Winner Medical Co. Ltd. Class A · SZSE:300888
Winner Medical Co. Ltd. Class A — Investor Presentation (May 2006)
21 slides from Winner Medical Co. Ltd. Class A's investor presentation, May 11, 2006
Slide 1: Investor Presentation
Investor Presentation WINNER MEDICAL GROUP, INC. (WMDG.OB) x="
Slide 2: Safe Harbor Statement
Safe Harbor Statement CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS ‘This presentaon metes oincorperates by elerence statements that constute ford tah the mean Secton 27A.! he Secures tof 1933 a6 amenaua. and Secbon 218 Exenange At of 094, a8 arnended, These statement late aure even orto
Slide 3: Investment Considerations
Witmer Investment Considerations + Premier manufacturer and exgorter of cotton surgical éressings and dsposable ‘medical products located in China Founded in 1961; Reverse merger APO in Dec 2008 FY 2005 reves of US $58.35 mln, sth natincorne of US $7.89 millon "Consumables" buses mode! ‘© Distribute
Slide 4: Investment Considerations (continued)
Witmer Investment Considerations - 2 ‘* Winner has developed a patented “category killer” product that will have a big market in woven cotton products alone. PurCotton™ is a technology- driven, breakthrough product offering: avantageous properties of cton gauze (absorbent, non allergenic, Bodegacabe
Slide 5: Products: Representative Gauze Products
PRODUCTS (yen, Representative Gauze Products we mtn BY SSS cSt. Saves *
Slide 6: Products: Elastic Adhesive and Cohesive Bandage
PRODUCTS (eno; Elastic Adhesive Bandage Cohesive Bandage
Slide 7: Geographic Market Segmentation
Wm Geographic Market Segmentation Geographic Markets us. Japan otners 13% 26% 1% ina 11% europe 30% 2005 Revenue May 16, 2006
Slide 8: Facilities
Witmer Facilities Currently has land use right to over 600,000 square meters + 2Winner industrial parks (Shenzhen and Huanggang) 11 major factories in 10 different locations, 8 factories in Hubei Province + New Huanggang PurCotton™ facility: Planned investment of approximately $150 million; estimate
Slide 9: Winner's Growth Strategy
Weimer Winner’s Growth Strategy Non sterilized products Sterilized products =~ 60% of sales ~ 40% of sales (he of Match 3,208) iguer oress marie (Ae of March 21,2008 PurCotton™ Revenue expected in the second half of 2006 Cohesive and Self-adhesive bandage materials Revenue beginning Qt 2008 Nano ass
Slide 10: Strong Base of Existing Business
Witmer Strong Base of Existing Business + Approximately 75% of total sales through OEM channels ... The annual growth rate of net sales was 26.5% and 31.8% in 2004 and 2005, respectively + World-class customer base: 61.76% of total sales among top ten long-term customers (2005): ~ Sakai Shoten Co.,
Slide 11: PurCotton™
Witmer PurCotton™ * PurCotton™: Non woven spunlace material utilizing cotton rather than Pettachemical fiber (polyestorirayon) as a raw material itis Winner's reakthrough product produced at an extremely low cost Within the medical disposables market, the non-woven products segment is the largest an
Slide 12: PurCotton™ Proprietary Product and Markets
PurCotton™ ‘© Proprietary Product ‘* Revolutionary new manufacturing process makes PurCotton technology proprietary to Winner Patents fled protecting Winner's IP; 10 year fe '* Patents applied for internationally in 30+ counties ‘© The Markets for PurCotton™ '* PurCotton offers the absorbency advant
Slide 13: Sterilized Products
Witmer Sterilized Products ‘* Winner is approved by the FDA to make direct export of sterilized medical disposable products to US customers Traditionally, Chinese manufacturers ship in bulk to their US, EU and Japanese customers. Product is then repacked and sterilized, incurring higher added costs,
Slide 14: Additional Product Initiatives
Additional product initiatives e Self-adhesive and Cohesive Bandages ~ Technologically superior product at a lower cost ~ Product design enables uniform tearing without use of ancillary tools (weaving technology) ~ Product cost advantages: ‘© Fully integrated production in low cost Winner factories
Slide 15: Market Expansion Growth
Market expansion growth * Winner will market the "Winner brand in China, Southeast Asia and Africa. These emerging markets offer dramatic grow rates and Substantial opportumty forthe sale of alow cost high quality alternative” against large multinational companies ‘© Winner will participate in the f
Slide 16: Company Management
Company Management Mr. Jianquan Li, Founder and Chief Executive Officer ~ Former sales manager of provincial foreign trade corporation with over 20 years’ experiences in intemational trade, founded Winner Group in 1991 Mr. Xiuyuan Fang, CFO, Vice President and Treasurer = A former CPA with extensive
Slide 17: Financial Overview
Financial Overview ‘May 16, 2006
Slide 18: Balance Sheet
Balance Sheet Current Assets Total Assets Current Liabilities Minority Interest Shareholder Equity Total Liabilities and ‘Shareholder Equity
Slide 19: Income Statement
Witmer Income Statement Focal Year Flea Year Growth 1st star Growth Ended "Ended" ate” Ended Ended ate Suooe S008 Tasos 20h05 a SHSM SS4M 318% SISOM —SI62M 246% Goss Prt SHSM SI63M 417% 33M SHAM 33% Operating Expenses S63M —«- S85M_ 34.9% © SLM S2SM 31.6% Operating Income $5.1M = STBM 530% «= S1SM_—
Slide 20: Summary
Witmer Summary + Winner is the *best in class” manufacturer of medical disposable products with a strong base of revenues, customers and capabilities + Winners statepies of superior products product quality, cost advantage and logistics excellence have created long term competitive advantage for the
Slide 21: Thank You!
Thank You! Tminer WINNER MEDICAL + Addeess: Winner Industrial Park, Bulong Road, Longhua, ‘Shenzhen 818109, Guangdong, China + Tel (86 755)- 2613-8888, + Fax: (86 755)- 2819-4588 + Email investors@winnermedical.com + Webste: ww winnesmedical com webste May 16, 2006
Winner Medical Group — Investor Presentation (May 2006) on 6ix