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Migao Presentation 2012 03
Migao Presentation 2012 03
March 2012
Forward-looking Statements
The contents of this presentation contain statements that may constitute forward-looking statements within the meaning of applicable securities legislation. Forward-looking statements may include financial and other projections, as well as statements regarding future plans, objectives or economic performance, or the assumptions underlying any of the foregoing. Forward-looking information involves significant risks, assumptions, uncertainties and other factors that may cause actual future results or anticipated events to differ materially from those expressed or implied in any forward-looking statements and accordingly, should not be read as guarantees of future performance or results.
Actual results, performance or achievement could differ materially from those expressed in, or implied by, any forward-looking statements made and, accordingly, investors should not place undue reliance on any such forward-looking statements. New factors emerge from time to time, and it is not possible for management to predict all of such factors and to assess in advance the impact of each such factor on Migaos business.
Migao At a Glance
Operating facilities in China Employees Market cap (TSX: MGO) Funds raised since 2006 IPO Percent owned by management, directors
Advantages
Increases yield Enhances quality Strengthens resistance to drought, disease Lowers water usage Higher returns for farmers
Flowers
Vegetables Electroplating Steel processing Water treatment
Ammonium chloride
Hydrochloric acid
RMB 8,000
6,000
4,000 2,000 0 F2007 F2008 F2009 F2010 F2011
RMB 7,000
5,500
3,500 1,500 0 F2007 F2008 F2009 F2010 F2011
~3%
Tobacco
1. MARKET LEADER
#1
#2
#3
10
2: OPERATING FACILITIES
Changchun Migao
Liaoning Migao Tianjin Migao Shanghai Migao Sichuan Migao / SQM JV Zunyi Migao Guangdong Migao
11
4. CONSISTENT MARGINS
30
22-24% Target profit range
20
10
380
$317
$34.5
120
$58
$8.6
2006
2011
2006
2011
2006
2011
13
5. FINANCIAL RESOURCES
$97M $4M
Working capital
Cash Unused Credit lines Long term debt
$206M $10M
$70M Zero
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1 2 3 4
International expansion
cautious approach
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(000s tonnes)
40
40 100 320
Sichuan 100k tonnes compound fertilizer completed $8M
20
SQM jv
40k tonnes NOP completed $10M
Zunyi Shanghai
40k tonnes SOP completed $10M
Changchun
40k tonnes SOP construction $5M
Dec. 2010
Independent board with strong corporate governance experience Big-four accounting firm for internal audit and internal control reviews
17
3: COMPETITIVE ADVANTAGES
Unique characteristics
proprietary production process, business model that delivers consistent margins
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www.migaocorp.com