2. 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.
3. Management Presenters
Mark Du
Chief Financial Officer
Albert Sheng
Vice President of Investor Relations
5. Company Highlights
Ø Jinpan is a manufacturer of specialized
power 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 on
growth in –
q China’s electrical infrastructure
market; and
q Global green energy markets
6. Company Highlights
This is a simplified organization
chart. Please refer to the JINPAN INTERNATIONAL LTD.
Company’s 20F filing for detailed
information on its legal
organization 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.
7. 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 PRC
1993
7
8. Products
MAX
Transformer Substations
CUSTOMER
VALUE
Switchgears
VPI Transformers and
Reactors
Cast Resin Transformers
8
9. 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
10. Dry Type Cast Resin Transformer
Ø Our transformer products meet
the following international codes
and standards:
§ GB
§ IEC
§ ANSI/IEEE/NEMA
§ CSA
§ JEC
Ø Our transformer products have
been certified by: UL&KEMA Certificates
§ UL (US)
§ KEMA (Holland and US)
§ CE (EU)
§ GOST-R (Russia)
11. VPI Transformer and Reactors
Description: VPI transformers and
reactors are components of converters
and inverters. They are used to change
voltage and filter electricity.
Application: wind, solar, rail
transportation. VPI Transformer
VPI Transformer
Reactor
Reactor
(2.5MW Wind)
(2.5MW Wind)
Specification:
Voltage: Max 1 KV
Transforming Capacity: Max 500KVA
Reactor(1.5MW Wind) Reactor (2.5MW Wind)
12. Switchgear & Transformer Substation
Switchgear
Description: Switchgears are used to
isolate electric equipment in the grid and
de-energize equipment to allow technicians
to perform maintenance.
BLOKSET Switchgear
Transformer Substation
Gas Insulated
Description： Integrated assembly of low Switchgear
and high voltage switchgears, transformers, (Ring Main Unit
12KV)
and monitoring and control systems in a
compact fully, enclosed unit. Lowers the
voltage of electricity drawn from the grid to
levels that can be fed into general purpose
Transformer Substation
transformers
13. 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.
16. Growth Drivers
Growth in Electricity Consumption & Infrastructure
Ø 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 People's 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.
17. 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)
18. 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.
20. Management
Strict implementation of international
quality, environmental, and work health
and safety standards enables us to
efficiently manage manufacturing on a
large scale.
ISO 9001 Certified
ISO 14001 Certified
OHSAS 18001 Certified
Run Enterprise Resource Planning
system (SAP) that combines
management information, inventory
control and cost control into a single
integrated platform.
21. 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.
22. Sales
International Market Strategy
China 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.
23. Compelling Growth Strategy
Ø 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
25. Financial
Performance
($Millions)
Balance Sheet Statement of cash flow
31-Dec-12 31-Dec-12
Cash 18.5
Net Cash provided by
Current assets 190.3 operating activities 19.3
Net cash used in investing
Other assets 100.5 activities (43.1)
Net cash provided by financing
Total assets 309.3 activities 18.0
Net decrease in Cash (5.8)
Current liabilities 86.7
L/T Liability 29.7
Equity 192.9
Total liabilities &
equity 309.3
