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    Jinpan ndr presentation_march_2013 Jinpan ndr presentation_march_2013 Presentation Transcript

    • JINPAN INTERNATIONAL LTD. (NASDAQ “JST”) March 2013
    • Forward-Looking Statements•  This presentation and oral statements made in conjunction with it may contain or incorporate by reference information that includes or is based upon forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, among other things the information concerning our possible or assumed future results of operations, business strategies, financing plans, competitive position, potential growth opportunities and the effects of future regulation and competition.•  These statements are only our current expectations. They are based on our management’s beliefs and assumptions and on information currently available to our management. Forward-looking statements involve risks, uncertainties and assumptions. Although we do not make forward-looking statements unless we believe we have a reasonable basis for doing so, we cannot guarantee their accuracy. Actual results may differ materially from those expressed in these forward-looking statements due to a number of uncertainties and risks, including the risk s described in our latest annual report on Form 20-F and other risks, including: –  our ability to successfully implement our business strategy; –  uncertainties about the future growth in electricity consumption and infrastructure development in the markets in which we operate; –  inability to attract and retain qualified management and personnel; –  increases in the costs of our raw materials; –  the impact of existing and new competitors in the markets in which we compete, including competitors that may offer less expensive products and services, more desirable or innovative products or technological substitutes, or have more extensive resources or better financing; –  the effects of rapid technological changes and vigorous competition in the markets in which we operate; –  the effects of additional or higher taxes in the countries in which we operate; –  changes in competition and the pricing environments in the countries in which we operate; –  the failure to keep pace with technological changes in our industry; –  potential product liability claims; –  the effects of the higher degree of regulation in the markets in which we operate; –  general economic and political conditions in the countries in which we operate or other countries which have an impact on our business activities or investments; –  inability to successfully adapt our internal controls over financial reporting to changes in circumstance; –  the monetary and interest rate policies of the countries in which we operate; and –  exchange rates.•  You should not rely on any forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, after we distribute this presentation, except as otherwise required by law.Use of Non-GAAP Financial Measures This presentation contains non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. Refer to the Appendix for a discussion of these numbers and a reconciliation to their nearest equivalent financial measures calculated in accordance with GAAP.
    • Management Presenters Mark Du Chief Financial Officer Albert Sheng Vice President of Investor Relations
    • Company Highlights Products Markets Growth DriversContents Management & Sales Financials Investor Relations
    • Company HighlightsØ  Jinpan is a manufacturer of specializedpower distribution equipment. q  Leading supplier of cast resin transformers in China. q  Supplier of choice to leading global OEMs for innovative power distribution solutions.Ø  Jinpan is well positioned to capitalize ongrowth in – q  China’s electrical infrastructure market; and q  Global green energy markets
    • Company HighlightsThis is a simplified organizationchart. Please refer to the JINPAN INTERNATIONAL LTD.Company’s 20F filing for detailedinformation on its legalorganization structure. HAINAN JINPAN JINPAN ELECTRIC JINPAN INT’L (USA), ELECTRIC CO., LTD. CHINA CO., LTD. LTD. Guilin Jun Tai Fu Construction and WUHAN JINPAN SHANGHAI JINPAN ELECTRIC CO. LTD. Development Co. Ltd. ELECTRIC CO. LTD.
    • Company Highlights Guilin Manufacturing Facility Operational 2013 Shanghai Manufacturing Facility Operational JINPAN INTERNATIONAL LTD. Carlstadt NJ Facility Opened 2009 2008 Wuhan Manufacturing Expansion of Haikou Facility Facility Operational Buyout of Minority Interest Move listing to NASDAQ 2007 UL Certification 2006 PIPE raised $25 million 1998 IPO & Listing on Amex SHANGHAI JINPAN ELECTRIC CO. LTD. 1993 Company founded in Haikou Hainan PRC1993 7
    • Products MAX Transformer Substations CUSTOMER VALUE Switchgears VPI Transformers and Reactors Cast Resin Transformers 8
    • Dry Type Cast Resin Transformer Description: Cast Resin Transformer is a type of transformer designed to use air to cool its induction coils. Key Applications: Ø  Transmission and distribution of electricity. Transformer (2.5 MW Wind Towers) Ø  JST offers a range of medium Isolation Transformer voltage cast resin transformers for (Gas Turbines) commercial & residential developments, transportation Specifications: infrastructure projects, industrial Voltage: Max 35 KV applications, and wind towers. Transforming Capacity: Max 40 MVA
    • Dry Type Cast Resin TransformerØ  Our transformer products meet the following international codes and standards: §  GB §  IEC §  ANSI/IEEE/NEMA §  CSA §  JECØ  Our transformer products have been certified by: UL&KEMA Certificates §  UL (US) §  KEMA (Holland and US) §  CE (EU) §  GOST-R (Russia)
    • VPI Transformer and ReactorsDescription: VPI transformers andreactors are components of convertersand inverters. They are used to changevoltage and filter electricity. Application: wind, solar, rail transportation. VPI Transformer VPI Transformer Reactor Reactor (2.5MW Wind) (2.5MW Wind)Specification:Voltage: Max 1 KVTransforming Capacity: Max 500KVA Reactor(1.5MW Wind) Reactor (2.5MW Wind)
    • Switchgear & Transformer SubstationSwitchgearDescription: Switchgears are used toisolate electric equipment in the grid andde-energize equipment to allow techniciansto perform maintenance. BLOKSET SwitchgearTransformer Substation Gas InsulatedDescription: Integrated assembly of low Switchgearand high voltage switchgears, transformers, (Ring Main Unit 12KV)and monitoring and control systems in acompact fully, enclosed unit. Lowers thevoltage of electricity drawn from the grid tolevels that can be fed into general purpose Transformer Substationtransformers
    • Markets•  Revenue •  Wind Energy –  2012: US$ 210.5M •  Jinpan manufactures VPI reactors•  Jinpan’s products are used in a wide and cast resin transformers for range of applications: wind energy applications. –  Industrial •  Jinpan has been a qualified supplier Factories, refineries, ship yards, etc. for a leading global OEM for wind energy equipment. –  Utilities and Infrastructure •  Sales of equipment for wind energy Utilities: power plants , wind farms, contribute approximately 12% of electrical distribution networks. total sales. Infrastructure: airports, train/subway stations, and other municipal projects. –  Residential and Commercial Office buildings, shopping centers, high rise apartments, etc.
    • Markets
    • Markets
    • Growth Drivers Growth in Electricity Consumption & InfrastructureØ  Jinpan manufactures equipment for the Ø  Sales of electrical equipment is also driven distribution of electrical power. Demand for our by infrastructure development. products is driven by demand for electricity. v  The completed investment in fixed assets of the•  In 2012, total electricity consumption in China country in 2012 was 37,467.6 billion yuan, up by reach approximately 4.95 trillion KWH. 20.3 percent over the previous year. The real growth was 19.0 percent after deducting the price factors. Source:”Statistical Communiqué of the Peoples Republic of Source: Compiled based on data sourced from China China on the 2012 National Economic and Social Development” Electric Council releases. Year 2012 data is sourced from released by the China National Bureau of Statistics on February “2012 Electricity Industry Operations Brief” China Electricity 22, 2012. Council on January 17, 2013.
    • Growth Drivers Wind Energy •  Sales of transformers and reactors for wind energy applications is a significant contributor to our revenue. •  Jinpan has been a qualified supplier to a leading global wind power OEM for more than half a decade. We continue to cultivate relationships with new customers that specialize in wind. Source: “Global Wind Energy Statistics”, Global Wind Energy Council (Feb 2013)
    • Growth Strategy v  Leverage R&D and engineering capabilities to increase the sale of high margin custom transformers. v  Increase capacity and automation to enhance efficiency and lower the cost of standard transformers. Leverage economy of scale to compete in the market for standard products. v  Diversify our product offerings by through new product development. (e.g. Gas Insulated Switchgears) v  Increase sales by partnering with OEM customers to supply new markets.
    • Manufacturing Facilities JST USAEstablished: 1998 [Carlstadt NJ JST Wuhan JST ShanghaiFacility Built 2009] Established: 2008 Established: 2009 Products: Cast Resin Products: VPIProducts: Cast ResinTransformers* Transformers Transformers & Reactors; Gas Insulated Switchgears 1 JST Guilin Established: 2011 JST Haikou Construction Completed 2013 Established: 1993 Products: Cast Resin Products: Cast Resin Transformers Transformers / Conventional*Jinpan’s Carlstadt NJ facility supports product Switchgearstesting, after sales service, and limited scalemanufacturing on site.
    • ManagementStrict implementation of internationalquality, environmental, and work healthand safety standards enables us toefficiently manage manufacturing on alarge scale. ISO 9001 Certified ISO 14001 Certified OHSAS 18001 CertifiedRun Enterprise Resource Planningsystem (SAP) that combinesmanagement information, inventorycontrol and cost control into a singleintegrated platform.
    • Engineering Ø  Jinpan Electric has more than 200 engineers and technicians. Ø  State of the art CAD tools allow our engineers to build 3D models and 2D projections, to verify design constraints, and to collaborate online. Ø  Proprietary software to design the electromagnetic system in dry type cast resin transformers.
    • Sales International Market StrategyChina Market Strategy •  Supply the international market through OEMs.•  Leverage our engineering and R&D capabilities to increase sale of customized transformers for •  Leverage the marketing reach of large advanced industrial and alternative energy international OEMs and our expertise in applications. manufacturing power distribution equipment to expand our presence in international market.•  Increase capacity and leverage our economy of scale to increase sales of standard distribution •  Currently, Jinpan is one of two manufacturers of transformers. UL certified cast resin transformers in the world.•  Direct sales network consisting 35 regional •  Established a transformer assembly and testing sales offices located in major cities in China. facility in Carlstadt NJ. •  In 2012, North America is our top export market•  Diversified customer base followed by Europe. Jinpan’s extensive sales network is a significant barrier to entry for foreign and domestic competitors seeking to enter the China market.
    • Compelling Growth StrategyØ  Continue to focus on China’s growing electrical infrastructure market.Ø  Promote and develop high end products (transformers for alternative energy and industrial applications and complementary power control and distribution products).Ø  Invest in new, state-of-the-art facilities to increase manufacturing capacity and efficiency . Leverage the resulting economy of scale to expand market share of standard power distribution transformers.Ø  Leverage our relations with OEMs and UL certification to expand our global reach. 23
    • Financial  Performance  ($Millions, except per sharedata) FYE December 31 2007 2008 2009 2010 2011 2012Net Sales 119.6 154 158.9 144.0 218.9 210.5% Growth 45.4% 28.8% 3% -9.4% 52.2% -3.8%Gross Profit 41.6 48.9 67.2 56.0 80.3     68.8% Margin 34.8% 31.7% 42.3% 38.8% 36.7%     32.7%    EBITDA 20.9 24.8 35.6 20.9 31.4 21.6% Margin 17.4% 16.1% 22.4% 14.5% 14.3% 10.3%EBIT 19.6 23.1 32.0 17.3 27.1 16.3% Margin 16.4% 15.0% 20.1% 12.0% 12.4% 7.7%Net Income 16.4 19.8 28.9 13.4 23.8 14.1% Margin 13.7% 12.9% 18.2% 9.3% 10.9% 6.7%Diluted Earnings pershare 1.01 1.21 1.78 0.81 1.45 0.84
    • Financial  Performance  ($Millions)Balance Sheet Statement of cash flow 31-Dec-12 31-Dec-12Cash 18.5 Net Cash provided byCurrent assets 190.3 operating activities 19.3 Net cash used in investingOther assets 100.5 activities (43.1) Net cash provided by financingTotal assets 309.3 activities 18.0 Net decrease in Cash (5.8)Current liabilities 86.7L/T Liability 29.7Equity 192.9Total liabilities & equity 309.3
    • Albert  Sheng        Vice  President  of  Investor  Rela8ons    Jinpan  Interna8onal  (USA)  Ltd.      390  Veterans  Blvd.        Carlstadt,  NJ  07072        T:  201  460  8778  (x135)      F:  201  460  8775          E:  asheng@jstusa.net       科技创新 低碳环保 绿⾊色发展