REDWOOD GROUP LTD 紅木集團有限公司

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1 股票代號 :8426 REDWOOD GROUP LTD 紅木集團有限公司 5 th December

2 Agenda 1. Company Profile Overview 2. Operational Performance 3. Market & Industry Overview 4. Future Prospects & Strategies

3 1. Company Profile Overview a. Group Structure Redwood Group Ltd (Cayman) Redwood Interior Pte Ltd (Singapore) Redwood Interior Taiwan Branch (Taiwan) Redwood Furniture Sdn Bhd (Malaysia) Redwood (Shanghai) Ltd (China) Redwood (HK) Ltd (Hong Kong) Redwood Europe Ltd (United Kingdom) Redwood Projects Sdn Bhd (Malaysia)

4 1. Company Profile Overview b. Work Flow Contract Management Project Management Drafting Customized & Dedicated Project Management (Singapore) Purchasing Quality Control Logistics Modular Manufacturing (Malaysia) Metal Millworks Solid Surface Veneer PVD Glass Electrical Fabric/ Leather Painting/ Vanishing Acrylic

5 1. Company Profile Overview c. Clients Base 30% Year 2012 Top 10 Luxury Brands & Percentage Accounted for Redwood s Revenue 20% 10% 0% Louis Vuitton Hermès Rolex CHANEL Gucci Prada Cartier Hennessy Moët & Chandon Burberry Y2010 Y2011 Y2012 Q1-Q3 Source: 2012/5/21 Millward Brown Optimor s 2012 BrandZ study

6 1. Company Profile Overview d. Geographic Distribution Redwood serves its clients in 40 countries and regions worldwide.

7 1. Company Profile Overview e. Competitive Advantage Transforming traditional craftsmanship to integrated modern production technology Customized Project Management Modular Manufacturing High Efficiency of Project Completion Factory Assembly

8 1. Company Profile Overview f. Examples Interior Fittings General Constructions Façade

9 2. Operational Performance a. Operational Performance Summary Y2010 Y2011 YoY(%) Y2011 Q1-Q3 Y2012 Q1-Q3 YoY(%) Operating Income 1,153,822 1,412, ,412 1,133, Operating Margin 350, , , , Gross Margin 30.41% 31.52% % 31.49% - Net Profit 126, , , , Net Profit Margin 10.96% 10.84% % 8.97% - EPS * 2.42* - Current Ratio (times) (Unit: NTD Thousand Dollars; EPS NTD Dollars) Liquid Ratio (times) Debt Ratio (%) 56% 45% - 54% 44% - *Number of shares outstanding are 36,000 thousand shares and 42,000 thousand shares for 30 th September 2011 and 30 th September 2012 respectively.

10 2. Operational Performance b. Revenue (Geographic Distribution) NTD Thousand Dollars 1,600,000 1,400,000 1,200,000 YOY 22.38% 1,153,822 1,412,021 1,133, , ,000 Total Revenue from Mainland China (Unit: NTD Thousand Dollars) 111,647 1,000,000 80, , ,000 60,000 53,527 56, , ,000 55% 68% 49% 40,000 20,000 - Y2010 Y2011 Y2012 Q1-Q3 - Y2010 Y2011 Y2012 Q1-Q3 Asia American Europe Middle East Others Benefited from the rise of the Asian consumer force, Redwood s revenue YoY reached 22.38%.

11 3. Industry Overviews a. Redwood continue to enhance the market share in China Luxury Brand Store Addition in Mainland China ~ ~ Store addition ~ Store addition before Note: are Clients of Redwood Source: Bain & Co, Companies Website

12 3. Industry Overview b. The worldwide personal luxury goods market is expected to reach 240billion euros in The CAGR of worldwide personal luxury goods market from Year 2011 to Year 2014 is 7-9%. Worldwide Personal Luxury Goods Market Evolution ( F, EUR bn) 2011E-2014F Worldwide Luxury Market by Area 173 CAGR 2011E-2014F +7-9% Rest of World Asia Japan CAGR 11E-14F EUR191bn EUR bn +7-9% 5% 5% +6-8% 19% 27% % 10% 8% +0-2% American 30% 27% +4-6% Europe 36% 32% +2-4% E 2012F 2013F 2014F 2011E 2014F Source: Altagamma, Bain & Company forecasts, Worldwide Luxury Markets Monitor, 7 th May 2012

13 3. Industry Overview c. China is the major growth area of the Asia s Luxury Goods Market Chinese Millionaires (assets > Rmb10m) (in mil population) 3-year CAGR 7.3% Chinese Super Rich (assets > Rmb100m) (absolute population) 3-year CAGR 7.6% 70,000 60,000 50,000 40,000 30,000 20,000 10, ,000 55,000 60,000 63, Mainland China:Luxury goods market size and y-y growth (Euro bn) % 31.1% 34.4% 29.0% 20.3% Market Size(LHS) y-y growth, %(RHS) 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Source: Hurun Research Institude, DBSV Source: Altagamma, Bain & Company forecasts, Worldwide Luxury Markets Monitor, 7 th May 2012, 17 th Oct 2011 & 3 rd May 2011 (compile)

14 4. Future Prospects & Strategies a. Development Strategies To deep plowing Mainland China Market To be the preferred contract manufacturer in worldwide luxury brands market Expand overseas operations - Actively deploy for areas with high growth or potential development, in order to serve existing clients in a more timely manner and also develop new clients to meet the future growth of worldwide luxury market. (Redwood in Shanghai, Hong Kong, London) Implementation of two shifts production - Based on the growth of Redwood & its revenue, the current production capability has reached its peak. In order to response to the growing numbers of contracts and the growth of luxury market, the increment of production capacity of two shifts production is expected to have the same effects as the expansion of plant utility.

15 Thank You!

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