(NASDAQ “JST”) · BLOKSET Switchgear . Switchgear & Transformer Substation. Switchgear...

INNOVATION FOR A LOW CARBON FUTURE

JINPAN INTERNATIONAL LTD.

(NASDAQ “JST”)

August 2011

JST

科技创新低碳环保绿色发展

Management Presenters

2

Albert Sheng Vice President of Investor Relations

Mark Du Chief Financial Officer

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科技创新低碳环保绿色发展 3

Disclaimer

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.

Disclaimer

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Management & Sales

Growth Drivers

Products

Company Highlights

Markets

Contents

Financials

Investor Relations

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Company Highlights

Jinpan is a manufacturer of specialized

power distribution equipment.

Leading supplier of cast resin

transformers in China.

Supplier of choice to leading global

OEMs for innovative power

distribution solutions.

Jinpan is well positioned to capitalize on

growth in –

China’s electrical infrastructure

market; and

Global alternative energy markets.

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JINPAN INTERNATIONAL LTD.

HAINAN JINPAN ELECTRIC CO., LTD.

JINPAN ELECTRIC CHINA CO., LTD.

JINPAN INT’L (USA), LTD.

WUHAN JINPAN

ELECTRIC CO. LTD.

SHANGHAI JINPAN

ELECTRIC CO. LTD.

This is a simplified organization

chart. Please refer to the

Company’s 20F filing for

detailed information on its legal

organization structure.

Company Highlights

Guilin Jun Tai Fu

Construction and

Development Co. Ltd.*

* Primary assets is 38 acres of land, the site of part of a new manufacturing facility to be built in Guilin, Guangxi Province.

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Company founded in Haikou Hainan PRC 1993

ISO9001 Certification

IPO & Listing on Amex

ISO14001 Certification

OHSAS18001 Certification

“Best New Supplier Award” from OEM customer

“China Well Known Brand” & “Inspection Exempt Product”

UL Certification Forbes Best 200 Companies in Asia Under US$1 Billion

Wuhan Manufacturing Facility Operational

Shanghai Manufacturing Facility Operational US Sales Support Facility Opened

2004

2007

2008

2002

2005

2000

1998

1997

Company Milestones

2009

2011

Acquire land for Guilin Manufacturing Facility.

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Products

Cast Resin Transformers

VPI Transformers and Reactors

Switchgears

MAX

CUSTOMER

VALUE

Transformer Substations

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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:

Transmission and

distribution of electricity.

JST offers a range of

medium voltage cast resin

transformers for commercial &

residential developments,

transportation infrastructure

projects, industrial

applications, and wind towers.

Specifications:

Voltage: Max 35 KV

Transforming Capacity: Max 25

MVA

Transformer (2.5 MW

Wind Towers)

Isolation Transformer

(Gas Turbines)

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Dry Type Cast Resin Transformer

Our transformer products meet the following international codes and standards:

GB

IEC

ANSI/IEEE/NEMA

CSA

JEC

Our transformer products have been certified by:

UL (US)

KEMA (Holland and US)

CE (EU)

GOST-R (Russia)

UL&KEMA Certificates

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VPI Transformer and Reactors

Reactor

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

(2.5MW Wind)

Reactor(1.5MW Wind) Reactor (2.5MW Wind)

Specification:

Voltage: Max 1 KV

Transforming Capacity: Max 500KVA

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Transformer Substation

BLOKSET Switchgear

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.

Transformer Substation

Description： Integrated assembly of

low and high voltage switchgears,

transformers, 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

transformers

Gas Insulated Switchgear (Ring Main Unit 12KV)

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Markets

40% 50%

2010 Revenue by End Market

Industrial

Residential and

Commercial

Utilities and Infrastructure

10%

40%

50%

Revenue 2010: US$ 144M

2011*: US$184M – US$190M

Jinpan’s products are used in a wide range of applications:

Industrial (40%)

Factories, refineries, ship yards, etc.

Utilities and Infrastructure (50%)

Utilities: power plants, wind farms, and electrical distribution networks.

Infrastructure: airports, train/subway stations, and other municipal projects.

Residential and Commercial (10%)

Office buildings, shopping centers, high rise apartments, etc.

*Revenue guidance based on management’s current expectations.

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Reactors

Transformer

Substations

Transformers

Switchgears

4%

12%

7%

2010 Revenue by Product

77%

2010 Revenue

China vs. International

Int'l

China

8%

92%

Markets

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2010 Revenue

Conventional vs. Wind Energy

Wind

Coventional

89%

11%

Custom

Standard

2010 Transformer Revenue

Standard VS. Custom

55%

45%

Markets

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Growth Drivers

Jinpan manufactures equipment for the distribution of electrical power. Demand for our products is driven by demand for electricity. •2010 Electricity Consumption: 4.1923 Trillion KWH.*

•Secondary Sector (Industry): 3.1318 Trillion KWH (10.91% average annual growth rate from 2005 to 2010)* •Consumer: 0.5125 Trillion KWH (12.65% average annual growth rate from 2005 to 2010)*

Sales of electrical equipment is also driven by infrastructure development. •China’s investment in fixed assets 2010: RMB 27,814 Billion (23.8% over 2009) **

• Urban : RMB 24,141.5 Billion ( 24.5% over 2009) Rural: RMB 3,672.5 Billion (19.7% over 2009) • Real Estate: RMB 4.826.7 Billion (33.2%

over 2009)**

Electricity Consumption In China*

2.1

2.4

2.8

3.23.4

4.2

3.6

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

2004 2005 2006 2007 2008 2009 2010

Trillion kWh

* Based on data published by the China Electricity Council.

** Data from the National Bureau of Statistics of China. See “Statistical Communiqué of the People’s Republic of China on the 2010 National Economic and Social Development.” (February 28, 2011)

Growth in Electricity Consumption & Infrastructure

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• Wind is one of the fastest growing sources of alternative energy, because the technology is clean, reliable and easy to install.

• According to the Global Wind Energy Council, 38.3 GW (US$ 71 billion) of new wind power capacity was added in 2010, bring total installed capacity to 197GW. Total installed wind power generation capacity increased by 24.1% during 2010.

Source: “Global Wind Report: Annual Market Update 2010”, Global Wind Energy Council (April 2011)

Wind Energy

Growth Drivers

17

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Growth Drivers


The top markets for wind energy equipment are China, EU, and the US.

In 2010, China led the world in newly installed and cumulative capacity.

Newly Installed Capacity: 18.9 GW (half of the global total in 2010)

Cumulative Capacity: 44.7 GW (ranked No.1 for the first time)

In 2010, both the U.S. and EU experienced declines in newly installed capacity.

US: 5.11GW (-50% y-y)

EU: 9.26GW (-10% y-y)

Wind Energy

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Growth Drivers


The Global Wind Energy Council forecasts a recovery in growth in North American and European markets and robust growth in Asian markets in 2011.

As a supplier of transformers and reactors for wind power applications, we see a recovery in international orders from the U.S. and Europe for transformers and reactors for wind power applications.

Wind Energy

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Conventional Power Distribution

Generate more revenue by increasing the sale of high margin custom transformers

Improve the manufacturing efficiency of standard transformers by further automating the production process

Develop and market new products (e.g. Gas Insulated Switchgears)

Wind Power Equipment

Increase the number of OEM customers

Develop new wind power products with OEM customers

Capitalize on domestic wind market opportunities

Growth Strategy

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JST USA*

JST R&D Center JST Haikou

JST Shanghai JST Wuhan

Manufacturing Facilities

*Jinpan’s US headquarter serve as an office,

storage, and sales support facility.

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Established

Size

Products

Max Capacity*

Haikou

1993

44,000㎡

Cast Resin

Transformers;

Switchgears

Cast Resin

Transformer (6 Mil

KVA)

Switchgears

(5600 Units)

Unit Substation (400)

2008

20,000㎡

Cast Resin

Transformers

Cast Resin

Transformer

(5 Mil KVA)

2009

71,000㎡

VPI Transformers and

Reactors;

Gas Insulated Switchgears

VPI Transformers and

Reactors (20000 Units)

Gas Insulated Switchgears

(New product line still in

ramp up phase.)

135,000㎡

Wuhan Shanghai Total

Manufacturing Facilities

Stats

*Capacity data as of May 2011.

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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.

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Engineering

Jinpan Electric has more than 90

degreed engineers.

State of the art CAD tools allow our

engineers to build 3D models and 2D

projections, to verify design

constraints, and to collaborate online.

Proprietary software to design the

electromagnetic system in dry type

cast resin transformers.

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• China: Direct sales network consisting 35 regional sales offices located in major cities with 66 direct sales employees.

• International sales office in the

U.S. • Diversified customer base

Jinpan’s extensive sales network is a significant barrier to entry for foreign and domestic competitors seeking to enter the China market.

Sales

25

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• International Market Strategy

Supply the international market through OEMs.

Leverage the marketing reach of large

international OEMs and our expertise in manufacturing power distribution equipment to expand our presence in international markets.

• North America

Currently, Jinpan is one of two

manufacturers of UL certified cast resin transformers in the world.

Established a transformer assembly and testing facility in Carlstadt NJ.

We expect the U.S. and Canada to be

our top export market in 2011.

• Europe Europe was our top export market in

2009 for wind energy products.

Although export orders to Europe declined in 2010, we are witnessing a recovery in European orders in 2011.

6.0

19.6

23.7

11.5

24.0

0.0

5.0

10.0

15.0

20.0

25.0

2007 2008 2009 2010 2011

Millions (USD)International Sales

Sales

26

Year 2009 2010 2011*

OEM 1 3 4

*2011 OEM figures and 2011 export sales figures are based on management’s current expectations.

Number of OEMs that List JST as a Qualified Supplier

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Continue to focus on China’s growing electrical infrastructure market

Invest in new, state-of-the-art facilities to increase manufacturing capacity and efficiency

Promote and develop high end products, particularly in wind energy

Leverage our relations with OEMs and UL certification to expand our global

reach

Compelling Growth Strategy

27

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$5.1$7.2

$10.5

$20.9 $21.2

$35.6

$24.8

$0

$5

$10

$15

$20

$25

$30

$35

$40

2004 2005 2006 2007 2008 2009 2010

$3.5

$7.4

$16.4

$19.8

$29.0

$13.3

$4.5

$0

$5

$10

$15

$20

$25

$30

2004 2005 2006 2007 2008 2009 2010

$42.3$53.6

$82.3

$119.6

$154.0 $159.0$144.0

$0

$30

$60

$90

$120

$150

$180

2004 2005 2006 2007 2008 2009 '2010

Net Income & Margins

($Millions)

$14.7 $17.2$22.9

$41.6

$67.2

$56.1

$48.9

$0

$10

$20

$30

$40

$50

$60

$70

$80

2004 2005 2006 2007 2008 2009 2010

Gross Profit & Margins Net Sales

EBITDA & Margins

(1)

(1)

Financial Performance

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($Millions, except per share data) FYE December 31

2007 2008 2009 2010 6 months

2010 6 months

2011

Net Sales 119.6 154 158.9 144.0 56.3 88.2

% Growth 45.4% 28.8% 3% -9.4% 56.7%

Gross Profit 41.6 48.9 67.2 56.0 23.2 33.2

% Margin 34.8% 31.7% 42.3% 38.8% 41.2% 37.6%

EBITDA 20.9 24.8 35.6 20.9 7.8 13.8

% Margin 17.4% 16.1% 22.4% 14.5% 13.9% 15.6%

EBIT 19.6 23.1 32.0 17.3 6.0 11.7

% Margin 16.4% 15.0% 20.1% 12.0% 10.7% 13.3%

Net Income 16.4 19.8 28.9 13.4 3.2 10.0

% Margin 13.7% 12.9% 18.2% 9.3% 5.7% 11.3%

Diluted Earnings per share 1.01 1.21 1.78 0.81 0.19 0.61


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Balance Sheet Statement of cash flow

30-June-11 30June-11 Cash 8.3

Current assets

185.7

Net Cash used in operating activities (34.5)

Other assets

55.4

Net cash used in investing activities (2.3)

Total assets

249.4

Net cash provided by financing activities 16.1

Net decrease in Cash

(20.7)

Current liabilities

83.8

L/T Liability

1.6

Equity

164.0

Total liabilities & equity

249.4

($Millions)



Albert Sheng Vice President of Investor Relations Jinpan International (USA) Ltd. 390 Veterans Blvd. Carlstadt, NJ 07072 T: 201 460 8778 (x135) F: 201 460 8775 E: [email protected]

mailto:[email protected]

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