UrbanGrange Business Pitch

value & innovation

What are we selling? grow what you eat, wherever you live. Fluid Integrated smart indoor cleansing device Herbs & fresh produce growing spices system Lettuce and Salad bar Power-saving Cherry grow lights tomatoes & small fruits Potatoes & underground Leafy produce Vegetables Water pump

“there’s nothing else FRESHER.” three converging needs • Food Quality, Security and Safety Food Concerns • Food Desert • Health Concerns • Emergence of Emerging Farm Resorts Agri- tainment • Edu-tainment • Integration of greens into Urban concrete jungle EcoDesign • Ecological benefits

1. Rising FOOD concerns Increasing interest in fresh healthy quality food $866 MILLION UNMET DEMAND FOR FOOD DESERTS LOCAL FRESH PRODUCE IN NYC • Adopt healthy lifestyle Over 1 billion live in Food Deserts • Tainted centralized food distribution “Urban areas where affordable & system healthy food, especially fresh groceries, are inaccessible.” • Overpriced poor quality food • Inaccessibility to fresh food • Prevalence of Nutritional disease

1. Rising FOOD concerns Increasing interest in fresh healthy quality food “Michelle Obama starts White House vegetable garden” – New York Time Her hope is to educate children about locally grown food, inspiring them to eat healthier and encourage their families and community to follow suit.

2. AGRITAINMENT “Annual agri-tourism revenues range from $20 million in Vermont to $200 million in New York.” – Time, 2008 NO RECESSION FOR AGRITAINMENT “Our informal survey of agritainment farms found that the vast majority had increased sales this fall. “ - White Huchinson Consultancy

3. Urban ECODesign Urban Environment Eco Design

Innovate. Growing what you eat. Home-centric Design High-yield Multi-Crop Customizable Modular

real benefits. true solutions. The Innovation FARMING MADE EASY • No farming knowledge required SUSTAINABLE HOME FARMING • Multiple cropping • 10 kilograms of produces / month in 0.8 m by 0.5 m • 13 months to break even cost

samuel market identification market identification

market - the fresh food people Consumers who value fresh quality food Average per capita expenditure on vegetables and fruits per week: US$ 4.00 81.45% of 306 million TOTAL ADDRESSABLE Americans live in urban cities. MARKET: Expenditure on Fresh Produce by Urban Cities in USA. US$ 45 Billion

market - the fresh food people Consumers who value fresh quality food TOTAL “Food packaging and convenience ADDRESSABLE which used to be all the rage, are MARKET: being quickly replaced by food lovers’ US$ 45 Billion desire to know where their food comes from and how to prepare it in TARGET the simplest, most natural way MARKET: possible.” Health Conscious & 5 Food Trends: Quality Food flexitarianism, locally grown Consumers food, functional food, organic US$ 11.7 Billion food, slow food The Market is growing very quickly at a rate of 23%

market - the fresh food people Consumers who value fresh quality food List of United States cities by population Density (per Rank City State Population mi2) TOTAL 1 New York City New York 8,274,527 26,404 ADDRESSABLE 2 Los Angeles California 3,834,340 7,876 MARKET: 3 Chicago Illinois 2,836,658 12,752 4 Houston Texas 2,208,180 3,372 US$ 45 Billion 5 Phoenix Arizona 1,552,259 2,782 6 Philadelphia Pennsylvania 1,449,634 11,233 7 San Antonio Texas 1,328,984 2,808 TARGET MARKET: 8 San Diego California 1,266,731 3,772 US$ 11.7 Billion 9 Dallas Texas 1,240,499 3,470 10 San Jose California 939,899 5,117 11 Detroit Michigan 916,952 6,854 TARGET 12 Jacksonville Florida 805,605 971 SEGMENT: 13 San Francisco California 799,183 16,632 Chicago, Detroit, 14 Indianapolis Indiana 795,458 2,163 15 Columbus Ohio 747,755 3,383 16 Austin Texas 743,074 2,611 Philadelphia, Ne 17 Fort Worth Texas 681,818 1,828 w York. 18 Memphis Tennessee 674,028 2,328 Middle Income 19 Charlotte North Carolina 671,588 2,232 20 Baltimore Maryland 637,455 8,059 Households. US$ 750 million 306,168,000 6332 US TOTAL (avg) Selected Cities 13,477,771 6% of urban popn Even in food desert, not everyone is poor. For e.g. in Chicago food deserts: • 63,355 or 31% have an annual income of $50,000 or more • 29,561 or 14% have an annual income of $75,000 or more • 14,194 or 7% have an annual income of $100,000 or more

Customers. consumer behaviour Our target profile They are families. Homemakers. and of course, mothers. …who make buying decisions based on price (value), nutritional benefits and ease of consumption. Current issues include travel distance, food quality freshness and storage issue. Safe food increasingly difficult to differentiate. Furthermore, underserved needs include interest in agritainment, lack of arable plot in apartments. Educate children about home grown food and healthy eating habits.

Competition. the Growers. DIRECT competition AeroGarden Aero Grow Pro200 •Aimed at hobbyist gardeners. •Countertop design •Small aesthetic pleasing •US$200++ Omega Garden •Large scale •High production rate •Bulky (industrial focus) •Professional OmegaGarden •Expensive Carousel •US$2000++ OmegaGarden Volksgarden

Competition. the Grocers. INDIRECT competition Veggie Mobile Project Community Supported Agriculture and local producers Gourmet Groceries Stores •Walmart Organics •Safeway Supermart •Wegman’s Grocery

future market - skyscrapers And schools and commercials. (B2B) Current experiments and future plans: Rooftop farming and Left - Rooftop gardening (Earthbox), Right – EDITT Tower expansion of integration of SIngapore) edible crops into Urban Architecture.

product & services

FreshCube (Standard) Product features Supply container for FreshCubeTM Micro-farming system nutrients Specifications • Dimensions: 750 x 600 mm x 1.80m •Average water consumption, 3.2-4itres/day. • 60 growing pods •High-powered lighting system, 4 x 40 W Lights • Circulating pump for recycling water and nutrients,115W 1800mm • Break Even – 13 months* Trays for growing (based on a family of 4) plants Circulating Pump 750mm 600mm

Suggested Vegetable Crops Diversity and quality + freshness TRAY Suggested Crop Species Tray 1 Sweet Basil, Chives, Garlic Coriander, Curly Parsley, Lavender, Rosemary, Dill, Fennel, Oregano, Sweet Majoram, Mint, Sage, Thyme. Tray 2 ButterHead Lettuce, Romaine Lettuce, Crisphead Lettuce, Iceberg Lettuce, Chinese Lettuce, Spinach, Celery. Tray 3 Cherry Tomatos, Egg Tomatoes, Egg Plant, Red Chillies. Tray 4 Iowa Potatoes, Red Onions, Baby Carrots, Japanese Sweet Potatoes, Alfafa sprouts.

Our Services Beyond the hardware • A supply chain community •A supply of heritage/heirloom plants and seeds.

A Suggested Day Serving (by FreshCube) Garden Salad Recipe Required Ingredients: Lettuce (Iceberg / Romaine) Cherry Tomatoes Red Onions Fresh Celery Croutons Grilled Chicken Breast Vinaigrette Dressing Blue Cheese Cubes

the product Architecture the standard freshCube design

market & sales

FreshCubeTM - Grow what you eat The family companion  ideal indoor garden unit for families  encouraging healthy food consumption  decent food portion for households  education tool  a family product : cultivate strong family bonds

Distribution Channels Where FreshCubeTM is made available Phase III Phase I Phase II Distributors to E-Commerce Dealers and Retailers 'Big Box Retailers' • Official • Home Appliances and Gadgets such as Wal- Website Concept Stores/Retailers Mart, Costco, Home • Agritainment Farms Depot etc. • Community Supported Agriculture (CSA) Groups

Channel Strategy Channel map – managing channels Inform Interact Transact Deliver Service Phase I Official Website UrbanGrange (UrbanGrange) Official Website Phase II Authorized Retailers (UrbanGrange) UrbanGrange Authorized Retailers Phase III Official Website Authorized Retailers (UrbanGrange) Authorized Retailers UrbanGrange Authorized ‘Big Box’ Retailers ( E.g.: Wal-Mart, Home Depot etc.)

Penetration Pricing Farming made affordable: High yield, Low cost  Low entry price to attract new customers  Aim to increase market share/sales volume

The “Push” Strategy New product acceptance, sales, positioning, creation of brand equity  Create consumer demand  Convince retailers and distributors to carry the product hence “pushed” to the consumer  Consumer promotions and advertising Strategic Alliances Marketing Kit and Collaterals Reach Out Programs : Demonstrations & Exhibitions Tagline: “Grow What You Eat” Money-Back Guarantee: 30 days Free-Trial Period( First month)

Initial Sales Strategy reaching out to the first customer STRATEGIC ALLIANCES WITH RELATED STAKEHOLDERS  Reach out to our first target market  Install demo-units at no cost for the first 3 months  Create awareness and understanding: aim to achieve initial sales (I) Community-Supported Agriculture (CSA) Groups - A socio-economic food distribution community - Partner: Angelic Organics, largest CSA in Chicago (II) Agritainment Farms - Partner: Siegel’s Cottonwood Farms (for families and gardening enthusiast) (III) Gourmet Restaurants - Partner: Frontera Restaurant Chain ( 3 branches in Chicago)

Initial Sales Strategy reaching out to the first customer MARKETING KIT AND COLLATERALS UrbanGrange  Product Demo Video [Ur-buhn Greynj]  Official Website REACH OUT PROGRAMS: DEMONSTRATIONS & EXHIBITIONS  Chicago Food Policy Advisory Council (CFPAC) Annual Food Summit  Chicago Food Desert Campaigns  Health & Wellness Events in Chicago  Education Institutions: (First target: Chicago Vocational Career Academy)

Competitive Advantage

Sustainable Competitive Advantage Protecting of Proprietary Technologies: Patent Filing, Trade Secret, Exclusive Tech licensing Network Externalities: Peer-to- Peer groceries trading Control Resources: Sole Distributorship for blue potato seeds and dwarf papaya seeds

Control of Key Resources. Heritage and Hybrid seeds Tainung No.6 (Ju Yu): Released in 1998, dwarf, low bearing, adaption for nethouse culture, high yield, flesh is beautiful deep red when fruit ripe, flesh thickness, more than 400 grams pear fruit.

Groceries redistribution network Community produce exchange/trade system • By community, for community. • Veggie and Fruits Redistribution network system

Operation & Expansion

How will it come about? Manufacture. Distribution. Service Provision Manufacturing Distribution Service • Produced in • e-Commence • UrbanGrange GuangDong, China Community • Dealers & Retailers • Shipped to • Supply Chain • Distributors warehouse in Community Chicago, IL, USA

How will we make it happen? Execution. First year detail timeline Year 2009 2010 Month 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 Phase 1 - Strategic Plan Phase 2a - Market Research Phase 2b - Develop Business Plan Phase 3 - New Product Dev (R&D) Phase 4 - New Product Dev (Pilot) Phase 5 -Business Development Phase 6a - Setup Infrastructure Phase 6b - Promotional Campaign Phase 7 - Commercialization

What other products will we make? Product expansion.

Where will we go? Geographical expansion. TimeLine:

Financial Plan

Financial Plan. Business Model Multiple Revenue Streams FreshCube™ 7000 Units * Year 2 Projections Revenue $300/ Unit $2.1mm Regular Seeds 30800 Units (with pods) Revenue $30 /Unit Seeds Revenue $0.92mm $0.95mm Premium Seeds 700 Units (with pods) Revenue $45/ Unit $0.03mm Total Revenue Nutrient 22400 Units $3.9mm Revenue $35/ Unit $0.78mm (SGD5.9mm) 350 Units Addon Revenue $0.05mm $150 / Unit Trading Transactions Commission $0.50/ Transaction Revenue Maintenance 350 Service Call Revenue $100/ Service Call $0.04mm

Financial Plan. Business Model Cost Drivers Production Cost Cost of Goods Inventory & Services Shipping R&D * Year 1 Projections $0.36mm Professional Services $0.10mm Total Cost Office Space Facilities $0.81mm $0.04mm Warehouse (SGD1.2mm) Payroll $0.18mm Online Advertising Marketing $0.09mm Promotions General Admin $0.04mm

Financial Plan. Business Model Revenue Cost Drivers FreshCube™ Production Production Money Money Consumables Product Refinement Money R&D Customers UrbanGrange Add-ons Money Money Work Staff Services Money Facilities Money Infrastructure Money

Financial Plan. Projection Critical Success Factors • Low cost of production enabling higher margins • Recurring revenue from complimentary consumables • Network effect created from peer-to-peer crop exchange

Financial Plan. Projection $49mm Revenue by 2013 ($MM) 5-year financial projections $50 $40 $30 $20 $10 $- Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 $(10) Revenues Net income Free cash flow • $49mm (SGD74mm) revenue by 2013 • $20mm (SGD30mm) net income • $10mm (SGD15mm) free cash flow

Financial Plan. Funding & Equity Required Funding Size of $1.09million • Founder’s initial contribution of $90K (SGD136K) • First round funding required is $1.09mm (SGD1.65mm) • Second round funding of $2.57mm (SGD3.88mm) • Equity offered - 34% Funding required and equity offered Post-money valuation 3.19 $MM Funding required 1.09 $MM Equity offered 34%

Financial Plan. Use of Proceeds R&D and Product Development Phase in Year 1 Fund Allocation 6% Manpower 23% Infrastructure Professional services 5% 43% Marketing and BizDev 12% R&D Other SG&A 11%

Financial Plan. Exit strategy & ROI IPO by 2013 • Primary Strategy: IPO • Alternative Strategy: Exit through acquisition Exit valuation and ROI Projected sale price of company 150 $MM Exit multiple of earnings 8 times earnings Investor ROI 39 times investment

OUR UrbanGrange team The Advisory Team Douglas Abrams Primary advisor. Owner of Parallax Capital Management, a funds management company based in Singapore. Adjunct Associate Professor at the National University of Singapore. CEO of First Meta, CEO of Expara IDM Ventures Allan Lim Advisor, CEO of Alpha Biofuels Pte Ltd, awarded Spirit of Enterprise Award by SR Nathan. Mentors for youth start-ups. Tan Hai Woon Advisor, Tan Hai Woon is the CTO of Alpha Biofuels Pte Ltd, a local biodiesel producer. Teo Ai Ling Manager of Oh’s Hydroponics farm in Singapore. 10 years experience in managing one of Singapore’s largest hydroponic farm.

SUMMARY Grow what you eat. “We enable people to grow their own fresh produce in Food Concerns the urban environment, promoting healthy eating, and Emerging educating children, in a Agri- sustainable, innovative and tainment cost effective method.” Funding Rqd: US$1.09 m (SGD1.65m) Urban EcoDesign Investor ROI: 38 times TOTAL ADDRESS: US$ 45 Billion TARGET Mkt: US$ 12 Billion TARGET SEGMENT: US$ 750 million

UrbanGrange Business Pitch

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