Plastec Technologies, Ltd. · OTC:PLTYF
Plastec Technologies — Investor Presentation (June 2013)
22 slides from Plastec Technologies's investor presentation, June 2013
Slide 1: Investor Presentation June 2013
Investor Presentation PLASTEC TECHNOLOGIES, LTD. June 2013
Slide 2: Safe Harbor
Safe Harbor This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about the Company. Forward-looking statements are statements that are not historical facts. Such forward-looking statements, based upon the current beliefs
Slide 3: Key Takeaways
Key Takeaways Industry Leading Margins Due to Focus on the Precision Plastic Injection Molding Business One-stop Integrated Manufacturers Expertise and Capabilities in High-Precision Mold Design and Fabrication Shortens the Lead Time Before Mass-production Just-in-Time Delivery Service Reduc
Slide 4: Business Overview
Business Overview • China-based, high-precision plastic injection molding and secondary finishing business • Manufactures precision plastic parts and components for consumer applications with stringent quality demands, including: Stock Price $6.00 (as of June 3, 2013) – home electronics – appliances
Slide 5: Investment Highlights
Investment Highlights Operational Excellence in Precision Plastic Molding • Long-standing relationships with globally recognized manufacturing companies ~ Average of over 5 years • Significantly expanded production capability through significant capital investment • More profitable / higher margins
Slide 6: The Plastec Business Model
The Plastec Business Model
Slide 7: Full Service – Focus on Higher Margin Design + Finishing
Full Service – Focus on Higher Margin Design + Finishing • Plastec focuses on providing integrated services 1. Mold Design 4. Parts Assembly and Fabrication including mold design and fabrication, plastic injection molding, secondary-process finishing and parts assembly • Leave the electronic product
Slide 8: Competitive Advantages - Long-standing Customer Relationships
Competitive Advantages - Long-standing Customer Relationships Average Customer Tenure of 5 Years Customer Sales (% of Total revenue) • Customer J – Leading Japanese consumer electronics manufacturer >10 Year Relationship J • Customer K – Leading Korean consumer electronics brand 10.7 > 5 Year Relati
Slide 9: Revenue Breakdown by Region
Revenue Breakdown by Region 8 months ended December 31,* Revenues by geographic market 2011 2012 Asia-Pacific Region 58.3% 49.6% Europe 41.0% 40.7% United States 0.7% 9.7% Total 100.0% 100% In $$$ $116.8 $119.7 Source: Company data, December 2012 9
Slide 10: Plastec Manufacturing Overview
Plastec Manufacturing Overview “Best of breed” Production capabilities and manufacturing expertise Attracts top global brands and maintains customer relationships for several years. • Tooling facilities to produce molds according to clients’ demands, with exceptional precision • Robust injection mac
Slide 11: Just-in-time Facilities, with Significant Capacity
Just-in-time Facilities, with Significant Capacity Strategically located next to customers to facilitate frequent just-in-time deliveries . Production facilities located in Guangdong Province and Jiangsu Province; Thailand Gross floor area (sq.m.) ~187,000 Employees ~5,400 120 skilled design enginee
Slide 12: Investments in Latest Technologies
Investments in Latest Technologies • Company completed a 4 story extensions at its largest facility in Shenzhen in September 2011, while another 9 story building was completed in July 2012, which added approximately 20% additional operational capacity across the whole company. • Newly established pr
Slide 13: Seasoned, Accomplished and Reputable Management Team
Seasoned, Accomplished and Reputable Management Team Founder, Chairman of the Board and CEO Responsible for directing long-term business development strategies and establishing operational Mr. objectives and assignments Kin Sun SZE-TO Over 20 years of experience in the plastic injection and mo
Slide 14: Market Opportunity
Market Opportunity
Slide 15: Industry Overview – Plastic Injection Molding
Industry Overview – Plastic Injection Molding • Asia provides inexpensive labor, strategic location to serve South East Asia, and a robust domestic market – Relative labor cost advantage – Located near suppliers and customers – Growing production base – Rising income levels and relative wealth – Inc
Slide 16: Global Plastic Products Market – Stable, Steady Growth
Global Plastic Products Market – Stable, Steady Growth Global Market for Injected Molded Plastics CAGR = 3.2% (10—12) 1009.1 1085.0 882.0 923.3 928.2 918.8 958.4 857.5 2005 2006 2007 2008 2009 2010E 2011E 2012E Key Drivers Plastic replacing metal and glass Shorter product cycles and miniaturization
Slide 17: Financial Results
Financial Results
Slide 18: Financial Results
Financial Results 8 month period ended 8 month period ended December 31, 2011 December 31, 2012 Total Revenues $116.8 $119.7 Gross Profit $14.1 $16.3 Gross Margin 12.1% 13.6% EBITDA $20.3 $21.0 Net Income $5.1 $7.7 Revenue Net Income $9.0 $120.0 $119.7 $8.0 $7.7 $119.5 $7.0 $119.0 $118.5 $6.0 $5.1 $
Slide 19: Low Valuation Relative to Peer Group
Low Valuation Relative to Peer Group • Plastec Technologies, Ltd. (OTC: PLTYF) • Deswell Industries (Nasdaq: DSWL) • Fischer Tech, Ltd (Singapore: F22) • Fu Yu Corporation Ltd. (Singapore: F13) • Hi-P International, Ltd. (Singapore: H17) LTM LTM Recent Shares Market TEV Revenue LTM NI TEV / Company
Slide 20: Strong Balance Sheet with Minimal Debt
Strong Balance Sheet with Minimal Debt $ in Millions 4/30/2010 04/30/2011 4/30/2012 12/31/2012 Total Cash and Cash $19.4 $28.2 $25.6 $39.7 Equivalents Total Assets $125.3 $154.1 $153.0 $151.2 Total Debt $16.6 $22.5 $20.1 $12.4 Total Liabilities $52.7 $58.4 $61.8 $51.4 Total Shareholders’ $72.6 $95.7
Slide 21: Investment Conclusions
Investment Conclusions Plastec’s Focus on Precision Plastic Injection Molding Business Creates Industry Leading Margins Long-standing Customer Relationships with Global, Well-Recognized Consumer Brand Names China’s Demand for Plastic Components Remain Strong 21
Slide 22: For Additional Information
FOR ADDITIONAL INFORMATION: At Plastec Technologies, Ltd. Investor Relations The Equity Group Inc. Ho Leung Ning Adam Prior, Chief Financial Officer Senior Vice President ning@plastec.com.hk (212) 836-9606 aprior@equityny.com Katherine Yao Associate kyao@equityny.com 86-10-6587-6435
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