Winner Medical Co. Ltd. Class A · SZSE:300888
Winner Medical Co. Ltd. Class A — Roth OC Conference 2007
25 slides from Winner Medical Co. Ltd. Class A's conference presentation, Feb 20, 2007
Slide 1: Roth OC Conference
Roth OC Conference February 21, 2007 Winner Medical Group Inc. (OTCBB: WMDG)
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 o
Slide 3: Investment Highlights
Investment Highlights Premier manufacturer of cotton surgical dressings and disposable medical products Patented comprehensive product portfolio with significant competitive advantages Leading Chinese exporter of medical disposables #1 ranked Chinese exporter of cotton wadding, gauze and bandage sup
Slide 4: Strong Base of Existing Business
Strong Base of Existing Business ~75% total sales generated Current Main Customers through OEM channels Strong Net Sales growth Germany FY 2002 – 2006 CAGR ~33% Japan U.S. & Australia World-class customer base ~55% of FY 2006 total sales derived from top 10 customers Netherlands Germany Belgium Swed
Slide 5: Medical Disposable Supplies Market – U.S.
Medical Disposable Supplies Market – U.S. Total U.S. medical disposable supplies market was $54 billion 2002 Non-woven and wound management disposables accounted for 7% and 10% respectively US Disposable Medical Supplies Market – $ $54 billion in 2002 US Disposables Market – $in $billions Total U.S.
Slide 6: Medical Disposable Supplies Market – Europe
Medical Disposable Supplies Market – Europe The EU medical disposable supplies market increased from 2004 EU Imports of Wadding, Gauze and Bandages €6.5 billion in 1998 to € 12.4 billion in 2003 EU disposables consumption in Billion € Chinese imports accounted for ~6% of the total EU imports of cott
Slide 7: Growth Strategy
Growth Strategy Transition from low margin to high margin products Leverage R&D to introduce new products Non-sterilized products Sterilized products Higher gross margins PurCotton™ NEW - Non-woven, cotton spunlace product Revenue expected to commence in the first half of FY 2007 Cohesive and Self-A
Slide 8: Growth Strategy – Market Expansion
Growth Strategy – Market Expansion International Strategy Leverage existing OEM partnerships to aggressively market new Winner Medical products in Japan, Europe and the U.S. Shift product focus to higher margin, sterilized products Develop new OEM relationships Continually seek new distributors to e
Slide 9: Chinese Export Growth Potential
Chinese Export Growth Potential Total US and EU cotton wadding, gauze and bandage supplies market was ~$5.3 billion in 2004 Chinese exports accounted for ~11% of this market, or ~$600 million Winner Medical has commanded the leading China export position since 2002 Source: CBI, Freedonia Group, Chin
Slide 10: Product Portfolio
Product Portfolio Wide-ranging portfolio of medical supply products Surgical dressings, dressing packs, wound care dressings, protective products, medical instruments, dental products and hygiene products for the institutional and home care markets PurCotton™ – patented, potential “category killer”
Slide 11: Sample Product Offering
Sample Product Offering 11
Slide 12: Sterilized Products
Sterilized Products Higher margin products U.S. FDA approved for direct export of sterilized surgical dressings One of few Chinese companies approved for direct export to U.S. Direct shipment allows for customers to take advantage of Winner Medical’s lower labor costs and more efficient workflow pro
Slide 13: PurCotton™
PurCotton™ Patented, potential “category killer” cotton product Revolutionary new manufacturing process makes the PurCotton™ technology proprietary to Winner Medical Non-woven spunlace material utilizing cotton rather than petrochemical fiber (polyester/rayon) as the raw material Non-woven products
Slide 14: PurCotton™ Target Markets
PurCotton™ Target Markets Traditional woven cotton market Significant product and cost advantages of PurCotton™ are expected to generate immediate interest and demand for the product Global medical disposables market is expected to grow 5-6% annually through 2010, with the non-woven segment growth p
Slide 15: Additional Product Opportunities
Additional Product Opportunities Self-adhesive and Cohesive Bandages Technologically superior products at lower cost Product design enables uniform tearing without use of ancillary tools (weaving technology) Product cost advantages: Fully integrated production in low cost Winner Medical factories Re
Slide 16: Facilities
Facilities 2 Winner industrial parks (Shenzhen and Huanggang) 8 factories in Hubei Province, Shanghai, and Zhuhai All facilities in China: nearly 600,000 square meters New PurCotton™ facility in Huanggang ISO 9001: 2000, ISO 13485: 2003 and CE certification R&D efforts Joint research program with Ho
Slide 17: Financials
Wenner WINNER MEDICAL Fee EE) FINANCIALS
Slide 18: Selected Quarterly Income Statement Highlights
Selected Quarterly Income Statement Highlights First Quarter First Quarter Fiscal Year FY 2007 FY 2006 2006 12/31/06 12/31/05 9/30/06 Revenues $ 15.9 M $ 16.2 M $ 63.9 M Gross Profit $ 3.9 M $ 4.4 M $ 17.5 M SG&A and other expenses $ 2.5 M $ 2.6 M $ 11.3 M Operating Income $ 1.5 M $ 1.9 M $ 6.5 M Pr
Slide 19: Net Sales – Fiscal Years 2002 - 2006
Net Sales – Fiscal Years 2002 - 2006 19
Slide 20: Net Income – Fiscal Years 2002 - 2006
Net Income – Fiscal Years 2002 - 2006 * FY’05 net income includes one time gain of approximately 1.05 M from the disposable of a subsidiary ** FY’06 includes the first three quarters that Winner Medical was a U.S. listed company 20
Slide 21: Revenue Mix and Sources
Revenue Mix and Sources Winner Medical’s products are exported to approximately 80 countries and 120 firms worldwide Distribution channels U.S., Japan and Europe: OEM suppliers Developing countries: Winner brand 21
Slide 22: Selected Quarterly Balance Sheet Highlights
Selected Quarterly Balance Sheet Highlights First Quarter Fiscal Year FY 2007 2006 12/31/06 9/30/06 Cash & Cash Equivalents $ 2.1 M $ 4.3 M Inventories, net $ 13.5 M $ 11.3 M Total Current Assets $ 29.1 M $ 29.8 M Property, Plant & Equipment, net $ 40.2 M $ 35.8 M Total Assets $ 70.9 M $ 67.2 M Tota
Slide 23: Capital Market Summary
Capital Market Summary Ticker Symbol WMDG Market OTC Bulletin Board Fiscal Year End September 30 Recent Price (as of Feb 9, 2007) $4.75 Shares Outstanding 44.7 million Market Capitalization $212.2 million Cash Position (as of Dec 31, 2006) $2.1 million Working Capital (as of Dec 31, 2006) $12.8 mill
Slide 24: Summary
Summary Winner Medical is the “best in class” manufacturer of cotton surgical dressings and disposable medical products with a strong base of revenues, customers and capabilities Global surgical dressings and medical disposable supplies market is expected to continue to generate strong demand Winner
Slide 25: Thank you
Thank you [email protected] www.winnermedical.com 25