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Sunwah Interna,onal (TSX: SWH) Investor Presenta,on – February 2015

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Page 1: SWH Investor Presentation Feb2015 FINAL20Investor...INVESTOR RELATIONS Kristen Humphrey 8 King Street East, Suite 1200 Toronto, ON Canada TEL: 416-888-2323 khumphrey@sunwahinternational.com

Sunwah  Interna,onal  (TSX:  SWH)    

Investor  Presenta,on  –  February  2015    

Page 2: SWH Investor Presentation Feb2015 FINAL20Investor...INVESTOR RELATIONS Kristen Humphrey 8 King Street East, Suite 1200 Toronto, ON Canada TEL: 416-888-2323 khumphrey@sunwahinternational.com

Execu&ve  Summary  

v  TSX-listed global financial services provider (TSX: SWH).

v  Hong Kong based, 6 offices throughout Asia and in Toronto.

v  Financial services arm of major international conglomerate.

v  Uniting quality businesses with Asian capital, opportunities.

v  Expert strategic/institutional investor and partner sourcing.

v  HKEx-listed subsidiary is one of HK’s most active brokerages.

v  Publicly listed in Canada for 20 years.

v  Active in Asia for almost 25 years.

v  Undervalued share price.

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Page 3: SWH Investor Presentation Feb2015 FINAL20Investor...INVESTOR RELATIONS Kristen Humphrey 8 King Street East, Suite 1200 Toronto, ON Canada TEL: 416-888-2323 khumphrey@sunwahinternational.com

v  Trading at a significant discount to NAV per share of $0.46.

v  Capitalizing on new regulations and initiatives to stimulate capital and equity market activity in Asia.

v  Poised to benefit from significant steps in opening China’s financial markets (e.g. Shanghai Hong Kong Stock Connect).

v  Strengthened capital base through subsidiary rights offering.

v  Highly reputable Sunwah brand credibility and connections.

v  Deep-rooted value, unique positioning.

Investment  Highlights  3

Page 4: SWH Investor Presentation Feb2015 FINAL20Investor...INVESTOR RELATIONS Kristen Humphrey 8 King Street East, Suite 1200 Toronto, ON Canada TEL: 416-888-2323 khumphrey@sunwahinternational.com

v  Majority shareholder (66%) is highly reputable Sunwah Group.

v  Founded in 1957; Hong Kong based, operations worldwide.

v  Unparalleled, high-level business and government affiliations.

v  Prominent brand in Asia.

v  Over 100 subsidiaries worldwide.

v  Employing 4,000+ globally.

v  Instrumental in Vietnam’s development as one of its major foreign investors.

v  Led by esteemed Dr. Jonathan Choi.

Sunwah  Group  4

Page 5: SWH Investor Presentation Feb2015 FINAL20Investor...INVESTOR RELATIONS Kristen Humphrey 8 King Street East, Suite 1200 Toronto, ON Canada TEL: 416-888-2323 khumphrey@sunwahinternational.com

SWH  Corporate  Structure  

Sunwah  Group   Other  Investors  

Sunwah  Interna,onal  (TSX:  SWH)  

Strategic  Investment  Group  

Capital  Markets  Group  

Asset  Management  Group  

Sunwah  Kingsway  (HKEx:  00188)   Kingsway  Canada  

66% 34%

52% 100%

§  Broker Dealer §  Equity Capital Markets §  Corporate Finance §  Sales & Trading §  Research

§  Corporate Advisory Services §  Financial Transaction Advisory Services

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Page 6: SWH Investor Presentation Feb2015 FINAL20Investor...INVESTOR RELATIONS Kristen Humphrey 8 King Street East, Suite 1200 Toronto, ON Canada TEL: 416-888-2323 khumphrey@sunwahinternational.com

v  Refreshed business model, newly diversified income base.

v  Primary focus within our Capital Markets Group.

v  Added Asset Management and Strategic Investment services.

v  Leveraging unparalleled connections to identify and advance uniquely positioned, high quality assets and opportunities.

v  Key and evolving areas of focus for SWH include tapping: §  Sizeable investment flows from Europe, the Middle East,

and NA to the rapidly growing SE Asian markets §  Increasing capital flows from Asia to international markets

v  Specializing in real estate, infrastructure, special situations.

Core  Business  6

Page 7: SWH Investor Presentation Feb2015 FINAL20Investor...INVESTOR RELATIONS Kristen Humphrey 8 King Street East, Suite 1200 Toronto, ON Canada TEL: 416-888-2323 khumphrey@sunwahinternational.com

v  Capital Markets Group led by Sunwah Kingsway Capital.

v  $95 million in equity capital; seasoned management.

v  Newly positioned to capture greater deal volume.

v  Focused on Asian growth – Nearer term: Southeast Asia; long-term: China (with RMB internationalization).

v  Offices in Hong Kong, Beijing, Shanghai, Shenzhen, Toronto.

v  Award-winning brokerage operations; premium financials solutions (corporate finance, sales, trading, research).

v  Strong international and domestic (HK) distribution.

v  Listed on the HKEx – stock code: 00188.

Capital  Markets  Group    7

Page 8: SWH Investor Presentation Feb2015 FINAL20Investor...INVESTOR RELATIONS Kristen Humphrey 8 King Street East, Suite 1200 Toronto, ON Canada TEL: 416-888-2323 khumphrey@sunwahinternational.com

v  Sunwah Group credibility and network.

v  Track record as one of Hong Kong’s most active boutique brokerage houses.

v  Robust client investor list and governmental relations.

v  Experience: Participation in some of HK’s largest, most successful domestic investment banking transactions.

v  Established base of institutional investors in Asia that is unmatched by our domestic peers.

v  Experts in Asian diversification: Strong Asian roots and international reach.

Compe&&ve  Advantage  8

Page 9: SWH Investor Presentation Feb2015 FINAL20Investor...INVESTOR RELATIONS Kristen Humphrey 8 King Street East, Suite 1200 Toronto, ON Canada TEL: 416-888-2323 khumphrey@sunwahinternational.com

The  Opportunity  9

v  SWH’s Net Asset Value (NAV) is $43 M.

v  Trading at a significant discount to its NAV due mainly to: §  A lack of share liquidity §  An underdeveloped public/investment profile

v  New initiatives underway to increase share price/liquidity.

As at 30 Sept. 2014US$'000

Current Assets 83,938 Non-Current Assets 41,576 TOTAL ASSETS 125,514

Current Liabilities 42,491 Non-Current Liabilities 1 Shareholders' Equity 42,521 Non-Controlling Interests 40,501 TOTAL EQUITY & LIABILITIES 125,514

Net Asset Value Per Share = $0.46

Page 10: SWH Investor Presentation Feb2015 FINAL20Investor...INVESTOR RELATIONS Kristen Humphrey 8 King Street East, Suite 1200 Toronto, ON Canada TEL: 416-888-2323 khumphrey@sunwahinternational.com

  Share  Price    

CAD$0.185  

Shares  Outstanding  (Basic)   93,139,927  

Deferred  Share  Units   1,442,428  

Fully  –  Diluted  Shares   94,582,355  

Stock  Op&ons  Outstanding  (exercisable  at  CAD$0.55)  

 5,325,500  

Market  Cap  (Basic)   CAD$17,230,886  

Note: Share data current as of February 2, 2015.

Capital  Structure  10

Page 11: SWH Investor Presentation Feb2015 FINAL20Investor...INVESTOR RELATIONS Kristen Humphrey 8 King Street East, Suite 1200 Toronto, ON Canada TEL: 416-888-2323 khumphrey@sunwahinternational.com

Financial  Summary  

Selected Financial Information from Annual Report/Quarterly Report

Three Months Ended Year Ended

Sept 30, 2014 Jun 30, 2014 Jun 30, 2013

(US$’000) (US$’000) (US$’000)

Revenue from services and other income 3,577 17,086 12,837

Trading income/(loss) (657) 5,302 1,563

Total revenue 2,920 22,388 14,400

Income/(loss) for the period to owners (830) (571) (3,467)

Total current assets 83,938 74,476 54,568

Total long-term liabilities (1) (5) (10,564)

(US$) (US$) (US$)

Net income/(loss) (on a per-share basis) (0.0089) (0.0062) (0.0375)

Net income/(loss) (on a diluted per-share basis) N/A N/A N/A

Cash dividends declared per common share N/A N/A N/A

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Page 12: SWH Investor Presentation Feb2015 FINAL20Investor...INVESTOR RELATIONS Kristen Humphrey 8 King Street East, Suite 1200 Toronto, ON Canada TEL: 416-888-2323 khumphrey@sunwahinternational.com

v  Currently trading at a significant discount to NAV.

v  SWH share value poised for growth due to: §  Enhanced business model, stronger capital base §  Improving Asian markets; schemes to further stimulate

v  Newly diversified income base: §  Investment portfolio diversification §  Boutique asset management firm acquisition §  Moving away from natural resources, China §  Strengthened Capital Markets Group

v  Launching initiatives to increase shareholder value: §  Generate liquidity and trading momentum §  Attract new investors

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Value  Proposi&on  12

Page 13: SWH Investor Presentation Feb2015 FINAL20Investor...INVESTOR RELATIONS Kristen Humphrey 8 King Street East, Suite 1200 Toronto, ON Canada TEL: 416-888-2323 khumphrey@sunwahinternational.com

Appendix  A  

Page 14: SWH Investor Presentation Feb2015 FINAL20Investor...INVESTOR RELATIONS Kristen Humphrey 8 King Street East, Suite 1200 Toronto, ON Canada TEL: 416-888-2323 khumphrey@sunwahinternational.com

Dr. Jonathan Choi, BBS, JP (SWH Chairman, Executive Director; Sunwah Group Founder, CEO and Chairman): A highly esteemed philanthropist and businessman holding numerous high profile public positions. A Member of the National Committee of the Chinese People's Political Consultative Conference of the People's Republic of China with over 30 years’ experience in the food industry, real estate development and international trade; 15+ years in technology and finance.

Douglas Betts (President and CEO): 25 years experience in international business transactions with a focus on Asia; strong management, investment and advisory experience, particularly in infrastructure, natural resources and financial services.

Michael Choi (Deputy Chairman, Director, Sunwah Kingsway CEO): Extensive experience in the financing activities of corporate and property mortgage, real estate development and property investment. A member of the Chinese People’s Political Consultative Conference of the Hubei Province, PRC.

Robert Fung (Independent Director): One of Canada’s leading investment bankers in the natural resources industry for over three decades. A track record that includes numerous high profile financial advisory roles.

Patty Shao: Over 7 years of corporate finance experience with strong research and analytic background in the oil and gas sector in both Asia and North America.

Key  Team  Members  14

Page 15: SWH Investor Presentation Feb2015 FINAL20Investor...INVESTOR RELATIONS Kristen Humphrey 8 King Street East, Suite 1200 Toronto, ON Canada TEL: 416-888-2323 khumphrey@sunwahinternational.com

Appendix  B  

Page 16: SWH Investor Presentation Feb2015 FINAL20Investor...INVESTOR RELATIONS Kristen Humphrey 8 King Street East, Suite 1200 Toronto, ON Canada TEL: 416-888-2323 khumphrey@sunwahinternational.com

§  Asia saw the highest growth in private wealth in 2013 globally, increasing 30.5% to $37.0 trillion.  

§  Asia’s projected growth over the next 5 years is the highest among all regions.

§  In 2008, Asia had 50% less private wealth than North America. It has since closed this gap by half.

§  By 2018 Asia Pacific is expected to surpass North America as the largest wealth market.

Source: BCG Global Wealth Market-Sizing Database, 2014; BCG Global Wealth 2014: Riding a Wave of Growth, June 2014

§  Estimates soon have Asia Pacific overtaking Western Europe as the 2nd wealthiest region.

§  Asia-Pacific and its new wealth will account for about half of total global growth through 2018.

§  Old world growth will primarily be driven by return on existing assets as opposed to new wealth creation.

The  Asia  Opportunity  16

Page 17: SWH Investor Presentation Feb2015 FINAL20Investor...INVESTOR RELATIONS Kristen Humphrey 8 King Street East, Suite 1200 Toronto, ON Canada TEL: 416-888-2323 khumphrey@sunwahinternational.com

The  China  Opportunity  

Source: BCG Global Wealth Market-Sizing Database, 2014; BCG Global Wealth 2014: Riding a Wave of Growth, June 2014

§  China’s remarkable 49.2% increase is private wealth was driven mainly by products such as PRC trusts (up 82%).

§  China is projected to soon overtake Western Europe as the world’s second wealthiest nation, a position expected to be well cemented by 2018.

§  The United States, China and Japan had the most millionaires in 2013.

§  China surpassed Japan in 2013.

§  The U.S. had the largest number of billionaires in 2013 but the highest density of billionaire households was in Hong Kong (16.8 per million).

§  Robust wealth creation in China resulted in a 60% increase in millionaire households from 1.5 million in 2012 to 2.4 million in 2013.

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Page 18: SWH Investor Presentation Feb2015 FINAL20Investor...INVESTOR RELATIONS Kristen Humphrey 8 King Street East, Suite 1200 Toronto, ON Canada TEL: 416-888-2323 khumphrey@sunwahinternational.com

Appendix  C  

Page 19: SWH Investor Presentation Feb2015 FINAL20Investor...INVESTOR RELATIONS Kristen Humphrey 8 King Street East, Suite 1200 Toronto, ON Canada TEL: 416-888-2323 khumphrey@sunwahinternational.com

v  Hong Kong based flagship subsidiary (HKEx: 00188); 24-year track record.

v  Focuses on mid-market enterprises, corporate finance, institutional sales, trading, brokerage.

v  Consistent historical top-ranking as one of Hong Kong’s best local brokerages.

v  Participation in some of Hong Kong’s most lucrative investment banking transactions to date.

v  Extensive domestic distribution network; capabilities and account relationships throughout Asia.

v  Research department currently covering 40+ companies.

Sunwah  Kingsway  Summary    19

Page 20: SWH Investor Presentation Feb2015 FINAL20Investor...INVESTOR RELATIONS Kristen Humphrey 8 King Street East, Suite 1200 Toronto, ON Canada TEL: 416-888-2323 khumphrey@sunwahinternational.com

Kingsway  Canada  Summary    20

v  Supporting Sunwah International’s focus on the global, particularly North American, marketplace.

v  Quality corporate advisory services: −  General advisory services −  Mergers & acquisitions

v  Leveraging unparalleled connections to uncover and advance uniquely positioned, high quality assets and projects.

v  Highly reputable management with wide industry experience and significant resources and mining expertise.

v  Robust governmental and business relationships.

v  Strong track records in merchant and investment banking, government, and private equity.

Page 21: SWH Investor Presentation Feb2015 FINAL20Investor...INVESTOR RELATIONS Kristen Humphrey 8 King Street East, Suite 1200 Toronto, ON Canada TEL: 416-888-2323 khumphrey@sunwahinternational.com

SUNWAH INTERNATIONAL LTD. c/o Sunwah International Financial Services Ltd. Unit A, 26/F, United Centre 95 Queensway Hong Kong TEL: 852 2989 9321; [email protected]

INVESTOR RELATIONS

Kristen Humphrey 8 King Street East, Suite 1200 Toronto, ON Canada TEL: 416-888-2323 [email protected]

Contact  Informa&on  

Page 22: SWH Investor Presentation Feb2015 FINAL20Investor...INVESTOR RELATIONS Kristen Humphrey 8 King Street East, Suite 1200 Toronto, ON Canada TEL: 416-888-2323 khumphrey@sunwahinternational.com

Disclaimer  v  This document and all the information, material and data contained herein (collectively “the Document”) may contain

confidential and/or privileged material and is/are rendered on an entirely without prejudice basis. Any review, retransmission, dissemination, copying, reproduction or other use of, or taking of any action in reliance upon, the Document or any part thereof by any person or entity other than the intended recipient is strictly prohibited. The Document shall not in any way affect or prejudice the respective rights, obligations and liabilities (if any) of Sunwah International Limited, their subsidiaries and affiliates (collectively “SWH” or “the Group”) and any entity or party named, mentioned and/or referred to herein (if the context so permits or requires and where not inapplicable. Any rating, certification or award as mentioned and/or appearing in the Document may belong to a particular entity as specified in the Document. Further, we make no representation or warranty as to the accuracy or completeness of the Document or any part thereof. We shall not be responsible for and expressly disclaim any liability whatsoever for any loss or damage howsoever arising (including without limitation such loss or damage (if any) arising from the use of or reliance upon, or intended use of or reliance upon, the Document or any part thereof, whether or not arising from any error or omission in compiling the Document or any part thereof).

v  The Document has been prepared for reference only and neither the information, nor any opinion contained herein constitutes a distribution, an offer to sell or the solicitation of an offer by the Group or its affiliates to buy or sell any securities, futures, options or other financial instruments or to provide any investment advice or service.

v  Without prejudice to the generality of the foregoing, the Document does not constitute, and may not be used for the purposes of, an offer or solicitation to anyone in any jurisdiction or country in which such offer or solicitation is not authorized or to any person to whom it is unlawful to make such offer or solicitation or where such offer or solicitation would be contrary to law or regulation or which would subject the Group or its affiliates to any registration requirement within such jurisdiction or country.

v  To the best of the knowledge, information and belief of the Group, all information contained herein is accurate as at the date of publication. Neither the Group nor its affiliates and any of their directors, officers and employees warrant the accuracy, adequacy or completeness of the information and material contained herein and each of the Group and its affiliates and each of their directors, officers and employees expressly disclaims liability for any errors or omissions in the information and material contained herein. No warranty of any kind, implied, express or statutory, including but not limited to the warranties of non-infringement of third party rights, title, merchantability, fitness for a particular purpose is given by the Group or its affiliates in conjunction with the information, material, products or services contained herein.

v  Under no circumstances may the information contained herein, or any part thereof, be copied, reproduced or redistributed without the express permission and written consent of the Group.

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