Longwei Petroleum Investment Holding Limited
Longwei Petroleum Investment — Investor Presentation (September 2011)
22 slides from Longwei Petroleum Investment's investor presentation, Sep 13, 2011
Slide 1: Longwei Petroleum - Fueling China's Growth
Longwei g Petroleum NYSE Amex “LPH” Fueling China’s Growth™ September 2011 www.LongweiPetroleum.com
Slide 2: Forward Looking Statements
Forward Lookingg 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 s
Slide 3: Executive Summary - LPH
Executive Summary - “LPH” LPH Leading Private-Enterprise Energy Company Petroleum Distributor & Wholesaler National Licenses – Storage & Transport Founded F d d 1995 199 - Shanxi Sh i Province, P i Chi China Sh Shanxi iPProvince i NYSE S Amex e “LPH” Revenue Growth – FYE June 30 2011 2010
Slide 4: Opportunity - LPH
Opportunity - “LPH” LPH Growing Domestic Demand Straight-Forward Business Model 16-Years Experience & Relationships Industrial & Consumer Customers Strong Management Team Gujiao Fueling Depot Publicly P bli l TTraded d dCCompany C Compliance li “Critical Mass” – Solid Operating Results A
Slide 5: Storage & Operations - LPH
Storage g & Operations p - “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 FYE 2011: $270M Tanker Trucks & Rail Cars Dedicated Rail Spurs Gujiao - Storage St & Customer C t
Slide 6: Facility photos
A B C D E F A. Gujiao G Rail Spur S B. Gujiao Storage Tanks G H C. Gujiao Storage Tanks & Office D. Taiyuan Blending Tanks E Gujiao E. G ji T Tanker k D Depot F. Taiyuan Control Center G. Taiyuan Storage Tanks 6 H. Gujiao Storage Tanks
Slide 7: Shanxi Market - LPH
Shanxi Market - “LPH” LPH Leading Coal Producing Region in China 36M Population Base Huajie Storage (Proposed Acquisition) Surrounding Provinces > 300M Population Taiyuan Storage Gujiao Storage Heavy Industries - Coal & Chemical Production, Power Generation, Metallurgy, Mining, Mfg. No Pip
Slide 8: Industrial Market - LPH
Industrial Market - “LPH” 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
Slide 9: Consumer Market - LPH
Consumer Market - “LPH” 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 t
Slide 10: Competitive Advantages - LPH
Competitive Advantages - “LPH” 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 Loca
Slide 11: Product Revenues - LPH
Product Revenues - “LPH” LPH Direct Sales to Commercial, Industrial, Retail and Wholesale g Customers throughout Shanxi Province Sales by Product Line: Product Line FY2011 FY2010 Total Revenues $ $482M $ $343M Diesel 46% 44% Longwei Gasoline Station Gasoline 47% 46% Fuel Oil 1% 2% Solvents 1% 2%
Slide 12: Supplier Relationships - LPH
Supplier Relationships - “LPH” 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 Str
Slide 13: Growth Strategy - LPH
Growth Strategy - “LPH” LPH Internal Growth Organic from Exiting Customers Proposed Acqusition Direct Sales Force & Customer Referrals Increase Inventory Turnover Geographic Expansion Current Distribution Footprint (2) Storage Locations Location – Proximately to Customers Timely Delive
Slide 14: Expansion Leads to Growth - LPH
Expansion Leads to Growth - “LPH” LPH Geographic Expansion – Nov. 2009 Located 50 km west of Taiyuan – Gujiao Facility Taiyuan Storage Key Industrial Center Purchase Existing Distributor Site & Retrofit Invest $14M from Oct. ‘09 Financing Inventory Gujiao Storage plus $30M cash-on cash on
Slide 15: Results of Operations - Years Ended June 30, 2011 and 2010
Results of Operations – “LPH” This financial information is qualified in its entirety by the financial information contained in Years Ended June 30, 30 2011 and 2010 the Company’s public filings with the SEC. (in thousands) June 30, 2011 June 30, 2010 Revenues $481,553 $343,249 Cost of Sales 383,730
Slide 16: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures I Impact t off Non-Cash N C hW Warrantt Derivative D i ti Li Liability bilit FYE 2011 and 2010 June 30, 2011 June 30, 2010 GAAP Net Income Attributable to Common Shareholders $62,517 $41,094 Non-GAAP adjustments: Add: Non-cash charge for the Chan
Slide 17: Projected Financials - LPH Organic Growth
Projected Financials - “LPH” LPH Organic Growth Summary Operating Results 2009 2010 2011 2012 Fiscal Years Ended June 30 (Audited) (Audited) (Audited) *(Projected) (($USD in Millions)) Total Revenues $196.8 $343.2 $481.5 $576.0 Comparable Period Percent Change 36.9% 74.4% 40.3% 19.6% Gross Profit $3
Slide 18: Huajie Petroleum Assets - Acquisition
Huajie Petroleum Assets - Acquisition 17
Slide 19: Huajie Petroleum Assets - Acquisition
Huajie Petroleum Assets - Acquisition 18
Slide 20: Capital Structure - LPH
Capital Structure - “LPH” LPH Sum m ary of Fully Diluted Shares Outstanding (MM) Current Com m on Shares Outstanding (MM) 100.7 (a) 6/30/2011 Com m on Shares Issuable Upon: 1. Conversion of Preferred Stock (remaining balance) 0.9 (b) 2. Conversion of Warrants (remaining balance) 11.5 (c) 3. Other Co
Slide 21: Management - LPH
Management - “LPH” LPH 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 X Yongping Xue Y i – Di
Slide 22: Summary - LPH
Summary - “LPH” LPH Leading Private-Enterprise Energy Company Petroleum Distributor & Wholesaler in Shanxi 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
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