BIO & HNT

2006.10.

Company
Introduction
COMPANY
PROFILE
 Company Outline
Company Bio & Hnt Inc.
#1701, Hyundai Topics, 44-3, Bangi-dong,
Address Songpa-gu, Seoul, Korea
T. 82-2-417-7922 www.bio-hnt.com

Branch
4210 Via Arbolada #119 Los Angeles, CA 90042 USA
office in L.A
Laboratory 480 – 6, Goong-dong, Eusung-gu, Daejeon-shi, Korea

Established
2005. 10. 6 Capital $ 300,000
Date
Registration Number of
215-86-76561 10
No. employees
Type of
R&D/ Trading C.E.O. Kwoen, Hyouk-il
industry

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 Company History
Present Bio Sensor Product Research and Mosquito Repellent (Being developed)

2006.08.07 Set up branch corporation in Los Angeles

2006.06.30 Headquarter moved to current location (Bangi-dong, Songpa-gu, Seoul)

2006.03.02 Trading department handling overseas business opened

2005.11.4. R&D center opened (Goong-dong, Eusung-gu, Daejeon-shi)

2005.10.28. Development services contract completed

(with Dr. O, Hyun-woo of Daejeon Biotechnology Research Institute)

2005.10.26. Proceed Joint development project for bio sensor

(with Bundang electronic components institute)

2005.10.26. Mosquito Repellent Development contract completed

(with Dr. Park, Gye-chung of University of pennsylvania)

2005.10.7. Headquarter opened (Chamshil-dong, Songpa-gu, Seoul)

2005.10.6. Corporation Established

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 Organization Chart
CEO
:Kwoen, Hyouk-il

Planning Development
Director : Director: Park, Auditor
Jin, Seo-yong Gye-chung

Marketing Dept. Development Accounting

Sales Dept. Dept. Dept.

Trading Dept. (Team #1 & #2) General Affair

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 Board of Directors
CEO and Management

Name Position Academic Background

Kwoen, Hyouk-il CEO Master of computer engineering, ISU

Park, Gye-chung Development Director Doctor of Entomology, SNU

Jin, Seo-yong Planning Director Master of Statistics, SNU

O, Hyun-woo Director of Research institute Doctor of Entomology, SNU

Sung, Kee-joo Chief of LA branch office Bachelor of accounting, ISU

Bachelor of accounting,
Lee, Sang-ho CFO
Kyung-buk University

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 PRODUCT
INFORMATION
 Mosquito Repellent Market
• Innovative new product has not been developed
in mosquito repellent market for 40 years. Ingredients of BIO&HNT
without any side effect of
: Insect repellent and pharmaceutical company in
DEET can replace
US do not invest on the development of new
repellent and focus on the development of mosquito repellents
generic products copying product with expired of DEET in the market
patent. occupied by DEET products

• Demand for natural ingredient mosquito repellent

: Increasing wealthy people, more consumers
recognize the harmfulness of DEET in the era of • Massive market of
wellbeing. mosquito repellent
amounted 3 billion dollars
• Spread of mosquito disease
: WHO announced that 2 million people among 6 -> 50 million American
billion world people would be yearly died of users and 300 million
mosquito disease due to global warming. users of world market
(Japanese encephalitis , Malaria, Yellow fever,
Filariasis,Dengue fever)
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 What is DEET?
- DEET is a chemical developed by the U.S. Army in 1946
- 92% of mosquito repellents in the world are made of DEET.
- Demand increase for environmentally friendly products after
DEET is confirmed as a noxious chemical.

<< Side effects of DEET >>

• Case of DEET taker’s death reveal that DEET is a harmful chemical to human
body. American pediatricians prohibit children and pregnant women from the
use of DEET repellents.

• Left with DEET repellent for a long time, human brain can be injuriously
affected. (Disrupts of cerebral nerve, Failure of memory, contemplative faculty
and concentration )

• Applied directly to the skin, side effect like rash can be caused.

• If Deet repellent is applied to the skin, 7-10% would be absorbed.

Children should use repellents below 10% density.
Even adults must avoid over 30% thickened DEET repellent)

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 Mosquito repellent of BIO & HNT (1)
100% Natural ingredient
Contrasting to synthetic products, products
of Bio & HNT are composed of
environmentally friendly natural ingredients. 100%
As natural hormone, new repellents can be Natural
used for a long time without any side effects. ingredient
Eliminating mosquito marvelously
Mosquito repellent of BIO & HNT containing 3
kinds of natural ingredients eliminate mosquito
highly effectively
Compare with other synthetic products,
effective hours of new product of Bio & HNT
is over one hour longer. No other products
can be compared with this product in
effective hours.
Remarkably Compare with other natural products, effective
long-lasting hous of new product of Bio & HNT is kept
remarkably longer. Effectiveness of new
products maintained from 4 to 5 hours; however,
other natural repellents can be used effectively
within only one hour.

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 Mosquito repellent of BIO & HNT(2)

- Compare to the production cost of DEET,

Price Production cost of new ingredient is available
at 10-20% level. Lowest production cost allows
Competitiveness! new products price competitiveness.

Easy &
- Easy to carry!!
- Use it wherever and whenever you need it. Convenient!!
- Spray it on body or clothing conveniently.

No! Refill
- Not required Refill & Battery !!
No! Battery - Electricity does not required!!
- Only Repellent of BIO & HNT would be sufficient !!

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 Comparison with competitors
Unit Harmful
Origin Company Product Chief ingredients Duration Sizes Price compo-
(USD) nent
U.S. AVON Bug Guard IR3535 4hours 4 oz $12.00 X
Plus'
U.S. Johnson& Off skin DEET, Eucalyptus 4hours 150ML $ 3.65 O
Johnson spray
U.S. 3M Ultrathon DEET, Acrylates terpolymer 3~4hours 2 oz $15.63 O

U.S. Homs, BiteBlock Soybean Oil, Purified Water, 3~4hours 4 oz $ 8.99 X

LLC. Coconut Oil, Glycerin, Geranium
Oil, Citric Acid, Lecithin, Sodium
Bicarbonate and Vanillin

U.S. Various All Natural Catnip/ Cornmint/ Rosemary Oil 1~2hours 8 oz $14.95 X
Small Catnip
Company Shield
New ECOMIST ECOMIST Mixture of pyrethrin Ⅰ& Ⅱ and 1~2hours 250ml $20.84 X
cinerin Ⅰ& Ⅱ
Zealand (kenyan mum type)

Japan Tajimaya Mosquito DEET, Pyrethrin 3~4hours 150ml $18.76 O

end (Liquid)

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Comparison of effective hours
Active ingredient Density Hours of effectiveness
(min.)
DEET 20% 150-250
Natural ingredient of Bio & HNT 10% 200-300
DEET 7% 50-150
Natural ingredient of Bio & HNT 5% 150-250
IR3535 (synthesis) 10% 40-70
Citronella 10% 20-30
Citronella 5% 10-20
Bath oil (Avon’s) 10% 10-20

* Aecles: 3 ~ 4 hours and half

Effective hours of
Bio&hnt product * Culex: 4 hours and half ~ 6 hours
(per mosquito types)
* Anopbeles: 5 ~7 hours

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 Certifications
FDA & CE : 6 months would be required for FDA and CE certifications

: Korea Food & Drug Administration belonging to Ministry of Health and

Permission for Welfare controls the safety of food & pharmaceuticals etc. Regard to
Medical supplies natural mosquito repellent, permission from KFDA is indispensable.
(KFDA) 4~6 months would be required.

: Institute of health and environment conducts test,inspection and research

Inspection and test for food additive, food container, food packing, remained agrichemicals,
report from IHE meat, drinking water, hygienics according to
medicine, medical supplies, cosmetics, medical devices, drugs and Food
Sanitation Act

: Korea Testing and Research Institute for Chemical Industry conducts

Skin stimulation test quality inspection, test and research for chemical products, technical
report from KTRICI education, test for noxious chemical materials, issuing of certified test
report and testing agency business etc.

: Eco labelling from Korea Eco-Products Institute is essential for

Eco Labelling manufacturing and consuming of environmentally friendly products.
Consumers can join the environmental preservation through the
from KEPI environmental information of product. Company can produce the products
continuously on the basis of consumer’s demand for environmentally
friendly products.
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Market Approach
 Sales strategy
The second The first The second
half of 2006 half of 2007 half of 2007

- Apply for - Build overseas sales - Install more

international patent network manufacturing line
- Obtain manufacturing - Advertise regional - Acquire international
equipment exclusive sales agencies patent and sales right

• Establish branch • Announcement • Advertising in overseas

office in U.S. for mosquito control market
• Advertising and association • Register developed
making a catalogue • Proceed thesis to be products
• Overseas marketing published on Science • Attending international
planning magazine exhibition
• Launch end products • Develop applied products
• Prepare for international
exhibition

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 Product Price

Mosquito repellent Competitive cost in

(Household Insecticide) manufacturing
(less than 20% cost
of Major companies)

4P
Analysis

Place Promotion
- American Branch office - Attending overseas
as a key position exhibition continuously
- Setting up - Effort for acquiring
regional agents Brand power
- Reinforcing Direct Sales - Sales network with
major distributors

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 SWOT Analysis for
Mosquito Repellent of BIO & HNT
Strength Weakness
‹ Developing innovative natural ‹ Developing stage,
mosquito repellent No patent/Certifications
‹ Organizing Key Management ‹ Difficulty in acquiring capital
‹ Acquiring foreign and domestic ‹ Difficulty in drawing investment
Venture Capital

Opportunity Threat
‹ Innovative natural mosquito repellent ‹ Evasion, Threat, Interference
‹ Exploring the possibility of alliance with and negative opinion from
preexisting companies of preexisting companies
DEET ingredient mosquito repellent ‹ Launch and sale of natural mosquito
‹ Massive market size of Mosquito repellents repellents from other companies
‹ expectation effect of Bio products worldwide

‹ SO strategy : Strategy using strength for taking market opportunity (chosen by BIO & HNT)
‹ Acquiring capitals by sales of natural ingredient products to other companies
‹ Drawing investment by contacting foreign and domestic investing companies

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 BIO & HNT Check List
Schedule Contents Reference
Aug.~Dec.’06 Continuous Promotion for domestic sales Contact Major distributor,
Military supply etc.
Contact domestic investment companies Drawing investment
Nov.’06 Acquire various certifications and Mosquito Simultaneous progress
repellent Data in US and Korea at first
Nov.~Dec.’06 Apply for patent in US, Korea, Japan Simultaneous progress
and China(4 countries) in US and Korea at first
Oct.~Jan.’07 Search and acquisition of Manufacturing Among three regions
factory (Korea, China, Southeast Asia)
Sep.~Dec.’06 Search companies interested in Mosquito US centric and Worldwide
repellent
Dec.’06~ Meet companies interested in Mosquito Simultaneous progress in US,
Feb.’07 repellent Japan and China at first

Sep.~Feb.’07 Contact investment company continuously US, Japan, Singapore etc.

Feb.~Mar.’07 Establish branch office in the U.S. - Drawing investment
- Foundation Establishment
for product sale
Apr.~May.’07 Drawing investment from preexisting Worldwide
companies in Mosquito repellent market

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 Schedule Chart 2007

Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May. Jun.
Building detail business strategy
Chemical charterization of active
ingredient
Ingredient analysis and
synthesis completed
Mosquito Repellent Test Data

Comparative analysis Data with

preexisting products
Apply for various certifications
In Korea and the U.S.
Apply for patent in Korea and
the U.S. (1 year required)
Meeting with Overseas
Companies and Promotion
Meeting with Domestic
Companies and Promotion
Search and establishment of
manufacturing factory
Drawing investment
Establishment of branch office
in the U.S.

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INVESTOR
RELATION
 American market size
(Aromatics/Insecticides)
3000
Year Market Size
2500
2000 $ 1,789 million
2000
2001 $ 1,935 million
1500 Million $
2002 $ 1,962 million
1000
2003 $ 2,115 million 500

2004 $ 2,417 million 0

2000 2001 2002 2003 2004
(Euromonitor, 2005)

• American aromatic and insecticide market has grown

for 5 years in a low.
• Insecticide market is expected to be increased due to climate
change in the southern states

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Mosquito Repellent World Market

US market

World

User population Unit price

Market Market size (U$)
/year /1 person

The U.S. 50,000,000 $10.00 $500,000,000

World 300,000,000 $10.00 $3,000,000,000

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 Bio& HNT Growth Milestone

-Brand expansion 5
-Product range
increase -Continuous growth
4 -Motive power
-Competitive advantage acquisition
acquisition 3
-Training development
resources -Product stabilization
2
-Market expension
1

-Market entry
-Product differenciation

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 Yearly sales plan
(Consosium formation)
1800
1600
1400
1200
1000 Exterior
800 of the U.S.
600 Branch office
in the U.S.
400
200
0
1st 2nd 3rd 4th 5th
Year Year Year Year Year
(US$ Million)

Contact 1st Year 2nd Year 3rd Year 4th Year 5th Year
Branch office in the U.S. 87 113 147 192 250
Exterior of the U.S.
525 682 887 1153 1500
(Agent / Direct Sales)
Total 612 795 1034 1345 1750

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 Yearly sales plan
(Launch own-brand)
80
70
60
50
Exterior
40 of the U.S.
30 Branch office
20 in the U.S.
10
0
1st 2nd 3rd 4th 5th
Year Year Year Year Year
(US$ Million)
Contact 1st Year 2nd Year 3rd Year 4th Year 5th Year
Branch office in the U.S. 8.7 11.3 14.7 19.2 25.0
Exterior of the U.S.
17.5 22.7 29.5 38.4 50.0
(Agent / Direct Sales)
Total 26.2 34.0 44.2 57.6 75.0

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MAP and Addresses
„ BIO & HNT INC.
Seoul Head Office :
#1701, Hyundai Topics Bldg.,
33-4, Bangi-dong, Songpa-gu,
Seoul, 138-050, Korea
TEL : 82-2-417-7922
FAX : 82-2-417-7923

„ Deajeon Research Institute :

# 480-6, Koong-dong, Yoo-Sung-
gu, Daejeon-si, Korea

„ BIO & HNT International INC.

4210 Via Arbolada #119
Los Angeles, CA 90042
Tel : 1-323-227-1040

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Thank you