Pl Plas astec tec T ec echnolog hnologies, ies, Ltd td. - - PowerPoint PPT Presentation

Pl Plas astec tec T ec echnolog hnologies, ies, Ltd td.

Investor Presentation

April 2016

| Safe fe Harbo bor r Re Relati ating ng to the Fo Forward–Loo Looki king ng Statement ments

Plastec T echnologies, Ltd. 2 This presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts are forward-looking statements. Words such as “expect, ” “estimate, ” “project, ” “budget, ” “forecast, ” “anticipate, ” “intend, ” “plan, ” “may, ” “will, ” “could, ” “should, ” “believes,” “predicts,” “potential, ” “continue, ” and similar expressions are intended to identify forward-looking statements. The Company’s forward-looking statements are based upon management’s current beliefs and expectations and current market and operating conditions. Such statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties, contingencies and changes in circumstances that may emerge from time to time, all of which are difficult to predict and many of which are beyond our control. Actual results may differ materially from those expressed or implied by any forward-looking statements. Factors that could cause our actual results to differ materially from those set forth in the forward-looking statements include, without limitation, the following:  Continued compliance with government regulations  Changing legislation or regulatory environments  Requirements or changes affecting the businesses in which the Company is engaged  Industry trends, including factors affecting supply and demand  Labor and personnel relations, including the Company’s success in attracting and retaining key personnel  Credit risks affecting the Company's revenue and profitability  The Company’s ability to attract and retain customers, to effectively manage its growth (including implementing effective controls and procedures & costs-containment strategies) and to deal effectively with economic slowdowns or other economic or market difficulties  Changes in U.S. GAAP or other applicable accounting policies  General business and economic conditions beyond the Company’s control as well as impact of natural disasters  Other risks and uncertainties detailed in the Company’s filings with the Securities and Exchange Commission, including its Annual Report on Form 20-F for the year ended December 31, 2015 The information set forth herein should be read in light of such risks. Any forward-looking statement made by the Company in this presentation speaks only as of the date on which it is made. The Company is under no obligation to, and expressly disclaims any obligation to, update or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except as required under applicable law.

| Announ

• unce

cement ment of S f Share e Transf sfer er Agr greement ement

Plastec T echnologies, Ltd. 3

In In No November vember 2015 2015, the he Company Company si signed gned a sh shar are transfer ansfer agr agree eeme ment nt wit ith Shan Shanghai ghai Yongl

• ngli Be

Belt lting ng Co Co., Ltd. (“SYB”) and its wholly ly-owned ned subsidiar diary, Shang nghai hai Yongji jing ng Invest estment ment Management agement Co Co., Ltd. (“SYIM”).

Highl ghlig ights of

• f the Proposed

posed Agreement ment

 Purchase price of up to RMB 1,250,000,000 ($195,312,500), or approximately $15.10 per diluted share based on 12,938,128 weighted average number of diluted ordinary shares outstanding at December 31, 2015.  Upon closing, the Company will no longer own its wholly owned subsidiary, Plastec International Holdings Limited (“Plastec”), or its plastic manufacturing operations.  Thereafter, the Company’s operations will largely be to complete development projects, collect rental income from certain property the Company owns and that is being leased to one of Plastec’s subsidiaries and to explore other investment opportunities.  The proceeds from the transaction will be received by the Company, not the Company’s shareholders. The Company will use a portion of the proceeds to pay for transaction costs associated with the transaction and for general working capital purposes. The remaining proceeds from the transaction may be used, at the sole discretion of the Company’s Board, to provide liquidity to the Company's shareholders through one or more interim dividends.  Closing is expected in 2016 and is contingent on certain closing conditions including SYB’s receipt of external financing. On March 30, 2016, SYB (the shares of which are listed and traded on the ChiNext Board of Shenzhen Stock Exchange) announced that its application for fund raising of no less than RMB 1,250,000,000 through a private placement to complete the aforesaid transaction had passed through the examination and was now subject to official notice of approval by the China Securities Regulatory Commission.  Until the closing of the share transfer agreement, the Company will continue to operate its business in the ordinary course.

| Key T ake keaways

Plastec T echnologies, Ltd. 4

Industry Leading Margins Due to Focus on the Precision Plastic Injection Molding Business One-stop Integrated Manufacturers Expertise and Capabilities in High-Precision Mold Design and Fabrication Shortens the Lead Time Before Mass-production Just-in-Time Delivery Service Reduces Costs Stringent Quality Control Gained Numerous Certifications Within the Industry Long-standing Customer Relationships with Global, Well-Recognized Consumer Brand Names

Stock Price $9.00 (as of April 11, 2016) Ticker OTC: PLTYF Business Precision plastic injection molding & secondary-process finishing Industry Manufacturing End Markets Home electronics, appliances, telecommunications, others such as precision plastic toys, etc. Founded 1993 HQ Hong Kong Employees ~ 4,400 Fiscal Year December 31st Shares Out. 12.9 million Market Cap. $116.1 million

Image: Plastec Plant Outlook

All amounts in this presentation are presented in U.S. dollars (USD) with a conversion rate of US$1.0: HK$7.8 unless otherwise noted.

| Stock ck Snaps psho hot

| Busi sines ness s Ov Overvie view

Plastec T echnologies, Ltd. 5

High-precision plastic injection molding and secondary- process finishing business, with plants in China and Thailand. Manufactures precision plastic parts and components for consumer applications with stringent quality demands, including:

 home electronics  appliances  telecommunications  other products such as precision plastic toys

Operates high output, low-defect plants in China and Thailand; strategic locations near customers Employs cost-plus pricing, and emphasizes precision, high- demand finishing capabilities Led by industry veterans, with a history of producing positive returns on investment  Chairman, CEO and COO each has 20+ years industry experience

Image: Injection Machine Image: Mold Assembly Image: Assembly Machine Image: Molding Machine

| Invest estme ment nt High ghlig light hts

Plastec T echnologies, Ltd. 6

Operati ation

• nal

al Excell llence ence in in Prec ecis ision ion Plas astic ic Moldin ing

 Long-standing relationships with globally recognized manufacturing companies ~ Average of over 5 years  Significantly expanded production capability through significant capital investment  More profitable / higher margins than its competitors, across a number of key metrics

 Low-defects  Effective pricing policies and cost containment strategies  Focus on niche market for precision products

Financ ancial ial Growt

• wth

 Fiscal Year ended December 31, 2015 revenue of $166.5 million; net income of $16.8 million ($1.30 per diluted share); $31.0 million cash from operations

Histor

• ry of
• f Share Repurchas

hase Plans / Divide idend Payments

 During 2015, Plastec returned $15.5 million in distributions to shareholders as a reward for their support in light of another strong year of cash generation.

 Declared a final cash dividend for the fiscal year ended December 31, 2015 of $0.20 per ordinary share. The dividend was paid on or about April 12, 2016 to shareholders of record as of April 05, 2016.  Declared an interim cash dividend of $0.10 per ordinary share for the fiscal 2015-second quarter ended June 30, 2015. The interim cash dividend was paid on or about August 27, 2015 to shareholders of record as of August 20, 2015.  In May 2015 declared a special one-time cash dividend of $0.90 on each outstanding ordinary share. The special cash dividend was paid on or about June 02, 2015 to shareholders of record as of May 26, 2015.

 The Company has a repurchase plan in place, expanded and extended through September 25, 2016, allowing it to purchase up to $5 million of its securities in both open market and privately negotiated transactions

 As of the date of this presentation, the Company had repurchased 586,010 ordinary shares, 547,600 warrants and no units under the current plan.

The he Pl Plaste stec Bu Busi sine ness ss Mo Model el

| | Plaste stec Manufa fact cturin uring g Ov Overvie view

Plastec T echnologies, Ltd. 8

“Best of breed” Production capabilities and manufacturing expertise Attrac racts ts top

• p global
• bal brand

ands and maintai intains ns long ng-st stand anding ng custo tome mer relat ationship ionships.

 T

• oling facilities to produce molds according to clients’ demands, with exceptional precision

 Robust injection machine base to meet large order demands of global OEMs, ODMs (design manufacturer), and OBMs (brand manufacturer).  Superior secondary-process finishing facilities, attracting clients seeking stringent quality controls  Low defect rates and innovative mechanization of manufacturing processes to reduce labor costs and lead time

Low Custom tomer er Return turn Rate te (Less ess than an 1%) and Nume umerous Certi tifica fications ions

| Just st-in in-time ime Faci cilit lities, ies, with Sign gnif ific icant nt Capa paci city

China na Thail iland nd Guangdo ngdong ng Kunsha nshan

 Strategically located next to customers to facilitate frequent just-in- time deliveries.  Production facilities located in Guangdong and Jiangsu Provinces, China and Saraburi Province, Thailand. Gross floor area (sq. m.) ~ 1 120,000 Employees ~4,400

Source: Company data, December 2015

Sarabur uri

| Fu Full l Servic vice e – Fo Focu cus s on High gher er Margi gin Desi sign gn + + Fi Finis ishin hing

Plastec T echnologies, Ltd. 9

 Plastec focuses on providing integrated services including mold design and fabrication, plastic injection molding, secondary-process finishing and parts assembly  Leave the electronic products assembly business to customers  Some of Plastec’s competitors are also involved in the electronic products assembly business, which is of significantly lower margin and higher risk compared to its business  Plastec also lays emphasis on adopting a “cost-plus” pricing strategy

• 1. Mold

ld Desig ign n and Fabric ricatio tion

• 3. Seco

condary ry – proce cess ss Finis nishin hing

• 2. Plast

stic ic Inje jectio tion n Manuf ufactu cturing ring

• 4. Parts

ts Assembly ly

| Long-st stand anding ing Cust stomer mer Re Rela lation ionsh ship ips

Plastec T echnologies, Ltd. 10

 Customer L – Famous global brand, Northern European children’s

educational toy company

 Customer C – Multi-national consumer electronics manufacturer  Customer O – Smartphone protective solutions provider in US  Customer T – Leading T

aiwanese network communication electronics brand

 Customer K – Leading T

aiwanese IT and network communication electronics manufacturer

*Company cannot disclose names of customers

3.8% 4.0% 14.9% 4.8% 46.4% 26.1%

FY 2015 Custo tome mer Composition sition (% of T

• tal

l Revenu nue)

K T C O L Other

Averag age e Custo tome mer r Tenur ure e of 5 Years

Source: Company data, December 2015

Mr. Kin Sun SZE-TO

| | Sea

eason soned ed, , Ac Accompl

• mplished

ished and Re Reputab utable le Managem agemen ent t T eam am and d Boar ard d Member embers

Plastec T echnologies, Ltd. 11

Founder, Chairman of the Board and CEO Responsible for directing long-term business development strategies and establishing operational objectives and assignments Over 20 years of experience in the plastic injection and molding, and secondary-process finishing industry Leads professional team with extensive industry experience and knowledge

Mr. Chin Hien TAN

Executive Director, COO Responsible for the administration and management of operations and market development Over 24 years of industry experience

Mr. Ho Leung NING Mr. Eli D. SCHER

Executive Director, CFO Responsible for corporate planning and financial activities Over 20 years of experience in the banking and finance industry Former CEO of GSME Acquisition Currently serves as Non-Executive Vice Chairman Significant transaction and operating experience as an investor in and executive of Chinese businesses

Fina nanci ncial al Res esul ults ts

| Annual ual Fi Financ ncial ial Re Resu sult lts

Plastec T echnologies, Ltd. 13

Fiscal Year ended*

Dec 31, 2012 Dec 31, 2013 Dec 31, 2014

• Dec. 31, 2015

T

• tal Revenues

$168.4 $149.6 $154.8 $166.5 Gross ss Profit $21.6 $34.2 $38.8 $42.6 Gross ss Margin 12.9% 22.9% 25.0% 25.6% Adjusted EBITD TDA $29.5 $28.8 $33.1 $32.4 Net Incom

• me

$9.0 $10.4 $21.5** $16.8 EPS $0.63 $0.77 $1.67 $1.30

$168.4 $149.6 $154.8 $166.5 $140.0 $145.0 $150.0 $155.0 $160.0 $165.0 $170.0 FY 2012 FY 2013 FY 2014 FY 2015

Revenue enue*

$9.0 $10.4 $21.5 $16.8 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 FY 2012 FY 2013 FY 2014** FY 2015

Net Incom

• me*

e*

* USD in millions, except per share data

** Includes one time gain on disposal of a subsidiary for $3.7 million Source: Company data, December 2015 / Adjusted EBITDA reconciliation table at end of presentation

| Invest estme ment nt Concl clus usion ions

Plastec T echnologies, Ltd. 14

 Plastec’s Focus us on P Preci ecisio sion n Plastic astic Injec ectio ion n Molding ing Busines iness s Create ates Industry Leadin ding g Margin gins s  Compan any y believes eves agreement eement with h SYB B repres esents ents the right t partn tner er and a favorable rable valua uati tion n for its plastic ic inject ction ion molding ing business ess, , represent esenting ng a g good opportun unit ity y for sharehold eholder ers  Long-stand standing ing Customer mer Relation ionsh ship ips s with h Global, al, Well-Recog Recognize nized d Consumer mer Brand nd Names es

Pl Plast stec ec T ec echn hnolog

• logies,

ies, Ltd td.

For Addit itio ional Infor format matio ion At Company: Investor Relations: The Equity Group Inc. Ho Leung Ning Chief Financial Officer ning@plastec.com.hk Adam Prior, Senior Vice President (212) 836-9606 aprior@equityny.com

| EBITD TDA A Re Reco conci ciliat liation ion

Plastec T echnologies, Ltd. 16

This presentation includes financial information (EBITDA) not derived in accordance with generally accepted accounting principles or international financial reporting

• standards. Plastec believes that the presentation of such financial information provides more useful information to investors as it indicates more clearly Plastec’s future
• performance. EBITDA was derived by taking earnings before interest expense (net), taxes, depreciation and amortization

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited) (Hong Kong dollars in thousands)