Investor Presentation January 2019 FORWARD LOOKING STATEMENTS You - - PowerPoint PPT Presentation

Investor Presentation January 2019

FORWARD LOOKING STATEMENTS

You are about to review presentations, reports and/or filings of Sustainable Projects Group,

• Inc. that contain time-sensitive information. The Company will not be reviewing or updating

the material that is contained in these items after the date thereof. The information contained there may be updated, amended, supplemented or otherwise altered by subsequent presentations, reports and/or filings by the Company. Statements included or incorporated by reference in these presentations, reports and or filings,

• ther

than statements

• f

historical fact, may contain “forward-looking statements.” There can be no assurance that any forward-looking statements will be achieved, and actual results could differ materially from forecasts and estimates. Important factors that could affect the Company include the risks described in section entitled Risk Factors and elsewhere in the Company’s business plan. The Company undertakes no commitment to update or revise forward-looking statements except as required by law.

KEY TAKE-AWAYS

SPGX is a project development company focused on value-based investment opportunities. Operational roll-out is well underway, with initial incubator projects in early stages of development, with focus to attract additional “low hanging fruit” JV

• r

portfolio projects for accelerated growth. Strong operational team with sector expertise to develop near term revenue and profit potential as well as significant long term NAV expansion.

X = CROSS ATLANTIC

With its multi-national, multi-lingual and multi- cultural setup SPGX bridges the gap between Europe and North America. Even in today’s world with high speed internet and non-stop flights, efficient cross-Atlantic business relations are still not seamless without the right partner.

B R A N D S R E A L E S TAT E T E C H N O LO G Y C O M M O D I T I E S

STRINGENT SECTOR FOCUS

As a business development and project incubator company, SPGX is focused on four core

• sectors. Through extensive industry expertise represented within SPGX, the team is able

to develop and incubate projects at economies of scale.

BUSINESS DEVELOPMENT PROFITABILITY

Based on the Company’s business development expertise, SPGX is able to create revenues from business development services from day 1 of the investment life-cycle with backend loaded investment returns. F E E – F O R - S E R V I C E

SPGX provides consulting & staffing services for client & investment project companies. Revenue generation from project initiation, leading to negative working capital requirements

• n

external projects.

C O M M I S S I O N S

Sales commissions gained through sales and logistics support provided to client and investment companies add significant revenue growth to the Company providing cashflow for expansion.

I N V E S T M E N T G A I N S

It is the aim

• f

SPGX to develop client and investment companies for a 24-month period with the potential for a significant profit upon exit. In the interim, NAV adjustments create balance sheet expansion

Short Term Revenues & Long Term Gains for Profitability from Day 1

THE SPGX USP

P R O D U C T U N D E R S T A N D I N G D U E D I L L I G E N C E L E G A L & F I N A N C I A L P R O J E C T S T R U C T U R E P R O D U C T R O L L O U T I N V E S T M E N T R E T U R N I N I T I A T I O N E X I T D E A L S O U R C I N G T U R N A R O U N D M O N E T I Z A T I O N

Through in-house capabilities and external know-how, the Company is a competent, value creating partner for clients and internal investments throughout the investment life-cycle.

EFFICIENT & AGILE TEAM

M U LT I N AT I O N A L

The Company’s core team consists of individuals from multiple nationalities, with 80% of the team fluent in both German and English.

K N O W - H O W

Each core team member of the company has a specific skill- set, ranging from economic to project management, with strong team spirit.

E X P E R I E N C E

The core team has 100 years

• f combined experience, and

has worked for star players in their respective fields.

E F F I C I E N T

Close coordination among core team members and external partners makes for an efficient project management environment.

FOCUS ON ROIC

I D E N T I F I C AT I O N

Project identification, analysis and due diligence form the basis

• f

finding attractive development projects with significant upside potential.

A D D E D - VA L U E

The Company seeks projects where it can add significant value through in-house expertise, network or partners.

O P M S T R U C T U R E

If specific development projects require significant funding, external funding sources through equity

• r

debt financing are utilized.

M U LT I P L I C AT I O N

The standardized project development processes of the team increase development speed and profitability.

MEET OUR CORE TEAM

Small core team with significant know-how in investment and project development.

Over twenty years

• f

investment banking and business development experience.

S . M U E H L B A U E R

C E O & D I R E C T O R

More than twelve years of experience in economics and investment research.

A . S T U G K P H . D .

H E A D O F R E S E A R C H

Bringing more than twenty years of business development and startup development experience.

R . H O W A R D

H E A D O F B U S I N E S S D E V .

Nearly two decades

• f

marketing & business

• perations know-how in

key corporate positions.

• T. M U E H L B A U E R

C O O & M A R K E T I N G

CORE COMPETENCE

INVESTMENT RESEARCH PROJECT DEVELOPMENT

The SPGX Research Department completes in-depth management and business analysis in order to identify project development opportunities and in-house investment

• projects. Additionally, the team is active in preparation of

investment banking relationships and preparation

• f

fundraising tools. The SPGX Project Development team is responsible for developing partnerships and in-house investments into well functioning companies based in the US market. Through value based investment and direct add-value creation, the company anticipates to realize significant revenues and investment gains.

INVESTMENT RESEARCH

The in-house research and due-diligence team can help with all aspects of business planning and preparations for fundraising and other investor relations activities. D U E D I L L I G E N C E

In-depth company analysis to determine value, risk factors and potential pitfalls.

B U S I N E S S P L A N N I N G

Business plan development to fuel the expansion of in-house

• r

external development projects.

M A R K E T R E S E A R C H

Market analysis in a variety of sectors with a focus to establish

• pportunities

for product introductions and branding.

D E A L S T R U C T U R I N G

Creation of deal structures for capital increases, M&A

• pportunities

and debt funding.

F I N A N C I A L M O D E L L I N G

Financial models to forecast growth

• f

potential investment opportunities and development projects.

F U N D R A I S I N G T O O L S

Investor pitch presentations, roadshow planning and investment case development.

BUSINESS DEVELOPMENT

The Business Development team is the “management in a box” representing all executive and

• perations requirements in the United States.

R E G U L AT O R Y

SPGX can facilitate product registration, insurance and

• ther regulatory issues.

L E G A L

Complete legal and tax planning through our network

• f experts.

F I N A N C I N G

Company fundraising assistance is available through debt and equity financing via the network

• f

investment brokers.

S A L E S

Online and offline sales into retail and wholesale channels through the in-house product distribution team.

M A R K E T I N G

Expert marketing and PR solutions through SPGX’s network of partner companies with complete end-to-end marketing support throughout.

L O G I S T I C S

Complete logistic solutions from the manufacturer abroad to the doors of retail outlets and end customers through a network of logistics partners.

15

SPGX PROJECT DEVELOPMENT PROCESS

COHESIVE INFRASTRATURE

Based in Naples, Florida Sustainable Projects Group has access to an extensive local and international infrastructure to facilitate expansion of your business. T E A M

The SPGX core team consists

• f

industry experts with a background in investment banking, management, business development, and

• perations.

FA C I L I T I E S

Located in Naples, FL, within easy reach

• f

the largest markets in the United States and easy access to European counterparts.

N E T W O R K

Extensive local and national network with business decision makers, regulatory agencies and financial community.

PA R T N E R S

The extensive network

• f

partners in the fields

• f

immigration, legal, taxation and logistics assure a smooth transition in the US market.

N E T W O R K

SPGX’s team has established relationships with a powerful network

• f

specialized domestic and international incubator firms.

A F F I L I AT E S

SPGX benefits from the strong project funnel

• f

its sister companies SP Group (Europe) AG and Workplan Holding.

PA R T N E R S

The Company has long-lasting connections within the European small cap and venture capital banking community.

C A N VA S I N G

Continuous screening by the Company’s research team in publications, founder expos or the web.

PROJECT SOURCING

SPGX’s business model depends on a steady stream of business incubation projects and investment opportunities. The Company utilizes a variety of methods to achieve a continuous project opportunities funnel.

BRAND DEVELOPMENT

STRONG RETAIL & BRAND EXPERTISE

E X P E R T I S E

More than 15 years of brand distribution and development experience in-house and access to a complete marketing agency.

PA R T N E R S

From logistics to product distribution, the Company’s network covers all aspects of the value chain from supplier to end customer.

E C O N . O F S C A L E

By adding additional brands, the Company is able to leverage economies of scale for future increased profitability.

VA L U E A D D E D

Local distribution and market know-how shortens time to market for new brands and reduces product failure risk through stringent analytics.

THE US MARKET OPPORTUNITY

With a population of 326m, a soaring economic environment and increasing disposable income the US economy represents a well-established, market environment for international companies.

326 million predominantly English-speaking residents. Large national retail chains make it easier to access this enormous market.

H O M O G E N E O U S M A R K E T

Investment appetite by US investors allows for a regional valuation arbitrage, i.e. investors in the US historically have been willing to pay higher investment multiples than European counterparts.

P R E M I U M I N V E S T M E N T VA LUAT I O N

Recent tax and business reforms initiated by President Trump’s administration have led to record employment and salary growth. Tax cuts further fuel disposable income for most relevant consumer groups.

FAV O R A B L E TA X & B U S I N E S S C L I M AT E

84% OF MARKET ENTRANTS FAIL

While the US market offers an excellent upside for international companies, its complexities require a strong local know-how. More than 84% of market entrants from Europe fail within three years without the help of a competent local partner N O N E T W O R K

Without local reputation or connections into government and business environment, market entry is difficult.

L A C K K N O W - H O W

While the US market is very comparable to the EU business practices, there are local know-how requirements for a successful business start.

U N D E R F U N D E D

Lack

• f

funding can be

• problematic. Banks in the US do

not like to deal with foreign business owners due to risk management restrictions

I M M I G R AT I O N I S S U E S

The United States has stringent immigration laws pertaining to who can work in the country.

L E G A L & TA X T R O U B L E S

The US legal and taxation systems are very different than the European systems most companies are accustomed to.

R E G U L AT O R Y P R O B L E M S

The US market has a multitude

• f

regulations pertaining to business and imports.

From first concept to successful US market expansion, the SPGX team is there every step of the way.

B U S I N E S S

Vitalizer Americas Inc has been founded and is owned 55% by SPGX. The company distributes luxury massage chairs in the US market.

N E X T S T E P S

The company is currently completing FDA registration and UL certification with pre- sales activities in full effect. First revenues are expected early 2019.

B E S T I N C L A S S

With most competitors coming from China the swiss engineered Vitalizer Massage chair is a best in class product in terms of technology, design and reliability.

VA L U AT I O N

Based on 2021 sales and profit projections we see a NAV of approximately USD30m using conservative valuation multiples, appropriately reflection the growth prospects of the company.

REAL ESTATE

LOCAL REAL ESTATE EXPERIENCE

L O C A L

Local expertise and network allow deep insight into the local real estate market for

• pportunity identification and

acquisition.

I N - H O U S E

With more than 30 years of real estate experience, coupled with all relevant brokerage licenses, we are well positioned to execute.

N E T W O R K

Contacts with all relevant real estate development companies in Collier County, Florida and the United States with long-standing track record.

E X E C U T I O N

From project identification to turn around, speed matters. SPGX has in-house capabilities and licenses to turn around projects quickly and

• n

budget.

AHEAD OF THE BOOM

Collier County is one of the fastest growing and one of the most desirable regions in the United States, with limited land to build!

Classical sectors like vacation & retirement home market still strong as more baby boomers are moving to the area.

VA C AT I O N & R E T I R E M E N T

Excellent schools, restaurants and amazing weather make Collier County an award winning region that attracts new full time residents every day. Highest well-being index in the United States.

E XC E L L E N T Q UA L I T Y O F L I F E

Economic development initiatives continue to attract employers to locate their businesses (and their employees) to the region.

B O O M I N G E C O N O M Y

COLLIER COUNTY GROWTH

Collier County remains one of the fastest growing regions, with a net inflow of new residents (both retired and young professionals). With limited land availability to build new construction, continuing strength in the housing market is anticipated, especially in more desirable housing locations like coastal Collier County.

342.8 394 436.7 478.6 519.9 561.0

100 200 300 400 500 600

2015 2020 2025 2030 2035 2040

COLLIER COUNTY RESIDENTS

• 30.00%
• 20.00%
• 10.00%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

COLLIER COUNTY HOUSEHOLDS

Total Households $200,000 or more Total Household Change $200,000 change

D E M A N D

Change and preference, as well as population growth, continue to fuel demand.

R E G U L AT I O N

Limited physical expansion given that 68%

• f

Collier County is natural preserve

E N V I R O N M E N T

Surrounded by the Gulf of Mexico and the Everglades on three sides, land value is increasing.

D E N S I T Y

Government push to increase density in coastal Collier County for additional growth.

MARKET DYNAMICS

Collier County’s real estate market, while dependent on underlying economic trends has its

• wn market dynamics which require local insight.

Collier County is currently home to over 350,000 full time residents. This is expected to grow to more than 650,000 by 2030.

GROWING POPULATION

Design changes and residential preferences make older homes unattractive, allowing for turnaround opportunities.

PREFERENCE CHANGES

Formerly a vacation and retirement hotspot, Naples and Collier County attract an increasing number of young professionals.

CHANGING DEMOGRAPHICS

Baby boomers who were previously “snowbirds” are giving up Northern residences to spend more time in Florida, requiring larger homes.

BABY BOOMER LIFESTYLE CHANGES

OPPORTUNITIES

TECHNOLOGY

TECHNOLOGY & VC

C A PA B I L I T I E S

Close relationship with software development and marketing agencies allow for repaid deployment.

E X P E R I E N C E

More than 40 years

• f

technology and application know-how in-house.

F I N A N C E

More than fifteen years of early stage and startup investment banking experience in-house.

E X E C U T I O N

Seamless execution process to bring an app from development stage to final exit with proven track record.

APP DEVELOPMENT & EXECUTION

Expansion Launch Development Planning

Monetization, Partnering, App Evolution, Maintenance, Monitoring, Promotion PR & Social Media Promotion, Launch Phase Monitoring, Bug Report & Fixes Project Management, Graphic Design, App Development, Web Platform Development, Testing Project Analysis, Financial Planning, R&D, Features Planning, UI/UX Design

P O O R R E S E A R C H

• Lack of market research
• Poor features planning
• No UI/UX research

P O O R E X E C U T I O N

• Buggy development
• No updates
• Missing features

P O O R P U B L I C I T Y

• Build it and they will come

doesn’t work anymore

• No budgets for PR / Social

Media Campaigns

P O O R P R O F I TA B I L I T Y

• High cost base for

development & marketing

• Lack of monetization strategy
• No partnering

WHY MOBILE APPS FAIL

S TAT U S

App is currently functioning and a v2.0 will be launched in November 2018. The app is currently stand-alone and will require a comprehensive launch strategy.

F U N D R A I S I N G

Significant funding needs are anticipated to properly launch the new app, which will be prepared by the SPGX Research Department.

B E S T I N - C L A S S

Based on direct comparison to competitor apps, Gator Lotto is best-in-class in terms of

• ptical recognition of tickets,

entry speed and accuracy of

• reporting. Version 1.0 has over

20k downloads.

VA L U AT I O N

The app was acquired for USD400k. We anticipate a valuation

• f

more than USD10m by 2021e.

THE TYPICAL LOTTO PLAYER

60% of US 20-30 year-olds play regularly Suburban / rural population more prevalent Middle Class 1+%

• f income spent
• n Lotto

78% prefer to purchase tickets in person 78%

• f lotto players

see lotto as easiest way to get rich

VALUE CREATION TIMELINE

S E E D F U N D I N G G R O W T H E X I T

Identification

• f

an

• riginal, early stage

app. Improvements to business plan and

• perations roll-out.

Collect funding from external investors to initiate business plan and marketing roll-

• ut on bigger scale

Increase PR and marketing activities as well as partnership

• pportunities. Focus
• n

increasing app revenues. Trade- or technology- sale within 24-36 months to facilitate pay-off for early stage investments.

COMMODITIES

S TAT U S

SPGX owns undeveloped gold

• mines. Initial planning for a

test drill project are underway.

F U N D R A I S I N G

Additional fundraising will be required to complete the proposed test drill program at the site (USD1.2m)

N E X T S T E P S

Analyze the project to develop a project team and business plan structure. This is to be used to secure funding required to complete the test drill program.

VA L U AT I O N

We anticipate a value increase from the current book value of USD3.5m to USD5m post test- drill (risk adjusted).

GOLD PROPERTIES

S TAT U S

Cormo USA Inc has been incorporated as a Florida c

• corporation. And funding for

seed stage has been committed.

P O T E N T I A L

Cormo USA Inc is to be developed into a production stage company in 2019, with the potential for IPO in 2021.

N E X T S T E P S

Launch of Cormo USA with a first production line for the harvest cycle 2019 is expected for 2019.

VA L U AT I O N

We currently do not include Cormo USA in

• ur

NAV calculation, but expect a valuation

• f

USD50m+ by 2019.

VALUE ADDED HOLDINGS

D O M I C I L E

Every business needs a strong address, domicile the business at the attractive location in Naples, FL desirable 34102 zip code.

S U P P O R T

Full office and administrative support to coordinate the completion

• f

corporate filings and residency requirements.

V I R T U A L H Q

For more than just a business address, the virtual HQ program with mail processing, phone answering and other administrative services fits the bill.

P O T E N T I A L

Impensus forms an integral part of any incubator project within SPGX. We anticipate strong growth in this segment

• ver

the coming 12-24 months.

S TAT U S

Initial kick-off dinner was a success in Naples in 2018. A much larger conference is planned for Naples in the future.

P O T E N T I A L

Investigate to expand to larger cities within the US (Houston, West Palm Beach, etc.).

N E X T S T E P S

Finalize 3-year event plan and begin funding the company to facilitate initial conference planning.

VA L U AT I O N

With direct revenues and high valuations paid for well run conferences, both PE expansion as well as balance sheet expansion potential are anticipated.

Strong focus on manageable cost base, operational profit, and…

U P L I S T I N G

The Company is currently preparing to seek an “uplisting” from the OTC QB exchange. This higher exchange has more stringent reporting and

• perational

requirements, for increase corporate transparency and structure.

I N V E S T O R R E L A T I O N S

As operational setup was completed by end of July 2018, management will perform increased investor relations activities to clearly communicate the vision and progress of the company, as well as to increase the trading volume. F R E E F L O A T As management gains more visibility

• n development projects and capital

requirements, the Company will selectively seek to increase capital with the aim to stay as non-dilutive to existing shareholders as possible.

SHARE PRICE & VOLUME

SPGX as a publicly-listed company is currently experiencing low trading volumes and low free

• float. Management is aware of this issue and is actively working to create additional free float

as well as trading volume for increased attractiveness of the shares.

Jan. 2019 H1 2019 March 2019 H2 2019

OPERATIONS EXPANSION

SPGX will execute the market introduction of the first retail product and initiate team expansion for the sales team. Management will continue expanding relationships with public and private partners to ensure market growth

• pportunities for incubator businesses.

INVESTOR RELATIONS & VOLUME

Management recognizes the need to increase trading volume and free float to make SPGX a more attractive

• investment. Current projects to increase these factors

include an security exchange uplisting, increased investor relations activities, as well as selectively increasing capital while keeping a savvy eye on being as non-dilutive as possible to existing shareholders.

MORE PRECISE GROWTH GUIDANCE

While

• perational

planning anticipates near term profitability, the early stage of incubator projects allows only a very conservative estimate on growth prospects at this

• time. A more precise guidance will be issued in March 2019.

ECONOMIES OF SCALE

With the roll out of additional “low hanging fruit” incubator projects in the brand & retail market, management anticipates increased economies of scale (i.e. profitability) by placing additional products into retail channels through existing infrastructure.

NEXT SIGNIFCANT MILESTONES

During the formation phase of the company, significant upside to the company’s expansion through portfolio projects, as well as partnerships currently in the formation stage is anticipated.

BUSINESS OUTLOOK FY2018

Short business year (from June 1 to December 31) to align reporting year with key holdings. Initiation of three (3) new incubator projects & development of legacy projects. Cost base of USD50,000 per month starting in July 2018. Breakeven during short business year 2018. Revenues above USD750,000 with an operating profit margin above 20% in 2019.

CONTACT US

SUSTAINABLE PROJECTS GROUP INC.

225 Banyan Boulevard - Suite 220 Naples, FL 34102 United States of America P H O N E

239.307.2925

E M A I L

corp@spgroupe.com

W E B S I T E

www.spgroupe.com