Yongye International — Yongye Biotechnology International — Investor Presentation (February 2009)
27 slides from Yongye International's investor presentation, Feb 18, 2009
Slide 1: Investor Presentation
Investor Presentation February 2009
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements within the meaning of the safe- harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that could cause the actual results
Slide 3: Equity Snapshot
Equity Snapshot Symbol OTCBB: YGYB Price (2/9/08) $1.45 Basic Shares Outstanding 27.0 Million Market Cap (2/5/08) $39.6 Million Revenues (TTM – 9/30/08) $47.5 Million Net Income (TTM– 9/30/08) $12 Million EPS (Diluted – TTM 9/30/08) $0.80 EPS (Diluted – MRQ 9/30/08) $0.22 P/E 2.0x P/S .83x 3
Slide 4: Investment Highlights
Investment Highlights Yongye Biotechnology International, Inc. contracts the production of highly effective plant and animal nutrient products using fulvic acid which are then distributed throughout the People’s Republic of China Superior plant and animal nutrient products Tremendous demand exists a
Slide 5: Yongye Biotechnology Company Overview
Yongye Biotechnology Company Overview Yongye Biotechnology International, Inc. has its headquarters in Beijing and its current contracted production facility in Inner Mongolia. Asia Standard Oil, Ltd., a subsidiary of Yongye Biotechnology Intl, and Inner Mongolia Yongye have established a cooperativ
Slide 6: A Growing Domestic Market
A Growing Domestic Market China has more than 20 percent of the world’s population but only 7 percent of the world’s arable land (FAO) Every hectare of arable farmland in China must support 10.3 people, versus 5.1 people in the European Union and 1.6 people in the United States (FAO) Rapid urbanizat
Slide 7: Fulvic Acid – A Key Nutrient
Fulvic Acid – A Key Nutrient Fulvic acid is a complex, acidic, biochemical polymer which is produced naturally by the decomposition of plant and animal material over a long period of time - contains many essential nutrients for health and growth Fulvic acid is a light weight molecule which provides
Slide 8: Advanced Scalable Production
Advanced Scalable Production Company technology allows for efficient extraction of fulvic acid from humic acid on an industrial scale Our proprietary extraction process leads to a high quality fulvic acid with one of the smallest possible average molecular weight and one of the highest possible bio-
Slide 9: Product Differentiation
Product Differentiation Yongye Products Plant Nutrient Targets the plant - best via Foliar (direct) application & known to correct micronutrient deficiencies Immediate effect on plant- within 8 hrs Increases Uptake of Soil Nutrients Adds own Macro & Micro Nutrients Very effective in China’s harsh so
Slide 10: Shengmingsu for Plants
Shengmingsu for Plants Nutrient-rich liquid made up of a highly concentrated fulvic acid base along with other key nutrients Supplements the absorption of fertilizer and soil minerals Produces reliable, predictable quality and quantity results Enhances plant’s natural resistance against disease and
Slide 11: Great Results for Farmers
Great Results for Farmers Helps increase yields 10% to 35% Shortens harvest time by 15 to 20 days Stronger and larger leaves and roots extends the life cycle from 20 to 30 days Carrot Increases yield by up to 26.5% Celery Increases yield by up to 26.3% Enhances a crop’s taste, nutritional Increases
Slide 12: Shengmingsu for Animals
Shengmingsu for Animals Fulvic acid for animals Maximizes digestion for better health Provides natural antibiotic to prevent disease Products Nutrients mixed into animal feed Tested and approved for rollout Cows Increased milk production and quality Reduces mastitis in dairy cows For every 1RMB spen
Slide 13: Extensive Network of Stores
Extensive Network of Stores 775 branded stores at the end of the third quarter, September 30, 2008, up from 200 at the end of 2007 Q4 2008 added 350 stores to branded store trial process Unique distribution model: Separation of logistics and financing from technical support and marketing Independent
Slide 14: Expanded Marketing and Distribution
Expanded Marketing and Distribution Geographic expansion of sales Grew from selling plant products in four provinces to selling plant products in 10 provinces and animal products in 4 provinces Staged sales development process Demonstrations, trials and educational programs create brand awareness an
Slide 15: Role in a Large Fertilizer Industry
Roll in a Large Fertilizer Industry China uses an estimated 1/3 of the world’s fertilizer production, over 50 Fertilizers with Fulvic Acid million tons of traditional nitrogen 164 Products fertilizer Pressure to increase productivity has led Combination of 5 Combination of to overuse of traditional
Slide 16: Our Competitive Landscape
Our Competitive Landscape China Market The overall fertilizer market is estimated to be a $50B industry in China – estimated to grow about 30% a year from 2005 to 2009. China has about 1.81B Mu of arable land – all cash and row crops benefit from the use of Yongye’s “Shengmingsu” China purchased 63%
Slide 17: Growth Strategy
Growth Strategy Acquired predecessor’s 2,000 TPA equipment in October 2008 and completed construction on a new 8,000 TPA processing facility in October 2008, which increased the production to 10,000 tonnes per annum. Have employed strategic television and print advertising to support sales throughou
Slide 18: Management Team
Management Team Wu Zishen: Chairman and CEO Director and Chairman of large SOE conglomerates and started 13 companies Managed approximately $1.4 billion of investments in state planed economy Sun Taoran: Co-Founder & Director Built approximately $27.8 million media business and guru of PDA marketing
Slide 19: Financials
Financials 19
Slide 20: Rapid Revenue Growth
Rapid Revenue Growth ep he 45.19 18.20 Millions 13.14 40.75 _ 2007 9 Nnths 9 Mths 3Q2007 32008 2007 2008
Slide 21: Solid Gross Profit and Margins
Solid Gross Profit and Margins 21
Slide 22: Growing Net Income
2 FC Me Growing Net Income Mn) ex 14 - 7 50% 12.24 44.4% + 45% 4 a 12 42.1% Cane, aa 33.2% chs 8 + 30% > 27.0% | nay, & = fd 24.6% oe = 12.0% 4.36 4.52 447 + 20% o = 44 + 15% & + 10% 21 0.45 “ ‘" 1 5% 1+, 1 : a 0% 2006 2007 Q9Mnths 9Mnths 302007 302008 2007 2008
Slide 23: Income Statement
Income Statement Yongye Yongye The predecessor Biotechnology The predecessor Biotechnology Inner Mongolia International, Inc. Inner Mongolia International, Inc. Yongye and Subsidiaries Yongye and Subsidiaries Year Ended Year Ended 9 Months Ended 9 Months Ended 3 Months Ended 3 Months Ended December
Slide 24: Balance Sheet Highlights
Balance Sheet Highlights Yongye Biotechnology The predecessor Inner International, Inc. Mongolia Yongye and Subsidiaries December 31, 2007 September 30, 2008 Current Assets 12,863,821 32,063,039 Property and Equipment, Net 2,486,487 3,386,463 Intangible Assets, Net 3,665,584 114,817 Long-Term Invest
Slide 25: Investment Highlights
Investment Highlights Superior plant and animal nutrient products Tremendous demand exists among plant and animal farmers for products that increase productivity Growing scalable distribution – geographic expansion and greater market penetration Rapidly growing revenue and net income with a pipeline
Slide 26: Contacts
Contacts Yong Ye Biotechnology Co. CCG Investor Relations Suite 608, Xueyuan International Tower Mr. Crocker Coulson, President No. 1 Zhichun Road Phone: 646.213.1915 Haidian District, Beijing, China E-mail: crocker.coulson@ccgir.com Phone: 86.10.8231.8626 http://www.ccgir.com/ Fax: 86.10.8231.1797
Slide 27: Thank You
&) YONGYE YONGYE BIOTECHNOLOGY INTERNATIONAL, INC. Thank You 27
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