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Page 1: BW 1Q Corporate Presentation [Read-Only] - listed companybestworld.listedcompany.com/.../BW_May052016_1Q_Corporate_Presentation.p… · Corporate Presentation . ... Arab Emirates

Corporate Presentation

Page 2: BW 1Q Corporate Presentation [Read-Only] - listed companybestworld.listedcompany.com/.../BW_May052016_1Q_Corporate_Presentation.p… · Corporate Presentation . ... Arab Emirates

The presentation herein may contain forward looking statements by the management of Best World International Ltd (BWI) that pertain to expectations for financial performance of future periods vs past periods. Such forward looking statements involve certain risks and uncertainties as they relate to future events. Actual results may vary materially from those targeted, expected or projected due to various factors. Such factors are, among others, general economic conditions, foreign exchange fluctuations, competitive product and pricing pressures as well as changes in tax regimes and regulatory developments. Such statements are not and should not be construed as management’s representation on the future performance of BWI. Therefore, the actual performance of BWI may differ significantly from expressions provided herein. The reader is cautioned to not unduly rely on these forward-looking statements.

Neither the Group nor its advisers and representatives shall have any liability whatsoever for any loss arising, whether directly or indirectly, from any use or distribution of this presentation or its contents.

This presentation is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for shares in BWI.

Page 3: BW 1Q Corporate Presentation [Read-Only] - listed companybestworld.listedcompany.com/.../BW_May052016_1Q_Corporate_Presentation.p… · Corporate Presentation . ... Arab Emirates

• About Best World

• 1Q 2016 Financial Highlights

• Strategy & Outlook

• Q&A

Content

Page 4: BW 1Q Corporate Presentation [Read-Only] - listed companybestworld.listedcompany.com/.../BW_May052016_1Q_Corporate_Presentation.p… · Corporate Presentation . ... Arab Emirates

Our Vision

To be a global leading health and wellness company dedicated to creating products that enhance the lives of our customers.

Page 5: BW 1Q Corporate Presentation [Read-Only] - listed companybestworld.listedcompany.com/.../BW_May052016_1Q_Corporate_Presentation.p… · Corporate Presentation . ... Arab Emirates

About Best World

• Founded in 1990, Best World International specializes in

– Premium skincare,

– Health Supplements

– Nutritional and wellness products.

• Today, Best World is a key regional player with a network of over 412,000 independent distributors and members in the 12 markets we operate in.

Page 6: BW 1Q Corporate Presentation [Read-Only] - listed companybestworld.listedcompany.com/.../BW_May052016_1Q_Corporate_Presentation.p… · Corporate Presentation . ... Arab Emirates

About Best World

• In July 2004, Best World became the first direct-selling company to be public listed on the Singapore Stock Exchange.

• Through our wholly owned subsidiary in the PRC, we also manufacture and distribute the Aurigen line of supplements in China through drugstores in 28 provinces of PRC.

Page 7: BW 1Q Corporate Presentation [Read-Only] - listed companybestworld.listedcompany.com/.../BW_May052016_1Q_Corporate_Presentation.p… · Corporate Presentation . ... Arab Emirates

• Marketing through extensive regional network

• Sizeable member base with strong growth ensures push of new and existing products to drive top and bottom line growth

• Unique system of training classes and compensation scheme to effectively engage members

• Member’s commission derived based on sales

• Highly scalable with little capex required as key costs are mainly related to commissions

3rd Party Manufacturing

Marketing Tools

Product Registration

Product Concept

Direct Selling

About Our Direct Selling Model

Page 8: BW 1Q Corporate Presentation [Read-Only] - listed companybestworld.listedcompany.com/.../BW_May052016_1Q_Corporate_Presentation.p… · Corporate Presentation . ... Arab Emirates

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

2010 2011 2012 2013 2014 2015 1Q2016

Membership (2010-1Q2016)

Overall Membership

Page 9: BW 1Q Corporate Presentation [Read-Only] - listed companybestworld.listedcompany.com/.../BW_May052016_1Q_Corporate_Presentation.p… · Corporate Presentation . ... Arab Emirates

Ideal model for each market

Direct Selling

Growth markets with track record and set regulations (e.g. Philippines, Taiwan)

Export

When market regulations are not clearly defined; appoint local distributor as lead (e.g. China, Myanmar)

Manufacturing

Large mature markets with domestic demand (e.g. China, Japan, US, Europe)

Our Business Segments

Page 10: BW 1Q Corporate Presentation [Read-Only] - listed companybestworld.listedcompany.com/.../BW_May052016_1Q_Corporate_Presentation.p… · Corporate Presentation . ... Arab Emirates

DD

Transfer Price Transfer Price(a fraction of

members’ price)

Members’ Price

Best World HQ

Subsidiary

DDDDDD

DD

DDDDDD

vs Best World HQ

Agent

Our Business Segments

Direct Selling Export

Page 11: BW 1Q Corporate Presentation [Read-Only] - listed companybestworld.listedcompany.com/.../BW_May052016_1Q_Corporate_Presentation.p… · Corporate Presentation . ... Arab Emirates

• Founded in 1990

• Opening of first business centre in Malaysia in 1998

• Listed on SGX in 2004

• Entered into Thailand Market in 2004

• Expanded into Vietnam with new lifestyle center in 2005

• Expanded outside South East Asia with Hong Kong Regional Center in 2006

• Expanded into Taiwan Market in 2006

• Grand launch of Indonesia Market in 2007

• Entered into Korea Market in 2009

• Ventured into Philippines in 2010

• Completed acquisition of Zhejiang SolidGoldPharmaceutical Co., Ltd. in 2014

• Established a Joint Venture in Dubai, the United Arab Emirates in 2016

Corporate Milestones

Page 12: BW 1Q Corporate Presentation [Read-Only] - listed companybestworld.listedcompany.com/.../BW_May052016_1Q_Corporate_Presentation.p… · Corporate Presentation . ... Arab Emirates

Our Markets

Page 13: BW 1Q Corporate Presentation [Read-Only] - listed companybestworld.listedcompany.com/.../BW_May052016_1Q_Corporate_Presentation.p… · Corporate Presentation . ... Arab Emirates

Our Brands

Page 14: BW 1Q Corporate Presentation [Read-Only] - listed companybestworld.listedcompany.com/.../BW_May052016_1Q_Corporate_Presentation.p… · Corporate Presentation . ... Arab Emirates

Our Brands

Page 15: BW 1Q Corporate Presentation [Read-Only] - listed companybestworld.listedcompany.com/.../BW_May052016_1Q_Corporate_Presentation.p… · Corporate Presentation . ... Arab Emirates

Recent Corporate Events

Page 16: BW 1Q Corporate Presentation [Read-Only] - listed companybestworld.listedcompany.com/.../BW_May052016_1Q_Corporate_Presentation.p… · Corporate Presentation . ... Arab Emirates

2015, 2009, 2008

Our Awards

Page 17: BW 1Q Corporate Presentation [Read-Only] - listed companybestworld.listedcompany.com/.../BW_May052016_1Q_Corporate_Presentation.p… · Corporate Presentation . ... Arab Emirates

1Q2016

Financial

Highlights

Page 18: BW 1Q Corporate Presentation [Read-Only] - listed companybestworld.listedcompany.com/.../BW_May052016_1Q_Corporate_Presentation.p… · Corporate Presentation . ... Arab Emirates

Financial Review � OVERVIEW

Steady Revenue growth• Gaining momentum in key markets

Stable financial margins• Stable distribution expenses

9.0 12.8 13.5

35.28.8

18.3 21.09.2

19.226.2

14.0

25.0

40.9

0.0

20.0

40.0

60.0

80.0

100.0

120.0

2013 2014 2015 2016Q3 Q4 Gross Profit Net Profit

Page 19: BW 1Q Corporate Presentation [Read-Only] - listed companybestworld.listedcompany.com/.../BW_May052016_1Q_Corporate_Presentation.p… · Corporate Presentation . ... Arab Emirates

Revenue by Business Segmentation

Direct Selling74.1%

Export13.3%

Manufacturing/Wholesale

12.6%

1Q2015

Direct Selling69.4%

Export27.9%

Manufacturing/Wholesale

2.7%

1Q2016

Direct Selling Export Manufacturing/Wholesale

Page 20: BW 1Q Corporate Presentation [Read-Only] - listed companybestworld.listedcompany.com/.../BW_May052016_1Q_Corporate_Presentation.p… · Corporate Presentation . ... Arab Emirates

Revenue by Region

Singapore 4.0%

China30.0%

Taiwan,57.4%

Indonesia 4.0%

Others 4.6%

1Q2016

Singapore China Taiwan Indonesia Others

Singapore 14.5%

China22.9%

Taiwan33.1%

Indonesia 3.5%

Others26.0%

1Q2015

Page 21: BW 1Q Corporate Presentation [Read-Only] - listed companybestworld.listedcompany.com/.../BW_May052016_1Q_Corporate_Presentation.p… · Corporate Presentation . ... Arab Emirates

China• Revenue increased

242.2% from $3.1 million for 1Q2015 to $10.6 million for 1Q2016

• Higher export orders due to increased demand for our skincare and functional food lines

120

2,195 3,088

10,566

973

3,296

5,366

694

3,117

4,805

784

4,372

6,512

2013 2014 2015 2016

China S$('000)

Q1 Q2 Q3 Q4

Page 22: BW 1Q Corporate Presentation [Read-Only] - listed companybestworld.listedcompany.com/.../BW_May052016_1Q_Corporate_Presentation.p… · Corporate Presentation . ... Arab Emirates

Taiwan• Revenue increased

352.9% from $4.5 million for 1Q2015 to $20.2 million for 1Q2016

• Series of successful marketing campaigns, opening of the third RC in Kaohsiung in 1Q2016 and successful new product launch

• Launch of online store allows customers and distributors to make purchase during holiday seasons

2,498 2,418 4,465

20,221

2,553 4,156

10,244

2,674

4,940

14,125

5,484

11,196

27,559

2013 2014 2015 2016

Taiwan S$('000)

Q1 Q2 Q3 Q4

Page 23: BW 1Q Corporate Presentation [Read-Only] - listed companybestworld.listedcompany.com/.../BW_May052016_1Q_Corporate_Presentation.p… · Corporate Presentation . ... Arab Emirates

• Revenue increased 199.8% from $0.5 million for 1Q2015 to $1.4 million for 1Q2016

• More active and productive distributors promoting the weight management line and series of successful promotion campaigns

1,098 881 467

1,400

944 883

745

1,339

618

2,380

845

514

2,914

2013 2014 2015 2016

Indonesia S$('000)

Q1 Q2 Q3 Q4

Indonesia

Page 24: BW 1Q Corporate Presentation [Read-Only] - listed companybestworld.listedcompany.com/.../BW_May052016_1Q_Corporate_Presentation.p… · Corporate Presentation . ... Arab Emirates

• Revenue declined 28.8% from $2.0 million for 1Q2015 to $1.4 million for 1Q2016

• Stiff market competition and higher involvement of Singapore top distributors in other growing key markets

• Plans for FY2016:• Promotion of brand

awareness, launch new products to attract new consumers and train existing distributors to take on the role of top distributors whom in turn will devote more turn to other growing key markets

2,109 2,077 1,958 1,394

1,801 2,024 1,958

1,788 2,304

1,767

2,446

2,432

1,735

2013 2014 2015 2016

Singapore S$('000)

Q1 Q2 Q3 Q4

Singapore

Page 25: BW 1Q Corporate Presentation [Read-Only] - listed companybestworld.listedcompany.com/.../BW_May052016_1Q_Corporate_Presentation.p… · Corporate Presentation . ... Arab Emirates

• Revenue from Other Markets declined from $3.5 million in 1Q2015 to $1.6 million in 1Q2016, as a result of lower contribution from Thailand, Philippines, Myanmar and Malaysia offsetting improvement from Hong Kong, Vietnam and Korea.

Other Markets

• Apart from new product launches, new strategies will be implemented on a country by country basis to stimulate new members recruitment and product demand.

Page 26: BW 1Q Corporate Presentation [Read-Only] - listed companybestworld.listedcompany.com/.../BW_May052016_1Q_Corporate_Presentation.p… · Corporate Presentation . ... Arab Emirates

Revenue by Products

Skin Care

70%

Health

Supplements

11%

Weight

Management

16%

Others

3%

Skin Care Health Supplements

Weight Management Others

FY2015

Skin Care

74%Health

supplements

8%

Weight

Management

11%

Others

7%

Skin Care Health Supplements

Weight Management Others

1Q2016

Page 27: BW 1Q Corporate Presentation [Read-Only] - listed companybestworld.listedcompany.com/.../BW_May052016_1Q_Corporate_Presentation.p… · Corporate Presentation . ... Arab Emirates

S$’000 As at 31 Mar 2016 As at 31 Dec 2015

Cash & Cash Equivalents 46,651 47,247

Non-Current Assets 17,200 17,804

Current Assets 83,311 76,599

Non-Current Liabilities 2,291 2,321

Current Liabilities 31,174 30,097

Net Gearing Net cash Net cash

Balance Sheet Highlights

Strong Balance Sheet

supported by healthy cash position and low gearing ratio

Dividend Policy

at least 30% of profit after tax

Page 28: BW 1Q Corporate Presentation [Read-Only] - listed companybestworld.listedcompany.com/.../BW_May052016_1Q_Corporate_Presentation.p… · Corporate Presentation . ... Arab Emirates

Strategy

& Outlook

Page 29: BW 1Q Corporate Presentation [Read-Only] - listed companybestworld.listedcompany.com/.../BW_May052016_1Q_Corporate_Presentation.p… · Corporate Presentation . ... Arab Emirates

Growth Opportunities in Key Markets

Taiwan China Indonesia

• Ranked among the Top 15Direct Selling brands inTaiwan in 2015 by the FairTrade Commission of theRepublic of China (中華

民國公平交易委員會)

• The number one in Taiwan,Amway, has a marketshare of NT$11.7B

• Laid the groundwork inpreparation for its directselling market through:

- Registering all of itsproducts

- An established networkvia export agents

- Good understanding ofthe different cultures inkey provinces

• Top leaders trained inTaiwan will be forerunnersin China’s direct sellingmarket

• Positive results underscorenew motivated leaderdistributors that have beenacquired

• Continues to be an excitingmarket for the Group’sweight managementproducts

Page 30: BW 1Q Corporate Presentation [Read-Only] - listed companybestworld.listedcompany.com/.../BW_May052016_1Q_Corporate_Presentation.p… · Corporate Presentation . ... Arab Emirates

Tap into organic growth opportunities to gain access to new markets and/or new distribution channels

Attain exclusivity to new products/services

Tap into upstream value chain of business which are synergistic to ours

1

2

3

Growth Strategy

Page 31: BW 1Q Corporate Presentation [Read-Only] - listed companybestworld.listedcompany.com/.../BW_May052016_1Q_Corporate_Presentation.p… · Corporate Presentation . ... Arab Emirates

Market Outlook

Information source: directsellingnews.com (website was designed to offer a comprehensive global view of the direct selling industry.)

• Direct selling remains uniquely poisedfor expansion in both advanced andemerging markets

- Posted 6.5% three year CAGRfrom 2011 to 2014

• China and other Asian countries, plusemerging markets in Latin America,are fuelling much of the industry’sgrowth.

- Emerging markets as a wholeproduced 45% of all 2014 directretail sales, a 7% increase from2010 to 2014

• Beauty, personal care and wellnessproducts are the most popularglobally and regionally

Page 32: BW 1Q Corporate Presentation [Read-Only] - listed companybestworld.listedcompany.com/.../BW_May052016_1Q_Corporate_Presentation.p… · Corporate Presentation . ... Arab Emirates

Group Outlook • Continue to build on growth momentum in

key markets

• Application for direct selling license in Chinais in progress – potential market demandmay increase in multiple folds

• Continue to monitor the movement ofcurrencies of key markets which the Groupoperates in or trades in

• Cautiously optimistic of a positive FY2016performance, due to continual growth in keymarkets like Taiwan, China and Indonesia aswell as the launch of several new products inthe next few quarters

Page 33: BW 1Q Corporate Presentation [Read-Only] - listed companybestworld.listedcompany.com/.../BW_May052016_1Q_Corporate_Presentation.p… · Corporate Presentation . ... Arab Emirates

Investment Merits

Value Proposition

Established network of distributors

Wide range of products backed by

good reviews

Growth Prospects

Growing revenue driven by momentum

in key markets; awaiting license from

China

Stable margins due to economies of

scale and operational efficiencies

Strong Balance Sheet

Healthy cash position with low

gearing

Dividend policy of at least 30% of net profit after tax

Page 34: BW 1Q Corporate Presentation [Read-Only] - listed companybestworld.listedcompany.com/.../BW_May052016_1Q_Corporate_Presentation.p… · Corporate Presentation . ... Arab Emirates

Thank You!

Q&A

Page 35: BW 1Q Corporate Presentation [Read-Only] - listed companybestworld.listedcompany.com/.../BW_May052016_1Q_Corporate_Presentation.p… · Corporate Presentation . ... Arab Emirates

Appendix

Page 36: BW 1Q Corporate Presentation [Read-Only] - listed companybestworld.listedcompany.com/.../BW_May052016_1Q_Corporate_Presentation.p… · Corporate Presentation . ... Arab Emirates

Taiwan Direct-Selling Market (2015) Rank Company Sales Figure

1 Amway NT$11.7N

2 Pro-Partner NT$7.1B

3 Melaleuca *NT$4.8B

4 Herbalife *NT$4.6B

5 Nu Skin *NT$4.5B

6 Market America *NT$4.3B

7 Total Swiss International Group NT$4.2B

8 Jeunesse Global NT$2.7B

9 E. Excel NT$2.3B

10 Avon Products *NT$2.1B

*= Estimated

Information extracted from: Power Networking Monthly magazine

Page 37: BW 1Q Corporate Presentation [Read-Only] - listed companybestworld.listedcompany.com/.../BW_May052016_1Q_Corporate_Presentation.p… · Corporate Presentation . ... Arab Emirates

Best World Products Before VS. After