For personal use only +61 (0) 8 9450 7411 - ASX · 2008-03-07 · ATOS WELLNESS LTD 22 Letchworth...

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ATOS WELLNESS LTD 22 Letchworth Centre Ave, Salter Point, 6152 Western Australia, ACN 100 531 191 Tel: 8 9450 7411, Fax: 8 9450 7422, E-mail: [email protected] ASX RELEASE 6 th March 2008 BUSINESS PLAN FOR 2008, 2009 AND 2010 FINANCIAL YEARS Atos Wellness Ltd (ASX Code: ATW) (“Company”) advises that the attached Business Plan for the financial years ended 30 June 2008, 2009 and 2010 is the one referred to in the Directors’ Report accompanying the Company’s Financial Report for the half year ended 31 December 2007. Ananda Rajah Executive Director & CEO ATOS WELLNESS LTD +61 (0) 8 9450 7411 For personal use only

Transcript of For personal use only +61 (0) 8 9450 7411 - ASX · 2008-03-07 · ATOS WELLNESS LTD 22 Letchworth...

Page 1: For personal use only +61 (0) 8 9450 7411 - ASX · 2008-03-07 · ATOS WELLNESS LTD 22 Letchworth Centre Ave, Salter Point, 6152 Western Australia, ACN 100 531 191 Tel: 8 9450 7411,

ATOS WELLNESS LTD22 Letchworth Centre Ave, Salter Point, 6152 Western Australia, ACN 100 531 191

Tel: 8 9450 7411, Fax: 8 9450 7422, E-mail: [email protected]

ASX RELEASE

6th March 2008

BUSINESS PLAN FOR 2008, 2009 AND 2010FINANCIAL YEARS

Atos Wellness Ltd (ASX Code: ATW) (“Company”) advises that the attached Business Plan for the financial years ended 30 June 2008, 2009 and 2010 is the one referred to in the Directors’ Report accompanying the Company’s Financial Report for the half year ended 31 December 2007.

Ananda RajahExecutive Director & CEOATOS WELLNESS LTD+61 (0) 8 9450 7411

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BUSINESS PLAN

FOR

2008, 2009 and 2010 FY

ATOS WELLNESS LTD

22 Letchworth Centre Ave, Salter Point, 6152 Western Australia, Tel: 8 9450 7411 , Fax: 8 9450 7422 ABN: 85 100 531 191

BY ANANDA RAJAH

CEO and Executive Director of ATOS Wellness LtdFor

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CONTENTS: Page

A) Executive Summary 3

B) Financial Projections 10

C) Organization Chart 12

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3 Year Business Plan for Atos Wellness Ltd

Executive Summary

In January 2008 the ATOS – MEDEC merger was finalized and the company was renamed as ATOS Wellness Ltd (ASX Code: ATW). On 27th February 2008, Mr Siva Ananda Rajah S/O Retnam (Ananda Rajah) was appointed as an Executive Director and as the Chief Executive Officer (CEO) of ATOS Wellness Ltd (ATW). The interim CEO, Mr Bernard Wee, of ATW has accepted the position of Chief Financial Officer (CFO) of ATW. The operational head office of ATW is in Singapore in consideration of more than 75% of the group’s revenue, staff and management being Singapore based.

Mr Ananda Rajah studied Medicinal Chemistry at the University of Northwest London from 1979 – 1983 and graduated with an honors degree. In 1984 he started Atos which grew over the last 25 years to become the Atos group (this includes Body Contours (which he founded in 1997), Atos Wellness Pte Ltd and Inahamani Pte Ltd)with a combined staff strength of more than 350 employees.

Ananda’s first contact with Medec was in 2003. He met the CEO and founder of Medec, Mr Josef Plattner, at an exhibition in Singapore and immediately recognized the huge potential of the Medec Bioresonance System (BRS). He purchased 20 units of the BRS to trial them with his clients in his wellness centres. The results were encouraging as more than 75% of the clients were satisfied with the complimentary benefits the use of this product gave them.

Recognizing a global market for the BRS Ananda decided to sell 51% of his Body Contours company to Medec in July 2006 (75% of his consideration was in Medec shares at A$0.30). To halt further erosion of the share price, Medec took the decision to divest its non core manufacturing facility Athlegen in Ballarat Australia.

Atos group of companies agreed to merge with Medec Ltd in mid 2007 receiving shareholder approval at the general meeting held in January 2008. Ananda displayed his confidence by accepting a full script offer (at $0.12 per share) as consideration for the transaction. Ananda’s vision was to duplicate the successful Singapore business model into Australia, Germany, Malaysia and India where Atos today has a foothold.

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Review and restructure of Operations

The 2008 FY (presently 01 July 2007 – 30 June 2008) will be a year of consolidation and restructure, which will include the divestment of loss making subsidiaries and non-core activities.

In November 2007 MEDEC Ltd sold MEDEC Australia Pty Ltd in a managementbuyout. This resulted in write-offs of A$3.7 million MEDEC Ltd assets in the first half of the MEDEC 2008 FY.

Further consolidation is already taking place for Bodycure (under new management) and MEDEC Systems in Germany and for Inspired Life in Australia (both under new executive management).

The German manufacturing facility (of MEDEC Energy Medicine products) will be maintained. Further product development is in train with Joint – Venture partners in Australia and Germany, allowing sales to a wider distribution base.

The Bodycure weight management expertise (under new management), Intellectual Property and franchise group will be maintained whilst seeking equity partners for the German operation of Bodycure Germany GmbH.

The consolidation in the second half of the 2008 FY will result in some further write-off of MEDEC Assets, but will prepare the new ATOS Wellness Ltd group for good profitability and good cash flow in the 2009 FY and for expansion and growth in the 2010 FY.

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ATOS Wellness Ltd business - present

This presently consists of:

ATOS Wellness Pte Ltd in Singapore with several up market Wellness Centers throughout Singapore producing S$13.0 Million per annum of revenue and S$2.5 Million EBITDA.

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Body Contours Pte Ltd in Singapore operates 5 executive Day Spas in Singaporeplus 2 Aesthetic Beauty Clinics and a Wellness lounge at the new Terminal 3 at Changi International Airport. Body Contours budgets annual revenue of S$10.0 Million with EBITDA of S$1.0 Million. A first Body Contours Wellness Center has been established in 2007 in the Kuala Lumpur Central Business District, Malaysia, which is already operating profitable and has positive cash flow.

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Future business focus, direction and expansion in 2008 - 2010.

ATOS Singapore has established a successful model providing wellness services together with Medec energy products to give the client a complete health and wellness solution. In 2008 this model will be fine tuned and introduced to some of the world’s major markets, where the ATOS group has already established itself.

India – the second biggest market in the world.

The ATOS group has established a pilot wellness centre in Chennai that will be expanded throughout India as a franchise once this model has been fine tuned to success.

Meanwhile joint venture negotiations are taking place with the Manipal group who have been established since 1956. The Manipal group owns 2 large hospitals in India and medical universities in India and Malaysia. Atos is in discussions for clinical trials on Medec products in India over the next 6 to 12 months that will allow the Manipal seal of approval to be given to Medec products. This would then allow Medec products to be sold through Manipal’s distribution network of doctors throughout India

Malaysia – expanding the Singapore model to Malaysia

Following the setting up of our first Body Contours spa in Kuala Lumpur, a corporate study identified the market for 6 similar Body Contours spas in Malaysia.

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Australia – Corporate Head Office for ATW Ltd

All corporate records are kept at our Perth Office at Letchworth Centre Avenue, Salter Point, Perth, Western Australia.

GermanyBodycure is a scientific and medically approved weight management concept that has received the German Franchise Association Seal of Approval. The ATOS group has started to integrate the concept to Inspired Life in Australia and soon intends to expand this to Singapore and India as well.

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MEDEC’s production in Straubenhardt will be scaled up in 2008 in preparation for increased sales of Medec products within Bodycure, Inspired Life and Atos Wellness centres in Singapore. The MEDEC diagnostic products Caloriefit and Biograph form an integral part of the ATOS Wellness model. We expect a 10 fold increase in the sale of Caloriefit units in the next 12 months compared to the previous year.

ATOS Wellness is also negotiating to supply private label MEDEC products (OEM’s) to national and international distributors of Health and Wellness services and productsin Australia and Germany.

RMITThe research, development and training collaboration platform which MEDEC has established with RMIT University and other research institutions will be maintained by the ATOS group, allowing the further development of existing products and integration of additional products into the Medec line.

SingaporeNew ventures have been successfully pioneered in 2007 and will be fine tuned and expanded in 2008.

This includes

a) MEDICAL PROGRAMME Aesthetic Clinics have been established close to two of the most successful Body Contours wellness centers providing medical wellness and beauty services including cosmetic surgery. Many Singapore doctors now support and want to run our Aesthetic Clinics.

b) SCHOOLS PROGRAMME The successful launch of the first AtosWellness centre at a leading secondary school using MEDEC diagnostic and bioresonance devices in combating obesity in teenagers. Other schools and institutions in Singapore are now interested in this model. .

c) CORPORATE PROGRAMME Large corporate clients have agreed for wellness retreat sessions for their staff at their corporate HQ which will use Medec products and Atos Wellness services.

These activities have already made ATOS the largest distributor of MEDEC products in 2007.

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Revenue and earnings projections for the 2008, 2009 and 2010 Financial Years

The board and executive management of ATOS Wellness is confident that the restructure and consolidation of the group will be substantially completed in the 2008 Financial Year and the group will be profitable in the 2009 FY.

Based on the present revenue of ATOS Wellness Pte Ltd, Body Contours Pte Ltd, Inspired Life, Bodycure and some conservative scaling of the projects described above the projections for the next 3 years are:

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The confidence of the Executive Management is best demonstrated by the CEO’s employment contract of Mr. Ananda Rajah, who has agreed to work for a nominal CEO salary of A$1 plus 3 million ATW options at A$0.12, 1 million options atA$0.18 and 1 million options at A$0.24 providing the EBITDA of A$2million is reached for the 2009 Financial Year (01 July 2008 to 30 June 2009).

The reasons for this package are:

1. It sends a message through the ATW organization that we have to reduce corporate costs while maintaining and improving sales and profits in the organization.

2. It will show confidence to employees, suppliers and our shareholders that the incoming CEO is totally confident of the future growth potential of the organization.

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Organization Chart

ATOS WELLNESS LIMITEDMr.Gordon Getley, Chariman

Mr.Ananda Rajah, Executive Director

Mr.Giulio Cimetta, Non Executive Director

CEO-Mr.Ananda RajahCFO-Mr.Bernard Wee

ATOS WELLNESS

PTE LTD

BODY

CONTOURSBODYCURE INSPIRED LIFE

MEDEC

SYSTEMS

( Health & WellnessServices)

SINGAPORE

INDIA

WELLNESS

LOUNGE

St.Joseph's

Convent-Singapore

(Wellness & Beauty Clinics)

SINGAPORE

MALAYSIA

CORPORATE CENTER

Changi Airport

SINGAPORE

( Weight Management

Services )

GERMANY

AUSTRALIA

(Health, Wellness, Fitness & Weight Management )

AUSTRALIA

CORPORATE

FRANCHISE

(Medical & Wellness Electronic Products )

GERMANY

THAILAND

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