the joy and satisfaction of eating what you growOur Business Plan

Visit UrbanGrange.com for more information.

Karen Ng, CEO | Samuel Tan, CMO | Yap Huiying, COO | Jefferson Soh, CTO | Josiah Ee, CCO | Yeo Zhi Quan, CFO

UrbanGrange[Ur-buhn Greynj]

value & innovation

What are we selling?grow what you eat, wherever you live.

Fluid cleansing device Herbs &

spices

Cherry tomatoes & small fruits

Potatoes & underground produce

Water pump

Leafy Vegetables

Power-saving grow lights

Lettuce and Salad bar

Integrated smart indoor fresh produce growing

system

“there’s nothing else FRESHER.”three converging needs

Food Concerns

• Food Quality, Security and Safety

• Food Desert

• Health Concerns

Emerging

Agri-tainment

• Emergence of Farm Resorts

• Edu-tainment

Urban EcoDesign

• Integration of greens into concrete jungle

• Ecological benefits

1. Rising FOOD concernsIncreasing interest in fresh healthy quality food

FOOD DESERTS

Over 1 billion live in Food Deserts

“Urban areas where affordable & healthy food, especially fresh groceries, are inaccessible.”

• Overpriced poor quality food• Inaccessibility to fresh food • Prevalence of Nutritional disease

$866 MILLION UNMET DEMAND FOR LOCAL FRESH PRODUCE IN NYC • Adopt healthy lifestyle• Tainted centralized food distribution

system

1. Rising FOOD concernsIncreasing 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

samuelmarket identification

market identification

market - the fresh food peopleConsumers who value fresh quality food

TOTAL ADDRESSABLE MARKET: Expenditure

on Fresh Produce by Urban Cities in USA.

US$ 45 Billion

Average per capita expenditure on vegetables and fruits per week: US$ 4.00

81.45% of 306 million Americans live in urban cities.

market - the fresh food peopleConsumers who value fresh quality food

TOTAL ADDRESSABLE

MARKET: US$ 45 Billion

TARGET MARKET:

Health Conscious & Quality Food Consumers

US$ 11.7 Billion

“Food packaging and convenience which used to be all the rage, are being quickly replaced by food lovers’ desire to know where their food comes from and how to prepare it in the simplest, most natural way possible.”

5 Food Trends: flexitarianism, locally grown food, functional food, organic food, slow food

The Market is growing very quickly at a rate of 23%

market - the fresh food peopleConsumers who value fresh quality food

TOTAL ADDRESSABLE

MARKET: US$ 45 Billion

TARGET SEGMENT:

Chicago, Detroit,

Philadelphia, New York.

Middle Income Households.

US$ 750 million

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

List of United States cities by population

Rank City State Population Density (per

mi2) 1 New York City New York 8,274,527 26,4042 Los Angeles California 3,834,340 7,8763 Chicago Illinois 2,836,658 12,7524 Houston Texas 2,208,180 3,3725 Phoenix Arizona 1,552,259 2,7826 Philadelphia Pennsylvania 1,449,634 11,2337 San Antonio Texas 1,328,984 2,8088 San Diego California 1,266,731 3,7729 Dallas Texas 1,240,499 3,470

10 San Jose California 939,899 5,11711 Detroit Michigan 916,952 6,85412 Jacksonville Florida 805,605 97113 San Francisco California 799,183 16,63214 Indianapolis Indiana 795,458 2,16315 Columbus Ohio 747,755 3,38316 Austin Texas 743,074 2,61117 Fort Worth Texas 681,818 1,82818 Memphis Tennessee 674,028 2,32819 Charlotte North Carolina 671,588 2,23220 Baltimore Maryland 637,455 8,059

US TOTAL (avg)Selected Cities

306,168,000 633213,477,771 6% of urban popn

Customers. consumer behaviourOur 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

Aero Grow• Aimed at hobbyist gardeners.• Countertop design• Small aesthetic pleasing• US$200++

Omega Garden• Large scale• High production rate• Bulky (industrial focus)• Professional• Expensive• US$2000++

AeroGarden Pro200

OmegaGarden Volksgarden

OmegaGarden Carousel

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 - skyscrapersAnd schools and commercials. (B2B)

Rooftop farming and expansion of integration of edible crops into Urban Architecture.

Current experiments and future plans: Left - Rooftop gardening (Earthbox), Right – EDITT Tower SIngapore)

product & services

FreshCube (Standard)Product features

FreshCubeTM Micro-farming system 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 • Circulating pump for recycling water and

nutrients,115W • Break Even – 13 months*

(based on a family of 4)

1800mm

Supply container for nutrients

600mm750mm

Lights

Trays for growing plants

Circulating Pump

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.

Suggested Vegetable CropsDiversity and quality + freshness

• A supply chain community

• A supply of heritage/heirloom plants and seeds.

Our ServicesBeyond the hardware

Required Ingredients:Lettuce (Iceberg / Romaine)Cherry TomatoesRed OnionsFresh CeleryCroutonsGrilled Chicken BreastVinaigrette DressingBlue Cheese Cubes

A Suggested Day Serving (by FreshCube)Garden Salad Recipe

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 ChannelsWhere FreshCubeTM is made available

Phase IE-Commerce• Official Website

Phase IIDealers and Retailers• Home Appliances

and Gadgets Concept Stores/Retailers

• Agritainment Farms• Community

Supported Agriculture (CSA) Groups

Phase IIIDistributors to

'Big Box Retailers' such as Wal-Mart,

Costco, Home Depot etc.

Channel StrategyChannel map – managing channels

Inform

Interact

Transact

Deliver

Service

Official Website(UrbanGrange) UrbanGrange

Phase I

Official Website(UrbanGrange) Authorized Retailers

UrbanGrange

Authorized Retailers

Official Website(UrbanGrange) Authorized Retailers

UrbanGrangeAuthorized Retailers

Authorized ‘Big Box’ Retailers ( E.g.: Wal-Mart, Home Depot etc.)

Phase II

Phase III

Low entry price to attract new customers Aim to increase market share/sales volume

Penetration PricingFarming made affordable: High yield, Low cost

The “Push” StrategyNew product acceptance, sales, positioning, creation of brand equity

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)

Create consumer demand Convince retailers and distributors to carry the

product hence “pushed” to the consumer Consumer promotions and advertising

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

Initial Sales Strategy reaching out to the first customer

(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)

MARKETING KIT AND COLLATERALS Product Demo Video 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)

Initial Sales Strategy reaching out to the first customer

UrbanGrange[Ur-buhn Greynj]

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 networkCommunity produce exchange/trade system

• By community, for community.• Veggie and Fruits Redistribution network system

Operation & Expansion

Manufacturing•Produced in GuangDong, China

•Shipped to warehouse in Chicago, IL, USA

Distribution•e-Commence •Dealers & Retailers

•Distributors

Service•UrbanGrange Community

•Supply Chain Community

How will it come about?Manufacture. Distribution. Service Provision

How will we make it happen?Execution. First year detail timeline

Year 2009 2010Month 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.

Jun 2010 - Health Food Market

Oct 2013 - Corporate Agriculture

Where will we go?Geographical expansion.

Jun 2010 - Chicago

Jan 2012 – East USA

TimeLine:

Financial Plan

Financial Plan. Business ModelMultiple Revenue Streams

7000 Units

$300/ Unit

30800 Units

$30 /Unit

700 Units

$45/ Unit

22400 Units

$35/ Unit

350 Units

$150 / Unit

Transactions

$0.50/ Transaction

350 Service Call

$100/ Service Call

Total Revenue$3.9mm

(SGD5.9mm)

FreshCube™Revenue$2.1mm

Seeds Revenue$0.95mm

Nutrient Revenue$0.78mm

Addon Revenue$0.05mm

Trading Commission

Revenue

Maintenance Revenue

$0.04mm

Regular Seeds(with pods)

Revenue$0.92mm

Premium Seeds(with pods)

Revenue$0.03mm

* Year 2 Projections

Financial Plan. Business ModelCost Drivers

Total Cost$0.81mm

(SGD1.2mm)

Cost of Goods & Services

R&D$0.36mm

Professional Services

$0.10mm

Facilities$0.04mm

Payroll$0.18mm

Marketing$0.09mm

General Admin$0.04mm

Production Cost

Inventory

Shipping

Office Space

Warehouse

Online Advertising

Promotions

* Year 1 Projections

Financial Plan. Business Model

UrbanGrange

FreshCube™

Money

RevenueCost Drivers

Consumables

Money

Services

Money

Product Refinement

Money

Work

Money

Production

Money

Facilities

Money

Add-ons

Money

Customers

Production

R&D

Staff

Infrastructure

Financial Plan. ProjectionCritical 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

Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 $(10,000,000)

$-

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

5-year financial projections

Revenues Net income Free cash flow

• $49mm (SGD74mm) revenue by 2013

• $20mm (SGD30mm) net income

• $10mm (SGD15mm) free cash flow

Financial Plan. Funding & EquityRequired Funding Size of $1.09million

Funding required and equity offered  

Post-money valuation 3.19 $MMFunding required 1.09 $MMEquity offered 34%

• 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%

Financial Plan. Use of Proceeds

22%

5%

12%

11%

43%

6%

Fund Allocation

Manpower

Infrastructure

Professional services

Marketing and BizDev

R&D

Other SG&A

R&D and Product Development Phase in Year 1

Financial Plan. Exit strategy & ROI

• 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

IPO by 2013

OUR UrbanGrange teamThe Advisory Team

Douglas AbramsPrimary 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 LimAdvisor, CEO of Alpha Biofuels Pte Ltd, awarded Spirit of Enterprise Award by SR Nathan. Mentors for youth start-ups.

Tan Hai WoonAdvisor, Tan Hai Woon is the CTO of Alpha Biofuels Pte Ltd, a local biodiesel producer.

Teo Ai LingManager of Oh’s Hydroponics farm in Singapore. 10 years experience in managing one of Singapore’s largest hydroponic farm.

Grow what you eat.

Food Concerns

Emerging

Agri-tainmen

t

Urban

EcoDesign

Funding Rqd: US$1.09 m (SGD1.65m)

Investor ROI: 38 timesTOTAL

ADDRESS: US$ 45 Billion

TARGET Mkt: US$ 12 Billion

TARGET SEGMENT

: US$ 750 million

“We enable people to grow their own fresh produce in the urban environment, promoting healthy eating, and educating children, in a sustainable, innovative and cost effective method.”

SUMMARY