Winner Medical Co. Ltd. Class A · SZSE:300888
Winner Medical Co. Ltd. Class A — Investor Presentation (November 2009)
31 slides from Winner Medical Co. Ltd. Class A's investor presentation, Nov 16, 2009
Slide 1: Winner Medical: A Leading Medical and Wound Care Dressings Manufacturer
Weer winner meDIcAL A Leading Medical and Wound Care Dressings Manufacturer November 2009
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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
Slide 3: Company Overview
Company Overview inner Medical Leading worldwide manufacturer and exporter of high quality medical dressing products including medical care, wound care, home care and PurCotton products. Headquartered in Shenzhen City with seven wholly owned operating manufacturing facilities and 5,000 employees. Ve
Slide 4: Company history timeline
Winner Znunat founded in February 1991 \Winner Chongyang and Jingmen established to engage in weaving and bleaching. Winner ‘Medical Group is able to manage the ‘manufacturing orocess fom raw material t finished products, ner Medical ‘Shenzhen estabished in January 1997 Winner Mesical Group moves Wi
Slide 5: Winner Medical Select Financial Data
Vinner Medical Select Fi Last-Traded Price (11/04/09) $5.10 Shares Outstanding 224M Market Capitalization $114.2 M Management Ownership 82.2% Fiscal Year End September 30 Q4 Revenues* $27.7M +9.7% Q4 Net Income* $2.8M +72.2% Revenue FY 2009* $98.4M +15.1% Net Income FY2009* $8.9M +76.3% Cash Flow fr
Slide 6: Rising Global Demand
Rising Global Deman d @ Industry demand driven by technological advances and new healthcare industry demands @ Favorable market trends: — Aging demographics — Hospitals reducing costs fuelling demand for alternative products that increase efficiency and reduce labor — Environmental concerns guarante
Slide 7: Growth in Exports from China
Growth in Exports from China Strengthening Overseas Market Penetration = Export growth is driven by manufacturing shift to lower-cost labor and manufacturing areas = China exported 3 billion worth of medical dressing (medical and wound care) products in 2008* Gaining Market Share among Leading Inter
Slide 8: Worldwide Marketing and Distribution of Products
Worldwide Marketing and Distribution of Products Winner Medical Products Sold in Major Regions across the World © 2009 Winner Medical 8 Weimer winner mepicaL
Slide 9: Domestic Market
Domestic Market Expanding Domestic Market Demand = Demand in China for disposable medical products has grown 14% per year since 1990* = Demand for China medical dressing was ~$1.Qbillion in 2008, CAGR expected to be >30% from 2009- 2013* * 12.8% of Winner Medical sales were within China in FY 2008 a
Slide 10: Scalable Business Model in Strong Growth Segments
Scalable Business Model in Strong Growth Segments Extensive, Diverse Product Portfolio Provides One-Stop-Shop = Products compromise four broad categories — Medical care products: operating room products, procedural packs, protective products and gauze — Wound care products: dressing pads, cotton pro
Slide 11: Medical Care Products
Medical Care Products " Weimer WINNER MEDICAL
Slide 12: Wound Care Products
Wound Care Products er Medial 2 Weimer winner mepicat
Slide 13: Wenner winner meDIcAL
3 Wenner winner meDIcAL
Slide 14: PurCotton — New Flagship Product
PurCotton — New Flagship Product PurCotton = Patented revolutionary manufacturing methodology for 100% cotton nonwoven products « Patents held in China, the U.S., Russia, Singapore, South Africa, Mexico, Nigeria and the Philippines , and the Member States of the European Patent Office « New technolo
Slide 15: Revenue Expansion Opportunities — PurCotton
Revenue Expansion Opportunities — PurCotton Market Opportunities for PurCotton, a Substitute for Woven Cotton and Non-Woven Synthetic Fabric = Nonwoven market potential — Sales of nonwoven products at the producer level in North America amounted to $5.0 billion in 2005*. The industry is, forecasted
Slide 16: Growth Strategy
Growth Strategy Consolidate Product Portfolio & Customer Mix to Drive Margin Growth — Migrating to higher margin products and reducing production and sales of non-core and low growth products — Focus on expansion and penetration into leading international brands which represent high quality and are
Slide 17: Broad Base of Customers
Broad Base of Customers = 18+ years of business relationships with leading multinational medical producers and distributors that employ high quality standards = Diversified customer base of 150+ clients, with the top 10 customers accounting for approximately 45% of fiscal 2008 annual revenue Cardina
Slide 18: Driving Innovation through Dedicated R&D
Driving Innovation through Dedicated R&D = 80+ professionals dedicated to R&D efforts » R&D expenses increased from ~1.5% to ~2.1% of revenue over the past four years PurCotton R&D is enhancing the manufacturing process, shortening the production cycle, reducing waste and improving product quality a
Slide 19: Strict Quality Controls; Advanced Production Technology
Strict Quality Controls; Advanced Production Technology = Fully integrated production capabilities from upstream raw material processing to export of finished products = Provides total procurement solutions to customers, including design and R&D support * Seven wholly owned operating factories in Hu
Slide 20: Strong and Experienced Management Team
Strong and Experienced Management Team Jianquan Li- CEO — Founder of Winner Group and has served as Chairman and CEO since subsidiary company's formation in 1991 — Chief Executive Officer, President and Director — Key to developing the strategic vision; oversees the implementation of business plan =
Slide 21: Strong Revenue Growth with Stable Margins
Strong Revenue Growth with Stable Margins Income Statement ($ in thousands) Revenues 23,073 70,280 85,505 Q3 2008 FY2007 FY2008 Revenue Growth (YOY) - 5.6% * 21.7% Cost of revenues 17,094 17A76 52,869 64,086 Gross profit 5,979 7,181 17,411 21,419 Gross profit margin 25.9% 29.5% 24.8% 25.0% SG&A, and
Slide 22: Robust Profit Growth
Robust Profit Growth Quarterly Net Profit uss m 3.06 1.64 1.47 1.16 0.57 Ql Q2 Q3 a4 ™ 2008 M® 2009 *Preliminary Q4 2009 results unaudited ©2009 winner Mesa 2 Weimer winner mepicaL
Slide 23: Q4 2009 Preliminary Results
Q4 2009 Preliminary Results Q4 2009 (July 1-September 30, 2009) @ 4 2009 preliminary revenue increased 9.7% to $27.7 million compared to $25.2 million in Q4 2008. @ 4 2009 preliminary net income increased 72.2% to $2.8 million compared to $1.6 million in Q4 2008. ™ = Chinese market preliminary sales
Slide 24: Key Balance Sheet Items
Key Balance Sheet Items (in millions USS) As of Sept 30, 08 Cash and cash equivalents 7.84 6.46 Accounts Receivables 11.50 13.52 Inventory 14.79 15.84 Current Assets 40.13 41.33 Total Assets 98.62 101.92 Short-term bank loans 7.76 15.03 Current Liabilities 19.35 28.97 Total Liabilities 19.39 29.01 S
Slide 25: Investment Highlights
Investment Highlights Solid Revenue Growth with a Strong Focus on Profitability — Consistent robust revenue growth: CAGR 21.9% 2003-2008 — Focus on margin expansion to enhance profitability Extensive Overseas Distribution Network and Strong Market Leadership Position — Largest exporter by volume in
Slide 26: Thank You
Weer WINNER MEDICAL Thank You
Slide 27: Appendix
Weimer WINNER MEDICAL Appendix
Slide 28: Organizational Structure
Organizational Structure Winner Medical Group Inc. 100% control Winner Group Limited | ‘Seven wholly owned operating subsidiaries, and four joint venture companies. t t be 5S SS 9F EE EE EE G 5 dg 3s ose g2 <8 98 58 $2 $g Si xa So ge | de 3 | fe ae 2g be | GE EE de gee “B & “8 28 & SF 88 «g & 8 & ®
Slide 29: Major Products with FDA Approval
Major Products with FDA Approval lassification Name Proprietary Name {brand name) 1 Sing, Arm Trangular Bandage - Non-Sterle “Triangular bandage - Arm sling | Cover, Shoe Operating-Room Surcieal Snoe Cover \Various types of Shoe Covers | Shoes , Operating Room Sursieal Shoes Various types of Surgica
Slide 30: Major Products with FDA Approval (cont'd)
Major Products with FDA Approval (cont’d) Classification Name Blade, scelol Depressor, Tongue, Non-surgical Coton, rl Evacuator, Oral Cavity GauzelSponges, Internal Tray, Impression, Preformed ‘Syringes, restorative ang impression material Mouthoiece, Saliva Ejector ‘Synnges, periodontc, endodontic,
Slide 31: Revenue by Market
Revenue by Market 98 10.3 uss m Q3 09 Q3 08 mEurope mChina mAmericas Japan Other Q3 09 93.68 Revenue by Market Revenue by Market 4.13% 4.94% 17.38% 15.69% 40.04% ‘ 44.82% 19.26% 14.48% 20.62% Meurope China Americas MlJapan_—lOther ‘Ter WINNER MEDICAL europe MIChina. © MAmericas = Mapan Other
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