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2 March 2010
FY2009 Results Briefing
Disclaimer
The presentation is prepared by Best World International Limited (the “Company”)and is solely for the purpose of corporate communication and general referenceonly. The presentation is not intended as an offer to sell, or to solicit an offer to buyor to form any basis of investment decision for any class of securities of theCompany in any jurisdiction. All such information should not be used or relied onwithout professional advice. The presentation is a brief summary in nature and donot purport to be a complete description of the Company, its business, its currentor historical operating results or its future business prospects.
This presentation is provided without any warranty or representation of any kind,either expressed or implied. The Company specifically disclaim all responsibilities inrespect of any use or reliance of any information, whether financial or otherwise,contained in this presentation.
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Presentation Outline
� 2009 Key Messages2009 Key Messages2009 Key Messages2009 Key Messages
� FY2009 Financial ReviewFY2009 Financial ReviewFY2009 Financial ReviewFY2009 Financial Review
� FY2009 Operation ReviewFY2009 Operation ReviewFY2009 Operation ReviewFY2009 Operation Review
� Towards RecoveryTowards RecoveryTowards RecoveryTowards Recovery
� Outlook: Strategies & Plans for 2010Outlook: Strategies & Plans for 2010Outlook: Strategies & Plans for 2010Outlook: Strategies & Plans for 2010
FY2009 Financial Review
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2009 Key Messages2009 Key Messages2009 Key Messages2009 Key Messages
� Challenging year with economic crisis affecting weaker consumer sentiments in markets like Singapore and Malaysia
� Ironing out regulatory issues within Indonesia, making progress by 2H2009
� Commendable performance from markets like Thailand, Myanmar and Taiwan
� Improving sales performance from most markets in 2H2009
� Maintains healthy cash flow and balance
� Membership base grew 12.8% to 210,630 in FY2009
Financial HighlightsFinancial HighlightsFinancial HighlightsFinancial Highlights
Revenue 72,956 96,063 (24.1)
Gross Profit 53,937 73,686 (26.8)
Gross Profit Margin (%) 73.9% 76.7% (3.7)
Profit Before Tax 11,389 13,333 (14.6)
Profit to Equity Holder 9,671 10,626 (9.0)
Net Profit Margin (%) 13.3% 11.1% 19.8
EPS (¢) 4.69 5.15 (8.9)
Overall Highlights
$’000 FY2009 FY2008 % Change
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Financial HighlightsFinancial HighlightsFinancial HighlightsFinancial Highlights
Revenue 18,745 14,480 29.5
Gross Profit 13,193 11,035 19.6
Gross Profit Margin (%) 70.4% 76.2% (7.6)
Profit Before Tax 2,842 1,718 65.4
Profit to Equity Holder 3,313 1,118 196.3
Net Profit Margin (%) 17.7% 7.7% 129.9
EPS (¢) 1.61 0.54 198.1
Overall Highlights
$’000 4Q2009 3Q2009 % Change
Financial ReviewFinancial ReviewFinancial ReviewFinancial Review
� Revenue down 24.1% to $73.0 million in FY2009
� Net Profit remained stable at $9.7 million in FY2009
� Decline in top line is due to:
1. Weaker than expected sales in 1H2009 with laggard effect
showing in 2H2009
2. Industry-wide decrease in consumer spending in key markets of
Singapore & Malaysia
3. Import & regulatory challenges in Indonesia in 3Q2009
• Stabilizing of bottom line is due to:
1. Growth from Thailand and Other markets
2. Effective marketing & promotional campaigns
3. Recovering consumer spending in all markets
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Financial ReviewFinancial ReviewFinancial ReviewFinancial Review
� DistributionDistributionDistributionDistribution costscostscostscosts decreased more than drop in revenue,demonstrating the flexibility of business model in costmanagement
� AdministrativeAdministrativeAdministrativeAdministrative expensesexpensesexpensesexpenses decreased 2.0% to $18.5 million inFY2009 attributed to higher bonus payouts in subsidiariesexhibiting higher growth & reversals of over-provisions of keymanagement and executives’ incentives and bonuses for first threequarters of FY2008.
� ProfitProfitProfitProfit attributableattributableattributableattributable totototo equityequityequityequity holdersholdersholdersholders decreased 9.0% to $9.7million in FY2009 from $10.6 million for FY2008 , with a net profitmargin of 13.3%
Financial ReviewFinancial ReviewFinancial ReviewFinancial Review
� Generated net cash of $4.5 million from operating activities
� Maintains healthy balance sheet and working capital position with approximately $36.1 million in cash and cash equivalents
� Returns On Equity is 17.9%
� Dividend Payout Ratio is 46.9%, which remains consistently above 30% over the past 5 years.
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FY2009FY2009FY2009FY2009 FY2008FY2008FY2008FY2008
Diluted EPS (cents) 4.69 5.15
Dividend per Share (cents) 2.2 2.2
Receivable days 33 22
Inventory days 130 137
Payable days 13 24
Liquidity (times)Liquidity (times)Liquidity (times)Liquidity (times)
Current ratio 5.1 3.5
Quick ratio 4.5 2.9
Net debt to equity ratio Net Cash Net Cash
Key Financial RatiosKey Financial RatiosKey Financial RatiosKey Financial Ratios
Ratio Analysis Ratio Analysis Ratio Analysis Ratio Analysis
FY2009 Operating Review
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Revenue By Geographical LocationsRevenue By Geographical LocationsRevenue By Geographical LocationsRevenue By Geographical Locations
Singapore 13,300 18.2% 17,422 18.1% (23.7)
Malaysia 11,206 15.4% 19,290 20.1% (41.9)
Indonesia 21,770 29.8% 44,313 46.1% (50.9)
Thailand 9,620 13.2% 2,155 2.3% 346.4
Others 17,060 23.4% 12,883 13.4% 32.4
Total 72,956 100.0 96,063 100.0 (24.1)
FY2008FY2009$’000 % Change
Geographical BreakdownGeographical BreakdownGeographical BreakdownGeographical Breakdown
� Indonesia – the Group’s biggest revenue generator, contributes to 29.8% of total revenue in FY2009
� Change in cosmetic regulations & import process caused a 50.9% dip in revenue y-o-y
� Management adopted strategy of engaging regulatory authorities of Indonesia to better manage these changes
� Effect: Till date, the Group successfully obtained registration approvals for more than 10 products & resulted in 82.9% improvement in 4Q sales as compared to 3Q
� Singapore and Malaysia declined as a result of industry-wide weaker consumer spending but Malaysia’s revenue is beginning to show signs of recovery back to levels of 2008
� Thailand is an optimistic market with growth of 346.4% in FY2009, accounting for 13.2% of total revenue
� Good growth for other markets as 53.9% growth in revenue for 4Q2009 registered; good performance from Myanmar and Taiwan
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Regional & Lifestyle CentresRegional & Lifestyle CentresRegional & Lifestyle CentresRegional & Lifestyle Centres
Overall Membership GrowthOverall Membership GrowthOverall Membership GrowthOverall Membership Growth
68,577
99,708
148,428
186,759
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Towards Recovery
Singapore Quarterly BreakdownSingapore Quarterly BreakdownSingapore Quarterly BreakdownSingapore Quarterly Breakdown
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Malaysia Quarterly BreakdownMalaysia Quarterly BreakdownMalaysia Quarterly BreakdownMalaysia Quarterly Breakdown
Indonesia Quarterly BreakdownIndonesia Quarterly BreakdownIndonesia Quarterly BreakdownIndonesia Quarterly Breakdown
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Others Quarterly BreakdownOthers Quarterly BreakdownOthers Quarterly BreakdownOthers Quarterly Breakdown
Outlook: Strategy & Plans in 2010
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Outlook Outlook Outlook Outlook
� Continue building the business through:
� Increasing brand awareness
� Increasing membership base
� Venturing into new markets
� Increasing Lifestyle Centres (LCs) in the region in FY2010
� Continuous People Development training for staff and distributors
� To focus and invest on product and brand differentiation
� Expects to rollout more new products by 2H2010
Stepping up in 2010Stepping up in 2010Stepping up in 2010Stepping up in 2010
� Prudent in cost control measures
� Enhance shareholder value by seeking out new markets and business opportunities to diversify markets and revenue source
� Implement more training system for staff and members to consolidate membership drive
� Increasing brand awareness
� Nurturing new markets such as Myanmar and Cambodia to capture larger market share
� Launching more core products
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Q&A
Thank You!
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