L & L Energy — Investor Presentation (May 2010)
24 slides from L & L Energy's investor presentation, May 21, 2010
Slide 1: L&L Energy Management Presentation
IL «LL ENERGY INC Seattle e Hong Kong e Shenzhen e Guangzhou e Kunming e Taipei “Successful execution in China is our strength,” said Dickson Lee, Chairman & CEO of L&L Energy. “We will continue to expand coal productivity leveraging on China’ LeL ENERGY Management Presentation / May 200
Slide 2: Safe Harbor Statement
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 Safe Harbor Statement for Purposes of the “Safe Harbor” Provisions of the Private Securities Litigation Reform Act of 1995: This presentation contains “forward-looking” statements, which are not historical facts, but ar
Slide 3: L&L Energy company overview
A&M LE INERGY INC. L&LEnergy, Inc. (L&L) is a U.S. based energy company, providing coal in China. We leverage on China's economic Ticker TLEN growth to maximize profits and enhance shareholders value. L&L is poised to generate higher earings and Exchange: NASDAQ! continue to improve EPS Market Cap’
Slide 4: Growth
dN TEINERGY. ITN C GROWTH a Founded in 1995: Initially, L&L was focused on corporate consulting In 2001, L&L becomes a SEC public reporting company a In.2004, L&L acquired 51% equity in a equipment company and became an operator in China o a Strategic entry into energy and coal: In 2006, acquired a
Slide 5: Growth in China
GROWTH IN CHINA China continues to grow over 8% a The World Bank raised its forecast for 2009 GDP growth from 7.2% to 8.4% 2 2010 & 2011 growth is projected to be 8.7% Real GDP “ a7] 2 10 & ge Bo & 34 z Z2 o 2008 2007 2008 2009 20108 Year Sourced From: Quarterly Update November 2009; World Bank Offi
Slide 6: China — World's Largest Coal Consumer
A&M LE INERGY INC. China — World’s Largest Coal Consumer CHINESE COAL CONSUMPTION: a 71% of China's energy production is from coal Q China accounts for 42.6% of the planet's coal use a Demand for coal and other energy outstrips supply; trend to continue in the next two years World’s Largest Coal Con
Slide 7: China's Economic Growth Demands Additional Energy Consumption
fT ENERGY INC CHINA’S ECONOMIC GROWTH DEMANDS ADDITIONAL ENERGY CONSUMPTION a From 2000 to 2006, energy consumption grew 46% Energy Use in Chini 3,000.00 | 2,500.00 2,000.00 1,500.00 & s 1,000.00 500.00 + 0.00 PP FF EEF SS SS Fg Year Source: international Data and Energy Analysis, EIA
Slide 8: Coal Consumption Forecast
Coal Consumption Forecast 2 Coal consumption will continue to grow into 2030 205 F Year 7030 F ‘Source: International Data and Energy Analysis,
Slide 9: Steel Drives Demand For Metallurgical Coal
A&M LE INERGY INC. Steel Drives Demand For Metallurgical Coal China becomes the world's largest auto market Strong demand for steel is the primary driver for met coal/coking coal Production of pig iron & raw steel creates increases in price of coking coal China produced total 400 million tons of ste
Slide 10: Historic Coal Prices in China
Chinese Renmimbi Per Ton CNY 800 CNY 700 CNY 600 CNY 500 CNY 400 CNY 300 CNY 200 CNY 100 CNYO Historic Coal Prices in China (average annual price per to $120 $100 Source: Crystal Equity Research Report U.S. Dollars Per ton
Slide 11: Poised For Expansion
A&M LE INERGY INC. Poised For Expansion a Policy of Expansion and Consolidation © The China Government established a policy to “shut down small mines” that do not have capital to expand © Therefore creating an opportunity for L&L to grow a L&L Forms Partnerships with Chinese Partners to: © Provide c
Slide 12: L&L Subsidiaries
A&M LE INERGY INC. 4 Provinces: Yunnan, Guizhou, Gaungxi, Gaungdong L&L Subsidiaries a L&L Coal Partners a Kunming Coal (KMC) a TNIHong Xing (TNI) 7
Slide 13: L&L Energy structure and operations
TL ENERGY INC Trading Symbol “LLEN” KMC Wholesale O Based in Kunming Coal wholesale operations O Ping Yi Mine L&L Coal Partners Based in Yunnan province Q 2coal mines Coal washing plant TNI Based in Yunnan Hong Xing Coal washing facility ZoneLin Coking facility Marketing Offices. Guangzhou Hong Kong
Slide 14: KMC coal wholesale
A&M LE INERGY INC. O KMC is a subsidiary of L&L 10 years experience in buying & selling coal as a wholesaler and distributor, located in Kunming City OKMC engages in the sale of thermal and coking coals, acquired by L&L in 2006 OKMC has long term contracts with coal mining companies, allowing it to
Slide 15: L&L coal mines in South China
A&M LE INERGY INC. LAL focuses on mining in coal rich areas of South China O Immediate improvement of coal productivity and safety provides a good platform for L&L to grow 3 fully operational mines, producing coking coal & thermal coal Ol DaPuAn: when acquired was generating 150,000 tons/year, now t
Slide 16: Coal washing facilities
LL&L has 2 coal washing facilities producing clean coal for customers O The washing facilities are to optimize efficiency & yields for better quality of coal DaPuAn Coal Washing Facility: a Completed in May 2009 a 300,000 tons/year capacity ‘INI Hong Xing Coal Washing Facility: a 200,000 tons/year c
Slide 17: ZoneLin coking facility
A&M LE INERGY. INC. LL&L has a coking facility in China producing coke & other coal related by-products a ZoneLin Coking: a Total capacity of approximately 150,000 tons/year at time of acquisition a. L&Lis in process of expanding its coking operation a Vertical integration a Coking is an integral pa
Slide 18: Pro-Forma Income Statements
Pro-Forma Income Statements { US Dollars in m ions, except otherwise noted) 4/2008 ___4/2009__4/2010*_ 4/2014 Revenue Mining - 274 52.8 82.5 Revenue Coal Wholesale 23.4 13.5 15.0 275 Revenue Coking - - 11.0 30.0 Revenue Coal Washing - - 293 78.0 Total Revenue 234 40.9 708-4 218.0 cocs 22.0 18.0 56.3
Slide 19: Revenue growth chart
et ENERGY INC 250 $218.0 200 CAGR: 84% 2 180 2 € = $108.1 ? 100 50 $40.9 $32.0 = || a | = 2007 2008 2009 2010 Est. 2011 Est.
Slide 20: Investment summary
A&M LE INERGY. INC. a China economy continues to grow a Energy demand is greater than supply a China’s consolidation policy creates an unique opportunity for L&L OL&L poised to grow 84+% a Vertical integration maximizes profit & reduces risks a Arbitrage on US coal to China is beneficial to both cou
Slide 21: Management team
Dickson V. Lee, MBA, Founder, CEO a CPA, and former judicial member of Hong Kong (trial) Court a Two decades of business experience in China Clayton Fong, VP - US Operations a. Served at senior levels in the White House and the California Governors Office a. Extensive experience in management, human
Slide 22: Board of directors
ickson V. Lee, Chairman & CEO a CPA,and former judicial member of Hong Kong (trial) Court Two decades of business experience in China. US citizen Shirley Kiang, Independent Director — Chair of Compensation Committee a Two decades as a senior executive for various high-tech firms in Silicon Valley &
Slide 23: Board of directors (continued)
Dennis Bracy, Independent Director a CEO, US-China Clean Energy Forum; Chair of Washington State China Relations Council 2 Leading strategist on energy issues. US citizen Ed Dowd, Independent Director a Experienced legal professional, Partner, Dowd Bennett LLP I Q Former US Attorney from Missouri. U
Slide 24: Contact and disclaimer
A&M LE INERGY INC. Address: L&LEnergy, Inc. 130 Andover Park East, Suite 101 Seattle, WA 98188 Phone: (206) 264-8065 Fax (206) 264-7971 Website: _http://wwwllenergyinc.com NASDAQ Trading Symbol: “LLEN" L&L Energy, Inc. Headquarters — Seattle, WA Disclaimer This document contains certain statements t