Sino Green Land Corp. · OTC:SGLA
Sino Green Land — Investor Presentation (November 2010)
29 slides from Sino Green Land's investor presentation, Nov 19, 2010
Slide 1: Sino Green Land Corporation Investor Presentation - November 2010
Sino Green Land Corporation Investor Presentation - November 2010 Bre |
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 v v v v v nnovative distribution model that addresses highly fragmented farmer’s market and increasing demand for premium foods Efficient and scalable platform for the distribution of high-end ruits and vegetables 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 6A eww Guaranteed Coordination supply with farmers
Slide 7: Plantation Bases
Plantation Bases Shaanxi Apples Base Guangxi Tangerine Base ) Se. Guangdong Emperor Banana Base Coe Fuji Apple 16,206 Acres Guangdong Base Emperor Banana 2,864 Acres Guangxi Base Tangerine 1,283 Acres
Slide 8: Product Overview
Product Overview Fuji Apple Emperor Banana Tangerine Orange + High popularity in Chinadue + Originates from Thailand and * Created by grafting a Japanese to crispness and taste is new to China tangerine tree onto an orange tree stem + Can only be cultivated in 2 provinces in China + Approx. 2.5x hig
Slide 9: Sales Mix Fiscal Year 2008 and 2009
Fiscal Year 2008 Tangrine Orange Others Emperor 5.5% 0.5% Banana % Fuji Apple 87% Total: $74mm Fiscal Year 2009 Tangrine Orange Others Emperor 5% 1% Banana Eu) Fuji Apple 85% Total: $108mm + Margin for Fuji Apple: 10.6% + Margin for Emperor Banana: 12.7% + Margin for Tangerine Orange: 11.4%
Slide 10: 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 frui
Slide 11: Work with cooperative groups to expand acreage of land leases
* 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 a
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 $2 billion In the past 5 years, green food exports increased at over 40%
Slide 15: Green Food Distribution Hub being constructed in Guangzhou
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 first quarter of 2011 This is a new distribution platform for the Pearl River Delt
Slide 16: Green Food Strategy
Green Food Strategy * Sino Green Land is a council member of the China Green Food Association — Mr. Luo, CEO and President 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: 9-Month 2010 Highlights
9-Month 2010 Highlights * Net sales increased 32.0% to $94.3 million * Gross profit increased 36.4% to $10.1 million * Non-GAAP adjusted* net income increased 50.3% to $6.5 million, or $0.04 per diluted share * $1.1 million of cash and cash equivalents, no long-term debt and shareholder’s equity of
Slide 19: 2009 Financial Highlights
2009 Financial Highlights Revenue (millions) Gross Profit (millions) Adj. NI (millions) LL gZ so 1 wo = a : >. 7008 2008 2008 2009 2008 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 appr
Slide 20: Financial Results
Financial Results $120.0 $8.0 $100.0 GED $6.0 coe $5.0 $60.0 $4.0 lm Revenue $3.0 $40.0 $20 Adj. Ni* ce) $1.0 $0.0 + $0.0 295 ag 0p Og ae Sn 3 me ; %q %o ‘Excludes non-cash stock comp, amortization of land lease expense and change in derivative liability (see reconciliation)
Slide 21: Income Statement
Income Statement Selected Income Statement Items ‘Smm, FYE 12/31 2006 2007 2008 Revenues $148 $42.3 $73.6 yo-y 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 94.7 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 - 14% 16% EBITDA Margin - 10% 13%
Slide 23: Solid Balance Sheet
Solid Balance Sheet Sept 30, 2010 Dec 31, 2009 ASSETS Cash $ 1,088,438 $ 1,987,616 Total current assets 2,123,964 2,769,093 Long-Term Prepayments 21,933,367 18,961,869 Total assets $ 38,704,613 $ 27,000,165 LIABILITIES Total current liabilities 2,802,117 6,445,544 Long-term debt : - Total Liabilitie
Slide 24: Capital Structure
Capital Structure . 150.6 M + Common shares unvested for the management: 2.9M * Common shares underlying preferred stock: 16.0M * Common shares underlying warrants: 43.7M * Total potential shares outstandin 213.2M The company has investor warrants outstanding to purchase: Underiving Shares | Exercis
Slide 25: Senior Management Team
Senior Management Team + Mr Luo Xiong, Henry (CEO & President) — Founder and Executive Director — Managing Director at China Environmental Protection Industry Ltd. = Graduated from Guangdong Maoming Agricultural University = Over 10 years of experience in agricultural and environment protection indu
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
Slide 27: Investment Highlights
Investment Highlights Vv Innovative distribution model that addresses highly fragmented farmer’s market and increasing demand for premium foods Vv Efficient and scalable platform for the distribution of high-end fruits and vegetables Vv Established foothold and entry into green foods -- wholesale an
Slide 28: Appendix: Company Snapshot
Appendix: Company Snapshot Stock Exchange: OTC BB Ticker: SGLA Current Price (11/12/10): $0.30 Shares Outstanding: 150.6M Market Cap: $45.2M 2009 Revenue: $108.0 M 2009 Non-GAAP Adjusted Net Income*: $7.5M Total Shareholders’ Equity (09/30/10): $35.9M Fiscal Year End: December 31 Inside Ownership: 5
Slide 29: Appendix: Adj. NI Reconciliation
Appendix: Adj. NI Reconciliation ‘The Company defines adjusted net income as earnings before non-cash stock-based compensation, change in derivative liability and amortization ‘expenses. Adjusted net income is not a measure of performance calculated in accordance with accounting principles generally
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