OSIM INTERNATIONAL LTD Presentation Of Interim Results For Six Months To 30 June 2001 26 July 2001
Jan 14, 2016
OSIM INTERNATIONAL LTD
Presentation
Of
Interim Results
For Six Months To 30 June 2001
26 July 2001
Interim Results
($mil) June 2001 June 2000 % change
EPS (cts)
$81.5m$7.4m
$2.1m
$5.1m6.3%
2.23 1.61
5.8%
$3.7m
$1.5m
$5.3m$63.7m
8.4%
+39%
+39%
9.1%
+39%+28%
HIGHLIGHTS OF LATEST INTERIMS
• Turnover growth broad-based; every major market recorded higher sales.
• Profit margin expanded – increase in sales per outlet and better economies of scale of retail operations.
• Main product launches in 1H – New Millennium chairs and Pro Therapist.
• Sales outlets increased by 49, to 251.
• Historically, 2H performance better. Same trend expected this year.
Interim Turnover By Key Markets
$81.5mTotal
+57%7.3%$5.9mMalaysia
+160%7.4%$6.1mChina
+22%17.7%$14.4mTaiwan
+14%20.8%$16.9mSingapore
+23%46.8%$38.2mHong Kong
% change% of totalTurnover
Turnover By Key Markets
9.5%14.7%Bottom two key markets: China & Malaysia
71.8%67.6%Top two key markets: HK & S’pore
30 June 200030 June 2001
OSIM
is
a knowledge-based business
OSIM
• Is involved in the design, product development, marketing and retailing of home health care products.
• We manage our brands by selling our products through our stores.
• We are ranked No.1 brand for home health care products in HK & Singapore.
OSIMhome health care products
• Manufacturing is outsourced, with products made to our specifications.
• No commercial manufacturing of products are undertaken internally.
Benefits of outsourcing manufacturing:
1. Lower production costs;
2. Less investment in fixed assets;
3. Flexibility in managing production;
4. Focus on value-added design, product development and brand management.
Our Vision
To Be The Leading Global Brand
In Home Health Care
& Healthy Lifestyle Products
The Road Map Ahead
Up until June 2001, we have Health Focus
Main Products :
Massage Couch
Foot Reflexologist
Pro Therapist
Mobile Massagers
Blood Pressure Monitors
Digital Thermometer/Ear Scan
31.442.9
60.869.7
103.1
135.6
0
20
40
60
80
100
120
140
Turn
over
1995 1996 1997 1998 1999 2000
CAGR = 34%
Financial Year End 31 DecemberFinancial Year End 31 December
$’ Million
Financial Highlights: FY 1995 to FY 2000
Financial Highlights: FY 1995 to FY 2000
CAGR = 34%
$’ Million
1.6
3.74.4
3.2
10.8
13.8
0
2
4
6
8
10
12
14
PB
T
1995 1996 1997 1998 1999 2000
CAGR = 54%
Financial Year End 31 DecemberFinancial Year End 31 December
$’ Million
Current network of Health Focus outlets
249Total
32Others
34Malaysia
56China
35Taiwan
46Singapore
46Hong Kong
No. of stores
(as at 30 June 2001)
Our Aim
• Worldwide point-of-sales outlets:• End 2001 – 300
• End 2003 – 500
• End 2008 – 1,000
Group Revenue Target in 2008 - S$1,000 million
• To reach target, has to grow FY2000 turnover of $136 mil at annual compound rate of 28.5%.
• From FY1995 to FY2000, the CAGR for turnover was 34%.
• At interim FY2001, turnover growth was 28%.• We believe we are on target to reach S$1 billion
by 2008.
Store Growth
June 2001 Dec 2001 Dec 2003
Our projection 300 500
Breakdown by:
North Asia 137 157 300(China, HK, Twn)
South Asia 87 110 180(Msia, Spore, Thai)
Rest of World 27 33 65
TOTAL 251 300 545
Existing Health Focus • Expand store numbers in 5 existing markets,
especially China and Malaysia• Expand to new geographical territories through
franchising
- recently signed franchisees - UK, Korea
- under discussion - South Africa, Australia, Philippines
Strategies for Revenue & Store Growth
Strategies for Revenue & Store Growth
Add New Focuses
• Launched Hygiene Focus this month
- water based vacuum cleaner
- steam cleaner
- water filters
- air purifiers
Strategies for Revenue & Store Growth
Add New Focuses • Fitness Focus - 3rd quarter 2001• Nutrition Focus - End of 2001
Rationale for Expansion into Hygiene, Fitness & Nutrition
• To fulfil our vision as a “home health care” group• New focuses will benefit from the OSIM brand
name• Synergies from joint marketing & promotion• By broadening our product offerings to our
customers, we can cross sell