Sino Green Land Corp. · OTC:SGLA
Sino Green Land — Investor Presentation (September 2010)
28 slides from Sino Green Land's investor presentation, Sep 21, 2010
Slide 1: Sino Green Land Corporation
Sino Green Land Corporation Investor Presentation — September 2010 See tS SE
Slide 2: Forward-looking statements
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 events. Reader
Slide 3: Investment Highlights
Investment Highlights Vv 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 Vv Established foothold and entry into green foods -- wholesale and
Slide 4: About Sino Green Land
About Sino Green Land * Leading agricultural distributor of high end fruits, vegetables and green foods in China * High end fruits include Fuji apples, emperor bananas and tangerine oranges — Currently distribute products in two key markets: * The Guangzhou YunCheng wholesale market * The Beijing Xi
Slide 5: 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 — Noassurance of supply, quality or timing * Large retailers are forced to deal with agents to secure their supply *
Slide 6: Lock in supply by providing an outlet for produce
* Lock in supply by providing an outlet for produce Guaranteed Coordination supply with farmers
Slide 7: Plantation Bases
Plantation Bases Shaanxi Apples Base J am A Ae Guangxi Tangerine Base ) Baa. if F < Guangdong Emperor Banana Base Ee) Fujiapple | 16,206 Acres ‘Guangdong Base EmperorBanana 2,864 Acres
Slide 8: Product Overview
Product Overview Fuji Apple Emperor Banana Tangerine Orange * High popularity in China due + Originates from Thailand and * Created by grafting a Japanese to crispness and taste isnewto China tangerine tree onto an orange tree stem Can only be cultivated in 2 provinces in China * Approx. 2.5x higher
Slide 9: Fiscal Year 2008 and 2009 sales mix
Fiscal Year 2008 Tangrine Orange Others Emperor 5.5% 0.5% Banana 1% Fuji Apple 87% Total: $74mm Fiscal Year 2009 Tangrine Emperor Banana 9% + Margin for Fuji Apple: 10.6% + Margin for Emperor Banana: 12.7% + Margin for Tangerine Orange: 11.4% Orange Others 5% 1% Total: $108mm Fuji Apple 85%
Slide 10: Distribution 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 frui
Slide 11: Expand acreage and supply to supermarket chains
* Work with cooperative groups to expand acreage of land leases * Plan to supply fruits directly to super market chains — Gross margins for retail fruit business are approximately double wholesale
Slide 12: 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 retail market * Target export markets include Indonesia, Hong Kong, Canad
Slide 13: About Green Foods
About Green Foods * Green Foods are healthy and environmentally friendly foods — Standards set by China Green Food Development Center * China's Ministry of Agriculture is committed to increasing the availability of environmentally friendly and healthy food — Provides support to agricultural companie
Slide 14: Green Food Market
Green Food Market * Green Food market 6,000 manufacturers producing 17,000 certified green foods items 2009 domestic sales reached over $46 billion Price points are 20-30% higher than conventional produce Exports were more than 82 billion In the past 5 years, green food exports increased at over 40%
Slide 15: Green Food Distribution Hub
Green Food Distribution Hub being constructed in the Guangzhou Yuncheng Wholesale Market Will cover 330 thousand square feet of floor space and will cater to both wholesale and retail customers Expected to open in the end of 2010 This is a new distribution platform for the Pearl River Delta, Hong Ko
Slide 16: Green Food Strategy
Green Food Strategy * Sino Green Land is a council member of the China Green Food Association — Mr. Luo, Executive Director of Sino Green Land, is Vice Chairman of China Green Food Association * Uniquely positioned to distribute green food products for association members * New source of high margin
Slide 17: 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
Slide 18: H1 2010 Highlights
H1 2010 Highlights * Net sales increased 57.1% to $63.3 * Gross profit increased 62.7% to $6.8 million * GAAP net income of $3.9 million, or $0.03 per diluted share * Adjusted net income of $4.6 million*, or $0.03 per diluted share * $4.1 million of cash and cash equivalents, no long-term debt and s
Slide 19: 2009 Financial Highlights
2009 Financial Highlights Revenue (millions) Gross Profit (millions) Adj. NI (millions) 2009 * Revenue increased 46.9% to $108M for the year ended Dec. 31, 2009 * Gross profit was $11.7M compared to $7.7M for the same period last year * Gross margin was approximately 10.9% vs 10.5% last year * Adjus
Slide 20: Financial Results
Financial Results $120.0 $6.0 $100.0 $5.0 $80.0 $4.0 $60.0 $3.0 mmm Revenue $40.0 $2.0 Bent $20.0 | $1.0 $0.0 i $0.0 XN NY oY x a, =X e, %5 “5 ~%> “% ~%g 2092044 *+H1 2010 and H1 2009 adjusted net income excludes: $.5M and $.4M amortization of land lease expense, respectively; $0.6M and $0 hon-cash
Slide 21: Income Statement
Income Statement Selected Income Statement Items $mm, FYE 12/31 2006 2007 2008 Revenues $148 $42.3 $73.6 y-ory growth 185.3% 74.1% EBITDA 10 39 5a y-o-y growth 302.8% 32.4% EBITDA Margin 6.5% 9.2% 7.0% Adjusted net Income* 10 39 54 Margin 6.4% 9.2% 7.3% Net Income $1.0 $3.9 $4.7 Margin 6.5% 9.2% 6.4
Slide 22: Target Business Model
Target Business Model * Distribution for high end fruits and vegetables Revenue $108M $150M $300M Gross Margin 11% 15% 18% EBITDA Margin 7% 11% 14% * Distribution for Green Foods Revenue - $150M $250M Gross Margin S 14% 16% EBITDA Margin - 10% 13%
Slide 23: Solid Balance Sheet
Solid Balance Sheet Jun 30, 2010 Dec 31, 2009 ASSETS Cash $ 4,054,824 $ 1,987,616 Total current assets 4,893,306 2,769,093 Long-Term Prepayments 21,833,655 18,961,869 Total assets $ 35,315,828 $ 27,000,165 LIABILITIES Total current liabilities 6,478,787 6,445,544 Long-term debt - - Total Liabilities
Slide 24: Capital Structure
Capital Structure Common shares outstanding: 144.8M Common shares underlying preferred stock: 17.7M Common shares underlying warrants: 43.9M Total potential shares outstanding: 206.5M. The company has investor warrants outstanding to purchase: sien Shared [everett Ton (CFSE 10,145,454 $0.11 August 2
Slide 25: Senior Management Team
Senior Management Team + Mr. Fong Yiu Ming, Anson (Chairman & CEO) — Co-Founder, Executive Director and COO of Heng Tai Consumables Group Ltd (2001) — Sales Director at Vincent Honour Ltd. responsible for China Trade (1986) — Over 20 years of experience in consumer product industry + Mr. Luo Xiong,
Slide 26: Independent Board of Directors
Independent Board of Directors + Jeremy Goodwin — President and CFO of China Advanced Construction Materials, a NASDAQ listed company — Managing Partner of 3G Capital Partners + Kinhang Danvil Chan = Founder of K.H. Chan & Co., a CPA firm in Hong Kong = Director and Chairman of the Audit Committee f
Slide 27: 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 v Established foothold and entry into green foods -- wholesale and r
Slide 28: Appendix: Company Snapshot
Appendix: Company Snapshot Stock Exchange: OTC BB Ticker: SGLA Current Price (9/2/10): $0.25 Shares Outstanding: 144.8M Market Cap: $36.2M 2009 Revenue: $108.0 M 2009 Adjusted Net Income*: $7.5M Total Shareholders’ Equity (06/30/10): $28.8M Fiscal Year End: December 31 Inside Ownership: 53% *2009 ad
Sino Green Land — Investor Presentation (September 2010) on 6ix