Plastec Technologies, Ltd. · OTC:PLTYF
Plastec Technologies — GSME Acquisition Partners I — SPAC Merger (August 2010)
40 slides from Plastec Technologies's SPAC merger presentation, Aug 20, 2010
Slide 1: Proposed Business Combination with Plastec International Holdings Limited
GSME £#2A#A GSME ACQUISITION PARTNERS | Proposed Business Combination with Plastec International Holdings Limited Summer 2010
Slide 2: Safe Harbor
ES G3) <5" **** Safe Harbor ‘THIS PRESENTATION IS BEING PRESENTED BY GSME ACQUISITION PARTNERS I ("GSME™ OR THE "COMPANY") AND PLASTEC INTERNATIONAL HOLDINGS LIMITED {"PLASTEC") NEITHER GSME, PLASTEC NOR ANY OF THEIR RESPECTIVE AFFILIATES, REPRESENTATIVES OR ADVISORS MAKES ANY REPRESENTATION OR WARR
Slide 3: Table of Contents
ES G3) <5" **** Table of Contents I. Executive Summary Ml. Transaction Summary Ml. Business Overview IV. Summary Financial Information Appendix A Industry Overview B. Financial Sponsors Overview
Slide 4: I. Executive Summary
I. EXECUTIVE SUMMARY
Slide 5: Executive Summary
ES G3) <5" **** Executive Summary GSME is pleased to present the details of its proposed transaction with Plastec = GSME has signed a definitive merger agreement with Plastec, a China-based, high-precision plastic injection molding and secondary finishing business - Initial purchase price of 6.5x FY
Slide 6: Executive Summary: full service design, fabrication, injection, finishing
Executive Summary Plastec offers full service design, fabrication, injection, finishing and assembly 4) Parts assembly
Slide 7: Executive Summary: Plastec's products
ES G3) <5" **** Executive Summary Plastec’s products are used across a variety of sub-categories Consumer electronics Electrical home appliances : : SSIs = DVD Combos = MP3 Players = Remote Controls = Mobile Handsets = Cordless Phone Sets = LCD Monitors = GPS Devices = Printers = Precision Plastic E
Slide 8: Executive Summary
ES G3) <5" **** Executive Summary GSME’s management believes that Plastec’s management, operations and consistent financial performance have resulted in it becoming a major player in its space . Plastec is led by industry veterans, with an extensive track-record of successful operations, and a histo
Slide 9: II. Transaction Summary
Il TRANSACTION SUMMARY
Slide 10: Transaction Summary
ES G3) <5" **** Transaction Summary GSME has structured a transaction which it believes has compelling valuation metrics . GSME will issue approximately 7.3 million shares to Plastec shareholders at closing and may issue an additional 9.6 million shares upon achievement of certain financial targets
Slide 11: Transaction Summary: Comparable Companies
ES G3) <5" **** Transaction Summary: Comparable Companies Based on comparable public companies, the transaction with Plastec has a relatively low valuation Protutea shares Market Total Limowtea [revert |ePs Betore Day Close Outstanding Capitalization LIM Minority Enterprise LTM Total psec umm. fextr
Slide 12: Transaction Summary
ES G3) <5" **** Transaction Summary Based on solid operating results, a conservative management style, and targeted acqi aims to outperform its financial benchmarks and to produce compelling returns = Assuming a discounted P/E multiple to its peers, Plastec remains a strong value investment proposit
Slide 13: III. Business Overview
Ill. BUSINESS OVERVIEW
Slide 14: Business Overview
ES G3) <5" **** Business Overview Plastec is a leading plastic injection molding and finishing business, which management believes is poised for growth . Plastec manufactures precision plastic parts and components for consumer applications, including: home electronics, appliances, telecommunications
Slide 15: Business Overview
ES G3) <5" **** Business Overview Plastec has invested the latest technologies to maintain industry leading status . Plastec is more profitable than its competitors, across a number of key metrics - Low-defects and high-utilization rates - Effective pricing policies - Focus on highest margin busines
Slide 16: Business Overview
ES G3) <5" **** Business Overview Seasoned, accomplished and reputable management team Founder, Chairman of the Board and CEO Responsible for directing long-term business development strategies and establishing Mr. operational objectives and assignments Kin Sun SZE-TO = Over 20 years of experience i
Slide 17: Business Overview
Business Overview Steady growth, and strategic development through the establishment of subsidiaries = Mr. Kin Sun = Sun Line ™ Sun Line (Macao | ™ Dongguan Sun = 20% new shares = Sun Line Sze-To (Hi) set up Commercial Chuen Plastic were issued to Precision founded Sun Dongguan Offshore) Products Co
Slide 18: Business Overview
Business Overview New technology adoption, and effective implementation E Computer aided Computer aided Dedicated team of 125 design system manufacturing system design engineers and technicians = har on prototypin Co-design: Constructive feedback to our customers through an Draw up detailed specific
Slide 19: Business Overview
ES G3) <5" **** Business Overview Just-in-time facili jes, with significant capacity Location of plants Dongguan Shenzhen Heyuan Kunshan Zhuhai. TOTAL Gross floor area (sq.m.) ~50,000 ~61,000 ~10,000 ~13,000 ~25,000 ~159,000 No. of plastic injection 175 220 30 30 50 505 machines No. of tooling machi
Slide 20: Business Overview
ES G3) <5" **** Business Overview Efficient management of high-technology equipment base ion of production c. Injection machines Tooling machines acity 04/2006 04/2007 04/2008 04/2009 | 04/2010 04/2006 04/2007 04/2008 04/2009] 04/2010 pail 290 472,506 517/ 508] AS, opto ol machines Oe 40 73 76 79 84
Slide 21: Business Overview
Business Overview The business has developed rapidly since inception Quality control at each critical stage of production Mold design and fabrication quality control through documentation, control, mold trial and mold measurement Production quality Outgoing quality control providing control through
Slide 22: Business Overview
Oe ee Business Overview The business employs a cost-plus pricing model, reducing exposure to market fluctuations Designate Customers Suppliers Purchase orders (Cost-plus) Raw materials Processing fees PRC partners Logistical H = Capital = Wholly foreign owned enterprises arrangements for | m Manufac
Slide 23: Business Overview
ES G3) <5" **** Business Overview OBMs (Original Brand Manufacturers), ODMs (Original Design Manufacturers), OEMs (Original Equipment Manufacturers) Main customers are leading international OBMs/ODMs/OEMs of consumer electronics and appliances Revenue breakdown by customer category usD,000 % USD,000
Slide 24: Business Overview
ES G3) <5" **** Business Overview Proven track Sales p five customers (% of total revenue) record in manufacturing 04/2006 © 04/2007 «04/2008 += 04/2009 «(04/2010 high quality products Customer J 46.1% 31.6% 19.3% 23.5% 32.5% “ Stickiness” factors Customer K 4.0% 9.0% 17.5% 8.1% 5.1% Strategic Custo
Slide 25: Business Overview
ES G3) <5" **** Business Overview Plastec outperforms its closest comparable companies in every profitability metric _ EBITDAMargin Gross Margin 7 2 3 4 3 4 2 3 : 3 BIT Margin aim Netincome Margin a 7 2 3 va s 1 2 3 4 5 1 Financial year ends on April 30 2 Financial Source: Company reports 25
Slide 26: Business Overview
@ GSME £2A4 Business Overview Joven [vs mensions | fer Blastec CY2009 sales CY2009 sales CY2009 sales CY2010 sales , , Electronics Electroni Electronics assembly PPIM& MDF PPIMS MDF asser assembly, 47% 5B, 100% PPIM& © 21% ‘MDF 56%. CY2009 EBIT margin CY2009 EBIT margin CY2009 EBIT margin CY2010 EBI
Slide 27: Business Overview
ES G3) <5" **** Business Overview The business has developed rapidly since inception Competitive strengths = Well-established long-term relationships with multi-national customers = Capabilities and expertise in providing high-quality precision plastic component manufacturing services = Well-establi
Slide 28: IV. Summary Financial Information
V. SUMMARY FINANCIAL INFORMATION
Slide 29: Summary Financial Information
ES G3) <5" **** Summary Financial Information Plastec International Holdings, Ltd. Income Statement Audited Audited Estimated FY08 FY0S FY10 Uss'K USS'K USSK Sales 126,437 117,108 123,943 Costs of sales (98,193) (96,109) (103,870) Gross profit 28,244 20,999 20,073 Margin 22.3% 179% 16.2% Selling and
Slide 30: Summary Financial Information
ES G3) <5" **** Summary Financial Information Plastec International Holdings, Ltd. Balance Sheet Audited Audited Estimated FY08 FY09 FY10 USSK Uss'K USS'K Assets Current Assets Inventories 12,838 10,662 9,525 Trade debtors 30,905 22,293 31,038 Other receivables 1,096 1,481 1,563 Cash & equivalents 1
Slide 31: Summary Financial Information
ES G3) <5" **** Summary Financial Information Plastec International Holdings, Ltd. Cash Flow Audited Audited Estimated FY08 FY09 FY10 USS'K USSK USSK Profit before tax 18,816 8014 7,183 Add back: Depreciation & amortisation 10,229 13,246 15,691 Stock (increase) (2818) 2477 1,137 Debtors (increase) (
Slide 32: A. Industry Overview
A. INDUSTRY OVERVIEW
Slide 33: Industry Overview
ES G3) <5" **** Industry Overview The current timing in China’s plastic component industry benefits from organic growth, as well as a return to normalized activity after 2 years of global downturn The overall consumer electronics industry has suffered 2 years of negative operating conditions = China
Slide 34: Industry Overview
ES G3) <5" **** Industry Overview While the global plastic products market is returning to growth, China’s market has continued to develop Plastic replacing metal and glass Shorter product cycles and miniaturization by electronics industry Growth in electronics manufacturing in Asia, especially in C
Slide 35: Industry Overview
ES G3) <5" **** Industry Overview China’s consumer electronics industry will outpace global market S$bn) is projected to continue steady growt -A3) 2 8.8% pone sauce awh oa) cs Se 8 10142 cpoke = 024 21 a 7103 - if [ ] il L a 7004 2005 2008 20108 OnE 12E DE ‘Source: CCID .. largely driven by consume
Slide 36: Industry Overview
6) SS" * Industry Overview China is the growth engine for the global plastic industry Cost of labor advantage Close proximity to both upstream and downstream players electronics market Increasing affordability due to development of domestic market Rising outsourcing trend Source: IZA 3.583 a 328 fe
Slide 37: B. Financial Sponsors Overview
B. FINANCIAL SPONSORS OVERVIEW
Slide 38: GSME Management Overview
ES G3) <5" **** GSME Management Overview GSME was formed by Mr. Mark Gao and Mr. Eli D. Scher to identify and execute an attractive investment in China and to assist GSME’s partner company in expanding and developing * Jing Dong (Mark) Gao has served as our chairman of the board since our inception.
Slide 39: Cathay Capital Overview
ES G3) <5" **** Cathay Capital Overview OVERVIEW Since 1992, the Cathay Capital Group (‘Cathay’) has completed over 35 investments and has completed initial public offerings (“IPOs’), trade sales and other capital events with a cumulative transaction value over USS5 billion. In 2007 alone, Cathay co
Slide 40: Contact
ES G3) <5" **** Contact COHEN & COMPANY GSME 2RR* SECURITIES MEMBER FINRA/SIPC For further information, contact Stuart T. Sugarman (212) 543-1100 ssugarman@cohenandcompany.com David Batalion (212) 543-4400 dbatalion@cohenandcompany.com Cohen & Company Securities, LLC 135 East 57th Street, 21st Floor
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