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Treyo Leisure and Treyo Leisure and Entertainment Co., Ltd. Entertainment Co., Ltd. Roadshow Presentation Roadshow Presentation AJP September 08

Treyo Leisure and Entertainment Co., Ltd

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Treyo Leisure and Entertainment Co., Ltd. Roadshow Presentation. AJP September 08. Contents. Investment Highlights The Offer About China About Treyo Corporate History Corporate Shareholding Corporate Facilities Competitive Advantages Chinese Market Directors Senior Management - PowerPoint PPT Presentation

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Page 1: Treyo Leisure and Entertainment Co., Ltd

Treyo Leisure and Treyo Leisure and Entertainment Co., Ltd.Entertainment Co., Ltd.

Roadshow PresentationRoadshow Presentation

AJP September 08

Page 2: Treyo Leisure and Entertainment Co., Ltd

ContentsInvestment HighlightsThe OfferAbout ChinaAbout TreyoCorporate HistoryCorporate ShareholdingCorporate FacilitiesCompetitive AdvantagesChinese MarketDirectorsSenior ManagementProductsProductionFinancial PerformanceFinancial Forecasts

Page 3: Treyo Leisure and Entertainment Co., Ltd

Investment Highlights

Invest in a segment showing spectacular growth in the world’s fastest growing economy – China where in 2007 sales of Automatic Mahjong (“AM”) Tables generated RMB 7.5 billion (A$ 1.3billion).Treyo dominates the mid to high end of China’s AMG Table market

Owns 5.4% of the total market and 65.7% of the market for lucrative mid to high range products;Owns and operates the world’s largest Automatic Mahjong Table production facility (53,300m2);Has ISO9000:2000 Accreditation and ISO14001 Environment Management certification

Sound Management with excellent prospects for further strong growth in an expanding market.

Page 4: Treyo Leisure and Entertainment Co., Ltd

Investment Highlights

Net Profit in 2007 of A$ 6,327,000 forecast to reach A$ 10,545,000 by year end 2009

Total Equity in 2007 of A$24,605,000 forecast to reach A$51,670,000 by year end 2009

Unit Production in 2007 of 179,000 forecast to reach 226,000 by year end 2009

Page 5: Treyo Leisure and Entertainment Co., Ltd

The Offer

Up to 100,000,000 shares at A$0.25 each to raise A$25,000,000

Use of funds: Ongoing product development of automatic mahjong tables;

Research and development of complimentary leisure and recreational products;

Provide ready funds for acquisitions of competitors in Treyo’s target market or complimentary businesses; and Investment in Treyo mahjong clubs;

Page 6: Treyo Leisure and Entertainment Co., Ltd

About China

China is a country of  9,596,960 sq km with a population of 1,330,044,605 (July 2008 est.) China’s GDP is growing by 10% annually and industrial production is increasing by 17% annuallyAfter the USA & Japan, China is the world’s third largest economyChina is consuming and importing at a rapid pace and its middle class is ever-increasing

Page 7: Treyo Leisure and Entertainment Co., Ltd

About Treyo

Mahjong is a very popular Chinese recreational act-ivity but involves constant tile shuffling and restack-ing.High tech AM Tables usi-ng sophisticated precision engineering,electronics, l-aser and microchip tech-nologies automatically sh-uffle and restack Mahjong tiles.

Treyo is the parent com-pany of Matsuoka Mec-hatronics (China) Co., Li-mited (”Matsuoka”) - the market leader of AM Tab-les in China.The market for AM Tabl-es shows spectacular gr-owth with a compounded annual growth rate for the past 3 years of 54.2%

Treyo intends to list on the ASX to assist Matsuoka to maintain its market position and continue planned growth

Page 8: Treyo Leisure and Entertainment Co., Ltd

Corporate History

Matsuoka is a foreign-capital limited liability company, established in Xiao Shan, Hang-zhou, China on 18th March, 2003. Matsuoka manufactur-es and sells AM Tab-les, “intelligent” chess, card, recreational hea-lth equipment and acc-essories.Treyo’s wholly owned subsidiary Treyo Inte-rnational Holdings Li-mited (BVI) holds all the issued shares of Matsuoka.

Page 9: Treyo Leisure and Entertainment Co., Ltd

Corporate Shareholding

Treyo Leisure and Entertainment Limited

Page 10: Treyo Leisure and Entertainment Co., Ltd

Corporate Facilities

Comprising 53,300m2 (more than 8 soccer fields) Treyo owns and operates the world’s largest purpose built AM Table manufacturing facility producing 178,600 units in 2007

Page 11: Treyo Leisure and Entertainment Co., Ltd

Competitive Advantages

Superior Management Team Market Dominance

(65.7% of Mid to High End AM Table Market)

Distribution Network(800 franchised stores, 400 distributors and 160 suppliers in China.)

PatentsHighest Brand Recognition

(Placed at 45.5% overall)

Commitment to R&D

R&D

Brand

Management Team

Competitive Advantages

Market Dominance

Patent

Distribution

Page 12: Treyo Leisure and Entertainment Co., Ltd

Chinese Market Growth

196498

851

1,602

3,003

-

500

1,000

1,500

2,000

2,500

3,000

3,500

2003 2004 2005 2006 2007

Unit Sales AM Tables 2003 - 2007Number of Units ('000s)

164255

357

529

751

0

100

200

300

400

500

600

700

800

2003 2004 2005 2006 2007

Sales Value AM Tables - (RMB 100 million) RMB

(100 milion)

154.1%

70.9%88.2% 87.5%

0.0%20.0%40.0%60.0%80.0%

100.0%120.0%140.0%160.0%

2003 2004 2005 2006 2007

Percentage Unit Sales Growth AM Tables2003 - 2007

55.8%

40.2%

47.9%42.0%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

2003 2004 2005 2006 2007

Percentage Growth Sales Value AM Tables2003 - 2007

Page 13: Treyo Leisure and Entertainment Co., Ltd

Directors

Name Position Age Experience

Mao Ling Chairman 40 A Chinese citizen, Mr Mao is the director of Matsuoka

Wei Guohua Executive Director 45 A Chinese citizen, Mr Wei is the Chairman of

Matsuoka

Tse Kwong Fat Executive Director 27

A Hong Kong citizen, Mr Tse is General Manager of Song Gang International Group

Co., Ltd.

Chen Weiyun Executive Director 45 A Chinese citizen, Mr Chen is the General

Manager of Matsuoka.

Wang Jieliang [Non] Executive Director 40 A Chinese citizen, Mr Wang has broad

commercial experience

Roger SmeedNon Executive

Director 60An Australian citizen, Mr Smeed is a highly

experienced company director with both publicly listed and private companies

Ted ByrtNon Executive

Director 59An Australian citizen, Mr Byrt is a lawyer and

President of the Australia China Business Council .

Page 14: Treyo Leisure and Entertainment Co., Ltd

Senior Management

Name Age Position

Zheng Zhongliang 39 Chief Financial Officer

Pan Lin 35 Director, Operations

Wang Lixing 38 Director, Management Center

Hu Bin 35 Deputy General Manager

Page 15: Treyo Leisure and Entertainment Co., Ltd

Products – AM Tables

Page 16: Treyo Leisure and Entertainment Co., Ltd

Production

AM Table Production Stages

Assembly of minor components

Assembly of raising and lowering motors

Assembly of Roller Motors

Assembly of friction pulley

Assembly of delivery unit

Assembly of overlapping delivery unit

Assembly of chain motor unit

Assembly of dice board unit

Assembly of horizontal sliding unit

Assembly of lifting unit

Production of wire harness

Assembly of electronic components

Surface processing

General Assembly

Assembly of external frame

Testing and packing

Page 17: Treyo Leisure and Entertainment Co., Ltd

Financial Information

Table

RMB (000's) AUD (000's)Actual Forecast Actual Forecast

2006 2007 2008 2009 2006 2007 2008 2009

Revenue 482,000 422,000 455,000 609,000 84,710 74,165 79,965 107,030

Net Profit 37,000 36,000 45,000 60,000 6,503 6,327 7,909 10,545

Total Assets 269,000 321,000 310,000 340,000 47,276 56,415 54,482 59,754

Liabilities 164,000 181,000 338,000 463,000 28,822 31,810 59,402 81,371

Total Equity 105,000 140,000 275,000 294,000 18,453 24,605 48,330 51,670

*1 AUD = RMB5.69              

Page 18: Treyo Leisure and Entertainment Co., Ltd

Financial InformationMatsuoka Historical and Forecast Revenue and Profit

120,000

100,000

80,000

60,000

40,000

20,000

02006 2007 2008 2009

Revenue

Net Profit

Actual ForecastAUD(000’s)

Page 19: Treyo Leisure and Entertainment Co., Ltd