Attached files
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| 8-K - CURRENT REPORT - GREEN EARTH TECHNOLOGIES, INC | getg_8k.htm |
September 2011 Investor Presentation
2
Forward Looking Statements
Statements made in this presentation that relate to future plans, events, financial
results or performance are forward-looking statements as defined under the
Private Securities Litigation Reform Act of 1995. These statements are based
upon current information and expectations. Actual results may differ materially
from those anticipated as a result of certain risks and uncertainties. For details
concerning these and other risks and uncertainties, see Part I, Item 1, "Risk
Factors That May Affect Our Future Results" of this report, as well as the
Company's other periodic reports on Forms 10-K, 10-Q and 8-K subsequently filed
with the Securities and Exchange Commission (SEC) from time to time. Investors
should also be aware that while the Company from time to time does
communicate with securities analysts, it is against the Company's policy to
disclose to them any material non-public information or other confidential
commercial information. Investors should not assume that the Company agrees
with any report issued by any analyst or with any statements, projections,
forecasts or opinions contained in any such report.
results or performance are forward-looking statements as defined under the
Private Securities Litigation Reform Act of 1995. These statements are based
upon current information and expectations. Actual results may differ materially
from those anticipated as a result of certain risks and uncertainties. For details
concerning these and other risks and uncertainties, see Part I, Item 1, "Risk
Factors That May Affect Our Future Results" of this report, as well as the
Company's other periodic reports on Forms 10-K, 10-Q and 8-K subsequently filed
with the Securities and Exchange Commission (SEC) from time to time. Investors
should also be aware that while the Company from time to time does
communicate with securities analysts, it is against the Company's policy to
disclose to them any material non-public information or other confidential
commercial information. Investors should not assume that the Company agrees
with any report issued by any analyst or with any statements, projections,
forecasts or opinions contained in any such report.
Safe Harbor Statement
Safe Harbor Statement
Key Statistics
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Symbol:
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GETG.OB
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Recent Share Price (as 9/1/11)
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$0.22
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52-week Trading Range (as 9/1/11)
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$0.17 - $0.56
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Market Capitalization (as 9/1/11)
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$33M
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Shares Outstanding
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151M (183M fully diluted)
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Fiscal Year End
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June 30
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Revenue Growth (FY2010 to FY2011)
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209%
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Revenue Run Rate (as of 6/30/11)
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$15M
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3
ü Totally Green clean tech company building niche
with trademarked “G” brand; first to market
with trademarked “G” brand; first to market
Branding
Scale
Customers
Growth
ü Partner production and distribution facilities enable
efficient scalability
efficient scalability
ü World class customer base, including: Wal-Mart,
The Home Depot, General Electric, Canadian Tire
Corporation and ACE
Corporation and ACE
ü Accelerating Green adoption leading to government
opportunities via GSA contracts
opportunities via GSA contracts
ü Potential for significant International expansion
through partnership and license agreements
through partnership and license agreements
Technology
Investment Highlights
4
ü Innovative “proprietary” formulations in strong and
growing Green marketplace; strong IP position
growing Green marketplace; strong IP position
5
Green Earth Technologies is a "totally green" clean tech company
that combines renewable sourced feed stocks with proprietary
technologies molded around the four ideologies of being GREEN:
that combines renewable sourced feed stocks with proprietary
technologies molded around the four ideologies of being GREEN:
As Green as it GETs
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If it is not safe for people, then it is not safe for pets, plants or our planet!
Eco-Friendly + Hazard Free
ü Focusing on the “GOOP”
• Differentiating OUR Green Messaging VS the COMPETITION
Other Brands w/GREEN CLAIMS
G.E.T. Brands’ GREEN CLAIMS
ü Petroleum molecules never wear out
• Oil does not dissolve in water and it lasts a long time, sticking to
everything from beach sand to bird feathers
everything from beach sand to bird feathers
• Only about 16% (estimated 1.3 billion quarts of motor vehicle engine oil
generated yearly) of used oil is re-refined into new oil
generated yearly) of used oil is re-refined into new oil
ü Used motor oil is the largest single source of oil
pollution in our lakes, streams and rivers
pollution in our lakes, streams and rivers
• 40% of oil pollution of our nation’s harbors and waterways is a result of
improper collection, disposal or recycling of motor oil
improper collection, disposal or recycling of motor oil
– One pint of oil can make a slick larger than a football field
ü Americans spill 180 million gallons of used oil
each year into our waters.
each year into our waters.
• This is 16 times the amount spilled by the Exxon Valdez in Alaska
SOURCE: Water Quality Consortium and the Automotive Aftermarket’s GREEN Story 2011
A Big Problem
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ü Increase of bio-content as a lubricant
• Bio-based products are those composed wholly or significantly of
agricultural ingredients - renewable plant, animal, marine or forestry
materials.
agricultural ingredients - renewable plant, animal, marine or forestry
materials.
• The Secretary of Agriculture has designated bio-based products for
preferred purchasing by Federal Agencies
preferred purchasing by Federal Agencies
• Bio-preferred label
» G-OIL is the only Motor Oil that meets program benchmarks
SOURCE: USDA Bio-Preferred Program - 2011
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Delivering Solutions
Market Opportunity
Lubricants
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ü Over 200 million licensed US drivers
ü Approximately 238 million US registered
vehicles
vehicles
ü Miles driven between oil changes (US)
• All vehicles 2010 = 4,450 miles
ü Motor oil viscosities demand for all US cars and
light trucks
light trucks
• 5W-30 = 47%
• 5W-20 = 18%
• 10W-30 = 17%
Source: National Oil & Lube News and Infineum
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Market Opportunity
Statistics
ü Consumers are DEMANDING
• A lot of talk about GREEN, but very few products on the shelf for
concerned consumers to “do their part”
concerned consumers to “do their part”
• Current GREEN products are either not green, too expensive or do
not work as well as their conventional petrochemical counterparts
not work as well as their conventional petrochemical counterparts
• Consumers are willing to “try” GREEN, but not willing to pay a
premium
premium
• Very little SUPPORT from GREEN manufacturers in driving
consumers to the shelf
consumers to the shelf
• The majority of consumers would GO GREEN if they only knew HOW
ü Government is MANDATING
• 2008 Farm Bill - improve demand for bio-based products
• Presidential Mandate - EPA, GSA & USDA coordinated procurement
efforts for environmentally preferred products
efforts for environmentally preferred products
• Executive Order 13149 - “Greening” the government through
federal fleet and transportation efficiencies
federal fleet and transportation efficiencies
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Green Drivers
ü G-OIL®
• Motor Oil
– Bio-based Full Synthetic
– 2X Refined Conventional
• OPE Engine Oil
– Bio-synthetic 4 Cycle
– Bio-synthetic 2 Cycle
– Bio-based Bar & Chain
• Marine Oil
– Biodegradable Synthetic
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Products
ü G-CLEAN™
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Products
ü Brand Positioning
• “Save the Earth - Sacrifice Nothing®”
– Consumers should not have to sacrifice value or performance when
choosing to do their part
choosing to do their part
• “Change your Oil - Change the World™”
• “Reduce Dependence on Foreign Oil” (United States Oil)
ü Brand Support/Product Attributes
• Superior Performance
• Ultimate Biodegradable
• Grown & Made in the USA
– Domestically sourced renewable BIO-BASED feed stocks
• Environment Safe
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Marketing
ü Certifications
• American Petroleum Institute
• National Maritime Marine Agency
• Design for the Environment (DfE)
• National Sanitation Foundation (NSF)
• USDA Bio-Preferred Program
• ASTM Ultimate Biodegradable Ranking
ü Third Party Endorsements
• American Le Mans Series & NASCAR
• Ryobi - Homelite Outdoor Power Equipment
• Husky - Ridgid Pressure Washers
• Earth 911 & Evergreen
• GSA
• Toyota & Mazda
• Infineum Additives
• Southwest Research Laboratories, Intertek
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Marketing
ü Industry Influencers
• Kenny Wallace
• Chris Dyson, Guy Smith & Jay Cochran
• Mike Sullivan
• LUDACRIS
• 2 Guys Garage
• Truck U
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Marketing
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üAdvertising
• Print
• TV
• PR
• Digital
Marketing
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üHybrid Call to Action
• Digital drives
CONSUMPTION!!!
CONSUMPTION!!!
Marketing
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Marketing
ü Multi-Channel Penetration
• Coast to Coast “national” rep organization GET’s us in front of the buyer
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Go to Market
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üPlacement
Go to Market
Production Facility Highlights
• 70 million gallon blending capacity
• 141 bulk storage tanks with total capacity of 5.1
million gallons
million gallons
• Acreage available to increase storage and
production to approximately 7.5 million and 80
million gallons, respectively
production to approximately 7.5 million and 80
million gallons, respectively
Distribution Facility Highlights
• 275,000 sq. ft.
• 52 loading doors, with 35 less than two years
old
old
• 10 acre parking area for staging trailers
• Located four miles from production facility
• 8,000 sq ft administrative area: customer
service, IT, inventory and accounting
service, IT, inventory and accounting
Efficient, expeditious fulfillment, capacity for SIGNIFICANT SCALE
ü Partners
• G.E.T. production capabilities
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Highly Scalable
ü Partners
• Strategic relationships support GET from Concept to Consumer
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Propelling with Partners
ü Growth Opportunities
• Product expansion
– “G” branded product line depth and breadth expansion
• Distribution
– Support and expand existing top tier retailers
– Grow top tier retailer customer base
– Capitalize on co-branding and licensing opportunities
• Production
– Enhance existing relationships and diversify supplier base
– Internal sourcing of raw materials
• Government
– Legislative mandates
– GSA contracts
– Local & state municipal “green” mandates creates demand
• International
– Presence in Canada, South America and Sweden; potential for additional
expansion through partnerships and license agreements
expansion through partnerships and license agreements
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Positioned for Growth
ü Quarterly Sales Growth
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2011 Revenue Summary
ü Annual Sales Growth
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Annual Revenue Summary
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Total Revenue
(FYE - June 30)
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2011
$7.5mm
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At
$10mm
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At
$30mm
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At
$60mm
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At
$100mm
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Gross Margin
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16%
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22%
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30%
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33%
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36%
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Operating Expenses*
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85%
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41%
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21%
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17%
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14%
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EBITDA
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n/a
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n/a
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9%
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16%
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22%
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* Excludes stock-based compensation, depreciation and amortization.
* Excludes stock-based compensation, depreciation and amortization.
A strong case for growth!
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Operating Model Goals
JEFFREY LOCH - PRESIDENT, CHIEF MARKETING OFFICER & DIRECTOR
Mr. Loch has over 20 years of progressive marketing and sales responsibilities within the highly competitive
consumer packaged goods arena. Jeff has also exposed to just about every major retailer within a variety of trade
classes and has achieved enormous success while working for some of the greatest branding companies in the
world, including Clorox, ConAgra Foods, and Pepsi-Cola.
Mr. Loch has over 20 years of progressive marketing and sales responsibilities within the highly competitive
consumer packaged goods arena. Jeff has also exposed to just about every major retailer within a variety of trade
classes and has achieved enormous success while working for some of the greatest branding companies in the
world, including Clorox, ConAgra Foods, and Pepsi-Cola.
GREG ADAMS - CHIEF OPERATING OFFICER & CHIEF FINANCIAL OFFICER
Mr. Adams has over 25 years of worldwide expertise in P&L management, treasury, capital structure, Sarbanes-
Oxley compliance, investor relations and acquisitions/divestitures. Most recently served as Chief Financial Officer,
Chief Operating Officer and Director of EDGAR Online Inc. Mr. Adams began his career at KPMG in the audit
advisory practice where he worked for 11 years.
Oxley compliance, investor relations and acquisitions/divestitures. Most recently served as Chief Financial Officer,
Chief Operating Officer and Director of EDGAR Online Inc. Mr. Adams began his career at KPMG in the audit
advisory practice where he worked for 11 years.
RONALD SHAFFER - SVP OPERATIONS
Mr. Shaffer has 25 years of experience in global supply chain, sourcing, operations, purchasing and plant
management for serving consumer goods and high technology industries, including Dell Computer. Ron has a
record of achieving turn-around situations by employing creative infrastructure building to support growth,
profitability and liquidity.
management for serving consumer goods and high technology industries, including Dell Computer. Ron has a
record of achieving turn-around situations by employing creative infrastructure building to support growth,
profitability and liquidity.
PERUMAL SEKAR, Ph.D. - R & D DIRECTOR
Dr. Sekar is a senior research scientist with 15 years experiences in nanotechnology, organic synthesis and inorganic
chemistry. He has a Ph.D. in chemistry from the Indian Institute of Technology-Bombay, Mumbai, India, served as a
research fellow at Northwestern University, and was awarded a Certificate of Merit by The Royal Society of
Chemistry, Madras.
chemistry. He has a Ph.D. in chemistry from the Indian Institute of Technology-Bombay, Mumbai, India, served as a
research fellow at Northwestern University, and was awarded a Certificate of Merit by The Royal Society of
Chemistry, Madras.
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Experienced Management
ü Success Factors
• “Green” is here to stay
– Consumers are demanding
– Government is mandating
• “G-OIL” is first to market in a growing segment of a very large category
– Only API Certified bio-based Motor Oil
• Proprietary Green Earth Technologies’ products are in the process of
being patented
being patented
• 2011 placement proved customer and consumer acceptance
– Reorders/Purchases
• 2012…
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G.E.T. has the Formula for
Growth
Growth
ü Totally Green clean tech company building niche
with trademarked “G” brand; first to market
with trademarked “G” brand; first to market
Branding
Scale
Customers
Growth
ü Partner production and distribution facilities enable
efficient scalability
efficient scalability
ü World class customer base, including: Wal-Mart,
The Home Depot, General Electric, Canadian Tire
Corporation and ACE
Corporation and ACE
ü Accelerating Green adoption leading to government
opportunities via GSA contracts
opportunities via GSA contracts
ü Potential for significant International expansion
through partnership and license agreements
through partnership and license agreements
Technology
30
ü Innovative “proprietary” formulations in strong and
growing Green marketplace; strong IP position
growing Green marketplace; strong IP position
Investment Highlights
Corporate Headquarters Sales & Marketing Group
10 Bank Street Suite 680 1136 Celebration Blvd.
White Plains, NY 10606 Celebration, FL 34747