OSIM INTERNATIONAL LTD
description
Transcript of OSIM INTERNATIONAL LTD
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