Slide 1: Pansoft Company Limited (PSOF) Investor Presentation
January 2009 Pansoft Company Limited (PSOF) Investor Presentation
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation may contain forward-looking statements concerning Pansoft Company Limited. The actual results may differ materially depending on a number of risk factors including, but not limited to, the following: general economic and business conditions, development, shipm
Slide 3: Company Overview
Company Overview «A leading EPR software solutions and services provider for the oil and gas industry in China «Established in 2001 and listed on NASDAQ in September 2008 (ticker PSOF) * Headquarters in Jinan with 137 employees (89 R&D professionals) * Unique market position (focusing on client-driv
Slide 4: Market Overview
Market Overview * China software market is growing at a brisk pace * Statistics from the Chinese Ministry of Industry and Information showed that 2007 China software sales were RMB58 billion, an increase of 20% over 2006 * China’s ERP 2007 sales were RMB3.4 billion, accounting for approximately 1.47
Slide 5: China Management Software Market
Panseft China Management Software Market Market Segment Early Stage Learning Stage ‘Mature Stage Customer's IT 1, Reduce 1. Improve resource |] }. Support business budget motivation | —handwork efficiency strategies 2. Improve data 2 Reduce cost 2 Support new accuracy 4 Improve business models manag
Slide 6: China Management Software Provider's Cluster and Its Customer Preference
China Management Software Provider's Cluster and Its Customer Preference Customer service "Accenture (consulting integration |, ‘ on-demand services) |" SaaS Providers «IBM Solutions Generic Products saySiy (Aiqesnay aremyyog) 1aM07 SME (Enterprise Scale) Large
Slide 7: Pansoft Provides Both Solutions & Services
Panseft Pansoft Provides Both Solutions & Services Provider Category | Provider Features _| Sales Model Product-Oriented Features + libraries Channel 100% Reusable Products know how Solutions-Oriented | Schema + Templates Direct / Channel |-60-90%-Rewsable—_| wn | Domain know how ervice-Oriented Pat
Slide 8: Pansoft Unique Market Position
Pansoft Unique Market Position iS) Pansoft Mature Customer = Customer requirements-driven ( ys. product-driven) = Expansion from oil/gas industry to other industries
Slide 9: Core Technology Supports Market Position
Panseft Core Technology Supports Market Position
Slide 10: Core Technology Supports Market Position
Core Technology Supports Market Position = Understanding of clients’ business and management processes including financial and accounting management, fund management, internal process control, settlement on line and resource planning = In-depth knowledge of software integration, pop software applica
Slide 11: Competition and Differentiation
Competition and Differentiation * Different positions drive different business models that create a barrier for the main products-driven players — UFIDA, Kingdee * Localization advantage and lower cost to be a differentiation for foreign players — IBM, Accenture, SAP, Oracle * Highly focused, softwa
Slide 12: Pansoft Cutting-Edge Technology: Reusable Platform, Solutions & Components I
Pansoft Cutting-Edge Technology: Reusable Platform, Solutions & Components I Various solutions and the Pan series of packages, component library, and integration/quick-development tools * PanBI: A decision support platform. Tools include business data analysis, model building, statements processing
Slide 13: Pansoft Cutting-Edge Technology: Reusable Platform, Solutions & Components II
Pansoft Cutting-Edge Technology: Reusable Platform, Solutions & Components II * PanSchema: An efficient development platform based on MDA (Model Driven Architecture) technology with the ability to establish models for applications and automatically generate source code. It provides SOA (Service Orie
Slide 14: An Example of A Typical Integration
Panseft An Example of A Typical Integration SAP R3. and Centralized F&A System for PetroChina Adapter
Slide 15: Pansoft Key Implementations
Panseft Pansoft Key Implementations * Centralized Financial and Accounting System of PetroChina * An innovation in China, even among the world oil & gas giants, recognized by the vice minister of China National Financial Ministry
Slide 16: Pansoft Key Implementations
Pansoft Key Implementations Fund Management System of Sinopec ( Centralized to Beijing and Hong Kong Separately) Planning and Statistics System of CNPC = Settlement Online System of Shengli Oil Field Co. = Sinopec Data Warehouse Intelligence Management and Reporting Platform Internal Process Control
Slide 17: Key Customers
Key Customers China National Petroleum Corporation (CNPC) (Parent Company of PetroChina) PetroChina Company Limited SH: 601857 HK: 0857 NYSE: PTR China Petrochemical Corporation (0386.HK) (Sinopec Group) rayeayt cs PR ‘fale CALGARY) © China Petroleum and Chemical Corporation summimmantsowtsxsoree (S
Slide 18: Business/Client Locations
Business/Client Locations
Slide 19: Pansoft Expansion Strategy & Tactics: Strategy
Pansoft Expansion Strategy & Tactics: Strategy * Organic Growth * Scale-Up: Expand existing projects and explore new opportunities in the energy industry * Scale-Out: Replicate successful solutions used in energy industry to other industries * Additional Growth * Scale-Away: Use acquisitions to crea
Slide 20: Pansoft Expansion Strategy & Tactics: Tactics
Pansoft Expansion Strategy & Tactics: Tactics * Re-organization * Expand and strengthen the sales and marketing team * Establish a Hong Kong office and other branch locations * Improve management of resources and projects * Incentives * Establish deferred compensation programs * Incentives based on
Slide 21: Pansoft Corporate Governance
Pansoft Corporate Governance { Audit Committee I Internal Auditors |"Net Research & Development | a FA Project team, tech team sand SAP implementation team Projoet managers and other is professionals Staffs [ORK Gi...Ga: Project team, tech team, and SAP implementation team | € Projet managers and ot
Slide 22: Experienced Management Team
Panseft Experienced Management Team Hugh Wang - Chairman & Director Hugh used to be the Senior Vice President and Chief Engineer of Inspur, a Chinese company listed on SSE. Then he started up a software company—Genetsoft of Inspure and pushed it to become No. 3 of Chinese management software compani
Slide 23: Financial Highlights
ai Panseft Financial Highlights Pansoft Historical Growth $ in Millions 60) 3-Year CAGR Se Neeincome Revere wid *Net Income: 151% *Revenue: 40%
Slide 24: Financial Highlights
Panseft Financial Highlights * Consistent revenue growth and solid growth potential in 2009 and beyond $ in Millions Annual Revenue Growth * Strong operating margin of 58.5% in the most recent quarter a
Slide 25: Financial Highlights
Financial Highlights * Strong balance sheet (with no debt) and cash flow Bala h Flow $ in millions Sept 30, 2008 $ in millions 9-mo 2008 Cash & Cash $10.2 Operating CF ($0.5) Equivalents Investing CF (0.6) Current Assets 135] | Financing CF ne Total Assets $143] | ietiect'on EX aa Total changes in 6
Slide 26: Investment Highlights
Investment Highlights * Significant growth potential in the domestic and international software industry = Unique market position with advanced technology and customer-oriented services ensures sustainable long- term growth = Strong research and development team = Experienced management team and lar
Slide 27: Thank You!
Thank You!