Winner Medical Co. Ltd. Class A · SZSE:300888
Winner Medical Co. Ltd. Class A — Investor Presentation (December 2011)
26 slides from Winner Medical Co. Ltd. Class A's investor presentation, Dec 9, 2011
Slide 1: Winner Medical Group Inc.
PurCotton'2ineitt Wenner’ Winner MEDICAL mR ET & A Winner Medical Group Inc. (NASDAQ: WWIN) A Leading China-based Exporter and Retailer of High-quality, Cotton-based Medical Dressings and Consumer Products December 2011
Slide 2: Disclaimer
Disclaimer Weimer 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 hist
Slide 3: Capital Market Overview
Capital Market Overview Wenmer Shenzhen, China - A leading China-based exporter and retailer of high-quality medical dressings and consumer products made from 100% cotton P NASDAQ: WWIN September 30 y, " “N 52-Week Price Range: $2.76 - $6.10 Weighted Average Ordinary Shares Outstanding — Diluted: 24
Slide 4: Our Business
Our Business (emer Company Overview Product Offering Market Presence and Growth
Slide 5: Company Overview
Company Overview (emer * Founded in 1991, headquartered in Shenzhen and listed on NASDAQ in April, 2010. * Product portfolio covers: medical dressings and PurCotton® products + Aleading medical dressings exporter in China for nine consecutive years — North and South America, Europe and Japan are our
Slide 6: Product Offering by Type
Product Offering by Type OEM — Europe, North and South America, Japan o -Revenue Contribution: ~71.5 %* + Winner® branded ~ China Mainland, Hong Kong, Singapore, Middle East and other emerging markets 2 Revenue Contribution: ~15.8%* Jumbo Roll Supplies — Global and Domestic Markets ‘2 Leading B28 cl
Slide 7: Market Presence and Growth - Medical Global
Market Presence and Growth - Medical Global Wenmer No. 1 exporter in China, representing ~6% of China's medical dressings exports in 2010* Eon FY'11 Revenue breaking-down 50.0 | wat by Geography 40.0 ouhers pan 5% 300 Ms 1% i i 169 a | as 100 r —s be oo E america (SMim_ Europe China Americas Japan O
Slide 8: Market Presence and Growth - Medical Domestic
Market Presence and Growth - Medical Domestic Witmer + “Winner” branded medical dressings ranked No. 3 in China domestic sales* + Eight offices in major cities, supporting ~60 local distributors + Won two-year exclusive right to supply gauze and cotton balls to public hospitals in Hangzhou, China *
Slide 9: Market Presence and Growth - PurCotton Jumbo Roll
Market Presence and Growth - PurCotton® Jumbo Roll Witmer PurCotton® is a 100% cotton spunlace nonwoven material. A technically advanced product, it is also a lifestyle choice for discerning and environmentally conscious customers Providing medical-class care to millions of consumers with our PurCot
Slide 10: Market Presence and Growth - PurCotton Consumer
Market Presence and Growth - PurCotton® Consumer Witmer Gj Settoperated chain Stores: Build product recognition and provide direct customer interface — oe © Beijing: 10; Shanghai: 7; Hong Kong: 3; South of China: 24 © Another ~30 new stores will be opened in FY2012 + “27K customer membership; member
Slide 11: Investment Highlights
Investment Highlights (emer Dedicated and Experienced Management Team Strong Brand Recognition and Strict Quality Control Category Leader in OEM and Retail Multiple Growth Opportunities
Slide 12: Experienced Management Team
Experienced Management Team Weimer Founded Winner Medical in 1991 30 years of experience in the medical dressing industry Director-general of China Nonwovens & Industrial Textiles Association Joined Winner Medical in 1999 20 years of experience in financial management and tax planning CPA holder sin
Slide 13: Experienced PurCotton Retail Managers
Experienced PurCotton Retail Managers Wenner + 14 years of extensive experience in sales, chain store management and operations + Five years as Operating Director in ITAT garment chain stores + Two years as Sales Manager in Nike South China branch + Three years as Purchasing Manager in Wal-Mart Shen
Slide 14: Strong Brand, High Quality
Strong Brand, High Quality Wenmer * Strict quality control and advanced management - to meet customers’ increasing needs for safe, natural and high-quality products © FDA, CE mark, TUV, Japanese Accreditation and other global standard certifications GE so @c € DA © Granted COTTON USA Mark and Natura
Slide 15: Category Leader: OEM and Retail
Category Leader: OEM and Retail Wemer WWIN provides comprehensive products and services to address differing needs Medical Dressings Products % S + FY2011 revenue: $130.8 million (oe * Direct sales to well-known overseas healthcare companies * Partnerships with industry associations, local distribut
Slide 16: Multiple Growth Opportunities
Multiple Growth Opportunities Weer * Market size: * Global medical dressings exports ~$13.3 billion in 2010 * Domestic medical dressings ~$6.3 billion in 2010, 19% Y-o-Y growth* * Chinese healthcare reform promotes products with higher quality — more hospitals are adopting disposable medical product
Slide 17: Financial Highlights
Financial Highlights Weimer Strong Growth, Solid Track Record Well Managed Costs and Operating Expenses Strong Operating Metrics
Slide 18: Strong Growth, Solid Track Record
Strong Growth, Solid Track Record Weimer Revenue Net Income 13.1 140 120 100 80 60 40 20 o (SMm) mmm evenue BH¥-0-Y growth 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% oo = (sMm) mFY'08 mFY'OS mFY'1O mFY'11 Revenue increase is due to increased sales in Chinese, European and Americas markets. Net in
Slide 19: Well Managed Costs and Operating Expenses
Well Managed Costs and Operating Expenses Wenner Gross Margin | SG&A Expenses as % of Revenue 30.0% 28.4% 17.7% 16.0% 17.0% 17.7% 127.3% 30.0% 30.0% 20.0% es Jf ig 25.0% 0.0% T rvs | eva | evio | eva a MGBA 9.5% | 10.9% | 9.5% | 8.9% ice mSales) 7.4% | 6.3% | 8.3% | 8.8% 10.0% 5.0% iz 0.0% 20.0% 11.
Slide 20: Strong Operating Metrics
Strong Operating Metrics Weimer Cash & Cash Equivalents |} Account Receivables 25.0 20.0 15.0 5.0 mFY'08 mFY'O9 eFYIO meVIL AAR growth is driven by sales increase Inventory growth is due to an increase in the average purchasing price of cotton and an increase in materials consumption sae we 25.4 210
Slide 21: Strong Operating Metrics
Strong Operating Metrics Weimer 40% 30.0 25.0 20.0 15.0 10.0 5.0 0.0 mFY'08 mi FY'09 m FY'10 m FY'21 29.0 8.7 140.0 120.0 100.0 80.0 60.0 40.0 20.0 0.0 82. 105; 125.7 mFY'08 mFY'O9 mFY'LO mFY'LL 40% 30% 20% 10% 0% mFY'08 MFY'OS mFY'1O mFY'I1 Short-term bank loan to supplement working capital for dai
Slide 22: Contacts
Contacts Wenner \ ( tcRinc. Winner Medical Group Inc. Mr. Rob Koepp Ms. Huixuan Chen (Fiona) Ms. Rene Jiang Investor Relations Manager China Phone: +86-10-6583-7516, -7521 Phone: +86-755-2806-6858 US Phone: +1-646-405-5171 Email: investors@winnermedical.com Email: robert.koepp@icrinc.com rene jiang@
Slide 23: Appendix — Income Statement Highlights
Appendix — Income Statement Highlights (MM) Revenue Medical Products PurCotton® Products Gross Profit Medical Products PurCotton® Products Medical Products Gross Margin PurCotton® Products Gross Margin Consolidated Gross Margin Net Profit Basic EPS Diluted EPS FY’09 $98.4 92.9 SS 27.9 26.4 is 28.5%
Slide 24: Appendix — Balance Sheet Highlights
Appendix — Balance Sheet Highlights (mM) Cash and Cash Equivalents Accounts Receivables Inventories Fixed Assets Total Assets Short-term Loan Account Payables Total Current Liabilities Total Liabilities Total Shareholders’ Equity Sept 30, 2008 $6.5 13.5 15.8 529 102.0 15.0 8.3 29.0 29.0 73.0 Sept 30
Slide 25: Appendix — Cash Flow Highlights
— Cash Flow Highlights Wimer Net cash provided by operating activities $9.6 $14.7 $12.7 $5.0 ** Net cash used in investing activities (11.1) (3.3) (9.4) (7.0) Net cash (used in) provided by financing i (eye AG a activities * Net cash used in financing activities during FY 2008 was attributable to th
Slide 26: Appendix — Corporate Structure
Appendix — Corporate Structu re Weimer Meat & Tessie La]
Winner Medical Group — Investor Presentation (December 2011) on 6ix