Longwei Petroleum Investment Holding Limited

Longwei Petroleum Investment — Investor Presentation (December 2010)

18 slides from Longwei Petroleum Investment's investor presentation, Dec 8, 2010

  1. Slide 1: Longwei Petroleum: Fueling China's Growth

    Longwei Petroleum NYSE Amex “LPH” Fueling China’s Growth™ December 8, 2010

  2. 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

  3. 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

  4. 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

  5. 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

  6. 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

  7. 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

  8. 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

  9. 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

  10. 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

  11. 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

  12. 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

  13. 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 

  14. 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

  15. 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

  16. 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

  17. 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 –

  18. 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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