Longwei Petroleum Investment Holding Limited
Longwei Petroleum Investment — Investor Presentation (December 2010)
18 slides from Longwei Petroleum Investment's investor presentation, Dec 8, 2010
Slide 1: Longwei Petroleum: Fueling China's Growth
Longwei Petroleum NYSE Amex “LPH” Fueling China’s Growth™ December 8, 2010
Slide 2: Forward Looking Statements
Forward Looking Statements Statements contained in this presentation may be considered “forward-looking statements” 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 - LPH
Executive Summary - “LPH” Leading Private-Enterprise Energy Company Petroleum Distributor & Wholesaler National Licenses – Storage & Transport Founded 1995 - Shanxi Province, China Shanxi Province NYSE Amex “LPH” Revenue Growth FYE June 30, 2010 2011 Forecast $343 Million > $500 Million Lo
Slide 4: Opportunity - LPH
Opportunity - “LPH” Growing Domestic Demand Straight-Forward Business Model 16-Years Experience & Relationships Industrial & Consumer Customers Strong Management Team Gujiao Fueling Depot Publicly Traded Company Compliance “Critical Mass” – Solid Operating Results Annual Growth 2008 2009
Slide 5: Storage & Operations - LPH
Storage & Operations - “LPH” 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: Gujiao and Taiyuan
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 - LPH
Shanxi Market - “LPH” 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 - LPH
Industrial Market - “LPH” Growing Industrial Demand Coal Operations Power Generation Provincial Consolidation of Coal Mining Operations China‟s 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 - LPH
Consumer Market - “LPH” Growing Consumer Demand Automobiles Power Generation Jan. 2009 - World‟s 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 - LPH
Competitive Advantages - “LPH” 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 - LPH
Product Revenues - “LPH” 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 - LPH
Supplier Relationships - “LPH” Direct Purchase from PRC Refineries Diesel Gasoline Fuel Oil Solvents Advances to Suppliers Rail Spur – Load and Unload Right to Buy – Refineries “Hold” Product up to 8 rail cars at one time Ability to Ramp-Up Inventory Prior to Price Increase Strong
Slide 13: Growth Strategy - LPH
Growth Strategy - “LPH” 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 - LPH
Expansion Leads to Growth - “LPH” Geographic Expansion – Gujiao Facility Located 50 km from Taiyuan Taiyuan Storage Key Industrial Center Purchase Existing Distributor Site & Retrofit Invest $14M from Oct. „09 Financing New Gujiao Storage 1st 9-Mo. Revenues - $115M Close Proximity to L
Slide 15: Projected Financials - LPH
Projected Financials - “LPH” Summary Operating Results 2008 2009 2010 2011 (US$ in Millions) (Audited) (Audited) (Audited) (Projected) Total Revenues $143.8 $196.8 $343.2 $500.0 Comparable Period Percent Change 53.3% 36.9% 74.4% 45.7% Gross Profit $37.0 $39.5 $69.2 $100.0 Profit Margin 25.7% 20.1% 2
Slide 16: Capital Structure - LPH
Capital Structure - “LPH” Sum m ary of Fully Diluted Shares Outstanding (MM) Current Com m on Shares Outstanding (MM) 98.7 (a) 12/1/2010 Com m on Shares Issuable Upon: 1. Conversion of Preferred Stock (remaining balance) 2.4 (b) 2. Conversion of Warrants (remaining balance); S3 11.6 (c) 3. Other Com
Slide 17: Management - LPH
Management - “LPH” Cai Yongjun - Chairman and Chief Executive Officer CEO of Taiyuan Longwei since its founding in 1995 Has over 15 years experience in the trading, storage and handling of petroleum products Attended Shanxi University where he majored in business administration Xue Yongping –
Slide 18: Summary - LPH
Summary - “LPH” 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 Strong Revenue Growth 74% to $343M in FYE2010 (audited) and 46% to $
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