Rino International Corp. · OTC:RINO
Rino International — Investor Presentation (February 2009)
34 slides from Rino International's investor presentation, Feb 18, 2009
Slide 1: RINO International Corp. Investor Presentation February 2009
Lug A / cr RINO International Corp, RINO OTC BB: RINO / A PROMISE OF GREEN Investor Presentation FEBRUARY 2009 |
Slide 2: Forward-looking statements
‘This presentation may contain forward-looking information about RINO Intemational Corp its drect ang indirect subsidies, ncluding Innomind Group Limited and Olan Innomiind Environment Engineering Co. Lis. (Inmoming), ts contractualy-contoled Subsisiar Stateme compara terincgy, and Statements nich m
Slide 3: Ticker and capitalization summary
Ticker INO Exchange orcas ‘Share Price (02/13/2008) $260 ‘Shares Outstanding Fully Dies) 254MM ‘Market Cap ‘seen ‘Management Ownership 71% Last Raise (10-1207) S24.4NM Gross ‘Shares Issued 550MM Revenue (1*9 Months) $06.shim [Net income (1* 8Months) sst.oMMe 2008 Revenue (E) $1375 MM Diluted Non GAA
Slide 4: Revenue & Net Income Growth
Revente & Net Income Growth inmitions) Tse vee FV20r= tuestaom rye mRewime @Net come Non-GAAP ~ exlusing 67.5 millon non-<ash, equ compensation expenses related {0 te reaaae of 1.874 mon shares of stock rom aero the funders or meeting the 2007 Nake Good proviaen| “Non GAAP excluding $11.7HM non<ash
Slide 5: Company overview and addressable market
‘alia Rio was Founded in 2003 and based in Baan, China Leading provider of potuton contol and clean technology solttons for Chinese siee! manufacturers. Etvaronrnenal services induaty i one ofthe fastest ‘rowing industies n China 4 Profitable since inception and sales growth has Slgnfieant outpaced
Slide 6: RINO manufactures wastewater, desulphurization and anti-oxidation equipment
RINO manufactures wastewater treatment, sinter flue gas desulphurization and anti-oxidation ‘equipment for Iron & Steel customers in the PRC. RINO addresses one of the largest and fastest growing markets for these products worldwide. ‘Specializes in providing customized turn-key solutions, including
Slide 7: Market leader, R&D focus, cost advantage
‘Market Leader and Brand Recognition inthe Industry: RINO's brand recognition and reputaton inthe Ion & Steel industry has enabled itto gain markt share while cross Seling its products oa large exsing customer base. ‘Strong R & D Focus: RINO is focused on developing proprietary solutions which addre
Slide 8: Pollution problems in China
4 olution problems in China are estimated to cost the county more than $2008 annually + Pollution is widely considered the #1 challenge and the single biggest treat to sustained economic. growth + Environmental protection sa top prity at the ental government eve! ang reguatons are being Soy Sntorced
Slide 9: Five-Year Plan environmental investment
Tom Five-Year 11th Five-Year " Plan Plan CAGRY (inition uss) 2001-2005 2006-2010 Waste Water Treatment wi par Te80% Air Pllton Treatment ane en2s 1650% Solid Waste Treatment 1328 3098 1950% others ee 958 160% Total investment Enviconmentl industry 102.98 22500 © 1690% %eteor 110% 125% o> smesncgroun
Slide 10: Product lines
4 Wastewater Treatment Equipment 4 Sinter Flue Gas Desulphurization Equipment > Add On: Sinter Fue Gas Dust Abatement Equipment 4 High Temperature Anti-Oxidation Equipment & Coatings. 4 Heavy Machining Services " wwwsinegroup.com — RINO-
Slide 11: 2009 revenue growth expectations
‘The Company expects 2009 revenues for waste water treatment, <desulphurization and ant-oxidation revenues to grow by approximately 50%, 10% and 300%, respectively, compared with 2008 while maintaining soka margins. » smesncgrouncom INO
Slide 12: Wastewater Markets in China
Wastewater Markets in China Challenges. 4 Steel production utilizes significant ‘water resources during the production process, Currently, there are 730 blast furnaces over 300m® in size and 670 steel- ‘making converters with capacity over 75 tons operating in China, Opportunities. Allblast fumaces
Slide 13: The RINO Solution: wastewater treatment
The RINO Solution... Lamelta Inclined Tube Settler Comp + Uses proprietary and patented technology which removes up to 98% of particulates, producing 4100-150 m’ of effuent water per hour with an average of SOmglL of particulates. wonsive Wat Sedimentation System '¢ RINO's system is a market leader
Slide 14: SO2 emissions trends in China
+ Noth American emission of SO; have been fling while emission in Asia have risen + Chinese ofc staistes record 25.8 millon ons of SO, emission in 2008, wall above targets, The Increase in steal poducton has been apinpal river for SO, emissions. + China's SEPA Is planing to allocate around $18.8 to
Slide 15: Desulphurization challenges and opportunities
tion Challenges | Primary eause of airborne polation in China is sulphur donde (SO) emissions from coal. ‘© In2005, te ion & steelindusty discharged 124M metic tons of SO; emissions rom the sintering process Opportunities '& The 11th Five Year pan cals or al ron & ste sinters to control SO, emission
Slide 16: Circulating Fluidized Bed Flue Gas Desulphurization System
Circulating Fluidized Bed Flue Gas Desulphurization Cleaning System “Proprietary and patented technology developed by the China Academy of Sciences = RINO has exclusive commerciazaton rights ‘Achieves 60 - 86% removal of SO, by using patented technology which Keeps the sofbent alot fr significantly
Slide 17: Sinter desulphurization contract timeline
Produces sol iets sel liga sat guneenepse (0 -SOE) whch erpany pbk tnd ov Sung Sok Eschrge rd potas topo $38 4 August, 2007 — Initiated sales conversations for a sinter desulphurization System to remove ait particulates ereated during steel production 4 Through December, 2007 — Exchanged technical s
Slide 18: Sinter Flue Gas Dust Abatement and Sludge Treatment
Sinter Flue Gas Dust Abatement Equipment & Completes the cleaning of sinter ue gases by reducing the dust load Cost Effective ~ $2 milion per unit Combines electrical precipitators with cloth dust bags to achieve exhaust dust volumes within regulatory targets Meets new stricter emission standards wi
Slide 19: Anti-oxidation challenge and opportunity
Challenge © China produced approximately 460 milion enone tons of crude steel in 2007, a 10% increase “~~ ‘trom 2008, according tothe China State = Development and Reform Commission. © Historically, hot roled steel accounts for ‘more than 90% of Chinese steel output, = ‘& There is roughly a 3% loss
Slide 20: The RINO Solution: High Temperature Anti-oxidation
The RINO Solution. High Temperature Anti-oxidation System for Hot Rolled Steel Developed by China Academy of Sences -RINO has exclusive ighs. Recuensoncoon love) ‘ver 60%, fom curent vel of approsimaey 3% {o scund'1 2h Each unt sences one see ine ‘bd costs approximately Si millon stale “The Ant-oist
Slide 21: Heavy Machinery
Heavy Machinery ‘In adaition to producing our products, we offer machining services to shipbullders and ‘other customers inthe Dalian area thus providing optimal capacity utlzation ‘& We execute 700 ~ 900 engagements per year, ranging fom projects smaller than fre plugs to lage turbines the size of
Slide 22: Local Market Advantages vs. Imports
Local Market Advantages vs. Imports International INO Suppliers Unit ‘Net Applsbie (NA) ‘40 hour (Ry burdened) i T ‘2 Turse NA 433 vweeksmonth S107 [sez [monty compensator ~ Many ofthe worker ve on te ad this ameunt does nt include housing cose ~ a type werk ay |e 60 hours depending upon job faetons
Slide 23: Competitive advantages by product
Wastewater Treatment ‘Compared with commonly-used inlined plate setting pools, RINO has clear advantages: > Lower installation, usage, and maintenance cost, smaller footprint and land uiization 2 Higher throughput plus energy savings ~ recycles water in closed loop system Desulphurization RINO has t
Slide 24: Customer list
Faure ted “nan ron & Sv Group Co, Li Bena ton & Stel (roup C2, Ls. Wastenate Tresient Sater Desuphurzton Syste Detonation Sten \WatemateTestnnt Systm Antoxiaton Sten andar on ie Group Ca, Wastewater Trestert Sat Desuphureaton Systm Tain Tngang Grou WasenaterTesient 5st Desuphureaion Systm ‘Shatang r
Slide 25: Growth strategy
Clear he large and gcowing backog by expanding internal production capacity and {ereraging producion at customers facies, cepachy Continue to implement strict cost contol measures to optimize proftablity and lmmprove return on assets witha target gross margin of 45%. Iptoduce new products to existin
Slide 26: Partnership with China Academy of Sciences
+ BAS te 4 Key partnership with the China Academy of Sciences (CAS) which is focused on scientific and technological research and development to be utlized for the country’s high-tech industriaization endeavor. 4 RINO develops the technology in cooperation with CAS and licenses the technology for co
Slide 27: Management
‘Management has extensive experience inthe environmental protection industry and is ‘committed to reaching its business objective - to be the # environmental protection, ‘equipment company for the industries that RINO serves. Zou Delun~is the Chit Executive OMlea ad a deco fhe Company snes Oteber 20
Slide 28: Full year 2007 results
Serge wo se 27 e512 ene ret ns) ws ‘A acompenent of epi plaemant mange ices 17 miton shares common stock xeon ‘Spartoromute good aun ar tare incone ATW esha of 16 ion for 7 For the year 207 ending December 31,2007 * Net Revenues newosed 491% 0 $636 millon Gross Margin ware 52% 1 Net Income neoased 4
Slide 29: Third Quarter 2008 results
Third Quarter 2008 (a32000 | a32007 [YoY | 9 Months 2008 Net Sales $44.9 milion | $175 milion | _A154% | — $885 mien ‘Gross Profit $208 milion” | $73 ion | aT01% | $456 mason Netincome" $15, milion | $43 mien | _a268% | _ $31.9 miion ‘GAAP Net ncome $98 millon | $43 millon | _at31% | $203 malion ES
Slide 30: Summary financial table
ieaeeae 1232008 03.2007 Fr2007 FY2006 _FY2005 Series we am | ean wwe Tat Sals ee Contes am | wae | am | tama Grower an | ta | ma asa 308A end RaDempenee | an | ame | wm | oo | am pertng espnses a incovafomepwatore | weer | aw | vam | are | ae Tell er epenes [wpm] Proven incon tax a a Netincore we |
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Slide 32: Peer valuation comparison
roe 52 Hola Resouces steam S101 202% om OUTESH—Hunqung Holdings S82N S143 TK S1038SH —Longlnginvrenmant SSA SEH 280K ™ 0S245H —NaaiDevelopment SDA SIE 21K 2 (os4e 8H ChentouHldngs soe Sie st INO RINOIntemationslS73.75MM $295 16x 163% ata pated a of 2122000
Slide 33: Investment highlights
+ Fast growing environmental industry with strong regulatory drivers + Strong financial results and metrics + High barriers to entry with patented technology and intellectual property + Market leader in flue gas desulphurization and sole provider of high temperature anti-oxidation system for hot rol
Slide 34: Thank You
fa RINO RINO Is a Market Leader in the Environmental Proteétion Industry in China. This ts an opportunity to participate in a ‘company that services one of the fastest growifg ind ‘markets in China and the fastest growing ecohomy, World, RINO Is striving to increase their market sl ‘name and dominan
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