View
7
Download
0
Category
Preview:
Citation preview
TAIWAN’S NO. 1 MEDICAL SKINCARE
Company Introduction Presented by Eric Wu
Chairman and CEO 2016
DR.WU Company Introduction - Quick Facts About Us
Founded 2003 by Dermatologist
93 Staffs HQ in Taipei and Shanghai
Current Market Cap of US$ 250 mn
1200 POS 7 Countries
12 Product Lines - 68 SKU
Expected IPO June 2016
2
DR.WU Company Introduction - Management Team & Shareholder Structure
Eric I-Ju Wu, Chairman and CEO
In Charge of Company Strategy and Development
Columbia University, BS in Engineering
DR.WU Skincare Co / GM
W Clinic Group / GM
AIG Investment Corp Taiwan / VC Associate
PricewaterhouseCoopers LLP / Senior Financial Analyst
Jennifer Hsu, General Manager
In Charge of Operations, Sales and Marketing
Joined DR.WU in June 2015
MBA in Marketing and Bachelor in International Trade
Clarins Taiwan / GM
Elizabeth Arden Taiwan / GM
Johnson & Johnson (LifeScan) / Director
Coca Cola Taiwan / Marketing Director
Uniliver Taiwan / Marketing Manager
67.7%
3
Shareholder Stake
Wu I Ju 29.6%
L Capital Taiwan Beauty
22.0%
DEF Investment Holdings
18.2%
Dong Lin Biomedical 8.0%
W Clinic Biotechnology
8.0%
Hsieh Pie Lin 3.9%
Wei Nien Tzu 1.8%
Fidelity China Special Situations Fund
1.3%
Grandeur Peak Global Reach Fund
0.8%
Grandeur Peak Emerging Markets
Opportunities Fund 0.6%
Public Float 5.8%
Leading Medical Skincare Brand – DR.WU - 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.
4
Leading Medical Skincare Brand – DR.WU - 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 .
Eric Wu, Chairman & CEO
DR. Wu Ying-Chin
5
Leading Medical Skincare Brand – DR.WU - The Milestones of DR.WU
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 Received 2015 National Cornerstone Award Chairman Eric Wu received 2015 National Entrepreneur
2003
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2003
2009
2015 Approval from TPEX for IPO Apply 2016 6
Leading Medical Skincare Brand – DR.WU - Competitive Advantages and Our Success Formula
Growth Sales
• 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
Complete Coverage of Online/Offline Channels
High Potential Markets + Necessity of Skincare
7
Brand
• 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
Leading Cosmeceutical Brand
Product
• Complete product line developed by
authoritative dermatologists with
patented formula in Asia
• 15% new product development rate
• Advanced knowledge and skills in R&D
• 100 patented active ingredients from
global pharmaceutical companies
• 12 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
R&D by Authoritative Dermatologist in Asia
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
Advanced Clinical Skincare Solution - 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
8
Advanced Clinical Skincare Solution - Complete Product Lines: 12 Key Lines x 69 sku
12 SERIES 69 SKU
ASP 800-1500
HYALUCOMPLEX
HYDRATING SYSTEM
x11
VITAMIN C +
WHITENING SYSTEM
x6
ACNECUR
ANTI-ACNE SYSTEM
x5
MANDALIK
RENEWAL SYSTEM
x7
BASIC CARE SYSTEM
x3
UV PROTECT
SUNCARE SYSTEM
x6
MINERAL MAKE UP
x3
PREMIUM SKINCARE
x7
SKINCARE FOR MEN
x5
AGEVERSAL
REPAIRING SYSTEM
x6
9
CAPSULE MASK
x8 FIRST AID SERIES
x2
Advanced Clinical Skincare Solution - 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/ISO022716/GMP)
DR.WU R&D Core Competency
293 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
10
Advanced Clinical Skincare Solution - R&D Labs / Patent/ Trademark
Cooperation Pharmaceutical MNC’s Laboratories / USE over 100 Patented Active Ingredients
Exclusive development of 5 formulation patents and registered 85 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
11
Taiwan’s No.1 Medical Skincare Brand - Brand Positioning Among Derma Skincare and Doctors’ Brands
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 18-40-year-old segment
12
13
8,427
6,236
2,192 585
8,657
6,228
2,429 727
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
Caring Mass Derma DR. WU
TWD Million 2015 Taiwan Skincare Market
2014/1-12 2015/1-12
YOY 3%
YOY -0.1%
YOY 11% YOY 24%
• DR. WU Sales of drugstores channel grew 24% YOY in 2015, and the growth rate is 2.2x higher than Derma, 8x higher than Caring.
• In Derma Market, DR.WU’s market share is 30%, 3% increase compare to last year, which is the highest growth rate among Derma brands.
55% 54% 53% 54% 54% 52%
24% 25% 27% 27% 28% 30%
13% 12% 11% 10% 9% 9%
6% 5% 5% 5% 4% 4% 2% 2% 3% 3% 3% 3%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2014H1 2014/1-9 2014 2015H1 2015/1-9 2015
2015 Derma Market Share
other(AVENE、Bio、FOB…..) DR. WU Vichy Curel Neogence
Taiwan’s No.1 Medical Skincare Brand - Market Leader Among Derma Skincare Market
Taiwan’s No.1 Medical Skincare Brand - Taiwan Skincare Market: Mass vs Derma
Taiwan’s skincare market is estimated at NTD 8.6bn in 2015, with 5-year growth rate of 3-5%
14
Annual growth rate of Derma Skincare market estimated at 10-15%, 3x that of Mass market
Caring-Mass Caring-Derma
30% 33% 36% 40%
Taiwan’s No.1 Medical Skincare Brand - Medical Skincare Demand Drivers
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.
15
16
Taiwan’s No.1 Medical Skincare Brand - Growing Brand Awareness in Taiwan and China
Brand Awareness, Positive Word of Mouth and Client Loyalty have surged coupled with Increasing attention from media
57,817
27,285
142,365
0
20000
40000
60000
80000
100000
120000
140000
160000
Jun
-14
Jul-
14
Au
g-1
4
Sep
-14
Oct
-14
No
v-1
4
De
c-1
4
Jan
-15
Feb
-15
Mar
-15
Ap
r-1
5
May
-15
Jun
-15
Jul-
15
Au
g-1
5
Sep
-15
Oct
-15
No
v-1
5
De
c-1
5
Facebook/Wechat/Weibo Fans
FB Fans Wechat Fans Weibo Fans
0
100
200
300
400
500
600
700
Jun
-14
Jul-
14
Au
g-1
4
Sep
-14
Oct
-14
No
v-1
4
De
c-1
4
Jan
-15
Feb
-15
Mar
-15
Ap
r-1
5
May
-15
Jun
-15
Jul-
15
Au
g-1
5
Sep
-15
Oct
-15
No
v-1
5
De
c-1
5
Baidu/Taobao Index
Baidu Index Taobao Index
30,111
119,784
198,016
050000
100000150000200000250000300000350000400000450000500000
Jun
-14
Jul-
14
Au
g-1
4
Sep
-14
Oct
-14
No
v-1
4
De
c-1
4
Jan
-15
Feb
-15
Mar
-15
Ap
r-1
5
May
-15
Jun
-15
Jul-
15
Au
g-1
5
Sep
-15
Oct
-15
No
v-1
5
De
c-1
5
Jumei/Tmall/.COM Unique Vistors
.com.cn UV Jumei UV Tmall Flagship UV
Taiwan’s No.1 Medical Skincare Brand - Recognized by the Most Prestige Beauty Awards and Honors
17
COSMOPOLIAN BEAUTY QUEEN BELLA COSMOPOLIAN UrCosme UrCosme
FashionGuide GQ ELLE BEAUTY
AWARD BEAUTY BAZAAR WATSONS HWB
2012 MVP MANAGER 2014 EY ENTREPRENEUR 2015 NATIONAL
CORNERSTONE AWARD 2015 NATIONAL ENTREPRENEUR
18
China Channel
EC Channel
TMALL JUMEI TAOBAO MEI.COM Cross Border
Department Store SUPER BRAND Shopping Mall, Shanghai
Cosmetic Stores FIONA Beauty
Stores(41)
B&M Channel - Taiwan
Drugstore chains channels Watsons (516) Cosmed (380) Your Chance Pharmacies (36)
Department Store Taipei 101 concept store Far Eastern Mega City
Beauty Specialist SaSa(23)
Others Duty Free Stores(13) W Clinics(4)
EC Channel - Taiwan
DRWU.COM YAHOO MOMOSHOP PCHOME BOOKS PAYEASY, 7net ETMALL
Overseas markets Hong Kong, Macao(369) Singapore(60) Malaysia(62) U.S.A(10) Canada(25) New Zealand
Strong Distribution Channel Management - Regional Sales Channel Distribution
Complete Distribution Coverage of Online and Offline Sale Channels
19
B&M
482,689
73%
EC
126,436
19%
China
13,636
2%
Overseas
40,048
6%
Channel 2014 2015 YOY
B&M TW 482,689 531,234 10%
EC TW 126,436 141,163 12%
China 13,636 138,671 917%
Overseas 40,048 54,146 35%
Total 662,809 865,214 31%
B&M
531,234
62%
E Commerce
141,163
16%
China
138,671
16%
Overseas
54,146
6%
2014 Revenue By Channel 2015 Revenue By Channel
Strong Distribution Channel Management - Sales Contribution by Channel
NTD 000
Strong Distribution Channel Management - Medical Skincare Concept Store and Department Store Counter
TAIPEI 101 MEDICAL SKINCARE CONCEPT STORE
20
Far Eastern Mega City DEPARTMENT STORE
Strong Distribution Channel Management - Chain Pharmacies and Personal Care Specialty Stores
COSMED WATSONS
MANNINGS SASA
21
Strong Distribution Channel Management - Duty Free Channel
EVER RICH DUTY FREE STORES
TAIPEI / TAOYUAN / TAICHUNG / KAOSHING / KIMMEN
22
Strong Distribution Channel Management - E-Commerce Sales Channel
DRWU.COM YAHOO PCHOME
MOMOSHOP TMALL JUMEI
23
Strong Distribution Channel Management - 360 Complete Marketing Activities
•Print Ads / Out Door
•Beauty column
•Pop Up Store
•Sampling
• EPR • KOL Management • Vertical Beauty Portals • Video Ads • Short Movies
• Baidu Search
• Word-of-mouth
•Brand launch event/
Media gathering
•Media trip
•PR Editorials
Offline Marketing PR Activities Digital Marketing Social Media
24
25
Financial Performance - Major Financial Indicators
565,499 662,809 865,214
0
200,000
400,000
600,000
800,000
1,000,000
2013 2014 2015
Sales Revenue
17.2%
30.5%
221,580 249,159 265,041
0
50,000
100,000
150,000
200,000
250,000
300,000
2013 2014 2015
Income from Operations
12.5 % 6.4 %
NTD 000
68.21% 67.44% 68.34%
32.65% 36.10%
26.40%
52.12%
34.79% 24.65%
0%
10%
20%
30%
40%
50%
60%
70%
80%
2013 2014 2015
Profitability Metrics
Gross margin Net profit margin ROE
205,093
294,031 286,476
11.73% 12.30% 9.91%
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
0%
2%
4%
6%
8%
10%
12%
14%
2013 2014 2015
Debt Ratio & Cash Equivalents
Cash equivalents Debt ratio
Financial Performance - Income Statement Summary
26
Unit: NT$ Thousands Applied IFRS (Consolidated)
Item 2013 2014 2014 vs
2013
2015 2015vs 2014 Amount % Amount % Amount %
Net Revenue 565,499 100.0% 662,809 100.0% 17.2% 865,214 100.0% 30.5%
Cost of Revenue 179,797 31.8% 215,798 32.6% 20.0% 273,890 31.7% 26.9%
Gross Profit 385,702 68.2% 447,011 67.4% 15.9% 591,324 68.3% 32.3%
Operating Expenses 164,122 29.0% 197,852 29.9% 20.6% 326,283 37.7% 64.9%
Income from Operations 221,580 39.2% 249,159 37.6% 12.5% 265,041 30.6% 6.4%
Non-Op Income & Expenses 3,118 0.6% 43,970 6.6% 1310.2% 8,399 1.0% -80.9%
Income before Income Tax 224,698 39.7% 293,129 44.2% 30.5% 273,440 31.6% -6.7%
Income Tax Expense 40,036 7.1% 53,885 8.1% 34.6% 45,050 5.2% -16.4%
Net Income 184,662 32.7% 239,244 36.1% 29.6% 228,390 26.4% -4.5%
Capital Stock 200,000 - 281,938 - - 281,938
EPS (NT$) 8.5 - 8.68 - - 8.10
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 functional products in whitening, moisturizing, anti-wrinkle and acne treatments categories
Multi-Channel
Continue diversify sales contribution from pharmacy channel to e-commerce, department counters. Activate O2O sales model to get closer to customers
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 TPEX in JUNE 2016
27
Our Future Prospects: Market Expansion - Global Skincare Market Potential
NT$157bn ASEAN skincare market 2.9x Taiwan MKT
NT$ 54bn Taiwan skincare market #1 brand in Taiwan’s cosmeceutical market
28
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
2015 Q3 2015 Q4 2016 Q1 2016 Q2
Our Future Prospects: Market Expansion - China Expansion Strategy: Online and Offline
E Co
mm
erce
2015 Q1 2015 Q2 2016 Q3 2016 Q4
Cross Border EC (Jumei/Tmall)
TMALL.COM Flagship Store
JD.COM
VIP.COM
JUMEI.COM Flagship Store
29
FIONA Beauty Stores (41stores)
SUPER BRAND Shopping Mall, Shanghai
Store B
ased
Other EC platforms
Other Cosmetic Stores and Department Counters
Our Future Prospects: Market Expansion - New Markets Expansion Road map
Focus on China and ASEAN countries expansions for next 3-5 years
Current Sales Region
Taiwan(970) China(48) HK/Macau(369) Singapore(60) Malaysia(62) USA Asian(10) Canada Asian(25) New Zealand
3-5 Expansion Plan
Myanmar Vietnam Thailand Indonesia Philippines UK Japan Korea Bahrain
30
Our Future Prospects: Innovative Creation - Brand Endorser for 2016: Hannah Quinlivan
Continue Endorser in 2016, 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.
31
Videos of Hannah sharing her beauty tips using DR.WU Serum and Mask during New York Fashion Week, attracting 34,822,000 Unique Visitors.
Our Future Prospects - Enhance Consumer Counter Experiences with 2.0 Concept Stores
32
2.0 Concept Store Design & Shanghai Supermall Counter (Oct. 2015) DR.WU 2.0 CONCEPT STORE aims to deliver Lifestyle consumer experiences with light industrial decor to deliver Trendy, Young, Fun and Professional aspects of DR.WU.
2016 2018 2020
Our Future Prospects - New Products Development Strategy
33
•Products renewal rate remain at 15% every year. •Insistence on applying 5 principles to develop high effectiveness, hypoallergenic and high quality products. •Diverse product lines, increase applications and expend consumer groups.
.Insist on formula upgrade of present products
.Develop new product lines for Pre- Mature segment
.Develop makeup and whitening body care products
.Insist on formula upgrade of present products
.Develop body, hand, foot care products
.Develop scalp and hair care products
.Insist on formula upgrade of present products
.Develop clean and skincare products suitable
for pregnancy & baby
.Develop new products with Organic and
Nature concept
DR.WU
DR.WU
DR.WU
1-2 years 2-3 years 3-5 years
Our Future Prospects - Corporate Social Responsibility
34
Social and public
interests
Talent training
and social education
Industry coexistence & prosperity
Employees welfare
Corporate governance
Green supply chain
Actively promoting CSR
35
Thank You “Your Personal Doctor For Your Perfect Skin”
-DR.WU
Recommended