Sutor Technology Group
Investor Presentation
May 2010
Safe Harbor Statement
This presentation includes certain statements that are not descriptions of historical facts, but are
forward-looking statements. Such statements include, among others, those concerning our new
production lines, our expected financial performance and strategic and operational plans, our future
operating results, our expectations regarding the market for our steel finishing fabrication products, our
expectations regarding the continued growth of the steel market, as well as all assumptions,
expectations, predictions, intentions or beliefs about future events. You are cautioned that any such
forward-looking statements are not guarantees of future performance and that a number of risks and
uncertainties could cause our actual results to differ materially from those anticipated, expressed or
implied in the forward-looking statements. These risks and uncertainties include, but not limited to, the
factors mentioned in the “Risk Factors” section of our Annual Report on Form 10-K for the year ended
June 30, 2009 and other risks mentioned in our other reports filed with the Securities Exchange
Commission, or SEC. Copies of filings made with the SEC are available through the SEC's electronic
data gathering analysis retrieval system (EDGAR) at www.sec.gov. The words “believe,” “expect,”
“anticipate,” “project,” “targets,” “optimistic,” “intend,” “aim,” “will” or similar expressions are intended to
identify forward-looking statements. All statements other than statements of historical fact are
statements that could be deemed forward-looking statements. The Company assumes no obligation
and does not intend to update any forward-looking statements, except as required by law.
Equity Snapshot
NASDAQ: SUTR
FYE: June 30
Price ( as of 3/13/10)
$2.58
Basic Shares Outstanding
Market Cap
40.7 MM
$105.0 MM
Enterprise Value
$147.6 MM
Cash + Restricted Cash (as of 3/31/10)
$65.0 MM
Net Debt (Incl. restricted cash, as of 3/31/10)
$42.6 MM
Total Assets (as of 3/31/10)
$318.9 MM
Net Tangible Asset per Shares (as of 3/31/10)
Street CY 2010E EPS Estimates
Diluted EPS (TTM)
$4.02
$0.51
$0.24
Investment Highlights
Large market opportunity in growing industry
Favorable economic and business environment
Strategically located near strong customer base
Innovation-focused strategy to ensure future growth
Integrated service strategy – difficult to duplicate
Strategic partnership with supplier and customers
Company Overview


Leading China-based fine finished steel manufacturer
Key products – hot-dip galvanized steel; pre-printed galvanized steel; cold rolled
steel; acid pickled steel; and welded steel pipes

Founded in 2002

Capacity of 2.0 million metric tons per year; 10 major production lines

Headcount: R&D 70, Manufacturing 565, Head Office 65

Key Verticals – Green energy (solar heaters); Household appliances; Autos;
Infrastructure; Casting parts.
Sutor’s Business
Sutor Technology Group Limited
(SUTR)


Changshu Huaye Steel Strip
Jiangsu Cold-Rolled Technology
Ningbo Zhehua Heavy Steel
Co., Ltd. (PRC)
Co., Ltd. (PRC)
Pipe Manufacturing Co., Ltd. (PRC)
300,000 MT Capacity
HDG (Hot-Dip
Galvanized Steel Strip)
200,000 MT Capacity
PPGI (Pre-Painted
Galvanized Steel Strip)



500,000 MT Capacity
AP Steel (Acid Pickled
Steel Strip)
250,000 MT Capacity
Cold-rolled Steel
400,000 MT Capacity
HDG



400,000 MT capacity
Longitudinal double
submerged-arc welded
steel pipe
Small & large diameter
and spiral seamed
Key Products
Acid
Pickling
Cold
Rolling
HDG
PPGI
Ningbo Zhehua Steel Pipe
Hot Coiled
Rolls
Pipeline
Growth Drivers
Government Policies

$586 billion government stimulus package directly flows to
infrastructure

Rural & trade-in policy for household appliances

13% tax rebate for exported value add steel products
Market Forces



Industrial upgrading requires high-end steel products
China’s urbanization trend spurs demand of welded steel pipe
in natural gas transmission, water supply and sewage, etc.
Fixed asset investment expected to grow by 25% in 2010
Key Verticals
Diversified product offering reduces operational risk and enhances growth
potential
Selected SUTR infrastructure projects



Airport construction
Piling applications for bridge construction
(Hangzhou Bay Bridge)
China West-East Natural Gas Transmission
Nationwide Sales Network
Focus on developed Eastern China
 Direct sales force consists of approximately 50 sales & marketing
professionals as of June 30, 2009
 Indirect sales channel consists of about 67 agent companies
covering all major cities in China as of June 30, 2009
 Sales through related party Shanghai Huaye Iron & Steel Group
Harbin
Changchun
Shenyang
Beijing
Urumqi
Yinchuan
Xining
50 Sales
Professionals
67 Agents
Lanzh
ou Xian
Chengdu
Chongqing
Tianjin
Jinan
Shijiazhuang
Qingdao
Nanjing
Shanghai
Zhengzhou
Wuhan
Changsha
Hangzhou
Nanchang
Fuzhou
End Users
Kunming
Guangzhou
Product Quality
R&D efforts and equipment importation ensures high product quality
 Compliance with major international standards
 Approved supplier for Midea, Hitachi, Sunrain, and LG
 API certification (American Petroleum Institute)
 “National & Provincial High-Tech Brand” and “Jiangsu Well-known
Brand” recognition
 Ningbo Zhehua is a qualified supplier for CNPC, Petro China, and
Sinopec
Innovation-focused Strategy
♦
♦
♦
♦
♦
Only R&D center that focuses on fine finished steel technology in Jiangsu Province
In-house intellectual property: 20 self-developed patents (10 invention, 3 Utility model, 7
appearance-design)
JCOE, an advanced technology in the welded steel pipe industry, can offer high-end welded
steel pipe for gas & oil transmission projects
Strategic alliance with Mid-South University: China’s leading institute in steel technology
research
New product initiatives: anti-bacteria steel products approved by industry experts
Anti-Corrosion Wall
Anti-Static Workstand
Anti-Scrape Door
Integrated Service Strategy
Diversified Product
Offering
• Acid Picking
• Cold Rolling
• HDG
• PPGI
• Welded Steel Pipe
Processing
• Ten production
lines
Sales and
Distribution
Post-sales Customer
Services
• Distribution Channel
• Direct Sales
• Customized logistic
solution
• Customized
Processing
Services
One Stop Solutions  Value Added Services  Customer Loyalty
•Sutor
has vertically integrated services model
•One stop solutions to address clients’ specific needs
•Customized processing services to address preliminary processing services
•Customize our products according to the specifics provided by our customers
Competitive Advantages
SUTR





Highly automated facilities
Vertical integration model
Portfolio of wide range of products
Provincial level R & D Center
Customized R&D for solar water
heater manufacturers
Private-owned Competitors



State-owned Competitors
SUTR





Shorter lead time
Higher flexibility
Lower cost
Customer-oriented service
Quick order disposal




SUTR




Mature procurement channels
Competitive price
Highly integrated logistics system
Strong sales network
Low-ended products
Limited product
portfolio
Small size & capacity
Longer lead time
Less flexibility
Higher cost
Non-customer oriented
Foreign invested Competitors



Higher production cost
Higher price
Higher transportation cost
Growth Strategies
Increase Capacity
From 2.0M Tons to
Approx. 6.0M Tons
via Acquisitions
Improve Capacity
Utilization of The
New 400k Ton HDG
Lines
Expand Sales
Channels into
New Markets
Develop New
Products
Build New Highimpact
Production
Facilities
Company Performance
Revenue ($MM) and Gross Margin
Net Income ($MM) and Net Margin
Total Sales Volume (MT)
800,000
700,000
600,000
660,979
500,000
400,000
696,209
605,210
496,961
300,000
200,000
100,000
0
2007
2008
2009
9-month 2010
Balance Sheet
(In Millions USD)
As of June 30
As of March 31
2008
2009
2010
Cash (incl. restricted
cash)
$71.3
$62.3
$65.1
Total Current Assets
233.6
234.2
244.7
Total Assets
296.5
314.5
318.9
Debt
137.6
107.4
107.6
Total Liabilities
163.7
156.2
152.2
Shareholders Equity
132.7
158.3
166.7
Management Team
Lifang, Chen
Chairperson &
CEO



Yongfei, Jiang
CFO, Treasurer
& Secretary
Xun, Zhang
CTO







Eric Zhou,
Ph.D., CFA



Founder and Chairperson of Sutor Technology Group
Director of civil administrative bureau of Xiaoshan District, Hangzhou
from 1993 to 2001
Extensive experience in enterprise management in fine finished steel industry
CFO, Treasurer and Secretary since February of 2007
Former CFO of Changshu Huaye
Finance manager of Guangzhou Huaye Trading Co., Ltd. from 2002 to 2005
CTO since June of 2007
Previously worked as Chief Project Engineer
Deputy Chief Engineer at Baoshan Iron & Steel Co., Ltd. from 1995 to 2005
VP Finance since February 2010
15 years of capital market and industry experiences
B.Sc. In Petroleum Engineering from China Petroleum University
MBA and Ph.D. from The University of Texas at Austin
Board of Directors

Gerard Pascale
Audit Committee
Chairman &
Independent Director
Served as Chairman of Audit Committee and Director for Sutor from Jan.
2010.
 President and CEO of SC Financial Group, LLC
 Director, Finance of Heritage Management Consultants, Inc.
 Senior Financial Analyst of Intel Corporation
 MBA from Chicago University
 Certified Public Accountant

Xinchuang Li
Governance Committee
Chairman &
Independent Director




Guoyou Shao
Compensation Committee
Chairman &
Independent Director



Executive Director of China Metallurgical Industry Planning & Research
Institute since 2008
Vice Chief Engineer of China Metallurgical Industry Planning & Research
Institute since 1998
Vice Director and Chief Engineer of China Metallurgical Industry Planning &
Research Institute since 2002
Master’s degree in Business Administration from Fordham University and
Beijing University.
Chairman of Fortis Haitong Investment Management Company since 2002
President of Haitong Fund Management since 2002
Secretary of Party Branch of Changchun Normal University from 1991 to
1994.
Vice President of Economics Department Party Branch of Jilin University
from 1975 to 1991.
Contact Information
Company
Sutor Technology Group Ltd
Eric Zhou – VP Finance
12F, Building B, World Trade Center
45 North Haiyu Road, Changshu, China 215500
(86) 137 7305 0023 Cell
ericzhou@sutorcn.com
Auditor
Baker Tilly International
Hansen, Barnett, & Maxwell LLC
Robert Brown
5 Triad Center, Suite 750
55 North 300 West Salt Lake City, UT
(801) 532 2200
rbowen@hbmcpas.com
Investor Relations
ICR
Brian M. Prenoveau, CFA
441 Lexington Avenue, 4th Floor
New York, NY
(203) 682-8200
brian.prenoveau@icrinc.com
Legal Counsel
Pillsbury Winthrop Shaw Pittman LLP
2300 N Street, NW
Washington, DC 20037
(202) 663 8158