www.greystonelogis�cs.com
Recycled Plas�c Pallets | Plas�c Resin Processing | Pallet Lease and Rental Programs
www.greystonelogis�cs.com
Disclosures Disclaimer: This material has been prepared by the company described and is being
distributed by the company. The company prepared the facts that underlie this execu�ve summary and addi�onal informa�on is available in publicly filed documents. Viewers are encouraged to review informa�on presented herein for accuracy or completeness. This summary is not an offer to sell neither securi�es nor a solicita�on of an offer to by securi�es.
Legal Notes & Disclosures: Greystone Logis�cs, Inc. may make certain forward-‐looking
statements that relate to future events or future business and financial performance. Such statements can be only predic�ons and the actual events or results may differ from those discussed due to, among other things, those risks described in Greystone Logis�cs, Inc. reports or evident on Forms 10-‐Q and 10-‐K. Opinions expressed herein are subject to change without no�ce. This document is published solely for informa�on purposes and is not to be construed as an offer to sell or the solicita�on of an offer to buy any security in any state. Past performance does not guarantee future performance. Addi�onal informa�on is available upon request.
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Descrip�on of Business
Who We Are: Publicly traded company (OTCBB: GLGI) Produc�on plant located in Be�endorf, IA ̶ 24/7 Opera�ons
Experienced management team
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Descrip�on of Business
What We Do: Manufacture plas�c pallets made from recycled plas�c
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Descrip�on of Business
What We Do: Manufacture plas�c pallets made from recycled plas�c Sell processed recycled plas�c
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Descrip�on of Business
What We Do: Manufacture plas�c pallets made from recycled plas�c Sell processed recycled plas�c Rent and lease plas�c pallets
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Our Customers Food and Beverage Industry Pharmaceu�cal Industry Automo�ve Industry Consumer Product Industry Palle�zed Exports Agricultural Industry
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Business Advantages Innova�ve Technologies
Patented injec�on molding equipment Proprietary blend of recycled petrochemical resins Patented pallet designs
Compe��ve Advantage Proprietary processed plas�c waste resin blend allows for the output of high quality pallets more quickly and less expensively then compe��on Greystone is the industry low-‐cost producer
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Business Advantages Environmental Friendly
Reduces environmental waste by repurposing Posi�ve image in an environmentally conscious economy
Leading Beer Industry Pallet Manufacturer In over ten years, Greystone has become the leading pallet manufacturer in the beer industry with over 4 million patented recycled plas�c pallets delivered to customers including Miller Brewing and Coors Brewing
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Business Highlights Rapid Growth
Greystone has grown from Research and Development firm to projected $25 million in revenue (2013) since merging into public shell
One of the Largest Post-‐Industrial Users/Resellers of Plas�c
Greystone is one of the country’s largest post-‐industrial users and resellers of plas�c – over 40 million pounds
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Business Highlights Pallet Rental Program
Greystone is poised to ini�ate plas�c pallet rental program U.S. wood pallet leasing revenue is currently over $1.5 billion annually Only one other plas�c pallet rental provider
Hundreds of Customers Pfizer, Apotex, Omaha Steaks, Miller Brewing, Coors Brewing
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Market Opportunity
$9.5 Billion Pallet Industry Pallets are used in virtually all industries in which products are broadly distributed. The 600 million to 1 billion pallets going into the system each year create an es�mated $9.5 billion dollar industry. While wood s�ll dominates the market today, plas�c pallets are gaining in total share of pallets in use. Greystone is the only publicly-‐traded company focused on the fast-‐growing plas�c segment of the $9.5 billion industry.
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Market Opportunity
$5 Billion Leasing Industry $5 Billion HDPE Recycling Industry
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Market Opportunity Shi� to Plas�c from Wood
Plas�c more durable than wood pallets Plas�c pallet sales growing at double-‐digit rates
Disposal issues and fumiga�on costs coupled with regulatory mandates on pest, biological, and chemical infesta�on with wood pallets means more emphasis on alternate solu�ons
As a result, industry is rapidly transi�oning to plas�c pallets
The opportunity exists for hyper-‐growth in leased plas�c pallets and excess ground and reprocessed resin sales
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Market Opportunity Shi� to Plas�c from Wood
A Freedonia Industrial report es�mated the demand for wood pallets to exceed $1 billion in 2013. At the same �me, the demand for plas�c pallets was projected to exceed $100 million. Freedonia es�mates that the demand for plas�c pallets will con�nue to outpace wood as percentage of the market.
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Market Opportunity Beverage Industry Opportunity
Greystone is leveraging the company’s success in the beverage industry, which currently represents 35% of the plas�c pallet market The two largest U.S. beer breweries total 80% of the U.S. beer market and circulate 4-‐6 million pallets within their distribu�on system annually. Approximately 10-‐20% of these pallets are lost or damaged per year, thus requiring consistent replacement orders The beer industry represents just 5% of the total beverage industry. Greystone is the sole provider of recycled plas�c pallets for Miller Brewing and Coors Brewing, and is working to capture addi�onal market share in other areas of the beverage sector
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Key Customer Profiles MillerCoors Brewing (Beer Industry)
MillerCoors is the second largest beer brewery in the U.S. Greystone Logis�cs is now the exclusive recycled plas�c pallet supplier
Graphic Packaging Interna�onal Graphic Packaging Holding Company (NYSE: GPK), is a leading provider of packaging solu�ons to food, beverage and other consumer product companies
Pfizer, Inc. One of the world’s largest research-‐based pharmaceu�cal companies
Apotex Corp (Pharmaceu�cal Industry) Founded in 1974, Apotex Corp. is the largest Canadian-‐owned pharmaceu�cal company
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Business Model Organic Growth Within Rapid-‐Growing Pallet Industry As the materials handling industry con�nues to adopt plas�c pallets for environmental, export, safety, health, cost and efficiency concerns, Greystone will benefit from this sustainability trend. Plas�c is becoming the shipping pla�orm of choice for export shipments as most countries require extremely stringent and expensive requirements for wood pallets
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Business Model Capitalize on Resin Processing and Sales
Increased industrial use of recycled resin has allowed profitable sale of excess recycled resin. Plas�cs’ recycling is an established na�onal industry. According to the American Chemistry Council, the number of companies handling and reclaiming post-‐consumer plas�cs (over 1,790) is nearly six �mes greater than in the early days, 1986 (310). Over �me, the recycling of plas�cs will con�nue to grow and become a more efficient and conven�onal segment of the na�onal economy.
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Business Model Promote Lease Pallet Management Solu�ons
Lease pallets into a managed rental pool Na�onal beverage and regional customers will drive growth in this mul�-‐billion dollar market dominated by wood
Leverage Miller Brewing & Coors Brewing Success Leverage current success of being the exclusive supplier of 100% recycled plas�c pallets for MillerCoors with other industry giants moving from wood to plas�c
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Business Model Sales and Marke�ng Support of Alliance Partner SONOCO Transport Packaging, a $4.5 billion global manufacturer of industrial and consumer products, u�lizing their reach and buying power to grow sales while fully developing our extensive distributor network
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Business Model Con�nue to Expand Product Line
Greystone currently has mul�ple product lines with more than twenty different pallets and configura�ons of light, mid, and heavy duty pallets including:
Iden�ty Accre�ve Targets
Greystone will iden�fy companies that would accre�ve acquisi�ons
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37 x 32 48 x 48
37 x 37 44x56
40 x 32 IBC Pallet
48 x 40 Export Nestable
48 x 44 Beer Keg Pallets
48 x 45 24x40
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Key Financials Condensed Income Statements (000)
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FY May Revs EBITDA Net Inc. EPS FY07 A $12,454 -‐$471 -‐$2,600 -‐$0.13
FY08 A $21,081 $2,836 $928 $0.02
FY09 A $16,691 $2,807 $842 $0.02
FY10 A $16,231 $2,349 $503 $0.0
FY11 A $20,502 $1,752 $13 $-‐0.03
FY12 A $24,158 $3,890 $2,103 $0.07
FY13 E $25,000 $4,470 $2,250 $0.09
FY14 E $31,548 $5,647 $3,790 $0.14
FY15E $38,239 $7,647 $4,780 $0.18
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Total Sales: $24,186,000
Trademark Plas�cs
Plas�c Pallet & Container
Norleans Technologies, Inc.
Fabricas Monterrey SA
Sonoco
Decade Products
Apotex
Coors Brewing
Graphic Packaging Int'l
Miller Brewing Co.
1.9%
2.0%
2.9%
2.9%
3.8%
4.9%
7.1%
9.4%
16.8%
29.6%
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Financial Performance
$(5,000) $-‐
$5,000 $10,000 $15,000 $20,000
$25,000
$30,000
$35,000
$40,000
2009 2010 2011 2012 2013 2014 2015
$732 $422
$(770)
$1,934 $2,250 $3,790 $4,780
$2,807 $2,349
$1,254 $3,890 $4,470 $5,647 $7,647
$16,691 $16,231
$20,502 $24,186 $25,000
$31,548
$38,239 Net Income EBITDA Revenues
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Total Projected Revenue and Income
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Year End May 31 ($000s) 2009 2010 2011 2012 2013 2014 2015
Pallet Revenue $16,691 $16,230 $15,218 $20,371 $21,500 $24,234 $27,019 Cost of Goods Sold $13,385 $13,273 $12,968 $14,722 $16,573 $18,691 $20,256 Gross Margin $3,306 $2,957 $2,040 $5,649 $4,927 $5,543 $6,763
Recycled Plas�c Revenue $5,284 $3,786 $3,500 $7,350 $11,220 Cost of Goods Sold $5,389 $4,505 $3,325 $6,885 $9,537 Gross Margin $(105) ($719) $175 $465 $1,683
Recycled Resin SGA (Included in Plant SGA)
Leasing Revenue Cost of Goods Sold Gross Margin Leasing SGA Opera�ng Profit
NET SALES $16,691 $16,230 $20,502 $24,158 $25,000 $31,584 $38,239 Cost of Goods Sold $13,385 $13,273 $18,357 $19,228 $19,898 $25,576 $29,793 Opera�ng Profit $2,503 $2,002 $2,145 $4,930 $5,102 $6,008 $8,446 Corporate SGA ($1,078) ($1,135) ($1,921) ($1,993) ($2,200) ($2,300) ($2,400) Interest ($908) ($750) ($1,086) ($897) ($870) ($696) ($522) EBITDA $2,566 $2,139 $626 $3,890 $4,470 $5,647 $7,647
Income Taxes (Tax Loss Carry Forward Used) Net Income $732 $422 $(770) $1,934 $2,250 $3,790 $4,780
NET SALES GROWTH -‐3% 29% 30% 3% 21% 17% Gross Opera�ng Profit 15.00% 12.34% 10.46% 20.40% 20.40% 19.02% 22.08% Net Income to Sales 4.39% 2.60% 0.00% 8.00% 9.00% 12.00% 12.50% EBITDA to Sales 15.37% 13.18% 3.01% 16.10% 17.90% 17.90% 20.00% G&A to Sales 6.46% 6.99% 9.37% 8.25% 8.80% 7.28% 6.28%
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Management Warren F. Kruger, CEO
Over 35 years experience in financial services and manufacturing industries Co-‐founded MCM Group, Ltd. In 1990 and sold to Cendant Corp. in 1996 (NYSE: CD) Owned and operated three ice factories and sold to Packaged Ice, Inc. in an industry rollup
SONOCO PRODUCTS, Sales Alliance Partner Ron Schelhaas, Plant Manager Bill Rahhal, CFO William Pritchard, General Counsel Greystone Logis�cs Online: www.greystonelogis�cs.com
Mailing Address: Plant Loca�on: 1613 East 15th Street 2601 Shoreline Drive Tulsa, Oklahoma 74114 Be�endorf, Iowa 52722 Office: 918.583.7411 Plant: 563.332.0052 Fax: 918.583.7442
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