Sino Green Land Corp. · OTC:SGLA
Sino Green Land — Investor Presentation (September 2009)
26 slides from Sino Green Land's investor presentation, Sep 11, 2009
Slide 1: Sino Green Land Corporation Investor Presentation
Sino Green Land Corporation Investor Presentation — September 2009 Sie | nis) SIE
Slide 2: Safe Harbor
Safe Harbor This presentation may contain forward-looking statements. Such statements include, among others, those concerning the company’s expected financial performance and strategic and operational plans, as well as all assumptions, expectations, predictions, intentions or beliefs about future ev
Slide 3: Investment Highlights
Investment Highlights v Innovative distribution model that addresses highly fragmented farmer’s market and increasing demand for premium foods v Efficient and scalable platform for the distribution of high- end fruits and vegetables Y Established foothold and entry into new food categories v Experie
Slide 4: Market Overview
Market Overview ¢ Fruit orchards in mainland China are typically very small (1/2 acre each) * Most distributors operate on an ad-hoc basis — Buy fruits from individual orchard farmers — No assurance of supply, quality or timing * Large retailers are forced to deal with agents to secure their supply
Slide 5: About Sino Green Land
About Sino Green Land * Sale and distribution of high end fruits and vegetables in China through co-operative arrangements with farmers * Currently distribute products in two key markets: — The Guangzhou YunCheng wholesale market — The Beijing Xinfadi wholesale market * Focus on high end products th
Slide 6: Lock in supply by providing an outlet for produce
* Lock in supply by providing an outlet for produce Co-op Associ Guaranteed Coordination supply with farmers
Slide 7: Stable demand for harvests
* Stable demand for harvests * Technology support provided by Sino Green Land — New fruit species — Technology to increase yield, i.e. grafting techniques — Eco-friendly and human safe pesticide & fertilizers * Greater income stability
Slide 8: Products and Plantation Bases
Products and Plantation Bases Shaanxi Apples Base A \ sad nf Guangxi Tangerine Base y yee, By = 4 “ey ~~ t paebe Guangdong Emperor Banana Base “4_ . oh 2 cs @ a a eT ed Shaanxi Base Fuji Apple 7,954 Acres Guangdong Base Emperor Banana 1,453 Acres Guangxi Base 1,283 Acres
Slide 9: Fuji apples: high popularity in China due to crispness and taste
High popularity in China due to crispness and taste Long storage period (365 days) and easy to transport One of the most highly consumed fruits in China Annual output of Fuji apples in China was 18 million tons in 2008
Slide 10: Emperor bananas: originates from Thailand and is new to China
Originates from Thailand and is new to China Can only be cultivated in 2 provinces in China — Unique method of cultivating that takes 3 months for the seedlings to mature Prices at 2 to 2.5x normal banana price
Slide 11: Tangerine oranges created by grafting
Created by grafting a Japanese tangerine tree onto an orange tree stem Numerous desirable characteristics: — Approx. 2.5 x higher yield than a regular orange tree — Sweeter juice than oranges and meatier body than Tangerine Long storage period (90 days) and well suited for transportation
Slide 12: Currently distribute through two wholesale markets
Currently distribute through two wholesale markets: — Guangzhou Yuncheng (annual turnover of fruits is 1 million tons) — Beijing Xinfadi (annual turnover of fruits and vegetables is 2.8 million tons) Guangzhou Beijing Ability to leverage wholesale channels by distributing additional premium fruits a
Slide 13: Plan to supply fruits directly to large supermarket chains
Plan to supply fruits directly to large super market chains Large and stable supply enables entry into long term contracts with retailers — By-passing traditional agent based supply chain Active discussions with retail partners Gross margins for B retail fruit business ' are approximately 7™* double
Slide 14: Export Strategy
Export Strategy * Plans to establish a sorting and packaging facility — Allows fruits to be separated according to size (grades) * Export the highest grade crops for better margins — Continue to sell medium grade fruits to the wholesale markets * Target export markets include Indonesia, Hong Kong, C
Slide 15: About Green Foods
About Green Foods Green Foods are healthy and environmentally friendly foods — Standards set by China’s Ministry of Agriculture — Price points are 20-30% higher than conventional produce — Inthe past 5 years, green food exports increased at over 40% CAGR — Recognized by over 40+ trade partner countr
Slide 16: Competitive Advantages
Competitive Advantages * Guaranteed and stable agricultural supply * Strong wholesale distribution network * High quality product and trusted brand * Strong support from China’s Ministry of Agriculture and municipal governments * Council membership in China’s Green Food Association * Patented and ef
Slide 17: Growth strategy: expand plantations, markets, retail and exports
Expand plantation areas by securing co-operative agreements on additional orchards — Increase production of higher margin bananas and tangerine orange — Introduce new higher margin premium crops Increase share in existing wholesale markets, and add 2 new wholesale markets per year Expand higher marg
Slide 18: H1 Financial Highlights
H1 Financial Highligh Revenue (millions) Gross Profit (millions) Net Income (millions) H1'08 H1'09 H1'08 H1'09 H1'08 H1'09 + Revenue increased 34% to $40.3 million for the six months ended June 30, 2009 * — Gross profit was $4.5 million compared to $3.6 million for the same period last year * Gross
Slide 19: Revenue and net income 2005-H1 2009
$80.0 7 r $8.0 $70.0 + r $7.0 $60.0 + r $6.0 $50.0 7 r 95.0 $40.0 7 r 94.0 $30.0 + r $3.0 $20.0 + r $2.0 $10.0 + r $1.0 $0.0 + + + + $0.0 2005 2006 2007 2008 12008 H12009* EdRevenue —®= Netincome *Adjusted net income - excludes approx. $800K of one-time reverse merger related expenses; 2009 also inc
Slide 20: Revenue mix by product
DFuji Apple Gemperor Banana BTangerine Mothers 2007 5.5% 0.5% 7.0% —_ 87.0% 84% 2008 H1 2009
Slide 21: Target Business Model
Target Business Model Near-term 3-5 Years Revenue * Target revenue of $300 million within 5 years * Highly scalable business model enabling rapid organic growth * Margin expansion from retail distribution, end-user customers, exports and launch of Green Food products * No long-term debt
Slide 22: Solid Balance Sheet
Solid Balance Sheet Jun-09 Dec-08 ASSETS Cash $ 627,605 544,860 Total current assets 1,929,805 1,670,934 Long-Term Prepayments 18,891,915 16,258,707 Total assets $ 20,921,561 18,069,406 LIABILITIES Total current liabilities 3,108,846 2,029,300 Long-term debt - - Total Liabilities 3,108,846 2,029,300
Slide 23: Capital Structure
Capital Structure Common shares outstanding 104.9M Common shares underlying preferred stock: 114M Common shares underlying options & warrants 61.9M Total potential shares outstanding 178,.2M The company has investor options & warrants outstanding to purchase: Underlying Shares | Exercise Price | Exp
Slide 24: Senior Management Team
Senior Management Team + Mr. Fong Yiu Ming, Anson (Founder & Chairman) — Sales Director at Vincent Honour Ltd. responsible for China Trade (1986) — Executive Director and COO of Heng Tai Consumables Group Ltd (2003) = Over 20 years of experience in consumer product industry + Mr. CM Leung (Chief Exe
Slide 25: Investment Highlights
Investment Highlights v Innovative distribution model that addresses highly fragmented farmer’s market and increasing demand for premium foods v Efficient and scalable platform for the distribution of high- end fruits and vegetables Y Established foothold and entry into new food categories v Experie
Slide 26: Appendix: Company Snapshot
Appendix: Company Snapshot Stock Exchange: OTC BB Ticker: SGLA Current Price (8/25/09): Shares Outstanding: Market Cap: 2008 Revenue: $73.6M 2008 Net Income: $4.6M Total Shareholder’s Equity (6/30/09): Fiscal Year End: December 31 Inside Ownership: 70.0%
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