Longwei Petroleum Investment Holding Limited
Longwei Petroleum Investment — Investor Presentation (June 2011)
21 slides from Longwei Petroleum Investment's investor presentation, Jun 23, 2011
Slide 1: Longwei Petroleum
Longwei Petroleum Ez^ŵĞdž͞>W,͟ &ƵĞůŝŶŐŚŝŶĂ͛Ɛ'ƌŽǁƚŚΡ June 2011 www.LongweiPetroleum.com
Slide 2: Forward Looking Statements
Forward Looking Statements Statements contained in this presentation may be considered ³IRUZDUG-looking VWDWHPHQWV´ within the meaning of U.S. federal securities laws. The matters discussed herein are based on current management expectations that involve risks and uncertainties that may result in su
Slide 3: Executive Summary
Executive Summary - ͞>W,͟ Leading Private-Enterprise Energy Company Petroleum Distributor & Wholesaler National Licenses ± Storage & Transport Shanxi Province Founded 1995 - Shanxi Province, China NYSE Amex ³LPH´ Revenue Growth FYE June 30, 2010 2011 Forecast $343 Million $500 Million Long
Slide 4: Opportunity
Opportunity - ͞>W,͟ Growing Domestic Demand Straight-Forward Business Model 16-Years Experience & Relationships Industrial & Consumer Customers Strong Management Team Gujiao Fueling Depot Publicly Traded Company Compliance ³&ULWLFDO0DVV´± Solid Operating Results Annual Growth 2008 2009 2
Slide 5: Storage & Operations
Storage & Operations - ͞>W,͟ Taiyuan City - Storage and HQ Taiyuan ± 50,000 mt Computer Controlled ERP 14 Storage Tanks 50,000 metric tons (mt) Operations since 1995 Revenue Contribution > $250M Tanker Trucks & Rail Cars Dedicated Rail Spurs Gujiao - Storage & Customer Service 8 Storag
Slide 6: Facility photos: rail spur, storage tanks, control center
A B C D E F A. Gujiao Rail Spur B. Gujiao Storage Tanks G H C. Gujiao Storage Tanks & Office D. Taiyuan Blending Tanks E. Gujiao Tanker Depot F. Taiyuan Control Center G. Taiyuan Storage Tanks 6 H. Gujiao Storage Tanks
Slide 7: Shanxi Market
Shanxi Market - ͞>W,͟ Leading Coal Producing Region in China Taiyuan Storage 36M Population Base Surrounding Provinces > 300M Population Gujiao Storage Heavy Industries - Coal & Chemical Production, Power Generation, Metallurgy, Mining, Mfg. No Pipelines or Refineries in Region 6
Slide 8: Industrial Market
Industrial Market - ͞>W,͟ Growing Industrial Demand Coal Operations Power Generation Provincial Consolidation of Coal Mining Operations &KLQD¶V Coal Production to Double by 2030 - US DOE Largest Energy Consumer in the World (2/3 coal) Growing Industrial Base - Metallurgy, Chemical Prod
Slide 9: Consumer Market
Consumer Market - ͞>W,͟ Growing Consumer Demand Automobiles Power Generation Jan. 2009 - :RUOG¶V Largest Car Market Per Capita Energy Usage Doubled Longwei is well positioned to benefit from strong economic growth and projected growth in the demand for refined petroleum products in the P
Slide 10: Competitive Advantages
Competitive Advantages - ͞>W,͟ Licenses ± Central Government Issued Finish Oil Wholesale License ± Purchase Direct from Refineries & Storage Dangerous Chemicals License ± Transport Petroleum Products Customer & Refinery Relationships ± 16 Years of Operations Proximity to Customers Location
Slide 11: Product Revenues
Product Revenues - ͞>W,͟ Direct Sales to Commercial, Industrial, Retail and Wholesale Customers throughout Shanxi Province Sales by Product Line: Product Line FY2010 FY2009 Total Revenues $343M $196M Diesel 43.6% 47.1% Longwei Gasoline Station Gasoline 47.1% 40.9% Fuel Oil 1.8% 3.0% Solvents 1.8
Slide 12: Supplier Relationships
Supplier Relationships - ͞>W,͟ Direct Purchase from PRC Refineries Diesel Gasoline Fuel Oil Solvents Advances to Suppliers Rail Spur ± Load and Unload Right to Buy ± 5HILQHULHV³+ROG´3URGXFW up to 8 rail cars at one time Ability to Ramp-Up Inventory Prior to Price Increase Strong Re
Slide 13: Growth Strategy
Growth Strategy - ͞>W,͟ Internal Growth Organic from Exiting Customers Direct Sales Force & Customer Referrals Current Distribution Footprint Increase Inventory Turnover (2) Storage Locations Geographic Expansion Location ± Proximately to Customers Timely Delivery & Customer Service
Slide 14: Expansion Leads to Growth
Expansion Leads to Growth - ͞>W,͟ Geographic Expansion ± Gujiao Facility Located 50 km from Taiyuan Taiyuan Storage Key Industrial Center Purchase Existing Distributor Site & Retrofit ,QYHVW0IURP2FWµ)LQDQFLQJ New Gujiao Storage 1st 12-Mo. Revenues - $160M 1st 12-Mo. Net Income contribu
Slide 15: Results of Operations
Results of Operations ʹ ͞>W,͟ This financial information is qualified in its entirety by the financial information contained in WKH&RPSDQ\¶VSXEOLFILOLQJVZLWKWKH6(& Nine Months Ended March 31, 2011 $000 USD March 31, 2010 March 31, 2011 Revenues $227,496 $353,106 Cost of Sales 182,436 283,397 Gross P
Slide 16: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures Impact of Non-Cash Warrant Derivative Liability 9 Months Ended March 31, 2010 March 31, 2011 GAAP Net Income Attributable to Common Shareholders $ 6,718 $40,681 Non-GAAP adjustments: Add: Non-cash charge for the Change in Fair Value of Derivative
Slide 17: Projected Financials
Projected Financials - ͞>W,͟ Summary Operating Results 2008 2009 2010 2011 2012 Fiscal Years Ended June 30 (Audited) (Audited) (Audited) (Projected) *(Projected) ($USD in Millions) Total Revenues $143.8 $196.8 $343.2 $500.0 $925.0 Comparable Period Percent Change 53.3% 36.9% 74.4% 45.7% 85.0% Gross
Slide 18: Haujie Petroleum Assets - Acquisition
Haujie Petroleum Assets - Acquisition 17
Slide 19: Capital Structure
Capital Structure - ͞>W,͟ Sum m ary of Fully Diluted Shares Outstanding (MM) Current Com m on Shares Outstanding (MM) 100.3 (a) 3/31/2011 Com m on Shares Issuable Upon: 1. Conversion of Preferred Stock (remaining balance) 0.9 (b) 2. Conversion of Warrants (remaining balance); S3 11.5 (c) 3. Other Co
Slide 20: Management
Management - ͞>W,͟ Cai Yongjun - Chairman and Chief Executive Officer CEO of Taiyuan Longwei since its founding in 1995 Has over 16 years experience in the trading, storage and petroleum handling Attended Shanxi University where he majored in business administration Xue Yongping ± Director, Se
Slide 21: Summary
Summary - ͞>W,͟ Leading Private-Enterprise Energy Company Petroleum Distributor & Wholesalers in Shanxi, China Founded 1995 - Solid Relationships & Competitive Position National Licenses with 120,000mt of Storage Capacity (expanding to 220,000mt total in FYE 2012) Strong Revenue Growth 74%
Longwei Petroleum Investment Holding — Investor Presentation (June 2011) on 6ix