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JHT Investor Presentation 2017

Sep 27, 2017

51913_rns_2017-09-27_f0801b87-4dfb-43ab-a1b8-7a2d8d8cd35f.pdf

Investor Presentation

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Johnson Health Tech. Group

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CONTENTS

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.

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

Global: USD 6.3 billion Home: USD 4.0 billion Commercial: USD 2.3 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

==> picture [654 x 330] intentionally omitted <==

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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
Source: IHRSA
----- End of picture text -----

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Brand Market Position

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Brand Market Position

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

Matrix Commercial-use fitness market e.g. Johnson Health club and Hotel Vision High-end home through Specialty fitness retailers and light commercials Sporting goods stores, Department stores, Horizon mass retailers etc.

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Historical financials

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Historical financials information

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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