Deer Consumer Products Inc · OTC:DEER
Deer Consumer Products — Investor Presentation (November 2008)
21 slides from Deer Consumer Products's investor presentation, Nov 4, 2008
Slide 1: Improve Lifestyles Through Quality
Improve Lifestyles Through Quality consumer products for better food safety... China's Market Leader in Home Electronics US STOCK SYMBOL: DCPI November, 2008
Slide 2: Safe Harbor Statement
ray deér Safe Harbor Statement This presentation contains "forward-looking statements” within the meaning of the “safe-harbor” provisions of the Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that could cause the actual resu
Slide 3: A Market Leader
| Cnr Ps er A Market Leader ° Leading US home electronics manufacturer headquartered in China © More than 1,500 employees © Rapid sales and earnings growth © 100+ global and domestic customers including: Black & Decker, Disney, ToastMaster, Home Depot, Wal-Mart and others © More than 80% of sales ov
Slide 4: Global Customer Base
cheer Global Customer Base l International a Batty Crocker il WALMART ene BawrCeets: MAG. OBUNGKSDECKER =» KENWwooD (THOMAS) Girmi 7 won sindelen@ — Qlagtoolgy EEE Ry [== =p HGR GES [Domestic |
Slide 5: Market Overview
Slide 6: Market Overview
cheer Market Overview © Our Market: kitchen, ing and personal home electronics * 2007 estimates: Global small electric appliance sales lion: = China accounted for 17% of total market consumption ($13.3 bill 8% growth forecast through 20113 ss e China is the largest manufacturer of small electric app
Slide 7: Industry Sales Growth
| Cnr Ps er Industry Sales Growth ‘oan rapa panes by Seer ‘Fost nS a 5 es sie Report %
Slide 8: China's Growing Domestic Market
| Cn Pi no China’s Growing Domestic Market Growth opportunities associated with rising consumer income Smal Eee Aplanes Consumption in China levels: (2009-2007) suo ‘= Chinese families on average own 5 $120 appliances, compared to 40 in developed § $100 countries. 5 so © sso B so + Growth of younger
Slide 9: Demand Drivers
Demand Drivers © Rapid economic expansion - Higher disposable income drives increased home electronics spending. = Rural income growth represents a vast new broadening market. © Rapid urbanization drives greater demand by modern homes - Between 1990 and 2006, the urban Chinese population increased b
Slide 10: Corporate Overview
Slide 11: Competitive Advantages
ray deér Competitive Advantages ~ One of the largest manufacturers of small electric blenders and julcers in China ~ Over 170 product series developed ~ Sales in 40+ countries ~ Reliable cash flow from overseas customers (Black & Decker, Wal-Mart, Home Depot) ~ More than 10 years of international ma
Slide 12: Competitive Advantages
ray deér Competitive Advantages - 75 household electronic patents ~ Patents augment sales (Increased number of protectable designs/product lines) = Products meet stringent requirements in North America, Europe, Australia, and Asia = 180 9001:2000 Certificate in Management Systems = Awarded Compulsor
Slide 13: Environmentally-Friendly Operations
keer Environmentally-Friendly Operations © Raw Material Recycling — Re-working machines installed mid-2006 — Manufacturing waste, defects and scrap (plastics) are recycled and reused in production — Approximately 12 tons (at current ‘manufacturing levels) are recycled monthly, resulting in significa
Slide 14: Sales by Segment and Region
ray deer Sales by Segment and Region Sales © Deer customers include leading appliance firms and large vendors. This facilitates faster product/receivables turnover. * Increased sales in new overseas markets (South America, Africa and the Middle East), 2007 Sales by Region Soe ina 1% eae ‘0% Europe 2
Slide 15: Strong Management Team
cheer Strong Management Team *Ying He, Founder, Chairman & CEO Former Senior Manager and CEO - Hong Kong Dongjiang group and Dongguan Molding MBA degree - Zhongshan University %, *James Chiu, COO and Director Former Sales Manager - Whirlpool Greater China Former Sourcing Director - Hamilton Beach Pr
Slide 16: Financial Overview
‘ ov ’ Financial Overview
Slide 17: Strong Financial Performance
| Cn Pi no Strong Financial Performance * Revenues increased to $20.5 million, up 47.2% over 1H ‘07 * Blender sales increased to $14.5 million, up 61% over 1H ‘07 + Stable gross margins despite increased raw material costs * Pre-tax income increased 39% over 1H ‘07 Sales 29,037,176 33,876,259 13,928
Slide 18: Growth Strategies
cheer Growth Strategies + Rapid domestic market share expansion: - rapid growth in the number of new retail outlets: = expansion of wholesale distributors = penetration of provinces with lower incomes yet higher population concentration = aggressive marketing campaign launch new products ~ Chinese d
Slide 19: Earnings Forecast - Organic Growth
| Cn Pi no Earnings Forecast - Organic Growth (80,000) FYOTA YORE = FYODE FOE (RR $33,476 $40,505, $62,160 $67,216 1590% 74.00% ———~2077% «887% Tae SCD SCAR 21.00% 275% 650% 284% $342 sss S968 T58 1020% 800% ~~ SOR. ‘$70,000 67.216
Slide 20: Earnings Forecast - $5 Million Financing
cheer Earnings Forecast- $5 Million Financing (usp, 000) FYOTA Fy08 E FYOSE FYIOE Reven $93,476 $40,505 $59,684 $80,269 Year on Year Change, % 15.20% 21.00% 47.35% 34.49% Gross Profit 7207 9619 16,893 24,363 Gross Profit Margin 21.60% 23.75% 28.20% 30.35% Net income $3,422 $3,681 $5,595 $10,676 ‘Net
Slide 21: Slide 21
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