JHT — Investor Presentation 2017

Dec 11, 2017

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Johnson Health Tech. Group

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CONTENTS

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Milestone Industry Market size. Brand Market Position. Historical financials

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Milestone

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I. Initial Stage (1975~1979): Producing weight lifting equipment (OEM) 1. Reduce material cost

2. Standardize operation procedures to raise productivity

1975 - Johnson was established

1976 - Cooperated with IVANKO to produce weight lifting equipment and became the largest supplier in the world within three years.

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II. Manufacturing Transformation (1980~1995): Built up R&D team to design and manufacture CV fitness products (OEM, ODM)

1980 - Started OEM & ODM fitness business with the leading companies such like Ross, Universal, Tunturi, Schwinn, True, Omron, Mizuno, etc.

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III. OBM Transformation (1996~2005): Built core competitiveness of international manufacturing, R&D, brands, sales channels, and management.

1996 - Set up brand company Epix Inc. and launched own brand “Vision Fitness” in North America specialty dealer market.

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1998 - Set up brand company “Horizon Fitness” in USA home use market.

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2001 - Set up the China factory located in Shanghai. - Set up brand company “Matrix Fitness” in the USA commercial market.

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2002 - Started retail business in Taiwan and opened retail stores “JOHNSON fitness stores”

~ Now  Set up marketing company Total 26 SBUs  3 manufacturing bases  Johnson retail stores totally up to 328

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Market size

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Global Fitness Market

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Global: USD 8 billion(est.)

Home: USD 4 billion

Commercial: USD 4 billion

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USA Fitness Market

Units : million ; %

Year	Home use	Home use	Commercial	Commercial	Total	Total
	Amount	GR %	Amount	GR %	Amount	GR %
1998	2,795	4.29%	662	15.00%	3,457	5.97%
1999	2,770	-0.89%	880	32.93%	3,650	5.58%
2000	2,905	4.87%	945	7.38%	3,850	5.48%
2001	3,010	3.61%	930	-1.58%	3,940	2.34%
2002	3,075	2.15%	900	-3.23%	3,975	0.89%
2003	3,095	0.70%	950	5.56%	4,045	1.76%
2004	3,165	2.26%	1011	6.42%	4,176	3.23%
2005	3,372	6.54%	1056	4.45%	4,428	6.03%
2006	3,543	5.07%	1119	5.97%	4,662	5.28%
2007	3,549	0.16%	1149	2.68%	4,698	0.77%
2008	3,183	-10.40%	1040	-9.48%	4,220	-10.20%
2009	3,194	0.41%	967	-7.02%	4,162	-1.37%
2010	3,321	3.98%	1023	5.79%	4,344	4.37%
2011	3,440	3.58%	1050	2.64%	4,490	3.36%
2012	3,560	3.49%	1139	8.48%	4,700	4.68%
2013	3,581	0.59%	1257	10.36%	4,838	2.94%
2014	3,751	4.75%	1308	4.06%	5,059	4.57%
2015	3,771	0.53%	1349	3.13%	5,120	1.21%
2016	3,789	0.47%	1405.9	4.22%	5,195	~~11~~ 1.46%

Major commercial business segments

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corporate
YMCA 2% /wellness 2%
Other 4%
Hotel 7%
Military 4%
Education 5%
RT/Rehab 6%
Hospital 4%
Health clubs;
66%
Total Market Size:
USD 0.95M
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Source: IHRSA

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Brand Market Position

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Brand Market Position

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Commercial-use fitness market e.g. Health club and Hotel

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and light commercials

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Sporting goods stores, Department stores, mass retailers etc.

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Historical financials

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Units : US Millions

Year	2006	2007	2008	2009	2010	2011	2012	2013	2014	2015	2016
Sales 349 360 377 303 369 463 520 512 546 529 621
**Growth % **	30.9%	3.4%	8.3%	**-19.5% **	21.3%	25.3%	12.5%	-1.5%	6.6%	-3.1%	17.4%
NPAT 52.5 17.2 0.05 -1.94 8 26.2 29 28.8 28.8 17 22

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Thank You

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