Fu Fuling Glo lobal I l Inc. (Nasda FORK ) daq: q: F Inves estor P Pres esen entation May ay 20 2020 20 1
FORWARD-LOOKING STATEMENTS Certain statements made in this presentation regarding Fuling Global Inc. or its affiliates (the “Company”) and any other statements regarding the Company’s future expectations, beliefs, goals or prospects constitute forward-looking statements made within the meaning of Section 21E of the Securities Exchange Act of 1934. Any statements that are not statements of historical fact (including statements containing the words “believes,” “plans,” “anticipates,” “expects,” “estimates” and similar expressions) should also be considered forward-looking statements. Forward-looking statements include, but are not limited to, statements regarding the projections for the Company’s business, and plans for future growth and operational improvements. Forward-looking statements are neither predictions nor guarantees of future events, circumstances or performance and are inherently subject to known and unknown risks, uncertainties and assumptions, including the impact of the coronavirus on the company’s operating results, that could cause the Company’s actual results to differ materially from those indicated by those statements. There can be no assurance that the Company’s expectations, estimates, assumptions and/or projections, including with respect to the future earnings and performance, will prove to be correct or that any of the Company’s expectations, estimates or projections will be achieved. A number of important factors could cause actual results or events to differ materially from those indicated by such forward-looking statements. Forward-looking statements speak only as of the date hereof, and the Company assumes no obligation to update the information in this presentation, except as otherwise required by law. 2
Overview Fuling Global manufactures and distributes a wide range of environmentally friendly disposable plastic and paper products for the foodservice industry. Most products are sold to major quick-service chains and wholesalers in the U.S., Canada, China and Europe. 3
Company Highlights Strong Revenue Growth Large and diverse customer base, including quick-service restaurants MM (QSRs), foodservice dealers, manufacturers and retailers $200 $180 $151 Proprietary R&D, technology expertise focused on new materials to $160 $139 produce cost-effective, environmentally-friendly products $140 $124 $120 $102 Global manufacturing footprint mitigates trade risks, provides $89 $100 $80 economic efficiencies and benefits $80 $60 Proven ability to enter and grow in new geographic regions $40 $20 Management team with proven history dedicated to profitable $0 growth 2014 2015 2016 2017 2018 2019 4
Our History Completed Phase II expansion of Wenling manufacturing plant, adding 400,000 sq. ft. facility Sold Sanmen factory in China for 2019 U.S. $5.8 Million Completed IPO, raising 2020 $20 million: listed on Nasdaq under the Established third symbol “FORK” international Great Plastics founded in 2018 manufacturing in China, began production 2015 Established second Semarang City, of drinking straws, cups 2016 international Indonesia. Launched and plate items manufacturing production in 2010 Founded as Taizhou Acquired 33-acre site facility in February 2014 Fuling in Zhejiang, for manufacturing Monterrey, Mexico China, sold plastic expansion in Fuling USA household items Wenling, China; built incorporated, 600,000-sq. ft. phase 1992 2003 established first I facility in 2017 international Experienced rapid growth manufacturing in China, Taizhou Fuling facility in Allentown, began exporting plastic PA cutlery to the U.S. 5
Our Market • The global foodservices disposables market is expected to grow at a CAGR of over 4% during the period 2019-2025, and to reach revenues of over $78 billion by 2025* • Growing demand from QSRs driving growth of foodservice manufacturing/ distribution systems sector • Rapidly growing trend in both food delivery and “to go” ordering • QSR sector in U.S. valued at $256 billion in 2018. It was estimated that there were 194,395 quick service restaurant franchise establishments in 2019** • Revenue in U.S. online food delivery segment amounts to $24 billion in 2020 and is expected to show an CAGR of 5.1%, for market volume of $29 billion by 2024*** ____________________________________ Sources: * Arizton Advisory & Intelligence – December 2019 – Foodservice Disposables Market - Global Outlook and Forecast 2020-2025 ** Statista – August 2019 – Fast Food Industry *** Statista – January 2020 – Online Food Delivery 6
Fuling Global Manufacturing Capacities ZHEJIANG PROVINCE, CHINA ALLENTOWN, PA Songmen Plant • U.S. headquarters • 191,000 square feet • ~ 88,000 square feet • 5,500-ton annual capacity (including 30,000 sf distribution center) Wenling Plant • 2,400-ton annual • 55,000 square feet capacity • 6,000-ton annual capacity New Wenling Plant • 1.1 million square-feet • 59,000-ton annual capacity MONTERREY, MEXICO • 84,000 square feet SEMARANG CITY, INDONESIA • 3,200-ton annual capacity Production started in February 2020 • 194,000 square feet (two equal-phase completion) • Potential 11,000-ton annual capacity • 7
Fuling’s Products • Wide selection of high-quality, single-use disposable plastic and paper items, including cutlery, drinking straws, cups and plates and others • More than 12,000 SKUs • Plastic and paper serviceware products are made from environmentally-friendly materials • In addition to plastic serviceware, Fuling began producing paper cups in its Songmen factory in 2017 • In 2018, Fuling launched paper straw products after installing 35 production lines in its new Wenling factory 8
Proprietary Research & Development • Fuling collaborates with the Technical Institute of Physics and Chemistry, Chinese Academy of Sciences, to research foodservice disposables technology in materials, processes and systems • Through these collaborations, Fuling has secured important breakthroughs in proprietary knowledge and patents, with focus on the latest biodegradable materials, including Polybutylene Succinate (“PBS”), PLA, and cellulose • Fuling’s advanced R&D center in Wenling, Zhejiang aims to develop five new products every year • Business and consumer concerns over the environmental impact of plastics show that consumers are more likely to purchase recycled and eco-friendly products, which typically command higher prices and achieve higher margins 9
Our Facilities in China Songmen Plant • 191,000 sq. ft., established in 2003 • 43 production lines • 316 employees Wenling Plant • 55,000 sq. ft., established in 2011 • 24 production lines • 150 employees New Wenling Plant • 1.1 million sq. ft., established in 2017 with two-phase expansions • 206 production lines • 1,100 employees All facilities operate 24/7 10
Our Pennsylvania Facility (2015) • U.S. headquarters in Allentown, PA • Began production of straws at 88,000 square- foot manufacturing, distribution and fulfillment facility in 2015 • Facility has 12 production lines, six automation machines and 66 employees • Currently manufacturing ~200 tons of straws per month (~22.5 million straws) • Allentown facility serves as key distribution center for U.S. east coast • Facility operates 24/7 11
Our Mexico Facility (2019) • Second international manufacturing facility outside of China in Monterrey, Mexico (alleviates impact of ongoing U.S.-China trade tensions) • Facility has 31 production lines • 76 employees • Zero tariff on trade between the U.S. and Mexico; low labor and transportation costs • Facility operates 24/7 12
Our Indonesia Facility (2020) • Sixth manufacturing facility; third outside Mainland China – provides greater efficiencies and economic benefits, including reduced U.S. tariff expenditures • Two-phase equipment set-up: o Phase I – Straw, paper cup and plastic cup lid, initial production launched in February 2020 o Phase II – Disposable tableware, paper bags, packaging container and plate production later in 2020 • New facility is part of corporate initiative to expand marketing and sales throughout Southeast Asia; facility will also serve U.S. markets • ~500 employees at full operation 13
Customer Categories Product Sales to Customers * • Fuling sells and distribute products to more than 230 customers globally, including dealers, major Dealers QSRs Manufacturers Retailers branded QSRs, manufacturers and retailers 63% Customer Type Products Sold Region Dealers Serviceware, Straws, USA, Europe, 46% 46% Cups, Plates Canada, others QSRs Serviceware, Straws, USA, China 29% Cups 27% 22% 21% 20% Manufacturers Serviceware USA Retailers Serviceware, Straws, USA, others 9% 7% 6% 4% Cups, Plates • Fuling supplies five of the seven largest QSR Estimated Sales % Estimated Sales % Estimated Sales % 2017 2018 2019 restaurant chains in the U.S., based on 2018 U.S. system-wide sales amount as published by * Estimated sales % include sales through distributors to ultimate customers QSR Magazine 14
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