Thai Brand Development Centre

Cape Town – South Africa

The Group - Cape Thai Holdings

• Group• Simply Asia Franchise Holdings (Pty) Ltd• Cape Thai Restaurant Holdings (Pty) Ltd• Simply Asia Kitchens (Pty) Ltd• Simply Asia Kitchens – Johannesburg (Pty) Ltd• Simply Asia Marketing (Pty) Ltd

• Nature of Business:• Franchisor - Restaurants• Wholesaler• Agent

• Formation: 1993• Directors :

• C Lekcharoensuk (Thai)• T Schirduan (German)• P Chetty (South African)• S Jirachareonkul (Thai)

DivisionsFranchising

Wangthai

Chai Yo

Simply Asia

Development

Planning

New Business

Project Management

Manufacturing

Quality Assurance

Spices and Sauces

Production

Logistics

Procurement

Warehousing

Distribution

Corporate

Planning & Forecasting

IT

HR

Finance

Legal

Immigration

• Brands– Wangthai – 4

– Chaiyo – 2

– Simply Asia – 25

• Competitive Advantage– Authenticity

Group Performance

• Store growth – 14 planned • Store performance - 26% • Turnover growth – 33%

Copyright 2009: Fernridge Consulting

Store & DC Network

3

DC + 5

0

DC + 23

Medium Term Strategy• National Growth

– Organic– Existing stores– New Stores

– Acquisitive

• Business Diversification– Vertical integration

• Backward - Manufacture • Forward - Retail and Wholesale

Current Thai Imported Product Range • Food & Related

– Frozen– Ambient– Dry Goods – Herbs and Spices– Kitchen Equipment & Machinery

• Liquor • Exclusive distributor of Singha beer

South Africa

• Highly developed first-world economic infrastructure and a huge emergent market economy has given rise to a strong entrepreneurial and dynamic investment environment.

• Economic powerhouse of the African continent, with a Gross Domestic Product (GDP) of R1,9 trillion (US$283bn) - four times that of its Southern African neighbours, and comprising 30% of the entire GDP of Africa.

• Amongst the highest ranking developing economies and surpasses countries such as Hungary, Italy, Brazil.

Transport and Logistics Infrastructure

• Boasts one of the most modern and extensive transport infrastructures in Africa.

• Infrastructure plays a crucial role in the country's economy and is depended on by many neighbouring states.

• Recent large-scale upgrading of the country's infrastructure, as well as investment in new infrastructure.

Costs of doing Business

• Compares favourably to other emerging world markets.

• Lowest electricity prices in the world and despite looming challenges in this sector

• Labour costs are significantly lower than those of other key emerging markets.

• Favourable corporate tax rate compared to other emerging markets.

Macro-economic stability

• Level of macro-economic stability not seen in many years. Solid foundation for increased investment and growth

Financial Infrastructure

• One of the world's favourite emerging markets, offering investors sophisticated financial infrastructures and exceptional investment opportunities.

Key Financial Indicators - SA

Outlook Foreign investment – encouraged

Foreign Trade – Exchange control relaxation

Prime 9.00%

Repo 5.50%

CPI Feb 12 - 6.10%

PPI Jan 12 - 8.90%

GDP Dec 11 -3,20%

SA Imports/Exports from Thailand – All Products

SOURCE : DTI

Ranked – 13/204Proportion: 2.3%

R000’s

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 -

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

EXPORTSIMPORTS

PREPARED FOODSTUFFS; BEVERAGES, SPIRITS, &VINEGAR; TOBACCO & MANUFACTURED TOBACCO SUBSTITUTES

Country IMPORT (R 000) R a n k Proportion 2012 Annual Growth

2011 2010 2009 2008 2012 2011 %Total Cum. 2012-2011

ARGENTINA 3,073,564 2,720,500 2,809,046 2,979,440 1 1 13.60% 13.60% -19.30%

UNITED KINGDOM 2,216,404 1,907,539 1,641,614 1,849,259 2 2 10.00% 23.60% -17.30%

CHINA 980,223 840,148 796,559 614,971 3 4 9.20% 32.80% 70.90%

THAILAND 831,786 851,300 1,138,527 907,807 4 6 6.60% 39.50% 45.80%

BRAZIL 1,222,244 825,157 1,452,327 1,060,366 5 3 6.60% 46.00% -1.60%

UNITED STATES 940,025 797,853 730,010 794,550 6 5 5.30% 51.40% 3.20%

ITALY 622,313 471,119 477,976 487,107 7 10 4.80% 56.20% 41.50%

Exchange Rate

Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-120

1

2

3

4

5

6

7

SOUTHERN

AFRICA

EAST AFRICA

CENTRAL AFRICA

WEST AFRICA

NORTH AFRICA

0

200

400

600

800

1000

1200

1400

1600

1800

1079

395

226

623

1705

Economy

26.8%

9.8%

5.6%

15.5%

42.3% SOUTHERN AFRICAEAST AFRICACENTRAL AFRICAWEST AFRICANORTH AFRICA

African Economy (USD)

Can we ignore a USD 4 trillion

economy?

Thai Brand Development Centre

• Shareholding • Cape Thai Holdings• BYK Intertrade Co.,Ltd. (Thailand)

• Formation: 2011• Executive Management :

• C Lekcharoensuk (Thai)• T Schirduan (German)• P Chetty (South African)• S Jirachareonkul (Thai)

• Objectives :– To leverage the existing internal and external

relationships and infrastructure to improve Thai/SA trade

– Provide access to the SA market for large , medium and small Thai companies

– Establish a gateway to Africa for Thai suppliers

Partner Relationships

TBDC

Thai Govt Depts

Thai Suppliers

MODUS OPERANDI

Research & Consultancy

Promotion and Market Access

Marketing

Supply Chain Management

Administration

Local Support

Brand Protection

Research –SA/World

Import Analysis

Category analysis

Product analysis

Demand indicators

Research – Asian/World

Export Analysis

Regional

Thai

Thai/SA export

evaluation

Category & Product

Prioritisation

Category

Price

Product

Taxation & Regulatory Framework

Customs & Excise

Ad-valorem

Labelling

Manufac Stds

Partner Identification & Evaluation

Reputation

Quality

Global Footprint

Pricing

Supply consistency

Negotiation & MOU

Research – Proactive

Negotiation & MOU Research –SA/World Import Analysis

Category analysis

Product analysis

Demand indicators

Customer Identification & Evaluation

Market Size

Pricing indicators

Competition

Consultancy – Reactive

New Showroom, Offices & Warehouse - Aerial View

5 km from port5 km from city centreClose proximity to railways

New Showroom, Offices & Warehouse - Aerial View

Developing nodeOff Main Traffic route• Vehicular• PedestrianPart of the broader City Improvement District

Model• Marketing Fees • Admin and support services to be provided by TTDC• Margin from product sales• Marketing –Thai Govt Depts TTDC and Suppliers

Contact Details

• Web: – www.wangthai.co.za– www.simplyasia.co.za– www.chaiyo.co.za

• Physical:Unit 27bThe Waverly Business ParkKoetzee Rd, Observatory, 7700, Cape Town, south Africa

• Ph:+27 21 447 8347• Fax +27 21 448 8791