chaswood presentation final - listed...

Company Presentation

March 2012

New brands:

� Executive Summary 2

� Proposed Reverse Takeover 3

� Overview of Chaswood Group 5

� Competitive Strengths 10

� Future Plans 11

� Financial Highlights 14

Page

Table of Contents

� Financial Highlights 14

� Industry Overview 18

1

Executive Summary� Asia Silk Holdings Limited (“Asia Silk”) was listed on the Catalist Board of the Singapore Stock Exchange and was previously

engaged in the spun silk yarn, spun silk fabric and garment manufacturing business. The business has been recently disposedon 9 January 2012 (“Disposal”).

� On 25 July 2011, Asia Silk entered into a sale and purchase agreement to acquire the entire equity interests of ChaswoodResources Sdn. Bhd. (“Chaswood”) for a purchase consideration of approximately S$60.79 million (RM150 million) to besatisfied via the allotment and issuance of approximately 2.03 billion Asia Silk shares at S$0.03 each (“Proposed Acquisition”).The Disposal and Proposed Acquisition resulted in Chaswood assuming the listing status of Asia Silk (“Proposed Reverse TakeOver exercise”, “RTO”) and renamed Chaswood Resources Holdings Ltd. (the “Company”).

� Pursuant to the Proposed RTO, a compliance placement of 21 million Asia Silk shares at a placement price of S$0.30 per share(after post-acquisition share consolidation of 10 to 1) was completed.

2

� Chaswood Group is one of the leading multi concept casual dining operators in Malaysia and targets to be a leader in SouthEast Asia by 2015. Chaswood currently has 13 brands including the American casual dining chain, T.G.I. Friday’s (“TGIF”) inMalaysia and Singapore and the Japanese casual dining chain, Ishokuya Watami (“Watami”) in Malaysia. It also owns andoperates several of Malaysia’s leading food establishments, namely Italiannies, The Apartment Restaurant & Bar, Market HallKitchen & Bar, Bedroom, Teh Tarik Place, Baci Italian Café, Republic, Malones Irish Restaurant & Bar and Laundry.

� In February 2012, Chaswood secured the exclusive rights to develop and operate Bulgogi Brothers restaurants in Malaysia,Singapore, Thailand and Indonesia. In March 2012, Chaswood entered into a non-binding memorandum of understanding(“MOU”) with Paradise Group Holdings Pte Ltd for the rights to develop and operate Paradise Dynasty restaurants in Thailand.

� The Chaswood Group currently operates 42 restaurants, cafes and bars in Malaysia and Singapore under the various brandnames and employs approximately 1,600 employees to serve more than 5 million guests annually.

� The Chaswood Group is embarking on its regional expansion plan to introduce new franchise brands and concepts.

Proposed Reverse Takeover

The shareholding structure before and after the Proposed Reverse Takeover exercise is as follows:

Before Proposed RTO

Asiasons Group

Posh Corridor Andrew Reddy

Chaswood

100%

75% 25%

Existing Asia Silk shareholders

Asia Silk

Existing Business

100%

100%

After Proposed RTO

Existing Asia Silkshareholders

New Public Shareholders Andrew Reddy Posh Corridor

Chaswood Resources

22.3% 62.4%9.3%6.0%

Asiasons Group

33

Chaswood Subsidiaries

100%

Resources Holding Ltd.

(formerly known as Asia Silk

Holding Limited)

Chaswood

Chaswood Subsidiaries

100%

100%

Proposed Reverse Takeover

The detailed shareholding and financial effects structure pursuant to the Proposed Reverse Takeover exercise are as follows:

Shareholders Existing After Proposed Acquisition After Proposed Consolidation After Proposed Placement *

No. of shares % No. of shares % No. of shares % No. of shares %

Posh Corridor - - 1,519,633,675 70.25% 151,963,367 70.25% 141,463,367 62.37%

Andrew Reddy - - 506,544,558 23.42% 50,654,455 23.42% 50,654,455 22.33%

Existing Asia Silk shareholders 137,000,000 100.00% 137,000,000 6.33% 13,699,997 6.33% 13,699,997 6.04%

New Public Shareholders - - - - - - 21,000,000 9.26%

137,000,000 100.00% 2,163,178,233 100.00% 216,317,819 100.00% 226,817,819 100.00%

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Price Per Share (S$) 0.03 0.03 0.30 0.30Market capitalization (S$ millions) 4.1 64.9 64.9 68.0

Note: * After the Compliance Placement comprising the placement of 10.5 million new Shares in the Company and 10.5 million Vendor shares at a

placement price of S$0.30 per share.

� Leading multi-concept casual dining operator in Malaysia, and targets to be the leader in South East Asia by2015.

Overview of Chaswood Group

Brands • Has 13 brands with 4 international franchise brands (recently secured Bulgogi Brothers and signed MOU with Paradise Dynasty in 2012)

Countries • Malaysia and Singapore• Expanding into Indonesia and Thailand

No of Outlets • 42 outlets.

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Employees • 1,600 people.

Proposed Directors • Dato’ Mohammed Azlan, Datuk Jared Lim, Ng Teck Wah, Andrew Reddy, Colin Ng and Chris McAuliffe.

Key Officers • Andrew Reddy (MD), Martin Beins (COO), CS Lim (CFO).


Franchise BrandsT.G.I. Friday’s Watami

Concept of the Franchise Brands

• A renowned American global chain of restaurants started in 1965 in New York.

• Over 900 restaurants in 60 countries.

• Leading Japanese chain with over 600 owner-owned restaurants in Asia.

The 2 international franchise brands operated by Chaswood Group are as follows:

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No of Outlets • 16 outlets since 2002.• Located in the key areas of Selangor, Kuala Lumpur, Putrajaya, Johor Bahru, Penang and Singapore.

• First new design vintage décor outlet worldwide at Menara Hap Seng, KL in 2010.

• 2 outlets in Kuala Lumpur from Aug 2011.• First franchisee of Watami.

Countries • Malaysia and Singapore.• Expanding into Indonesia and Thailand.

• Malaysia.• Expanding into Thailand.


Operating Brands

Concept of the OperatingBrands

• Basic adaptation of the local Malaysian tea stall which provides a local fare such as teh tarik, nasi lemak, roti canai and nasi melayu at affordable prices in clean interiors with contemporary colours.

• Setting up the franchise model to grow this chain of Malaysian local cuisine.

• First restaurant home-grown brand developed by the Chaswood Group which serves American-Italian fare.

• An important part of the restaurant’s appeal is in its continental façade with décor, music and light, all designed and selected to create a unique ambience.

• All Italiannies’ restaurants have a “A`more di Merrier” menu concept

• Chaswood Group created this concept of dining in an apartment atmosphere to provide a new distinctive restaurant experience for the young professionals.

• The Apartment restaurant serves a modern European cuisine which includes western dishes infused with Asian ingredients.

• The interior of the restaurant is

The 9 other brands operated by Chaswood Group are as follows:

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“A`more di Merrier” menu concept where they encourage guests to share orders in true Italian tradition.

• The interior of the restaurant is uniquely designed with elements of a modern home such as a living room, library, bedroom and bathroom.

No of Outlets

• 6 outlets in Selangor and Kuala Lumpur.

• Concept store in Sooka Sentral, Kuala Lumpur.

• 5 outlets in Selangor, Kuala Lumpur and Penang

• 2 outlets in Kuala Lumpur.

Countries • Malaysia. • With the franchise model, the Group intends to expand to Singapore, Indonesia, Thailand and Australia.

• Malaysia. • Malaysia.


Operating Brands


• Market Hall is a new dining concept developed by the Chaswood Group which replicates the European and Australian market hall tradition.

• Market Hall provides a variety of local and imported produce and packaged goods for sales, with an option of an on-site dining venue.

• It offers a predominantly modern Australian cuisine infused with local

• An authentic Italian café serving quality Italian coffee and fresh deli-styled food aimed at creating a European coffee place atmosphere where people can relax, share and enjoy each other’s company.

• Malones is an Irish restaurant and bar developed by the Chaswood Group.

• It serves authentic pork-free Irish specialties and its own chefs’ creations as well as a variety of draft beer which patrons can choose from.

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Australian cuisine infused with local spices and flavour.

No of Outlets

• 1 outlet in Kuala Lumpur. • 2 outlets in Kuala Lumpur and Singapore.

• 5 outlets in Kuala Lumpur and Singapore.

Countries • Malaysia. • Malaysia.• Singapore.

• Malaysia.• Singapore.


Operating Brands


• The Laundry bar was conceptualised and designed as trendy bar with a live music venue, aimed at showcasing Malaysia’s music scene to the world by building and supporting local and regional talents in music and the arts.

• Laundry is at the forefront of indie music and has created a platform for performances of the same genre

• The Bedroom lounge is uniquely designed and caters for patrons looking for a new lounge experience.

• It is situated on the uppermost retail floor in the Pavilion Kuala Lumpur shopping centre with a view of the Petronas Twin Towers which can be seen through Bedroom’s huge crystal windows.

• It provides an elegant backdrop for

• The Republic bar is created with a Rhythm and Blues (“R&B”) hip-hop setting, which comprise an al fresco bar area with a DJ podium on top of the al fresco bar and an indoor bar counter.

• The bar décor is contemporary and chic with an oriental finish.

• The Republic also has a raised platform at the entrance which

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for performances of the same genre since its establishment.

• It provides an elegant backdrop for business events, gatherings and celebrations where the atmosphere is light and contemporary.

platform at the entrance which provides a glamorous entry for its patrons.

No of Outlets

• 1 outlet in Kuala Lumpur. • 1 outlet in Kuala Lumpur. • 1 outlet in Selangor.

Country • Malaysia. • Malaysia. • Malaysia.

Competitive Strengths

Strategically located restaurants with high customer traffic and

accessibility

Strong branding team to

Established brand name in the F&B industry with strong brand value and proven business model

Managed by an

Distinguishing itself through a multi-brand

strategy

The competitive strengths of Chaswood Group are as follows:

1010

COMPETITIVESTRENGTHS

Strong branding team to develop new proprietary brand and concepts

Managed by an experienced team in the

F&B business

Strong relationship with bankers ensuring continued financing support at favourable terms for expansion

Economies of scale achieved through centralisation of

operations

Ability to develop brands and concepts within a short period of time

Future Plans

The growth strategies of the Chaswood Group are:

Geographical expansion into other regions i.e. Indonesia and Thailand

in 2012 Marketing and brandrepositioning

Securing exclusive rights

Opening of new outlets and targets to be

regional market leader by 2015

11

GROWTH STRATEGIES

Securing exclusive rights to develop and operate new brands; BulgogiBrothers and Paradise

Dynasty

Potential acquisitions, joint ventures and/or strategic alliances

Introduction of new revenue stream through the development of a franchise model for Teh

Tarik Place

Expansion of home grown brands in existing market i.e. Malaysia &

Singapore

Introduction of new brands and concepts

� On 16 February 2012, Chaswood Resources entered into international license agreements with ET and Zeus, Inc for theexclusive rights to develop and operate Bulgogi Brothers restaurants in Malaysia, Singapore, Thailand and Indonesia.Chaswood Resources was granted the rights to develop 10 Bulgogi Brothers restaurants during the 10 year period from theeffective date of the respective license agreements.

Future Plans

Introduction of new brands – Bulgogi Brothers and Paradise Dynasty

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� On 1 March 2012, Chasood Resources entered into a non-binding memorandum of understanding with Paradise GroupHoldings Pte. Ltd. for the exclusive right to develop and operate Paradise Dynasty restaurants in Thailand

Rebranding of Teh Tarik Place and Setting Up of Franchise Model

Future Plans

� Concept store in Sooka Sentral, Kuala Lumpur.� Franchise model in Asia; for further expansion in South East Asia.

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Financial Highlights

REVENUE

14


PROFIT AFTER TAX

15

NUMBER OF OUTLETS


30

35

40

29

32

40 Number of outlets

16

-

5

10

15

20

25

FYDec08(A) FYDec09(A) FYDec10(A) FYDec11(E)

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Financial HighlightsThe number of outlets operated by Chaswood Group is summarised as follows:

Brand FY2008 FY2009 FY2010 FY2011(E)

MALAYSIA

T.G.I. Friday’s 9 13 12 13 Italiannies 4 4 5 4 The Apartment 2 2 2 2 Teh Tarik Place 4 6 6 6 Markethall - - - 1Malones - 1 4 4 Watami - - - 2 Republic 1 1 1 1 Laundry 1 1 1 1 Bedroom - - - 1Baci - - - 1

1717

Baci - - - 1

21 28 31 36 SINGAPORE

T.G.I. Friday’s - 1 1 2 Italiannies - - - -The Apartment - - - -Baci - - - 1 Malones - - - 1

- 1 1 4 INDONESIA

T.G.I. Friday’s - - - -- - - -

THAILAND

Watami - - - -

- - - -Number of outlets 21 29 32 40

Growth - 32% 10% 25%

Industry Overview

• The market size of mid-tier restaurants in Malaysia has tripled from 2004 to 2007 with the Compound Annual Growth Rate(CAGR) of 36.1% . The market is expected to grow from RM3.4 billion in 2008 to about RM12.0 billion in 2014.

• The dining out community in Malaysia, especially those in the city centres such as Klang Valley and Penang, have startedenjoying the wealth of dining opportunities available.

• As disposable income has risen and consumers are more able to pay for meals outside the home, the key growth area will beeateries that provide new and interesting concepts for increasingly worldly wise diners who no longer expect just good food,but also excellent service, delightful ambience and an interesting design concept.

• The mid-tier as well as the café and bistro restaurant segments are expected to be the key growth segments in the restaurantindustry, as these two segments largely cater to the growing middle and upper middle income consumer.

Growth rate of mid-tier restaurants in Malaysia

Malaysia

1818

• Source: Frost & Sullivan

Growth rate of mid-tier restaurants in Malaysia

Industry Overview

• The market size of mid-tier restaurants in Singapore grew from S$0.9 billion in 2004 to about S$1.4 billion in 2007 with theCompound Annual Growth Rate of 12.9%. The market is expected to grow to about S$3.7 billion by 2014.

• In view that the restaurant industry in Singapore is at the growth stage, it is expected that it will continue to show positivegrowth rates with increasing market demands from restaurant-goers in Singapore.

• Food and beverage market has grown from about S$3.7 billion in 2003 to S$5.3 billion in 2007, contributing 0.71% to thetotal Singaporean GDP.

• Restaurants made up 30.3% of all Singaporean F&B establishments.

Growth rate of mid-tier restaurants in Singapore

Singapore

1919

• Source: Frost & Sullivan

Industry Overview

GROWTH OF

Discerning lifestyle preference with more demanding consumers

Rising disposable incomeTourism

The market drivers of the growth of mid-tier market restaurant are as follows:

2020

GROWTH OF MID –TIER MARKET

RESTAURANT

Busier lifestyleCompletion of new retail

and F&B space

Growth of economies & growing consumer

affluence

March 2012

New brands:

chaswood presentation final - listed...

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