WhereFoodComesFrom,Inc.
WhereFoodComesFrom,Inc.D.B.A.IMIGlobal,Inc.Headquarters:CastleRock,ColoradoOTCQB:WFCFOctober2015
Forward-LookingStatements
ThispresentaJoncontains"forward-lookingstatements"withinthemeaningoftheU.S.PrivateSecuriJesLiJgaJonReformActof1995,basedoncurrentexpectaJons,esJmatesandprojecJonsthataresubjecttorisk.Forward-lookingstatementsareinherentlyuncertain,andactualeventscoulddiffermateriallyfromtheCompany’spredicJons.ImportantfactorsthatcouldcauseactualeventstovaryfrompredicJonsincludethosediscussedinourSECfilings.Specifically,statementsinthispresentaJonaboutfinancialperformance,newbusinessdevelopment,growthpotenJal,marketleadership,andtheimpactandpotenJaloftheCompany’sproductsandservicesonthemarketplaceandcustomersareforward-lookingstatementsthataresubjecttoavarietyoffactors,includingavailabilityofcapital,personnelandotherresources;compeJJon,governmentalregulaJonofthebeefindustry,themarketforbeefandotherfactors.Readersshouldnotplaceunduerelianceontheseforward-lookingstatements.TheCompanyassumesnoobligaJontoupdateitsforward-lookingstatementstoreflectnewinformaJonordevelopments.ForamoreextensivediscussionoftheCompany’sbusiness,pleaserefertotheCompany’sSECfilingsatwww.sec.gov.
TheTrend
“I’veneverseenastrongerdesirefor(consumers)knowingwheretheirfoodiscomingfrom…” --WholeFoodsCEOWalterRobb“Ourcustomerswanttoknowmoreabouthowtheirfoodisgrownandraised,andwhereitcomesfrom.Walmartiscommiaedtousingourstrengthstodrivetransparencyandimprovementacrossthesupplychain….helpingtoputourcustomersinchargeoftheirfoodchoicesbyprovidingclear,accurateinformaJonaboutfoodingredients. --KathleenMcLaughlin,WalmartVP,Sustainability
CompanyOverview
• #1providerofindependent,third-partytraceabilityandverificaJonoffoodproducJonpracJces
• CollectandleverageinformaJononwhen,where,howandbywhomfoodwasraised
• 10,000+customers:ranchers,aucJonbarns,feedyards,dairies,packers,distributors,retailers,restaurants
• CustomersincludetopJerplayersinfoodindustry• RecurringrevenuemodelgeneraJngstrongcashflowsto
supportprofitableorganicgrowthandfundM&Aprogram
2ComplementaryLinesofBusiness
CoreAudiFngBusiness• On-siteauditsofranches,
farms,feedyardsandpackingplantsin41states
• Industry’slargestporholioofaudiJngstandards
• 10,000customers&growing
• Recurringrevenuemodel• OrganicandM&Agrowth
WFCFLabelingProgram• Retailersandrestaurants
displaylabelandQRcodethatgivesconsumerssourceinfoonfoodtheypurchase
• $.01to$.03perpoundfees• IniJalcustomers:grocery,
restaurant,fooddistribuJon
$2.7B addressable market $100M addressable market
VerificaJonServices• SourceandAge• Non-HormoneTreatedBeef(NHTC)• HighQualityBeefQuota• NeverFedBetaAgonists• USDANeverEver3NaturalBeef• USDAGrass-FedBeef• AmericanGrass-FedAlliance• VegetarianFed• FlaxFed• SO100FeedClaims• TysonNatural• GlobalAnimalPartnership™• Non-GMOProjectVerificaJon• USDANOPOrganic• FoodAlliance™CerJficaJon• ProgressiveBeef™Standard• VerifiedGreen™
• AnimalWelfareandWorkerCareAudits• FarmCheck™Program• BeefQualityAssuranceVerified• AmericanHumane™CerJfied• GlutenFreeCerJficaJon• NaJonalChickenCouncilAudits• NaJonalTurkeyFederaJonAudits• WholeFoods®EggLayingHensStandards• UnitedEggProducersCerJfied• SafeFeed/SafeFoodProgram• HazardAnalysisCriJcalControlPoint• SafeQualityFood(SFQ)• On-FarmSecurityAudits• GoodEnvironmentalLivestockProducJon
PracJces• PorkfortheEuropeanUnion• FeedVerified–NewinSeptember2015
FoodGroupCoverage
CurrentCoverage• Beef• Pork• Lamb• Bison• Poultry
• Produce• Dairy• Eggs• Grain
FutureCoverage• Seafood• Beverages• Produce
OurCustomers
MarketDrivers
Growthstrategysupportedbylong-termtrends• Consumerdemandfortransparencyduetofoodsafetyissues• Increasingconsumerinterestinhumanehandling,organic,glutenfree,
anJbioJcfree,sustainableagricultureandotherstandards• Producers,packers,distributorsandretailersviewverificaJon,
idenJficaJonandtraceabilityaskeycompeJJvedifferenJators• MajorQSRandretailchainsadopJngtraceabilityfollowingfoodscandals• USDA’sAnimalDiseaseTraceabilityprogramwillforce800,000caale
producerstoimplementsourceauditsinnextfewyears• MandatoryverificaJon,idenJficaJonandtraceabilityforkeyexport
markets-Korea,RussiaandtheEuropeanUnion• Technologicaladvances,includingRFID,aremakingverificaJon,
idenJficaJonandtraceabilitysoluJonspossiblethroughoutthefoodchainconJnuum
MarketDrivers-ConJnued
• BSE–MadCowDisease• E-coli• PinkSlime• Salmonella–Cantaloupes• Swineflu• GestaJoncrates• TacoBellmeatcontent
• GMOlabeling-CAProp37• Europeanhorsemeat• Humanehandlingscandals• Healthandwellness
awareness• Mislabeledseafood• Expiredmeatinsupplychain
Non-GMOOpportunity
GMO–GeneFcallyModifiedOrganisms• Non-GMOProjectislargestindustrygroup–commiaedtobuildingnon-GMOfoodsupplywithverifiedproductchoices
• 32USstateshavesomekindofGMOballotiniJaJve• WholeFoodscommiaedtomandatoryGMOlabelingby2018
• WhereFoodComesFromisoneofonlythreenon-GMOapprovedauditorsnaJonally
RecentHighlights
NewServiceOfferingFeedVerified• Livestockfeedemergingaslatestrisk
infoodsupplychain• FeedVerifiedgivesfeedproducers
andbuyersaresourcetoconfirmapprovedfeedproductsandingredientstoavoidcostlymistakes
• GlobalanimalnutriJonleaderAlltechisfirstcustomerfornewservice
• Revenuemodel:$250-$500perproductorclaim
• Addressablemarketincludesfoodproducers,feedproducersandtheirsuppliers
NewCustomerMcDonald’sCorporaFon• WFCFdesignedandisimplemenJng
rolloutofpilotprogramforsustainablebeefinCanada
• 100CanadianranchershaveregisteredtoparJcipate
• WFCFhasverified20%ofthemascompliantwithMcDonald’ssustainabilityrequirements
• Targetisupto200compliantbeefproducersbyspringof2016
GrowthStrategy
• Cover more food groups than any other provider – Currently: beef, lamb, pork, poultry, dairy, eggs, produce, grain – Future: seafood, beverages, produce
• Offer solutions for ALL players in food supply chain – Feed and input providers, ranchers, producers, packers, auction
barns, processors, distributors, retailers, consumers
• Expand on industry’s largest solutions portfolio – Currently auditing to 32 certification standards – most in industry
• Continue organic growth – Leverage ‘bundling’ capability to aggressively pursue new
customers; sustain recurring revenue model, high retention rates
• Continue M&A growth – Expand footprint, add new services, food groups and revenue
streams through selective acquisitions
M&AAcJvity-AudiJng
M&AResultsSummary
• 3,700newcustomers• $3.0millioninaddiJonalannualizedrevenue• 6newaudiJngstandards• 4newfoodgroups• FurtherdistancefromcompeJJon• LucraJve,highmarginservicesbundling• AddiJonalM&AacJvityanJcipated
WhereFoodComesFromSourceVerified®LabelingProgram
Howitworks:PackagedisplaysWhereFoodComesFromSourceVerified®labelindicaJngproduct’soriginhasbeenverifiedbyanindependentthirdparty.ConsumerscansQRcodetoaccessinformaJon
RevenueModel:FooddistributorsorretailerspayWhereFoodComesFromperpoundroyalJes,licensefees,servicefees,WebadverJsingfees.
onthefamiliesthatraisedthefoodandthepracJcesemployedbythosefamilies.
Addressable Market: Estimated at $2.7 billion based on annual beef, pork and chicken production in U.S.
LabelingCustomers
Heinen’s Fine Foods 26 stores in Ohio and Illinois
Initial WFCF labeling program grocery customer for all products in
meat case
220+ grocery stores and food distributors nationally have adopted the Where Food Comes From Source Verified®
labeling program
RevenueGrowth
2006 2007 2008 2009 2010 2011 2012 2013 2014
$4M
$6M$5.8M
$8.8M
$1.1M $1.7M
$2.4M $2.7M
$3.3M
$4.2M
$2M
Note: To more accurately illustrate results from continuing operations, the financial data presented excludes CattleNetwork and CattleStore operations that were divested in 2008.
$5.3M
$8M
$10M
GrossProfit
2006 2007 2008 2009 2010 2011 2012 2013 2014
$2.0M
$.7M
$1.2M $1.3M $1.3M
$1.8M
$2.3M
$1.0M
$2.8M
$3.0M
$2.7M
$3.8M
SG&Aas%ofRevenue
2006 2007 2008 2009 2010 2011 2012 2013 2014
200%
46%
192%
117%
60% 55% 44%
40%
150%
100%
50%
45%
39%
AdjustedEBITDA
$1.0M
‘06 ‘07 ‘08
‘09 ‘10 ‘11 ‘13
$148,500
$573,600
‘14
$1,470,000
$654,200
$67,700
$112,300
$442,900
$737,800
$0
$1.0M
$601,700
‘12
Year-to-DateFinancialHighlights
ThirdQuarterHighlights(Yearoveryear)• Revenueup18%to$3.1millionfrom$2.6million
• Grossmarginsincreasedto48%from46%
• Netincomeof$181,600,downfrom$245,100
• OperaJngcashflowup51%to$0.5millionfrom$0.3million
Nine-MonthHighlights(Yearoveryear)• Revenueup28%to$7.6millionfrom$6.0million
• Grossmarginsincreasedto48%from44%
• Netincomeup131%to$380,600from$164,900
• OperaJngcashflowup165%to$1.4millionfrom$0.5million
Data presented is for the third quarter and nine-month period ended September 30, 2015.
BalanceSheetHighlights
AsofSeptember30,2015• Workingcapital:$4,294,100• Cash:$3,985,300• Longtermdebt:$10,400• Stockholders’equity:$6,724,000
SelectedStockData• Traded–OTCQB:WFCF• 52weekstockpricerange–$2.15-$3.83• Averagedailytradingvolume–7,848• Commonsharesoutstanding–23,813,295• Approx.management/boardownership–12,400,000• MarketCap–$71,400,000• Fiscalyear–December31
Note: Certain figures are rounded. Valuation and other data is subject to change on a daily basis and is presented as a general reference as of October 2015.
InvestmentConsideraJons
• WFCFisthedominantverificaJonindustryplayer–intherightplaceattherightJmewithconsumerdemandfor,andgovernmentinterestin,increasedinformaJonandtransparencyinthefoodchainatanall-Jmehigh
• CompanyexecuJngonstrategytobeone-stop-shopforallcerJficaJonstandardsinallfoodgroups
• Scalablerecurringrevenuemodelwithlarge,growingcustomerbaseposiJonscompanyforlong-termprofitgrowth
• WellcapitalizedcompanywithJghtsharestructureandaccomplishedmanagementteamandboardthatownssignificantstakeinCompany
• WFCFisonlypubliclytradedpureplayinfoodverificaJonandtraceabilityindustry
WhereFoodComesFrom
For more information, contact:
Pfeiffer High Investor Relations, Inc. Jay Pfeiffer
303-880-9000 or [email protected]