GLOWCORP

October 17, 2013Bahay ng Alumni, University of the Philippines

Quezon City, Philippines

Presented by:Global Organic and Wellness Corporation90-C, 4th St., Mariana, New Manila, Quezon City, Philippines

Project PitchTitle

Presenter’s Name & Org

October 17, 2013Bahay ng Alumni, University of the Philippines

Quezon City, Philippines

Growth opportunities for organic products

Organic products now entering mainstream market in Metro Manila (80% of domestic organic consumers are located) Total value traded P266.7M

(USDA, 2000). 2007 estimate is between PhP860-PhP1.3 billion (PDAP)Organic rice requirements for Manila is

2,480 sacks or 124 MT per month or 488 MT per year (ICCO, 2011); muscovado sugar-2,049 MT (PDAP)Annual growth of organic consumption-

20% (DA)

Growth opportunities for organic products

Of the 2,480 sacks or 124 MT per month or 488 MT per year , GlowCorp now trades 1,250 sacks of organic rice in the past months

Potential export market with actual inquiries for organic rice (Europe, Russia, US and Hong Kong); certified muscovado sugar in Taiwan, South Korea, Singapore

Problem Analysis

Constraints that undermine the participation of small farmers in the market:Small-scale producers are

focused on local markets (direct sells and mobile stalls)Specialty stores for organic is

limited in scope and reachSupermarkets favor large

commercial suppliers over small farmers

Problem Analysis

Small producers are often on the disadvantage due to unfavorable trading arrangements such as pricing schemes, overdue payments by distributors, lack of logistical supportMiddle-men most often generate the most income than farmers

Our Business Model

TARGET MARKET

Quality Products Branded Quality Products

MEs

LCs

Micro Entrepreneurs

(MEs)

LocalConsolidators

(LCs)

GLOW CORP

Premium PricingDividends

Technical Assistance

Profit

A stock corporation organized by small organic rice farmers, muscovado producers, NGOs, and advocates of organic products

Provide steady and stable market for organic rice and muscovado producers

Improve marketing arrangements through participatory and transparent negotiations, and practice of fair trading principles

Equitable sharing of benefits and profits gained from marketing

Our business model

GlowCorp organizational set-up. In the past, participation of farmers in the value chain was limited in the production level. Farmers are now active participants in the retail and wholesale market through GlowCorp.

Unique feature (community-based organizations as investors and co-owners). Profits will be ploughed back to these organizations through rebates, dividends or technical support.

Exploring every possible markets (retail markets, wholesale, institutional, export, other untapped markets)

Our innovative response

Principal Shareholders

Kappia, Abra (Muscovado)

CARRD, Manila (Muscovado, Organic Rice)

PDCI, Camarines Sur(Organic Rice)

AFCCUI, Antique(Muscovado)

Don Bosco Fdn, North Cotabato(Organic Rice)

Don Bosco MPC, North Cotabato(Organic Rice)

SKMFMC, Sultan Kudarat(Muscovado)

KSN, South Cotabato(Organic Rice)

Shareholders and Partner-Farmers

Shareholders Partner-Farmers

Kappia 300

Center for Agrarian Reform and Rural Development

1,000

Pecuaria Development Cooperative 600

Antique Federation of Cooperatives 500

Bios Dynamis Multi-Purpose Coop 392

Don Bosco Foundation

Sultan Kudarat Muscovado Farmers and Millers Corporation

1,900

Kooperatiba Sto Nino 150

Linabu MPC 100

Total 4,942

Product lines

Target Markets

Rice retailers and distributors

Private and government offices

Hotels and restaurants

Supermarkets

Domestic Markets Export Markets

Hong Kong Singapore Russia South Korea

Social ImpactDirect jobs created within GLOWCORP

12

Community Based Entrepreneurs (CBEs) benefitedDirect Investors 4 (organic rice)

3 (muscovado)1 (organic rice & muscovado)17 individuals

Other CBE-producers 4 organic rice producers2 muscovado producers1 coco-sugar producer1 coffee producer

Farmers reached(estimates)

1,900 farmers/millers (muscovado) 2,000 farmers (organic rice)100 farmers (coco-sugar)

Sales Income Generated Php46.2M (2010-2013)

Social Impact

Increase income of organic farmers and workers

PecuariaDevelopment Cooperative

Additional income because of incentive of Php16,000 to Php21,000 per cropping per year

Sultan KudaratMuscovado Farmers and Millers Corporation

Gain sharing scheme provides more economic opportunities to laborers and mill workers. Mimimum of Php1,000 per day per family if the whole family of 5 serves as maintainer, harvester and mill worker

What have we done

Monetary benefits provided to shareholders and other producers:

• More than Php32M worth of products purchased from shareholders and other producers (as of June 2013)

Close to 170 buyers/ distributors/ supermarkets as regular clients

1 exporter from Hong Kong Ongoing negotiation with exporter for the export

of organic rice flour to Europe; organic rice to Russia

2013 Target

Target

Gross Sales Minimum-Php22MMaximum-Php32.3M

Sales volumeOrganic riceMuscovado sugarCoco-sugar

279MT137MT17MT

Net Income Php594,000

Number of stores/clients Existing-123New-245Total-368

Staff complement 5 core1 outsourced7 production personnel

Farmers reached 2,500

What have we doneYear on Year Sales Growth

-500000

0

500000

1000000

1500000

2000000

2500000

3000000

3500000

2010

2011

2012

2013

What have we done

2010 2011 2012 2013

1,385,815.00

8,254,730.00

17,116,233.79

19,875,168.99

Sales Trend

Financial performance: YoY Growth

*As of September 2013

Year-on-Year Growth Difference Percent Growth

2010 1,385,815.002011 8,254,730.00 6,868,915.00 496%2012 17,116,233.79 8,861,503.79 107%2013* 19,875,168.99 2,758,935.20 16%Total Sales 46,631,947.78

What have we done

Profitability

2010 2011 2012 2013

(416,860.00)

(763,941.90)

160,223.00

382,920.52*

Income Trend 2010-2013

*As of June 2013

Sales Projection

Target 2013 2014 2015 2016 2017

Sales 32,266,000 40,332,500 50,415,625 63,019,531 78,774,414

Income 406,666 879,468 809,326 1,756,660 2,862,272

The EntrepreneurGLOBAL ORGANIC AND WELLNESS CORPORATION

Start ofOperation

January 2010

Registered May 19, 2010; SEC Registration # CS201007376

Actual start of marketing activities

June 2010

Type Profit Corporation

Shareholders 25 (including individual shareholders)

Management (5) 1. General Manager2. Sales and Marketing Officer3. Marketing Coordinator4. Finance and Administrative Assistant5. Finance Consultant (outsourced)

ProductionPersonnel

7

The Entrepreneur

BOARD OF DIRECTORS

CornelioCastaneda, JrChairman

President/General ManagerSultan Kudarat Muscovado Farmers and Millers CorporationPresident Quirino, Sultan Kudarat

Romano LaurillaVice Chairman

General ManagerDon Bosco Multi-Purpose CooperativeMlang, North Cotabato

Edwin NervaTreasurer

Executive DirectorCenter for Agrarian Reform and Rural DevelopmentQuezon City

Mary Grace SantosCorporate Secretary

Individual shareholderQuezon City

Miller BicaldoAuditor

General ManagerPecuaria Development CooperativeBula, Camarines Sur

Vision

GlowCorp to be the leading market distributor of globally-competitive organic, natural and healthy agri-based commodities produced by marginalized groups and community-based enterprises that promote economic empowerment of the rural poor and improved quality of life

Vision

GlowCorp to be the leading market distributor of globally-competitive organic, natural and healthy agri-based commodities produced by marginalized groups and community-based enterprises that promote economic empowerment of the rural poor and improved quality of life

Mission

GlowCorp to develop new, non-traditional markets as well as increase market share of organic and natural products such as organic rice and muscovado sugar from 1% to 5%, leading to creation of more jobs and increase in income among community-based enterprises/ farmers.

Investment Requirements

Total Sources of InvestmentsInvestors GlowCorp

25,679,503 20,520,322 5,159,181

Offer to Investors:Equity InvestmentSubordinated LoanCredit Line

Thank you!