3. Agriculture Fertilizer Food Waste Market Lawns CONVERTED ORGANICS BUSINESS MODEL Lawn Care Food waste represents 20% of U.S. solid waste stream and is land-filled, where it decomposes to produce methane gas (20X more destructive than CO 2 as a greenhouse gas). Food Waste Expired/spoiled food from Supermarkets: Cereals and Grains Fruits and Vegetables Meat and Fish Fertilizer Sold Retail lawn & garden, turf, and agriculture markets Market Supermarket sells produce Fertilizer Produced Converted Organics processes waste into fertilizer Crop Production Agriculture Produces Crops
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7. MARKETS AND PRODUCTS Product Type Products Retail Agriculture Golf Courses Professional Lawn Care Dry 8-1-4 4-1-8 Liquid 1-1-1 6-0-0
8. AGRICULTURE REPRESENTS 98% OF U.S. FERTILIZER DEMAND - 23M TONS, OR 40%, IS LIQUID FERTILIZER Millions of Tons Source: U.S. Fertilizer Institute and Scott’s Miracle-Gro Presentation Converted Organics target markets Market Product Type 1 58 Dry Bulk Liquid (includes anhydrous ammonia) 57 29 23 6 58 Dry Bagged Agriculture Non-Agriculture (Lawn & Garden, Professional Turf, Other)
9. THERE ARE SEVEN MILLION CERTIFIED ORGANIC FARM ACRES IN U.S., GROWING AT 12% CAGR Source: Organic Farming Research Foundation
10. THERE ARE 18,700 GOLF COURSES IN THE U.S. WITH INCREASING DEMAND FOR NATURALLY-BASED LIQUID FERTILIZERS DUE TO ENVIRONMENTAL CONCENRS Public 10,870 Private 4,850 Municipal 2,980 Source: Freedonia Golf Course Consumables to 2009
11. GOLF COURSES CAN REDUCE CHEMICAL INPUTS BY 50% AND CAN SWITCH FROM SYNTHETIC TO ORGANIC FERTILIZERS WITHOUT SACRIFICING TURF QUALITY Cornell Univ. U. Illinois