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