Ann: P&G PDA and Work Plans-OBJ.AX, page-66

'They keep saying that the signing of certain agreements is getting closer, but even once signed it still takes time for the launch and even longer for money to start rolling in.'

Here's what the announcement told us:

'The Licensing Term Sheet for the Wave I Eye Wand has been agreed to by both parties and is in final documentation phase and a detailed licensing agreement will be finalised within 90 days of the execution of this Term Sheet.'

If the 'Licensing Term Sheet' is in 'final documentation' we could theoretically expect it within a month. Then the 'Licensing Agreement' will be executed within '90 days'. This maximum 90 day requirement is new and most likely correlates to 'the relaxation of several provisions as requested by OBJ'. So let's say we have the Licensing Agreement (assuming another 30 days for 'final documentation' of the 'Licensing term Sheet') for the Wave 1 Eye wand across 2 brands SKII and Olay, by the end of August at worst - we may have it earlier as P&G may not choose to use the full 90 days. P&G will then invoice OBJ/Supplier for a set amount of MicroArray for both SKII & Olay. The order won't be for four countries and in the hundred thousands of units as with the 'soft launch'. It will be for a Global launch and in the several millions imo for SKII alone, and more than likely Olay could dwarf those figures. OBJ are then invoiced and paid Licensing Fees/Minimum Funding reimbursements and Royalties on 90-day terms. Who knows, the 'Licensing Fees/Minimum Funding reimbursements' may even have different payment terms to the Royalties.

Worth noting also is a 'take home message' form the webcast last night where it was stated for a new product that P&G Tripled distribution in the 2nd quarter of the new product launch:

'Very interesting for a new product launch like Oral B Expert Premium/Professional Gum Protection Toothpaste, P&G are tripling Distribution in the Second Quarter of the launch...perhaps a prelude of what to expect in relation to any applicable Royalties after First Quarter numbers hit the books for any future OBJ Product launches...so Second Quarter could very well take a few by surprise.'

I expect we will have a clearer picture somewhere between EOFY (which will beef up OBJ's annual reporting figures) or at the very latest August - 3 months P&G terms then showing us the initial value of the first Licensing Agreement sometime between September & November. OBJ gets paid 3 months after they supply and not when products hit shelves. Also nothing to say we won't see any of the other numerous deals with other companies also being executed over this period.

Perhaps no information in last night's Webcast in relation to their Beauty Sector (SKII & OLAY) is keeping in tradition of P&G's policy of keeping their competitors in the dark in relation to New Innovation. After all, P&G didn't get to where they are today by prematurely blurting out their Latest Product Innovations where the FMCG genre is thwart with the highest levels competitive secrecy.