Ann: Shareholder Update June Quarter 2016-OBJ.AX, page-29

Some disappointment at slow progress seems based on the misapprehension that disruptive tech means 'disruptive introduction'.

I have stopped considering OBJ tech to be 'disruptive' because the OBJ model lets the potentially 'disrupted' manage the tech introduction to their own schedule. Nothing is being 'disrupted'. On the contrary, it is being slowly integrated...very slowly. It would be different if some new interloper took up the tech and introduced new products on the market.

OBJ's model has been to cuddle up to the big players and deliberately not disrupt them at all. This model finds its cash position propped up by funding of its R&D and in return the relevant player can integrate (not disrupt) with the tech where, how and importantly, when, it suits them. OBJ will be well-rewarded for a long time each time a product finally hits the shelves because the scale is so gigantic.

Seems a conservative and perfectly rational model to me. Conserving cash, geared to attach royalties or fees to huge volume products, and being patient about the eventual pay-off.

Personally, not dismayed by the content of this non-price sensitive update. There is nothing OBJ can do about making any licencee bring products to market more quickly, or to be specifically informed about licencee plans in that regard, beyond whatever prior notice is necessary for logistical reasons. OBJ management seems relaxed and possibly a bit perplexed (given their model) in response to the communications about when things will happen.


Good to learn that there are 2 companies interested in the entire Bodyguard portfolio. Competition sharpens the appetite and emergence of an agreement for an entire suite of Bodyguard-related products would be a huge result. Again, if, as seems likely, it is two established players, the one who succeeds will introduce it in their own time. If they produce the whole portfolio, once begun, it should quickly escalate. Of course, obtaining worldwide exclusive rights to it may see them take their own sweet time about it. Requiring some immediate up-front fee makes sense to me, for being willing to accept that risk.


Aiming for a couple more years and a few products with revenue flowing from high volumes without much operating cost seems a pretty sound long-term business plan to me.

I expect to buy more OBJ over the next few months in the expectation that revenue from the first two products will validate the model and encourage investors to understand, appreciate and value the OBJ model a bit more next year. Expanded sales of OBJ tech integrated P&G products may also sharpen the focus of other P&G branches who would like to report great improvement in their own sales figures.