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The largest, vertically integrated gas grill manufacture in Asia Aug, 2004 Welcome to Grand Hall
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Presentation Outline I. Company Profile II. Products & Market III. Operating Performance IV. Development Strategy
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Company Profile Established in 1976 Main Products: -- Outdoor Grills -- Gas Valve -- Outdoor Heater 65 Employees (Taiwan) Paid-in Capital: US$21mn(72,423,000 shares ) Market Capitalization: US$281mn(07/30/04’) Code Number: 8941 TT -- Listed date: Jan. 20, 2003
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GRAND HALL CORE VALUES: Customer - centric Quality driven Continuous innovation and improvement excellence Win / Win long –term partnerships Luxury products at affordable prices
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Grand Hall Vertical Operation Grand Hall Enterprise offers Research and Development, Quality Control, Engineering, Manufacturing, Shipping and Merchandising, all managed from headquarters in Taipei, Taiwan.
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Value Chain The Original Idea Marketing Company
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Smiling Curve R&D in Taiwan Manufacturing in China SalesService Value added
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Manufacturing Strengths
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Strategic Alliance Company Name GH’s share holdings ProductsLocation GH ZHUHAI65%Outdoor grillsChina PROKAN10%Outdoor grillsChina RST--Outdoor grillsChina Grand Gas27%Gas valveTaiwan GH USA100% Marketing support unit & customer service U.S. FOCUS16%Grills sales and customer serviceAustralia
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Grill Capacity GH ZHUHAIPROKANRST Total Workforce 5001,1001,600 Square feet471,484648,000502,520 Capacity250,000600,000760,000
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After sales service & Marketing
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Presentation Outline I. Company Profile II. Products & Market III. Operating Performance IV. Development Strategy
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Grill Market in North America Gas Grills: 63% Charcoal Grills: 35% Electric Grills: 2% Demand for 15mn units - Hearth, Patio & Barbecue Association estimate North America Outdoor Grill Demand Gas Grills 63% Electric Grills 2% Charcoal Grills 35%
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Grill Distribution Channels
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25 Major Competitors & Price Distribution in Gas Grill Market High End $700 ↑ (5%) WeberJenn-AirKitchen-Aid WeberCharbroilColeman CharbroilColemanThermos Medium $300-$699(15%) Low End $299 ↓ (80%)
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Grand Hall’s market share Grand Hall’s Shipments North America Gas Shipments Grand Hall’s market share (%) 199989,9518,639,8331.04 2000211,7239,320,0002.27 2001324,3438,516,0003.81 2002586,9599,583,0006.13 2003605,0058,446,5007.16
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Major Customers U.S. SEARS SAM’S CLUB WCC BBQ GALORE Australia FOCUS K-MART RINNAI
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Presentation Outline I. Company Profile II. Products & Market III. Operating Performance IV. Development Strategy
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Balance Sheet Highlight – Jun 31, 2004 NT$mn Cash and Cash Equivalents 897 Long-term Investments1,037 Fixed Assets442 Total Assets2,958 Current Liabilities1,423 Other Debts63 Stockholder’s Equity1,472
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Sales Breakdown by Products 2001200220031H2004 NT$mn% % % % Grills 2,42972.764,93081.835,56485.143,73988.08 Gas valve 53215.9479713.236249.553568.39 Outdoor heater 611.81200.3370.10461.08 Accessories & parts 3179.492784.613405.211042.45 Total 3,339100.006,025100.006,535100.004,245100.00
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Sales Breakdown by Area 2001200220031H2004 NT$mn% % % % North America 2,75682.545,41789.95,72887.653,91492.20 Australia53716.085048.3679512.163227.59 Europe341.02931.5490.146 Others120.36120.230.0530.07 Total3,339100.006,025100.006,535100.004,245100.00
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Operating Performance NT$mn 200120022003 $%$%$% Sales revenue3,3391006,0251006,535100 Cost of goods sold2,527764,622775,09678 Gross Profit812241,404231,43422 Operating Profits389128021377012 Net non-operating income36114231913 Pre-tax Profit425139441696115 Net Profit333107231272811 Capital367--477--624-- EPS (NT$)9.05--15.15--11.66--
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2004 Forecast & 1H Result NT$mn 2004F%1H2004%Achievement Net Operating Revenue 7,077100.004,245100.0060% Gross Profit 1,54421.8294922.3662% Income from Operation 77510.9552412.3568% Net Non-operating Income 1882.66133 3.1471% Pretax Income 96313.6165815.4968% Net Income 73710.4149411.5767% EPS(NTD)* 11.80-7.92-67% * EPS is based on shares outstanding of 62,450,000.
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2004 Quarterly Forecast Q1(A)Q2(F)Q3(F)Q4(F) Total Net Sales 2,295,1142,034,6131,266,4541,481,1017,077,282 Cost of Sales 1,779,4531,573,1531,007,1331,173,5125,533,251 Gross profit 515,661461,460259,321307,5891,544,031 Pretax Income 338,282331,670113,343179,639962,934 unit : NT (k)
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2004 Forecast Revenue and Quantity year item 2004 Forecast2003 Actual Q$(k)Q BBQ Grill 670,0206,346,459605,0055,563,634 Gas Valve 4,754,833510,6664,822,709623,978 Outdoor heater 10,96346,4131,3916,819 Parts & Accessories 597,406173,7441,582,145340,211 Total 7,077,282 6,534,642
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2004 Forecast Investment Income and Loss Company Name GH’s Holding Investment Income(Loss) Grand Gas Inc. 27% 17,893 Legend Lifestyle Inc. 49% 3,113 Grand Hall USA Inc. 100% 20,489 Cybercycle,Inc. 60% (55) Cybertech Ventures, Inc. 100% 6,591 Global-Tech Int’l Inc 100% 7,649 Cyber Vision Trading Co, Inc. 65% 45,660 Total 101,340 unit : NT K
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Dividend History NT$ 19992000200120022003 EPS4.456.859.0515.1511.66 Cash dividend0.92599 Stock dividend34331.5 Total dividend3.9681210.5
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Presentation Outline I. Company Profile II. Products & Market III. Operating Performance IV. Development Strategy
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Future Strategy Raise market share New products development Enlarge customer portfolio
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Complete Distribution Channels Grand Hall Consumer s Wholesale Club Home Center Department Store Specialty Store
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New Product Development Water Heater Endless water supply Very precise temp control from 30-60 degree c Little temp variation No harmful emission (NOX, CO) Easy to replace existing unit Self-cleaning structure
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New Product Development Indoor Cooking Appliance
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Future Business Allocation Grill Division Gas Valve Division Water Heater Division Indoor Cooking Appliance Division
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GRAND HALL OUTDOOR KITCHEN SYSTEMS Grand Hall Enterprise Company LTD. 9th Fl., No.298 Rueiguang Road, Neihu, Taipei, Taiwan ROC 114 886-2-26591119 Grand Hall USA, Inc. / Dallas 3838 West Miller Road, Garland, Texas 75041 1-214-3491097 Grand Hall USA, Inc. / Chicago 2500 W. Higgins Road, Suite 1115, Hoffman Estates Estates, Illinois 60195 1-847-7551470 Grand Hall Zhuhai No.6, Jinfeng E. Road, Jinding Industrial park, Tangiawan Town, Zhuhai, Guan Dong. China 86-756-3395000
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