S008 4003 1009 zc03 SOD 4009 Gross Margin Net Margin Quarterly Net Profit : 2.95 F gies > 3 1.64 ae 1.60 1s 1 037 os ° a2 mages S007 ae Witmer winneR meoicac 2010 Winer Mesa!
Slide 25: Healthy Balance Sheet
Healthy Balance Sheet Key Balance Sheet Items (in millions US$) As of As of ‘Soptomber 20, 09 ‘September 20, 08 Cash and cash equivalents 9.49 6.46 ‘Accounts Receivables 13.15 13.52 Inventory 1493 15.84 Current Assets 44.70 41.33 Total Assets 100.94 101.92 Short-term bank loans 6.59 15.03 Current Li
Slide 26: Investment Highlights
Investment Highlights Solid Revenue Growth with a Strong Focus on Profitability ¥ Consistent robust revenue growth: CAGR 20.8% 2003-2009 ¥ Focus on margin expansion to enhance profitability Extensive Overseas Distribution Network and Strong Market Leadership Position Y Largest exporter by volume in
Slide 27: Thank You
Wimmer WINNER MEDICAL Thank You
Slide 28: Appendix
Wemer WINNER MEDICAL Appendix
Slide 29: Organizational Structure
Organizational Structure & Winner Medical Group inc, 400% contol =e Winner Group Limited Eight wholly owned operating subsidiaries and four joint venture companies | ‘BueK6 04D) promo, «| ‘B1epORJOUUINA née rome. | ‘B1e9pORJUUINA ‘piT (Buoy BiOH) "BIPOIpOVN JOUUIN, ‘prT"00 FoanH OueOeaH Ie + 'BIeapO
Slide 30: Major Products with FDA Approval
Major Products with FDA Approval Proprietary Name (orand name) ‘Common or Usual Name 1 Sing, Arm “Triangular Bandage Non Siero ‘Teangular bandage -Arm sing | Cover, Shoe, Operating Room Surgical Shae Cover \Vasous typas af Shoe Covers 1 Shoes , Operating Room Surgical Shave Vasous lypas of Surgical
Slide 31: Major Products with FDA Approval (cont'd)
Major Products with FDA Approval (cont’d) a 2 Deprosior, Tongue, Non-surgical Catton, ra Evacuator, Oral Cavly Gauze’Sponges, Internal “ray, impression, Prtormed Synge, restorative and impression rater Moulnpiace, Sava Bector Syringes, pariodontis, erdoxionte, sigalg “Tournique, nonpnsumatic “Tourni
Slide 32: Revenue by Market
Europe FY 09 Revenue by Market 580% 1687% 19.43% (©2010 Wner Maca! fen by Demand from Chinese Customers Revenue by Market FY 09 mAmericas FY 08 China == miJapan Other FY 08 Revenue by Market 6.410% 19.41%, a140% naa asi Wamer winneR meoicaL
Winner Medical Group — Investor Presentation (January 2010) on 6ix