Winner Medical Co. Ltd. Class A · SZSE:300888
Winner Medical Co. Ltd. Class A — Investor Presentation (September 2011)
28 slides from Winner Medical Co. Ltd. Class A's investor presentation, Sep 1, 2011
Slide 1: Winner Medical Group Inc. (NASDAQ: WWIN)
Salas eee ee is 2 Bir & Winner Medical Group Inc. (NASDAQ: WWIN) A Leading Disposable Medical Dressings and Cotton Home Care Products Provider September 2011 LO ) (vomor"@@ BT keene nw
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: 1.1 Company Overview
1.1 Company Overview Founded in 1991, headquartered in Shenzhen, China and listed on NASDAQ in April 2010 Product portfolio covers: Medical products and PurCotton® products Leading Chinese manufacturer and exporter of high quality cotton-based medical dressings for nine consecutive years* Vertically
Slide 4: 1.2 Company Stock Snapshot
1.2 Company Stock Snapshot NASDAQ GM: WWIN FYE: Sept. 30 Stock Price (08/26/11) 3.60 Shares Outstanding 24.1MM Market Capitalization 86.9MM Cash and cash equivalents (As of 06/30/11) 17MM Short-term bank loan (As of 06/30/11) 8.5 MM Revenue (TTM as of 06/30/11) 136.7MM Net Income (TTM as of 06/30/11
Slide 5: Market and Distribution Channels
Market and Distribution Channels Medical Dressings Products vy _ International Markets: Europe, the Americas and Japan are major markets v Domestic Market: Winner® branded products PurCotton® Products ¥ Domestic and International: PurCotton® jumbo-roll supplies v¥ Domestic Market: PurCotton® Consume
Slide 6: 2. Medical Product Segment
2. Medical Product Segment Medical Care Products Wound Care Products v Operating Room Products v Dressing Pad v Procedural Packs ¥ Cotton Products vy Protective Products and Gauzes v Retention Products and Dental Products (veomor’ MG keene ew
Slide 7: 2.1 International Sales: Trends and Observations
2.1 International Sales: Trends and Observations v Global medical dressings exports ~ $13.3 billion in 2010* v China medical dressings exports ~ $1.2 billion in 2010 - 19% year over year growth* v China is No.1 exporter of medical dressing products worldwide vy WWIN has been a leading exporter of me
Slide 8: 2.1 International Sales: Board Distribution Networks
2.1 International Sales: Board Distribution Networks (SMM) 45.0 40.0 35.0 30.0 42.3 39.6, 357 31. | 7 os is 24.8 25.0 23 1939 ia 20.0 186 aes ize 8? |, 168 15.0 77 10.0 5.8, 4.3 54 0.0 = . : Europe China Americas Japan Other @FY'09 BFY'IO0 ®Q1-Q3FY'2010 =Q1-Q3 FY'2011 “Third Quarter FY2010 Revenue b
Slide 9: 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 v 15+ years v 5+ years BSNewia Italy Germany CardinalHealth xe a vernonearus 7» Smith&nephew United kingdom | ae | COVIDIEN age & a United States | Netherlands Sweden (vomor" Me neem
Slide 10: 2.2 Domestic Market for Medical Products: Advantages and Opportunities
2.2 Domestic Market for Medical Products: Advantages and Opportunities Strategy of expanding domestic market: v Product Differentiation : Focused on sterilized and packaged products v Price Differentiation : Same quality for lower price vs. exported products; superior quality vs. domestic competitor
Slide 11: 2.2 Domestic Sales: Expanding Sales Networks
2.2 Domestic Sales: Expanding Sales Networks vy “Winner®” brand ranked as # 3 in China medical dressings* vy Winner has been actively building distribution networks in major cities—Eight offices v Close cooperation with seven out of the top 10 drug store chains in China v Direct sales to hospitals i
Slide 12: PurCotton®: 100% cotton spunlace nonwoven
PurCotton®: 100% cotton spunlace nonwoven PurCotton, 100% cotton spunlace nonwoven, is more than an advanced and leading production technique, it is a lifestyle choice for discerning and environmentally conscious customers PurCotton ® business covers Jumbo Roll Supplies and Consumer Products vy Manu
Slide 13: 3. Cotton: Eco-friendly
3. Cotton: Eco-friendly Y Cotton meets 36% of the world’s textile needs, taking less than 3% of the world’s farmland Y Cotton worldwide absorbs Carbon dioxide equivalent to 7,000,000 vehicles’ emissions v More energy can be produced from cotton products than it takes to produce cotton itself v To pr
Slide 14: 3.1 PurCotton® Jumbo Roll Supplies
3.1 PurCotton® Jumbo Roll Supplies Multiple Applications - Home Care, Personal Hygiene, Medical, Laboratory, Industrial, etc. Ecosystem
Slide 15: 3.2 PurCotton® Consumer Products
3.2 PurCotton® Consumer Products Conveying Medical- ) Class care to millions consumers with our PurCotton® consumer products Brand Positioning: High-end 100% cotton lifestyle Goal: High-end PurCotton Experience Target Customers: Women and households with medium to high income bracket Price Positioni
Slide 16: 3.2 PurCotton® Consumer Products
3.2 PurCotton® Consumer Products me fr é WA |g ee
Slide 17: 3.2 PurCotton® Consumer Products
3.2 PurCotton® Consumer Products Market Size, trends and observations ¥ 68% penetration rate domestically for sanitary napkin vs. over 90% in developed countries in 2008* ¥ 20 million 0-3 year old infants in China with less than 2% penetration rate for baby diapers; 44% globally and 96% in North Ame
Slide 18: 3.2 PurCotton® Retail Distribution Channels
3.2 PurCotton® Retail Distribution Channels Retail snapshot: Vv Established 100%-owned Shenzhen PurCotton Co., Ltd. v Product Varieties: around 400 SKU v Multi Market Channels: Retail stores, online sales and supermarket Retail Stores: Goal: product cultivation and customer experience a a ee v 37 st
Slide 19: 3.2 PurCotton® Retail Distribution Channels
3.2 PurCotton® Retail Distribution Channels (vomor* mer 2 E-Commerce: Goal: easily purchase and incremental sales ¥ Online sales: B2C website http:/www.purcotton.com and online flagship store on Taobao.com http://purcotton.tmall.com v_ Establishing PurCotton e-commerce firm with strategy individual
Slide 20: 4.1 Quality Control System and R&D Efforts
4.1 Quality Control System and R&D Efforts Vv Strict quality controls v Vertically integrated: begins with raw material processing and ends with export of finished products v 14 wholly-owned subsidiaries and three joint ventures v Operating primarily in Hubei Province - one of the homes of cotton v
Slide 21: 4.2 Management systems
4.2 Management systems Advanced management systems provide foundation for efficient operations: vy SAP and ERP Management Systems, covering purchasing, manufacture, sales, cost control, finance, human resource and retail v Strict Quality Management System: FDA Certificates, CE Certificates, Japanese
Slide 22: 5. Strong and Experienced Management Team
5. Strong and Experienced Management Team Name Experience ¥ Founded Group in 1991 Jianquan Li Y Developed strategic vision; oversees implementation of business plan CEO ¥ 30 years of experience in medical dressing industry ¥ The director-general China Nonwovens & Industrial Textiles Association TER)
Slide 23: 6.1 Segment Analysis & Margins
6.1 Segment Analysis & Margins "| "| : Q3 Q3 (MM) BY¥08) E¥09 | E10) FY10. FY'1 Revenue $85.5 $984 $115.0 $309 $41.5 gm Sales Revenue Medical Products 84.1 929 1049 283 36.2 140 17% PurCotton® Products 14 65 10.1 2.6 5.3 120 | see -, Gross Profit 214 279 346 89 13 im 77 fl oa Medical Products 21.3 2
Slide 24: 6.2 Balance Sheet Summary
6.2 Balance Sheet Summary 1M) Sept 30, 2008 Sept 30, 2009 Sept 30, 2010 June 30, 2011 Cash and Cash Equivalents $6.5 $9.5 $14.8 $17.0 Accounts Receivables 13.5 13.1 15.7 20.5 Inventories 15.8 15.0 16.0 25.2 Fixed Assets 57.9 55.8 60.1 63.7 Total Assets 102.0 101.0 119.0 144.6 Short-term Loan 15.0 6.
Slide 25: 6.3 Efficiency Ratios
(vemor” MMB tenn iw 6.3 Efficiency Ratios We strive to maintain capital and operational efficiency Days of AR turnover 49 45 44 44 44 SGA/Sales % 17.7% 17.4% 17.4% 17A% 17.6%
Slide 26: 7.1 Investment Highlights- Growth Strategy
7.1 Investment Highlights- Growth Strategy
Slide 27: 7.2 Investment Highlights
7.2 Investment Highlights An established player in the medical dressing market — leading exporter of medical dressings in 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 customers
Slide 28: Contact Information
Contact Information Corporation Auditor Winner Medical Group Inc BDO Limited Ms. Huixuan Chen (Fiona) 8/F Wing On Centre Tel: (86) 755 2806 6858 111 Connaught Road, Hong Kong Email: investors@winnermedical.com Website: www.winnermedical.investorroom.com www.winnermedcial.com www.purcotton.com ly ® 2
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