Plastec Technologies, Ltd. · OTC:PLTYF
Plastec Technologies — GSME Acquisition Partners I — SPAC Merger (September 2010)
39 slides from Plastec Technologies's SPAC merger presentation, Sep 14, 2010
Slide 1: Proposed Business Combination with Plastec International Holdings Limited
GSME 2244 GSME ACQUISITION PARTNERS | Proposed Business Combination with Plastec International Holdings Limited September 2010
Slide 2: Safe Harbor
ee Safe Harbor ‘Ginusuaunany OvbY Drectns ARENLEET TO: 00ME AcURIOTION CAXINEN |, 1s WELT SEUNG ROAD HANH PEOPLES RE>USLIO Ge Sa Sten, ATTENTON GL. OOM) SUSE
Slide 3: Table of Contents
ee Table of Contents 1 Executive Summary I Transaction Summary lll Business Overview IV. Summary Financial Information Appendix A. Industry Overview B. _ GSME Management Overview
Slide 4: I. Executive Summary
|. EXECUTIVE SUMMARY
Slide 5: Executive Summary
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 — _Initiat purchase price of 6.Sx FYE 4/30/2010 adj
Slide 6: Executive Summary: Plastec full service offering
GSME B®#* = Executive Summary Plastec offers full service design, fabrication, injection, finishing and assembly Plastic injection manufacturing ‘Secondary-process finishing.
Slide 7: Executive Summary: Plastec's products
@ GSME EXR* Executive Summary Plastec’s products are used across a variety of sub-categories Consumer electronics Electrical home appliances = LCD Monitors. = GPS Devices = Printers l= Precision Plastic Educational Products. = Photo Printers = Automobile Audio Systems
Slide 8: Executive Summary
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 history of producing
Slide 9: II. Transaction Summary
Il. TRANSACTION SUMMARY
Slide 10: Transaction Summary
eR i) °°" Transaction Summary GSME has structured a transaction which it believes has compelling valuation metrics + GSME will issue approximately 7.1 million shares to Plastec shareholders at closing and may issue an additional 9.7 milion shares upon achievement of certain financial targets = Assum
Slide 11: Transaction Summary: Comparable Companies
Transaction Summary: Comparable Companies GSME Based on comparable public companies, the transaction with Plastec has a relatively low valuation Lrtmnenty Sereee LT Ta Boon Source: Publicly Available Information
Slide 12: Transaction Summary
63) °°" Transaction Summary Based on solid operating results, a conservative management style, and targeted acquisitions, Plastec 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
Slide 13: III. Business Overview
Ill BUSINESS OVERVIEW
Slide 14: Business Overview
66,3) <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 a
Slide 15: Business Overview: Capital expenditures and technology
TT ee 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 business + Plastec beli
Slide 16: Seasoned, accomplished and reputable management team
@ GSME EXx#* Business Overview ‘Seasoned, accomplished and reputable management team Mr. Kin Sun SZE-TO Mr. Chin Hien TAN Mr. Ho Leung NING Mr. Wai Keung LAM ‘= Founder, Chairman of the Board and CEO = Responsible for directing long-term business development strategies and establishing operational o
Slide 17: Steady growth and strategic development
Business Overview @a GSME Exe* Steady growth, and strategic development through the establishment of subsidiaries = Me.Kin Sun] = Suntine | m SunLine (Macao SseTo (Hk)setup | Commercial foundedSun | Dongguan Offshore) Line Industrial | Sunline Company Limited ("Sun | Processing | Limitedwas Line (HK
Slide 18: New technology adoption, and effective implementation
Se (:) <S**" **** Business Overview New technology adoption, and effective implementation Strong tooling expertise and Cutting-edge hardware and software for high- know-how precision prototyping, mold design and fabrication Computer aided Computer aided Dedicated team of 125 design system manufactur
Slide 19: Just-in-time facilities, with significant capacity
Gi) <5= «<*> Business Overview Just-in-time facilities, with significant capacity Location of plants Dongguan Shenzhen Heyuan ‘Kunshan Zhuhai TOTAL (Gross er area (sq.m) ~60.000 ~e1,000, ~10,000, ~13.000 ~25,000 ~180,000, No.of plastic imection 175 20 0 2 80 508 machines NNo.eftootng machines 50 eo
Slide 20: Efficient management of high-technology equipment base
(2) <S**" **** Business Overview Efficient management of high-technology equipment base Rapid expansion of production capacity 04/2008 04/2007 04/2008 04/2009] 04/2010 04/2008 04/2007 04/2008 04/2009 04/2010 No, of injection 472 508517500] 505 machines No.of ooting ai a = @ % ‘Max annual basen 4,990
Slide 21: Quality control at each critical stage of production
(:) <5" << ** Business Overview The business has developed rapidly since inception Quality control at each critical stage of production Mold designand fabrication quality ‘control through ‘documentation controt, mold trial and mold measurement Production quality Outgoing quality control providing co
Slide 22: Cost-plus pricing model
ae Business Overview The business employs a cost-plus pricing model, reducing exposure to market fluctuations Customers Suppliers Rawmaterials = holly foreign owned enterprises |= Manufacturing equipment = Owns manufacturing equipment a Workers = Management 1 Hires own workers Premises = Raw materia
Slide 23: Main customers: OBMs, ODMs and OEMs
6G) SS" <= ** 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 uso.000 = %~=——-USD,000, * 'usD,000 * sales by product cat
Slide 24: Sales to top five customers
5) <S**" **** Business Overview peri Proven rad Sales to top five customers (% of total revenue) design ad recordin abvication manufacturing ‘04/2006 0472007 04/2008 042009 04/2010 igh precio, molds products Customer J 46.1% 31.6% = 19.3% 235% © 32.5% Customer k 40% = 9.0% 175% 8% B.A é ‘Customer x
Slide 25: Plastec outperforms closest comparable companies in profitability
> <=" **** Business Overview Plastec outperforms its closest comparable companies in every profitability metric 1 Fanci year ans on sor. 2 Franca feat ons on rch 31 5 Eines fea oes on March 3 4 Panel een aco)
Slide 26: Business Overview: margin comparison
@a GSME Exe* Business Overview (c¥2000 sales cy2000 sales cy2010 sales Electronics ‘assembly, 21% (©2009 EBIT margin ¢Y2009 EBIT margin €¥2009 EBT margin ¥2010 EBT margin 20% as s9% ote FRING MOF Blectrorics PPUL® MDF Electronics assembly asieubly a PLAS MDF Source: Company reports
Slide 27: Competitive strengths, market opportunities and strategies
ee 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-established operatio
Slide 28: IV. Summary Financial Information
V. SUMMARY FINANCIAL INFORMATION
Slide 29: Summary Financial Information
eae Summary Financial Information ices tamstons Hoang, Ls ‘oon tleners TEs Ti TEs rs rte pane oss aon tee 2% 79% me Satrg 2 arn 2x9 2703 2 2163 sage 155% 108% oem “oa erang pot as aa 12585 {oss 01 apossonten ot Fuca assets x0 a7 173 quia TE Ter aS Supplement states eA meen an ee Ea
Slide 30: Summary Financial Information: Balance sheet
6) <S**° «*** Summary Financial Information Plastesitamtonal Hong is Balance sheet Audtes Audited == Fyo8 £¥00 FyI0 TSK TEs TSK Assets Curent Aasets 4 12e8 so082 2505 Tae debios mms 2203 31 thar renables 08s 1481 105, sh & equialents 14738 zat re) “Taal curant sesete BEE en Brats Propeny, Plat & Mac
Slide 31: Summary Financial Information: Cash Flow
TT ee Summary Financial Information Plastec Intemational Holcings, Lt Cash Fiow Audited Audited Audited FYOs Fyos FyI0 uss USsK WSK Profit before tax 18,816 7072 ‘Add back: Depreciation & amortisation 10,208 18497 ‘Stock (increase) 2740 422 Debtors (nerease) 3,880 3745 ther receivabies (increase) we
Slide 32: A. Industry Overview
A. INDUSTRY OVERVIEW
Slide 33: Industry Overview
3°" 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's local m
Slide 34: Global plastic products market returning to growth
(2) <4" **** Industry Overview While the global plastic products market is returning to growth, China’s market has continued to develop Global plastic products market (US$bn) CAGR = 3.4% (05-09) 4, caGR= 3.2% 10-12), Plastic replacing metal and glass ers wo 933 eZ 1g soa. (10889 2005 «2006S 20072082
Slide 35: China's consumer electronics industry will outpace global market
@: i GSME £Xx#* Industry Overview China’s consumer electronics industry will outpace global market cs 1042 menT Baio! ee : O U i al ‘20 we EEE souce: CoD largely driven by consumer handsets 100 mn unit) ..and home appliances {US$bn). “Z . ' a =e a Ok 2005 am ZIO7 IOS MONE ZONWE GONE 29E ZOE ‘Source:
Slide 36: China is the growth engine for the global plastic industry
Industry Overview China is the growth engine for the global plastic industry Cost of labor advantage Close proximity to both upstream and downstream players Rapidly growing domestic consumer electronics market Increasing affordability due to development of domestic market Rising outsourcing trend 13
Slide 37: B. GSME Management Overview
B. GSME MANAGEMENT OVERVIEW
Slide 38: GSME Management Overview
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. Mr. Gao has inv
Slide 39: Contact
eae Contact c& co 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 136 East 57" Street, 21*' Floor New York, New York 10022 www.cohenandcompany.com GSME Capital
GSME Acquisition Partners I — SPAC Merger (September 2010) on 6ix