Cam Group, Inc. · OTC:CAMG
Cam — Investor Presentation (October 2012)
24 slides from Cam's investor presentation, Oct 18, 2012
Slide 1: The Gateway to China's Rural Market
Ce . The Gateway | to China's Rural Market PRESENTATION i Geet 28i2- O0t.46, ol Sanbrancisop, New York
Slide 2: Disclaimer
Disclaimer CAM Group, Inc . or any of its affiliates (collectively, “CAM Group") makes no representation or warranty regarding the accuracy or completeness of the information herein . Even though information contained herein has been obtained from sources which we believe to be reliable, none of CAM
Slide 3: CAM Group, Inc.
CAM Group, Inc. We integrate, manage and operate the biggest rural retail network in China, starting from Hebei Province • 400,000 retail stores in whole China and 16,000 in Hebei • Covers 40 million addressable consumers in Hebei • $4.8 billion annual fertilizer sales through the stores in Hebei •
Slide 4: Investment Highlights
Investment Highlights Profitability • We have made profit since we started operation • Stable income stream through our business model Significant Platform for Growth • Build core revenue in advertising and agricultural sales • Leverage partners’ existing infrastructure and brand Attractive Target M
Slide 5: Significant Platform for Growth
Significant Platform for Growth • Develop core revenue base in advertising and agricultural sales – Our advertising sale is currently making $578,000 monthly – Our fertilizer sales will reach ~$8 million in this quarter • Leverage partners’ existing infrastructure and brand – 19 distribution centers
Slide 6: Retail System Management
Retail System Management
Slide 7: Government Policies on Rural Market
• Most of the wealth is concentrated on the coastal cities; government’s active decision to develop the rural consumer market • Existing businesses are under - managed and we are welcomed by the government to help improve the operating efficiencies and profitability of state - owned enterprises Gove
Slide 8: Government Expenditures on Rural Market
Source: Ministry of Finance of the People’s Republic of China • 18% increase in rural expenditure while GDP is 10.3% in 2010 • 22% increase in rural expenditure while GDP is 9.2% in 2011 • Rural families’ per capita income is also increasing annually 0 20 40 60 80 100 120 140 160 180 2009 2010 2011
Slide 9: Initial roll out in China's bread basket
• Geographically surrounding Beijing ; total area 72,500 mi 2 • Approx. half of Japan; 146,000 mi 2 • 40+ million addressable consumers • Annual sale of fertilizer ~ $4.8 billion USD Initial roll out i n China’s bread basket
Slide 10: Annual GDP Growth (%)
- 10.0 - 5.0 0.0 5.0 10.0 15.0 China US Japan UK Germany 2007 2008 2009 2010 2011 Annual GDP Growth (%) Source: World Bank
Slide 11: Agricultural Output Relative Industrial Growth
0 100 200 300 400 500 600 700 2006 2007 2008 2009 2010 Textile Export Misc. Manufactured Articles Export Base Metal Import Agricultural Output Relative Industrial Growth (USD in billions) Source: National Bureau of Statistics of China
Slide 12: Company Overview Legal Structure
Company Overview Legal Structure
Slide 13: Management Team
Management Team Mr. Lijun Chen Chairman • President and General Manager of Hebei Agricultural Means and Production Co. Ltd. led the company to RMB 3.9 billion annual fertilizer sales • Over 22 yrs of experience in the Chinese agricultural market • Recognized for his knowledge and management capabili
Slide 14: Products & Services
Products & Services
Slide 15: Advertising Solutions
From us • Outdoor LCD display • Poster boards • Outdoor billboards • Brochures To clients • Broad coverage • High market penetration • Cost effective and efficient • Customized package Advertising Solutions
Slide 16: Wholesale and Retail Store
Wholesale and Retail Store In Shijiazhuang City Store In Baoding City Store In Zhao Xian
Slide 17: Wholesale and Retail
Wholesale and Retail From us • 16,000 retail stores from existing resources • Non - agricultural products • Fertilizers To clients • Instant assess to rural retail market • Save time to build manufacture’s own retail • Cost effective and efficient
Slide 18: Value-Added Services
Growth Opportunities: 1. CAM co - branding debit card - intend to issue 500,000 debit cards initially 2. CAM phone – intend to partner with a telecom service provider to deliver rural market message 3. To build win - win partnership, joint venture or M&A with large franchise stores in the world 4. A
Slide 19: Store Rental Business
• Sublease retail store areas in the network • ~4,300,000 sq. ft. of rental space • Remodeled as convenience stores • Sell both agriculture and non - agricultural products such as fertilizer, homecare, personal care and healthcare products Store Rental Business
Slide 20: Financial Forecasting
Financial Forecasting 2012 201 3 2014 2015 2016 Advertising 3,468 6,936 9,017 11,722 15,238 Wholesale and Retail 8,000 126,968 142,204 159,269 178,381 Store Rental 3,377 3,715 4,086 4,495 1,170 1,521 Total Sales 11,468 137,281 154,936 176,247 199,635 Net Income 2,343 13,261 15,475 18,493 21,829 Net
Slide 21: Sales Forecasting
Sales Forecasting 0 20 40 60 80 100 120 140 160 180 200 2012 2013 2014 2015 2016 Value - Added Services Store Rental Retail/Wholesale Advertising Cumulative Sales in millions $USD
Slide 22: CAM events
CAM events Opening Ceremony of initial 300 outdoor LCD’s July 30, 2012 in Hebei , China 1:1 Sample Retail Store Standard Retail Store
Slide 23: Investment Highlights
Investment Highlights Profitability • We have made profit since we started operation • Stable income stream through our business model Significant Platform for Growth • Build core revenue in advertising and agricultural sales • Leverage partners’ existing infrastructure and brand Attractive Target M
Slide 24: CAM Group, Inc.
‘CAM Group, Ine 2. 1708 Nan Fung Tower, 173 Des Voeux Road C, Hong Kong, P.R.China .ixing Building, 51 Shengli Avenue North, Shijiazhuang, Hebei Province, P.R.China Copyright (c) 2011-2012 CAM Group. nc. All rights reserved WWW.CAMG-INC.COM