Osim FR 050407.indd

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CEO’s MessageDear ShareholdersFoundation Laid For Future GrowthThe Group achieved record business growth in FY2006.Group revenue grew 24% to $623 million. Group EBITDArose 41% to $77 million.In 2006, we made good progress towards building a globalhealthy lifestyle business. In establishing this businessfoundation, the Group is focused on executing a mediumtermgrowth strategy. As with any endeavour of this duration,some short-term volatility in performance from quarter toquarter should be expected. In view of this, full year resultsover the medium term are a better indicator of groupperformance.2006 Business Review: Strong PerformanceThe OSIM core business registered broad-based growth inall key markets. Full year revenue increased 24% to $623million. In the second half of 2006, inferior quality andunsubstantiated product claims by imitators caused adversemedia publicity and negative market sentiments in NorthAsia. This disrupted our performance in North Asia in Q42006 but I believe this incident, in the longer term, willfurther differentiate the OSIM brand in terms of innovationand quality.New innovative healthy lifestyle products were launchedthroughout the year, including the uPilot massage chair,iGogo massaging MP3 player and the uZap Mini, an innovativefollow-up to the successful uZap. The OSIM outlets registereda net increase of 98 retail units to 686 as we continued toadd to our global point-of-sale network. Inclusive of Brookstoneand GNC stores under Global Active Limited (GAL), wecompleted 2006 with 1,135 outlets in 362 cities over 28countries. With our expanding international franchise, a newOSIM outlet was opened at the exclusive Harrods departmentstore in London in 2006.With the benefit of a restructuring in FY2005, the net profitof $4.5 million in FY2006 confirmed that the turnaround isfirmly in place at GAL. I expect the improvement to besustainable into the current year.At Brookstone, we put in place new leadership early in 2006.The latest results are encouraging. Brookstone posted recordrevenue of US$512 million in FY2006, up 9% over theCEO’s Message 19 Annual Report 2006
previous year. Q4 2006 revenue rose 13% to US$256 million.Equally impressive is the Q4 same store growth of 6.7%,making it the third successive quarter of same store growth.The figures clearly confirm that the business is gainingtraction. In 2006, Brookstone was profitable, cash positiveand growing.Throughout the Group, we put processes in place to groomour people, ensuring that as we grow, they grow. We recognisethat the performance of each and every individual not onlycontinues to contribute to our growth, but played a substantialrole in our performance in the year.To reward shareholders, your Directors have proposed a finaldividend of 1.48 cents per share or $8 million in payout.Combined with the interim dividend of $7 million, the totaldividend payout of $15 million for FY2006 represents anincrease of 115% over FY2005.CEO’s Message 20 Annual Report 2006
Page 1: Process and Performanceas the growt
Page 5: Customer Service Department“I put
Page 9: Sales Department“I look forward t
Page 13: Research & Development“Every prod
Page 17 and 18: Contents17 CEO’s Message22 The Ro
Page 19: ... ensuring that as we grow,they g
Page 23 and 24: The Role ModelsThe Role Models 22 A
Page 25 and 26: Ms Teo Sway HeongNon-Executive Dire
Page 27 and 28: Mr Peter Lee Hwai KiatMs Celine Cha
Page 29 and 30: Result of our Growth StrategyThe Gr
Page 31 and 32: Performance ReviewIn building a glo
Page 33 and 34: ProfitabilityIn FY2006, buoyant rev
Page 35 and 36: An Environment of GrowthMarch 2006
Page 38 and 39: Financial HighlightsOur goal is to
Page 40 and 41: Number of OutletsOSIM OutletsNorth
Page 42 and 43: Capital ExpenditureCapexS$’000 Le
Page 44 and 45: Corporate Structure as at 21 Februa
Page 46 and 47: OSIM Global NetworkSINGAPORECHINATA
Page 48 and 49: Corporate InformationBoard of Direc
Page 50 and 51: Non Executive DirectorMs Teo Sway H
Page 52 and 53: Corporate Governance Report 51 Annu
Page 54 and 55: The Company worked closely with a p
Page 56 and 57: New directors are at present appoin
Page 58 and 59: In 2006, the Audit & Risk Managemen
Page 60 and 61: The aggregate value of interested p
Page 63 and 64: Financial Contents64 Directors’ R
Page 65 and 66: Directors’ ReportFor the Year end
Page 67 and 68: Directors’ Report (cont’d)Share
Page 69 and 70: Directors’ Report (cont’d)Share
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Directors’ Report (cont’d)Audit
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Independent Auditors’ Reportto th
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Balance Sheetsas at 31 December 200
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Consolidated Profit and Loss Accoun
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Statements of Changes in Equity for
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Consolidated Cash Flow Statementfor
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Consolidated Cash Flow Statement fo
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Notes to the Financial Statements -
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Major PropertiesUnexpiredterm ofDes
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Shareholdings Statistics as at 8 Ma
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Notice of Annual General Meeting (c
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Notice of Annual General Meeting (c
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Appendix (cont’d)DEFINITIONSIn th
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Appendix (cont’d)PROPOSED RENEWAL
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Appendix (cont’d)3.1.3 The Direct
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Appendix (cont’d)4. Rationale and
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Appendix (cont’d)11. ACTION TO BE
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OSIM INTERNATIONAL LTDCompany Regis
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SINGAPOREOSIM International Ltd65 U
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