1. TBL and the 3 Ps People, Planet, Profits (sustainability) Changing connotations about tobacco No longer a smoked/chewed carcinogen Environmentally beneficial to the soil/air

2. Environmental Commitments Organic traceability available back to farmers’ fields Polonium-210 reduced via non-phosphate fertilizers High-density polyethylene (HDPE) plastic used Labels user friendly yet explanatory and detailed

3. Social Concerns How we operate with vendors in our supply chain Farmers and sustaining livelihoods Rural community benefits Partnering with agricultural schools Drawing attention to organic stores/cooperatives

4. Economic Concerns How soon until profitability? Managerial balance sheet & quarterly analyses Adhering to governmental compliance Utilizing the Global Reporting Initiative (GRI)

5. Impacts No legal obligation to serve special interests We understand how aggressive NGOs can be State mandates can force payroll insurance funding Good insurance retains good employees

6. Horizontal/Vertical Affects Potentially have a test farm (for nitrogen levels) Work with Kentucky agricultural school Which retailers meet our sustainability standards Require RFPs to include recycled content used Successive generations find work at Gang Green?

7. Local Impacts Reducing incidents of vandalism to greenhouses Less stigma to tobacco farmers Drought and uneven drying no longer concerns No selling at deeply discounted prices Labor initiatives undertaken by employees

8. Steve’s section 2 slides go next Next are the slides where Steve discusses financial plan and projections (Delete this instructional slide, Terra.)

9. Financial Aspirations 1 st year’s projected net income: $11,000 2 nd year projected income: $126,000 3 rd year projected income: $591,000

10. Capital Costs Cash Flow: $4,900,000 outlay nets 6.88% IRR over 8 years Our WACC: 6.1025% when using 55% debt, 45% owners equity, tax rate of 30% Thus, we have a worthwhile endeavor 1 st year’s sales: $4,200,000; payroll alone is $2,000,000

11. 3-year Pro forma sheet 2011 Total Assets: $2,292,000 2012 Total Assets: $2,604,000 2013 Total Assets: $2,982,000

12. 1 st Year Sales Per Unit 1-liter: 120,000 @ $3 profit 5-liter: 80,000 @ $17 profit 50 liter: 2600 @ $170 profit 200 liter: 3100 @ $660 profit Total sales: $4,208,000

13. Projections 50,000 unit increase for 1-liter in 2 nd and 3 rd years 15,000 unit increase for 5 liter in 2 nd and 3 rd years These are targeted at organic markets Just 400 unit increase for 50-liter commercial size 200-liter size increases 16% from 1 st to 2 nd year; 8% increase from 2 nd to 3 rd year