Presented by Eric Wu Chairman and CEODR.WU’s Hydrating and Whitening Serum was recommend by arbie...
Transcript of Presented by Eric Wu Chairman and CEODR.WU’s Hydrating and Whitening Serum was recommend by arbie...
TAIWAN’S NO. 1 MEDICAL SKINCARE
Presented by Eric Wu Chairman and CEO
DR.WU Brand Introduction - Quick Facts About Us
Founded 2003 by Dermatologist
83 Staffs HQ in Taipei and Shanghai
2014 Net Income of US$ 8 mn
22% Invested by LVMH Group
1200 POS 7 Countries
10 Product Lines - 60 SKU
DR.WU Company Introduction Brand Introduction - Our Philosophy About Skincare
- Brand Origin of DR.WU
- Milestones of DR.WU
- Affiliated Enterprise
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DR.WU Company Introduction - Our Philosophy About Skincare
Taiwan’s No.1 Medical Skincare
DR.WU is a line of highly effective skincare products
developed with advanced patented technologies to target
various problems in Asian skins. Our philosophy behind our
pursuit for enhancing beauty and wellness is through simple,
effective products backed by the latest discovery in Science,
Biotechnology and Cosmetics. We believe in the partnership
between innovation and science to bring about non-surgical
solutions in enhancing one’s beauty and wellness.
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DR.WU Company Introduction - Brand Origin of DR.WU
Renowned Dermatologist and Aesthetic Surgeon in Asia Brand Founder of DR.WU Clinical Professor of National Taiwan University Hospital (NTUH) Founder and Chief Physician of WCLINIC and WSPA
• 1978 Opened his first dermatology clinic • 1981 Institut National de la Santé et de la Recherche Médicale –
Immunology Researcher. • 1990 Developed esthetic medical treatments and dermatology ointments
and emulsion formula • 1996 Developed first Intensive Whitening Serum with Arbutin
1.5 Generation Entrepreneur
Founder of DR.WU SKINCARE CO
Columbia University, School of Engineering and Applied Science
• 1998 PwC Chairman’s Office, Corporate Development Associate
• 2001 Return Taiwan to work for VC funds and started planning for re-organization of family business
• 2003 Founded DR.WU SKINCARE CO and launched first product under the Brand DR.WU
「Create perfect skin
through simple but effective ways」
--Our Philosophy & Goal .
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Eric Wu, Chairman & CEO
DR. Wu Ying-Chin
DR.WU Company Introduction - Milestones
Full Launch in Cosmed Chain Drugstores DR.WU’s Hydrating and Whitening Serum was recommend by Barbie Hsu “the Beauty Queen” Launch in SASA, Health Drugstores, Etc.
Expanded business overseas: Hong Kong, U.S.A ,New Zealand and Yahoo! POS of total 500 stores. Product lines add to 6 series .
Launch in Watsons and regional expansion to Singapore. POS of total 900 stores
DR.WU Clinical Skincare brand and the Company were formally incepted
DR.WU’s Total Sales has reached No.1 in Cosmeceuticals Sector and launched over 100 SKU
Set up Department Store Counters in Shinkong Mitsukoshi, becoming the first medical skincare brand having outlets in a department store
Expanded business into Malaysia, Have received recognitions from major Beauty Awards
Launched product in Canada Chairman Eric Wu won TOP 100 MVP Managers award
Number of sales points surpasses 1,200 Vitamin C+ Whitening System and UV Protect Suncare System launched Received numerous awards, #1 among local brands
Company renamed as DR.WU Skincare Received investment from L Capital Asia of LVMH Started E-commerce sales channel in China Setup of Medical Skincare Concept Stores in Taipei 101 Chairman Eric Wu received 2014 EY Entrepreneur Of The Year award
Went public and listed on Emerging Stock Market Board Employed artist as brand endorser for the first time
2003
2004
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2003
2009
2015 6
W Clinic
• Nanjing store
• Dazhi store
• Dunnan store
• Xinyi store
Dermatology
Esthetic Medicine
Non-Surgical Cosmetic Medicine
Beauty Injections
Body Care
W CLINIC GROUP DR.WU SKINCARE CO., LTD.
DR.WU (Taiwan)
• Brand Management
• Marketing & PR
• Design
• Product Development
• Procurement
• Finance
• Accounting
• Admin & Legal
DR.WU Company Introduction - Affiliated Enterprise
DR.WU (Shanghai)
• Brand Marketing
-Planning
-Media relations/PR
-E-commerce
-Offline sales
• Operations
-Accounting
-Administration
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Note: No cross shareholding, but owners of the 2 companies are father and son.
DR.WU Product Line Overview - Brand Concept
- Product Line Overview
- Brand Positioning
- R&D Core Competency
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40 Years of Clinical Studies Fix various skin problems based on 40 years
of clinical experience
Functional Solutions Target Asian Skin Developed specifically for Asian skin type
DR.WU CLINICAL SKINCARE
Taiwan’s No.1 Medical Skincare Brand
Micro- Surgery Concept Skincare
DR.WU Product Line Overview - Brand Concept
High
Po
ten
cy Effective an
d rap
id resu
lt for th
e beau
tiful skin
For Se
nsitive
Skin
Suitab
le for th
e fragile and
tend
er skin after th
e co
smetic su
rgeries
Micro
- Surge
ry Co
nce
pt Skin
care
Co
ncep
t for th
e med
icinal treatm
ent
-Co
ntin
uatio
n o
f med
ical skin care an
d
main
tenan
ce at ho
me
EFFECTIVE
Medical Professional, Scientific Testified
Patented Active Ingredient with Effectiveness
• DR.WU is a professional brand positioned to offer Micro-Surgery Concept Skincare with fast effective functional Skincare.
• Mid to High-end Skincare solutions developed by renowned Asian dermatologist for Asian skins, Targeting 18-40 year old.
TRUST
No Additives. No Alcohol. High Concentration.
High Grade Actives. High Safety Level.
EXCELLENCE
Innovation Technology, Good Quality of Process
CARING
One on one Care, Exclusive Physician,
Customized Programs, Corporate Responsibility
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VITAMIN C +
WHITENING SYSTEM
ACNECUR
ANTI-ACNE SYSTEM
AGEVERSAL
REPAIRING SYSTEM
MANDALIK
RENEWAL SYSTEM
HYALUCOMPLEX
HYDRATING SYSTEM
UV PROTECT
SUNCARE SYSTEM
MINERAL MAKE UP
PREMIUM SKINCARE
SKINCARE FOR MEN
SENSIPHYTE
BASIC CARE SYSTEM
DR.WU Product Line Overview - 10 Key Product Lines x 80 SKU
10 SERIES 80 SKU
ASP USD 30
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MANDALIK RENEWAL
DR.WU Product Line Overview - TOP 5 Star Products
HYDRATING SYSTEM
VITAMIN C + WHITENING SYSTEM #1 Intensive Hydrating Serum with Hyaluronic Acid
#2 Intensive Renewal Serum with Mandelic Acid 18%
#3 Microinject Hydrating Mask with Hyaluronic Acid
#4 Intensive Whitening Serum with Vitamin C+
#5 Intensive Repair Serum with Squalane
Serum and Mask Focused
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DR.WU Product Line Overview - Brand Positioning vs Competitors
High effectiveness
High price Low price
Low effectiveness
• DR.WU is a PROFESSIONAL brand positioned to offer Non-Surgical Cosmetic Medicine Concept Skincare with fast effective functional skincare
• Mid- to High-end Skincare solutions developed by renowned Asian dermatologist for Asian skins, targeting 18-35-year-old segment
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DR.WU Product Line Overview - Research Core Competency & Safety Management
Global Technical Cooperation Laboratories
over 100 international patented active ingredients
Patented Formula
Ying-Chin Wu, M.D. 40 years of clinical experience
Innovative Technology
3 major Microinject Delivery Technology-
Cellulose/Microinject mask
5 major cosmetic manufacturing companies
ISO Certified (ISO9001/ISPO022716/GMP)
DR.WU R&D Core Competency
200 Non-Additives
Checks
70 Quality Checks
Accurate Rigorous
Process Clinical Safety
Optimized Quality
Assurance
Feedback DR.WU Safety Management
System
DR.WU is developed based on such principles: No Additives, No Alcohol, High Concentration, High Grade Actives, that are safe and effective even for use on sensitive skins
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DR.WU Product Line Overview - R&D Labs / Patent/ Trademark
Cooperation Pharmaceutical MNC’s Laboratories / USE over 100 Patented Active Ingredients
Exclusive development of 3 formulation patents and registered 83 trademarks -SensiPhyte™ – Anti-redness soothing factor -Ageversal ™– Properties of multi-peptides -HyaluComplex ™– Most advanced hydrating formula DR.WU brand was registered over 5 markets -Taiwan, China, Hong Kong, Singapore, US, etc
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Skincare Market Overview - DR.WU Sales Channel Summary
- Global Skincare Market
- Taiwanese Skincare Market
- Medical Skincare Trends
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DR.WU Sales Channel Summary - Regional Sales Channel Distribution
Store-Based: Taipei 101 concept store SK Mitsukoshi Xinyi A8 W Clinic Nanjing, Hsinyi, Dazhi, Dunnan
Drugstore chains channels: Watsons (504) Cosmed (369) Duty Free Stores (12) Your Chance Drug Chain Store(49) SaSa(12)
E-commerce: DRWU.COM YAHOO/PCHOME PAYEASY/ETMALL MOMOSHOP/7net TMALL/JUMEI
Overseas markets: China, Hong Kong, Macao, Singapore, Malaysia, Canada, U.S.A, New Zealand
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Skincare Marketing Overview - 2014 Global Skincare Market Size
NT$157bn ASEAN skincare market 2.9x Taiwan MKT
NT$ 54bn Taiwan skincare market #1 brand in Taiwan’s cosmeceutical market
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Taiwan share by Category
Global share by Category
China share by Category
NT$ 3.3tn global skincare market 62x Taiwan MKT
NT$693bn China skincare market
13x Taiwan MKT
2011 2012 2013 13-'11
14% 14% 14% 0.4%
32% 32% 31% -0.7%
6% 6% 6% -0.3%
14% 14% 14% -0.6%
66% 65% 65% -1.0%
16% 15% 15% -1.2%
11% 12% 13% 1.5%
7% 8% 8% 0.7%
34% 35% 35% 1.0%
100% 100% 100% 0.0%
Store-Based
Retailing
Grocery Retailers
Department Stores
Beauty Specialist
Parapharmacies/Drugstores
SubTotal
Non-Store
Retailing
Direct Selling
Internet Retailing
Homeshopping
SubTotal
TOTAL
Channel
Skincare Marketing Overview - Taiwan Skincare Market Overview
Taiwan’s skincare market is estimated at NTD 8.6bn in 2015, with 5-year growth rate of 3-5%
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Annual growth rate of Derma Skincare market estimated at 10-15%, 3x that of Mass market
Caring-Mass Caring-Derma
Skincare Marketing Overview - Taiwan Skincare Market Overview
Cosmeceutical market driven by changing consumption habits and surge in sensitive skin
• Global climate change leads to surge in number of people with sensitive skin:
In addition, growing popularity of micro-surgery treatments results in increased demand for post-treatment sensitive skin repair. Hence the demand for hypoallergenic, non-irritating skin-care products.
• Consumption habits have migrated from emotional to rational: Main consumer age falls between 29 and 45 year-old women who are more independent and
willing to invest on themselves. They spend wisely and are aware of personal demands. Therefore, strict inspection, scientific experiment, high effectiveness and hypoallergenic skincare products fit the demand from these clever consumers. Product safety is main concern. Hence skincare products with testimonies become increasingly attractive.
• Endorsement by professional teams, equipped with both effectiveness and safety: These are key for persuading consumers. Products with scientific experiment clinical data and approval by dermatologists provide "effectiveness and safety" signs to consumers.
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Medicine
Beauty Biotech
Cosmeceutical
Financial Performance - Revenue & Net Income
- Income Statement
- Sales Contribution by Region
- Balance Sheet
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Financial Performance - Revenue & Net Income
475,389
565,499
662,809
178,146 184,662
239,244
2012 2013 2014
Net Revenue
Net Income
Note: 2013-2014 are IFRS consolidated reports, 2012 is ROC GAAP. In above graph, 2012 revenue has been adjusted based on the standard of 2013 and 2014.
Unit: NT$ Thousands
Applied IFRS (Consolidated)
Financial Performance - Income Statement Summary 2013 & 2014
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Item
For the Year Ended December 31, 2013
For the Year Ended December 31, 2014 Growth%
Amount % Amount %
Net Revenue 565,499 100.00% 662,809 100.00% 17.21%
Cost of Revenue 179,797 31.79% 215,798 32.56% 20.02%
Gross Profit 385,702 68.21% 447,011 67.44% 15.90%
Operating Expenses 164,122 29.02% 197,852 29.85% 20.55%
Income from Operations 221,580 39.18% 249,159 37.59% 12.45%
Non-Operating Income and Expenses
3,118 0.55% 43,970 6.63% 1310.20%
Income before Income Tax 224,698 39.73% 293,129 44.23% 30.45%
Income Tax Expense 40,036 7.08% 53,885 8.13% 34.59%
Net Income 184,662 32.65% 239,244 36.10% 29.56%
Capital Stock 200,000 - 281,938 - -
Earnings Per Share(NT$) 8.5 - 8.68 - -
Unit: NT$ Thousands
Skincare Marketing Overview - 2015H1 Taiwan Skincare Market Overview
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• DR. WU Sales of drugstores channel grew 31% YOY in 2015 H1, and the growth rate is 2.5x higher than Derma, 4x higher than Caring.
• In Derma Market, DR.WU’s market share is 27%, 3% increase compare to last year, which is the highest growth rate among Derma brands.
Financial Performance - Income Statement Summary 2015 H1 vs 2014 H1
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Item
For the Six Months Ended June 30,2014
For the Six Months Ended June 30,2015 Growth%
Amount % Amount %
Net Revenue 227,988 100.00% 330,370 100.00% 44.91%
Cost of Revenue 72,108 31.63% 110,393 33.41% 53.09%
Gross Profit 155,880 68.37% 219,977 66.59% 41.12%
Operating Expenses 85,175 37.36% 151,905 45.98% 78.34%
Income from Operations 70,705 31.01% 68,072 20.60% -3.72%
Non-Operating Income and Expenses
2,296 1.01% (803) -0.24% -134.97%
Income before Income Tax 73,001 32.02% 67,269 20.36% -7.85%
Income Tax Expense 14,053 6.16% 10,700 3.24% -23.86%
Net Income 58,948 25.86% 56,569 17.12% -4.04%
Earnings Per Share(NT$) 2.22 2.01
Applied IFRS (Consolidated) Unit: NT$ Thousands
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Financial Performance - Sales Contribution by Region
82%
101,011 75%
78,219
76%
155,136 67%
154,465
70%
108,915 57%
100,087
13%
15,780 16%
16,879
17%
34,372 23%
53,263
14%
20,744
18%
30,842
2% 4,554 4% 9,082
7% 11,375 20%
34,995
5% 6,389 9% 9,710 5% 10,513 6% 13,436 9% 13,717
5% 9,665
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2014Q1 2014Q2 2014Q3 2014Q4 2015Q1 2015Q2
TW-PC TW-EC CN Overseas Unit: NT$ Thousands
Financial Performance - Balance Sheet Summary
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Item 2013.12.31 2014.6.30 2014.12.31 2015.6.30
Amout % Amout % Amout % Amout %
Current Assets 530,046 98% 788,968 98% 1,002,194 98% 1,015,896 97%
Property, plant and equipment 4,866 1% 11,080 1% 10,284 1% 9,727 1%
Intangible assets 1,463 0% 1,613 0% 2,613 0% 1,745 0%
Other noncurrent assets 4,808 1% 6,825 1% 8,430 1% 17,864 2%
Assets 541,183 100% 808,486 100% 1,023,521 100% 1,045,232 100%
Current liabilities 62,956 12% 94,362 12% 125,226 12% 261,410 25%
Non-Current liabilities 531 0% 140 0% 702 0% 0 0%
Total liabilities 63,487 12% 94,502 12% 125,928 12% 261,410 25%
Capital stock 200,000 37% 281,938 35% 281,938 28% 281,938 27%
Capital surplus 80,051 15% 348,746 43% 348,746 34% 348,746 33%
Retained earnings 193,476 36% 83,261 10% 263,557 26% 150,964 14%
Others 0 0% 39 0% 3,352 0% 2,174 0%
Total equity 477,696 88% 713,984 88% 897,593 88% 783,822 75%
Debts Ratio(%) 11.73% - 11.69% - 12.30% - 25.01% -
Current Ratio(%) 841.93% - 836.11% - 800.31% - 388.62% -
Average Collection Turnover (Times) 6.91 - 7.42 - 5.93 - 4.76 -
Average Inventory Turnover (Times) 3.34 - 1.85 - 2.76 - 1.75 -
Applied IFRS (Consolidated) Unit: NT$ Thousands
Updates on 2015 H1
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- New product Launched
- Brand Awareness in China
- Channel Expansion
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Jan Feb Mar Apr May Jun Jul
Deep Hydrating Capsule Mask -A
Soothing Moisture Capsule Mask -B
Instant Whitening Capsule Mask -C
Perfect Renewal Capsule Mask -D
Anti-Wrinkle Firming Capsule Mask -E
Intensive Hydrating Serum With HA-Light NTD800
Extra Hydrating Lotion With HA NTD850
NTD 299
Quick Soothing Cream-Gel Mask NTD950
Deep Moisture Butter Mask NTD1000
JUMBO-SIZE BEST SELLING HYDRATING PRODUCTS
New product Launched - 2015H1
Brand Awareness Indicators China - Major Indicators have shown substantial increments
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0
100
200
300
400
500
600
Baidu/Taobao Index
Baidu Index Taobao Index
0
10000
20000
30000
40000
50000
60000
70000
Wechat/Weibo Fans
Wechat Fans Weibo Fans
0
100000
200000
300000
400000
500000
Jumei/Tmall/.COM Unique Vistors
.com.cn UV Jumei UV Tmall Flagship UV
Channel Expansion - New Channel To Be Launched
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Tmall 2015 Mar
Department store NEW
China
CS Beauty Specialist NEW
Jumei Overseas Aug
Other Ecommerce NEW
Jumei
Overseas
Hong Kong / Macau - Manning's
Singapore – Guardians, Robinsons
Malaysia - SASA
Canada - BE Beauty (Loblaws)
USA, NZ Wholesale
E.U.– Ecommerce NEW (Amazon, Beauty Bay, etc)
Taiwan
Other Drugstore Chains NEW
Your Chance Drug Chain Store(49)
Department store(2)/ Clinic (4)
E-commerce DRWU.COM/YAHOO/MOMO….
Ever Rich/Tasa Meng Duty Free Shops(12)
Watsons (504)
Cosmed (369)
SASA x 30 stores 2015 July/Aug
Our Future Prospects - Marketing Theme in 2015
- Our Competitive Advantages
- Future Prospects & Growth Drivers
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2015 Marketing Theme - Brand Endorser for 2015: Mrs. Hannah Chou
With New Endorser in 2015, DR.WU has
Successfully Enhanced Brand Awareness throughout ASIA:
Hannah's marriage to Jay Chu who is the most
popular singer in Asia and her recent has children announcement has created tremendous online
chatter and followers.
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2015 Marketing Theme - Marketing Event: Hannah’s Beauty Dairy (4 Micro Movies)
DR.WU X Hannah Beauty Dairy
Video 1.Honey Moon 2.Mrs.Chu Marriage life 3.On the stage 4.Perfect life
• Share the happiness of honey Moon
• Share Marriage life experience with girl friends
• Share the beauty secrets of working
• Share skincare tips and how to balance life
Releasing viral video on digital platform to create DR.WU brand awareness.
2015 Marketing Theme - Marketing Event: Pop-Up Store
Asia’s first-of-its-kind MOBILE CLINIC
Through DR.WU’s unique skin diagnostics, consumers are able to experience cosmeceutical-concept skincare directly.
Customized skincare solutions for various skin types increase user experiences and DR’s brand awareness
The Pop-Up store was moved from Northern to Central to Southern Taiwan, creating buzz among consumers.
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Our Future Prospects - Competitive Advantages and Our Success Formula
Growth Sales Product Brand
• Complete product line developed by
authoritative dermatologists with
patented formula in Asia
• Advanced knowledge and skills in R&D
• 100 patented active ingredients from
global pharmaceutical companies
• 10 full product lines (cyclical, risk
diversification, synergy), satisfying
needs of Asian skin care
• Insist on applying 5 principles to
develop high effectiveness,
hypoallergenic and high quality
products
• Market leader: Taiwan’s No.1
Medical Skincare /First to enter the
cosmeceutical market
• High popularity, high reputation,
high reliability from consumers
• One of few Asian cosmeceutical
brands to truly stem from doctors
and clinics
• Only IPO cosmeceutical company
founded by professional teams with
medical background
• 100% penetration in drugstore
chains
• Full coverage of virtual online stores
• Present footprint in overseas
Chinese-speaking market
• First Taiwanese brand entering
cosmeceutical market
• Non-surgical cosmetic medicine
more common and reaching
younger market which drives
growth of cosmeceuticals
• Consumption habits changing from
emotional to rational. Consumers
trying to select cosmeceutical vs
general skincare products
• Cosmeceutical market growing at
double digits
Leading cosmeceutical brand
R&D by authoritative dermatologist in Asia
Chain drug stores + Online platform
High-potential markets + essential skincare
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Our Future Prospects - Growth Strategies: Expand, Innovate and Control
Market Expansion
Focus on market expansion in China and ASEAN countries for the next two years Great potential driving from increasing disposable incomes along with consumption power
Innovative Creation
15% per year new product development rate Continue to develop market leading cosmeceutical products Focus on including whitening, moisturizing, anti-wrinkle and acne treatments
Multi-Channel
Resilient local brand with diverse channels, targeting global market
2016 IPO on TW’s OTC
Enhance organization, finance, management and internal controls Listed on Emerging Stock Exchange on April 30, 2015 Shooting for completion of IPO on OTC in 2016
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Thank You Looking Forward to
Our Cooperation!
“Your Personal Doctor For Your Perfect Skin”
-DR.WU 37