EFTA02444733.pdf

egian Glacier Spring Water Ir g [ 1 . THE WORLD'S BEST DRINKING WATER® IMPORTED FROM NL El m WWWISBRE.COM EFTA_R1_01521655 EFTA02444733 Isbre Holding Corp. Unique Attributes ■ "Purest Natural Water on the Planet" ■ Long-term, exclusive control of water rights ■ Unique ability to transport water in bulk 2 iSBU EFTA_R1_01521656 EFTA02444734 lsbre Holding Corp. Purity ■ Microbiological Testing: lsbre is 100% free of bacterial matter. ■ Testing for Total Dissolved Solids (TDS) measures the concentration of metal ions, minerals and salt compounds. lsbre has less than 4 ppm (parts per million) TDS, the lowest TDS ever measured for natural (untreated) water. TDS COMPARISON CHART {ppm) Iceend Spring 42 Crystal Splines 44 Poland Spina 54 Voss 64 Deer Park 72 ermcn Icelandic Glacial 74 Trump Ice 74 Ice Mountain 76 Saratoga 90 Sperklotts 120 Crystal Geyser - CA 120 Pama 130 Volac 140 Crystal Geyser - Tem. 150 Damon 160 Tynanl 180 Zephyr Hills 200 Tyrant Carb 200 Fiji 230 Arrowhead 270 Even 310 Waal 400 Perrier 480 Seri Pelliuriro 990 San Faustno 1200 Gerolskinct 1500 Appolinarts 1800 ppm - parts per million tats Tested by Groundwater Anotyncat Inc and Eurohrs Norge 3 iSBU EFTA_R1_01521657 EFTA02444735 lsbre Holding Corp. Purity — The Glacial Process ■ Glacier melt, rainfall, and snow melt ■ Virtually no organic contaminants ■ Natural sand and gravel filters ■ Virtually no mineral infiltration • "Encapsulated" artesian aquifer • Glacier is growing! 4 S B IkE EFTA_R1_01521658 EFTA02444736 lsbre Holding Corp. Why Purity Matters ■ More effective in bringing nutrients to the cells ■ More efficient in eliminating toxins from the body ■ Minerals in water are inorganic, cannot be processed, and must be removed ■ Natural deterrent to contamination 5 1 S B IkE EFTA_R1_01521659 EFTA02444737 lsbre Holding Corp. Exclusive Rights ■ Private 99-year exclusive water rights agreement ■ Norwegian Government permit to extract 5 million gallons per day ■ Control of all water resources in Osa Valley 6 ISBRE EFTA_R1_01521660 EFTA02444738 lsbre Holding Corp. Global Bulk Water Opportunity ■ Water Bottlers • Pricing Advantage • Packaging Advantage ■ Other Beverage Companies • RTD Teas • Functional Beverages ■ Bulk Users • Pharmaceuticals • Technology Companies ■ Governments • Military • Disaster Response ■ Humanitarian Groups ' 1 S B IkE EFTA_R1_01521661 EFTA02444739 lsbre Holding Corp. Global Bulk Water Opportunity Per Capita Consumption by Leading Countries 2002-20071 2007 Rank Countries Gallons Per Capita 2002 2007 1 United Arab Emirates 35.2 68.6 2 Mexico 37.7 54.1 3 Italy 44.2 53.3 4 Belgium-Luxembourg 32.7 39.5 5 France 37.1 35.8 6 Germany 27.8 33.3 7 Spain 29.7 31.7 8 Lebanon 24.9 29.3 9 United States 20.1 29.3 10 Hungary 13.5 28.5 1. Source: Beverage Marketing Corp. 2. Source: Bottled Water: Global Industry Guide — MarketLine International "In 2012, the Global bottled water market is forecast to have a volume of 165.5 billion liters, an increase of 38.6% since 2007"2 8 S B IkE EFTA_R1_01521662 EFTA02444740 lsbre Holding Corp. Bulk Water Sales Margins ■ Cost: NOK 20 per m3 = $0.012 per gallon ■ Cost: NOK 800,000 per 40,000 tonne vessel = $122,865 per 10,568,032 gallon vessel ■ Sale: $0.075 per gallon = $792,602 per vessel ■ Profit: $669,737 = 85% Margin ■ NOK 10,000,000 Annual Maximum = $1,535,815 Annual Maximum f • -a. 9 ISBRE EFTA_R1_01521663 EFTA02444741 lsbre Holding Corp. Landed Cost Differential Norway Bottling Flexitank Shipping Tanker Shipping Price to Distributor $12.25 $12.25 $12.25 Transportation Cost $3.44 $2.25 $0.51 Packaging & Bottling Cost $7.79 $4.87 $3.78 Total Case Cost $11.23 $7.12 $4.29 Producer Gross Margin $1.02 (8.3%) $5.13 (42.0%) $7.96 (64.9%) Note: Estimate of landed cost of 0.5 liter case 10 I S BkE EFTA_R1_01521664 EFTA02444742 lsbre Holding Corp. Impact of Landed Cost Differential 42-65% Profit Margins ■ Unmatched pricing flexibility ■ Unmatched price promotion ability ■ Unmatched profit margins to fuel growth 11 1 S B IkE EFTA_R1_01521665 EFTA02444743 12 lsbre Holding Corp. Packaging ■ "The World's Best Drinking Water®" — Trademark in U.S. and E.C. ■ Proprietary bottle design with Glacier cut inside, lsbre won the International Best Label Award in 2002 ISBU EFTA_R1_01521666 EFTA02444744 lsbre Holding Corp. U.S. Market Roll-Out Stage 1: Establish an all-channel distribution network across the greater New York/Philadelphia Metropolitan Markets (having a combined population of over 25 million people). ACCOMPLISHED. Isbre has assembled a network of leading distributors. Stage 2: Achieve widespread, multi-channel retail placement in the Northeast Market. ACCOMPLISHED. Isbre is now available in over 2,000 supermarkets (over 60% of the supermarkets in the region), 3,000 street accounts, and over 300 restaurants, hotels, etc. Stage 3: Drive case sales through chain or location specific price promotions and other promotional events. Stage 4: Launch a highly focused PR campaign, targeting the most likely lsbre consumer audiences. This effort will be supported with cost efficient, "rifle shot" specific media spend. 13 ISBRE EFTA_R1_01521667 EFTA02444745 lsbre Holding Corp. Distribution New York/Long Island • Oak & Boening New Jersey • Peerless/Crescent Connecticut • Davidson • Haddon House • Tree of Life Philadelphia, PA • Penn. Dist. • Gretz Beer Co. Delaware • N.K.S. Maryland/Wash. D.C. • C.B.G. Mid-Atlantic • DPI • Haddon House Texas • Texas-Premium Dist. i —7-1--- -A ( t ---,--.1 1 s i 1--A, t •In Distribution • •In blegobitions • 14 iSBU EFTA_R1_01521668 EFTA02444746 lsbre Holding Corp. Placement 1-1-2008 6-1-2008 8-1-2008 11-15-2008 6-1-2009 Supermarkets 50 700 1500 1850 2000 Restaurants 50 200 220 230 250 Street 600 2000 2200 2250 2500 Convenience 50 200 200 215 215 Specialty Food Stores 20 50 60 70 110 Hotels 2 20 20 20 30 Golf Clubs 0 8 8 8 8 15 ISBU EFTA_R1_01521669 EFTA02444747 lsbre Holding Corp. Bristol, PA ■ The Bristol site is located on the Delaware River just north of Philadelphia, PA. Water will be unloaded into stainless steel storage tanks at the Bristol site. • 16 ISBRE EFTA_R1_01521670 EFTA02444748 lsbre Holding Corp. Bristol, PA ■ Bristol facility is an excellent logistics location. Areas from southern Massachusetts to northern Virginia within a 200- mile radius. .04007 [wow T....kW*. Watts .SA O 7007 Tot. Atlas ape 02007 Totesallelslote Sava.. ,00n 17 ISBIkE EFTA_R1_01521671 EFTA02444749 lsbre Holding Corp. Future of the Bottled Water Industry Kim Jeffery — CEO Nestle Waters N.A.: • "Bottled water is perfect due to the absence of negatives." • "In North America YTD, only bottled water and RTD teas have seen positive growth in volumes in the beverage category." • "Bottled water will win within the beverage industry." • "With increasing health issues (obesity, diabetes), bottled water offers a healthy beverage to help battle many of these conditions." • "Bottled water is the #2 beverage consumed by people in America and is growing dramatically and will actually gain share this year." • "Water is big...it will continue to be big." Bernstein Research — October 2, 2009 18 ISBRE EFTA_R1_01521672 EFTA02444750 lsbre Holding Corp. Future of the Bulk Water Industry • "Less than 0.007% of all the water in the world is potable." (World Health Organization) • "More than 1.5 billion people lack access to adequate water." (Rohini Nilekani, Yale University, Global Policy Forum) • "The pain caused by high oil prices is nothing like what looms as an even more basic and essential natural commodity — water — faces dwindling supplies and growing demand." (Sarah Slaughter, MIT Sloan School of Management) • "Our continued security and competitiveness depend on sustainable supplies of energy and water." (Regional Plan Association) 19 1 S B IkE EFTA_R1_01521673 EFTA02444751 lsbre Holding Corp. Future of the Bulk Water Industry • "Water is the petroleum for the next century." (Goldman Sachs, Top Five Risks Conference Report) • "Water, not petroleum, may emerge as this century's most essential — and contested — product." (Harvard Business School — "Is Water the Next Oil?" • "Fresh water will become, after oil, the next great growth commodity." (Aqua America, Water Utility) • "In the beginning of the twenty-first century, clean water will start to become a major regional and inter-regional commodity, being produced and traded in volumes undreamt of today." (Blue Gold — The Global Water Crisis and the Commodification of the World's Water Supply, A Special Report Issued by the International Forum on Globalization) 20 ISBRE EFTA_R1_01521674 EFTA02444752 Isbre Holding Corp. Osa Valley 21 ISBRE EFTA_R1_01521675 EFTA02444753