L & L Energy — L & L Financial Holdings — Investor Presentation (May 2008)
32 slides from L & L Energy's investor presentation, May 23, 2008
Slide 1: L&L International Holdings, Inc. Management Presentation
L&L INTERNATIONAL HOLDINGS, INC. Seattle . Hong Kong . Beijing, Shenzhen. Liuzhou . Kunming Management Presentation May 1, 2008
Slide 2: Safe Harbor Statement
Safe Harbour Stateme! Under the Private Sec ies 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 are f
Slide 3: L&L International Holdings Overview and Equity Snapshot
L & L International Holdings was founded by Dickson Lee in 1995. L&L is incorporated in Nevada and headquartered in Seattle, WA The company has approx. 400 employees and operates two divisions e Energy division - growth focus e Compressor division, to spin-off L&L is aggressively acquiring establish
Slide 4: Investment Highlights
ghts Established solid network - via existing coal wholesale operations. Starting vertical integration - to supply high grade coking coal & coke to China’s booming iron & steel industry Secured 53.2 million tons reserves of high grade coking coal - to become a major, long term player. Coal reserve h
Slide 5: Company History and Milestones
The company began operations to provide corporate financial consulting services under the name Lee & Lam Financial Consultants L&L expands operations into China and opens it’s first office in Shenzhen City The company shifts its model to acquire and operate established businesses in China L&L become
Slide 6: Operations in China
Operations in China Current Operations throughout Chin: a Kunming Coal (KMC) Consolidator and wholesaler in Kunming, Yunnan province 1 LEK & LSP Manufacturer & Sales of air compressors Liuzhou, Guangxi province Coal Mine Coking © Facility Kunming Coal 100.0% Tian-Ri Coal Mine 80.0% ‘Ming Long Coking
Slide 7: Company Structure
c Company Structure 2 New factory, © Original | Based in 1 Based in a akMC based in factory, based Kunming Yunnan Subsidiary, Liuzhou in Liuzhou province based in & CBA Yunnan a JV with © Manufacturer wholesale 2 Operates a Sullivan & sales of operations coking facility Coal mine Palatek to piston a
Slide 8: Current operations: Coal Supplier
L&L es 5. 2 Current operations: Coal Supplier = Coal is supplied from 5 local mines = Mining companies bring coal to the consolidation point JY with Tian-Ri coal mine Government permit and reserve of an estimated value of $7.3 billion Production of 450,000 tons of coal in 2010 P Coal Business Overvi
Slide 9: Coal Market Overview
Coal Market Overview (1) Q China is the world’s largest coal producer and consumer Q Produced 2.37 billion tons (bnt) in 2006, increased by over ‘1bnt (79%) since 2000 Q Consumption 38% world’s coal - more than one third of the planet's coal Q With an economy growing in excess of 10% a year, demand
Slide 10: Strong demand for steel drives coke
= Strong demand for steel is the main driver for the coke prosperity, = Construction demands raw steel, driving coal prices higher = Production of pig iron and raw steel is creating a “pull-demand” situation causing rapid increases in the price of coke and thereby in coal = China produced a total of
Slide 11: Energy Division
Energy Divisio Business Description: With over 10 years of experience, China Kunming Coal (KMC), the L&L subsidiary, is a coal wholesaler in Kunming, China: as It's roots in Yunnan Province, a major coal region in Currently 5 mining partners supply coal to L&L L&L operates 2 coal storage areas, has
Slide 12: Exploration Rights
Exploration Rights Very Key to Future Expansion = L&L entered into a JV agreement with the Fu Yuan County Tian-Ri Coal Product Operating Department, the original owner of the Tian-Ri coal mine, in December 2007 = L&L has a 80.0% controlling interest for the coal reserves, including the drilling righ
Slide 13: Commercialization Timeline
— - ~ “ree y FF. . . = Commercialization Timeline for Complete exploration and reports Jul-Dec 2008 Obtain mining excavation plan and mine commercialization certificate Obtain mining commercialization (shaft and tunnel) design, order excavation equipment igo S Eerste §=§=Complete initial constructio
Slide 14: LEK and LSP Business Description
Business Description LEK: Business Description LSP: a LEK (Lui Er Kong) is located in Liuzhou City Q Joint venture with Sullivan Palatek ip.tiie south:of Ching Q L&L has a new facility to assemble high-end Well-known brand name with 30 years in piston air compressors, under LSP brand sales & manufac
Slide 15: Acquisition: MLC Coking Company (I)
equisition: MLC Coking Company (1) Ming-Long Coking Company (MI Background 3 L&L will acquire a 60.0%+ interest in MLC The new coking facility includes 2 operations: facility to produce 900,000 tons coke per year— completed 1 Need to compete Coke By-Products distillation facility L&L will supply coa
Slide 16: Acquisition: MLC Coking Company (II)
Acquisition: MLC Coking Company (ID) Yunnan Coking Overview Q Majority of the coking factories are small with coking capacity less than 300,000 annual tons Q Only 3 iner large coking facilities in Yunnan, excluding L&L's Ming Long, have large coking capaci Competitors OQ Da-Wei Coking Factory Q 2mil
Slide 17: Expansion Phases
Expansion Phases Phase | - completed in 4/2007 Q Construction of the initial 50% of the coking capacity (designated capacity 900,000 tons) Q Full operation of the first 450,000 tons coking facility of the right wing blast furnaces Phase Il - completed in 01/2008 Q Build additional 450,000 tons of ba
Slide 18: Historical and Projected Financials
(Dollars in millions, Except as otherwise noted) Historical Forecast _ Projected Fiscal Year Ending April 30, 2006 2007 9M 2008 2008 2009 2010 2011 Revenue Mining 7 = = 3 235 481 e22 Revenue Coal Wholesale 2 14 73 200 66.0 1040 1455 Revenue Coking 2 = = = 1440 170.4 2878 Revenue Coking by-Produets,
Slide 19: Pro-Forma Revenue
-Forma Revenue $553.0 500 400 $354.1 2 s CAGR: 107% i $262.3 £ 200 4 100 4 .0 $7.4 $13.1 $19.0 $22. 0 __,_ Ee |_| 7 1 2005, 2006 2007 2008E 2009E 2010E 2011E
Slide 20: 35.0% 30.0% G% 25.0% 15.0% 10.0% 5.0% 0.0% 2005 2006 2007 08E 2009E 2010E
35.0% 30.0% G% 25.0% 15.0% 10.0% 5.0% 0.0% 2005 2006 2007 2008E 2009E 2010E 2011E
Slide 21: Balance Sheet
Balance Sheet (Dollars in milions, Except per Share Data) 2006 2007 3 2008 Cash and Equivalents $2.0 $12 $09 $15 Accounts Receivable 49 58 80 9.0 Bad Debt Provision 0.0 0.0 aa (15) Notes Receivable 1 00 04 00 Prepayments & other receievables 18 38 81 19 Inventory 38 32 32 41 Provsion of Inventory: O
Slide 22: Key Team Players; Chinese Coal Market Statistics; Tian-Ri Coal Mine
Key Team Players Chinese Coal Market Statistics Tian-Ri Coal Mine (Photos and Documents) Registration with Chinese government 23 27 30
Slide 23: Key Team Players
¢ _ a Key Team Players Dickson ee, MBA, Founder, Chairman-KMC, CEO. 2. CPA, former Director of Verizon and former Judge of Hong Kong Financial Court a Two decades of business experience in China Dr. Arthur Chen PhD, Technology Advisor © PAD from MIT with 20 years with G.E. engineering Commissioner,
Slide 24: China's Coal Consumption
China’s Coal Consumption Current Consumption Trends: China's coal consumption started to grow sharply in 2003 Consumption expanded by more than 200 millions tons between 2004 and 2006 In 2006 the total coal consumption totaled 2.39 billions tons and has increased throughout all sectors The coal cons
Slide 25: China's Coal Production
China’s Coal Productio Current Coal Production: ii Source: China Energy Statistics Yearbook 2007 / Coal Industry Year Book Coal Production has increased fast since 2003 and an output of 2.37 billion tons has been reached in 2006 The growth has been dependent on large coal mines production expansion
Slide 26: Coal Exports and Imports
Coal Exports: Coal Imports: By Category By Destination By Category By Exporter wm» as = Ee “ET oeoe ee Fe a sero fia a LI ota alt co] fom | a = yee] iiaelag) = pen EN tl |e |e | Source: The TEX Report ‘Source: The TEX Report Q China's coal exports have decreased from Q China's coal imports have incr
Slide 27: Coal Prices
Coal Prices Domestic Prices: Import & Export Prices: (yuan ton) 500 n$ US/ton) 700, > Cag eal pres (tet) ooo | Bio | oon | soos | aoe | ans | 2006 609 |. “Coking coat price (Shandong) [cir taper picetonteies cad | ec] cio] 270] 2120] sae [ sel sem Gime toa iG (Qik pina) Icxr- inser price(eskineecat)
Slide 28: Coal Mine Excavation Site
ae = Coal Mine Excavation Site ian-Ri
Slide 29: Exploration Samples
ion Samples
Slide 30: Tian-Ri Exclusive Exploration Permit
Tian-Ri Exclusive Exploration Permit - Exploration to be completed in May 2008
Slide 31: L&L registers subsidiaries with Chinese government
Q L&L registers subsidiaries with Chinese government — W.O.F.E. Ne owen [i EW eemnacarsnnanaecinann WW senna oe, ewe HSE A Be HE AE 9D AR A HE Ht ME UE Bs CERTIFICATE OF APPROVAL ane FP) Hy melt sxaorseanests
Slide 32: Contact Information
Contact Information L&L International Holdings, Inc. CCG Elite Investor Relations Inc. Mr. Dickson V. Lee, CPA Mr. Crocker Coulson, President Phone: (206)-264-8065 (Seattle) Phone: (646)-213-1915 (New York) Email: dixon@Inlinternational.com Email: crocker.coulson@ccgir.com Website: www.Inlinternatio
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