Analyst Meeting

15 August 2019

1

AGENDA• Business Summary

• Business Strategy• Target 2019

• BEAUTY Business Update • Oversea Business• Retail Business• Consumer Product• E-Commerce• Product Driven• Marketing

• Business trend & Performance analysis

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Revenue target : 2.2 billion baht.

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BEAUTY Business Update • Oversea Business• Retail Business• Consumer Product• E-Commerce• Product Driven• Marketing

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7

..

New Market Research

CBEC10 Platforms

Non-Official Market

CFDA Registration

• 12 Products

DEC

Distributors

Sign Contract & First Shipment

20182017 2019 2020

Tourist Market- Create Product- Brand Awareness

ChinaE-commerce

Law

China MarketExpansions

General Trade

Official Market

5 Distributors in China1.Product Distributor : Facial Foam Q10 2.HK Distributor 3. Product Distributor : Mask Sheet T-Beauty 4.Beauty Cottage Distributor5. Product Distributor : Milk Plus Lotion & Bath Cream (CFDA Products)

Gerneral Trade in ChinaTarget = 100,000 outlets

China Market Timeline

JAN FEBJUN MAR

Beauty

Cottage Distributor

APRT-Beauty

JUNNEW

Distributor

• Sign Contract• Distributor

Assignment• Non-Official

8

15 Countries

20182017 2019 2020

Other Countries Achievement Timeline

Inter-Countries

5 Countries 13 Countries

Shop license

Product Distributor

Online Distributor

Distributors

New 3 Concepts

Product + Online Model

• Japan Distributor• Brunei Distributer

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: Actual 1H2019 : 13 Countries

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BEAUTY has partnered up with Carrot

Mall – China’s leading distributor

BEAUTY appointed Tyden

International to be our Beauty

Cottage distributor in China

BEAUTY appointed

Rayanskin as a facial mask

(T-Beauty) distributor in

China

BEAUTY appointed

PARKSON to be our

distributor in Malaysia

BEAUTY selected Kutiepy

cosmetics as our distributor in

India

BEAUTY officially signed

Anouvong Export as our

distributor in Laos

International Distributors

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BEAUTY appointed JAPAN FUNCTIONAL COSMETICS LABORATORY

CO., LTD. to be our Beauty Cottage distributor in Japan

BEAUTY has partnered up with Yangzhou Royal

Cosmetic Company Limited– China’s leading

distributor

BEAUTY selected KIAN BEE COMPANY

cosmetics as our distributor in Brunei

International Distributors

Beauty Exhibition 2019

Top Thai Brand 2019, Vientiane

Laos

Top Thai Brand 2019, Phnom

Penh, CambodiaTop Thai Brand 2019,

Myanmar

China international Beauty Expo

Guangzhou

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China international Beauty Expo Beijing Beauty world Middle East Dubai 2019

Beauty Exhibition 2019

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ASEAN Beauty 2019 Top Thai Brands 2019, Hochiminh

City, VietnamChina Beauty Expo in Shanghai

Selling in USA Selling in Canada

International Traders

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Actual Y2018 : Selling on 8 platforms

Target Y2019 : Selling on 2 additional platforms – a total of 10Actual 1H2019 : Selling on 10 platforms

PIN DUO DUO Global Scanner

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Target : 100,000 Potential Outlets

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China Offline Store

Enhance Offline Channel ( General Trade ) in Mainland China.

Target Y2019 : 100,000 Outlets

Actual 1H2019 : 25,296 Outlets

娇兰佳人 GIALEN好德 Alldays华润 Ole

罗森LAWSON万宁Mannings

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BEAUTY Business Update

Domestic Market • Retail Business• Consumer Product• E-Commerce

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Domestic Achievement Timeline

20182017 2019 2020

Retail shop

Commerce

Multi -Brand Proj.

JULY

BB New Prototype Design

Beauty Fest

M 100 Proj.

Health Products

Modern Trade

Traditional Trade

Home Shopping

New E- Commerce Platform

3 Concepts models **

** *Expansion to consumer product*

**

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2. Retail Business Models

Strengthen & improve business models to create and capture more customer value.

• 10 stores expansion ( Beauty Buffet 8 stores and Beauty Cottage 2 stores)

primarily targeting well-recognized areas.

• Prioritizing in opening a new branch in prime locations that can immensely attract

potential customers while demoting the underperforming branches to minimize

the operation costs

• Strengthening store management and product allocation to maximize the concept

of “Space Utilization”.

• “Local Store Marketing” is improvised by each store branch.

• Shelving other popular brands in Beauty Buffet to holistically attract customers.

• Redesigning Beauty Buffet store to swiftly respond changes in lifestyles starting

at MBK branch : July 2019

• Booth exhibition selling various brands under the concept of “BEAUTY FEST

OUTLET”

• Introducing “Beauty Outlet Model” offering affordable products to accelerate

products diffusion.

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Shop expansion

Prioritizing in opening a new branch in prime locations that can immensely attract potential customers while demoting the underperforming branches to minimize the operation costs

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Redesign Beauty Buffet store to swiftly respond changes in lifestyles starting at MBK branch : July 2019

New Shop Design

BEFORE

Booth exhibition selling various brands under the

concept of “BEAUTY FEST OUTLET”BEAUTY FEST OUTLET

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Multi-Brand Project ( M- Project )

Shelving other popular brands in Beauty Buffet to holistically attract customers.

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3. Consumer Product

Leverage sales efficiency on existing channels and

expand to well-selected channels with high potential growth.

• Increase a number of stores, selling spots, and SKUs in Modern Trade, Convenience Stores, and

Traditional Trade.

• Boosting promotion and activities with these trade platforms.• Home Shopping : new and very promising alternative to increase sales channels.

• No. Of Store : 707 Stores

• No. Of SKUs : 12-15 SKUs

• No. Of Account: 40 Accounts

• No. Of Store : 955 Stores

• No. Of SKUs : 5-42 SKUs

• No. Of Store : 448 Stores

• No. Of SKUs : 28 SKUs

• Target 2019 : 3 Distributor

• Target 2019 : 11 Channels

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Home Shopping

Home Shopping : new and very promising alternative to increase sales channels.

Launching : July 4, 2019

Target 2019 : On air 11 Channels

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Restructure and reorganize E-Commerce platform to grow

stronger future revenue.

• Invigorate e-commerce platform with a solid team of professionals.

• Establish user-friendly features to current websites to encourage online

transaction.

• Increase 3rd party platform and SKUs availability.

4. E-Commerce

On 3rd Party Websites: S-COMMERCE Market Place

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www.beautybuffet.co.th

Establish user-friendly features to current websites to encourage online transaction.

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Deliver more innovation trendy and health concepts into new and

existing product to add up value and drive customer engagement.

Sales growth stimulation – 57 product heroes will be initiated with 3 noteworthy products as follows

1. GINO McCRAY The Professional Make Up Powder Foundation (แป้งทองค ำ) 2. Skincare Serie “Beauty Idol”

3. Beauty Cottage Elegant Impressionist Semi – Matte Lipstick (ลิปSemi Matte)

5. Product Driven

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Additional Product Heroes

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New products 2018Total New product 68 items, 191 SKUs

• Make up 24 items, 147 SKUs • Skin care 44 items, 44 SKUs

Target New products 2019Total New product 66 items, 130 SKUs

• Make up 20 items, 84 SKUs • Skin care 46 items, 46 SKUs

New products 2018Total New product 31 items, 79 SKUs

• Make up 11 items, 59 SKUs • Skin care 20 items, 20 SKUs

Target New products 2019Total New product 47 items, 72 SKUs

• Make up 14 items, 39 SKUs • Skin care 33 items, 33 SKUs

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Health Products

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Health product categories hold immense marketing opportunities derived from the increasing

concern of personal appearance.

• In 2018, Health Products were 1.5% of total income

• In 2019, Health Products are expected to gain 3% and 10% respectively in the next 3 years (2022) of total income.

BEAUTY COTTAGE DIETARY SUPPLEMENT PRODUCT (STRAWBERRY SC PLUS)

BEAUTY COTTAGE DIETARY SUPPLEMENTPRODUCT (ROSE COLLA BRAND)

BEAUTY BUFFET BERRY TRIPLE COLLAGEN

BEAUTY BUFFET DIETARY SUPPLEMENT

PRODUCT (FRUITA PLUS BRAND)BEAUTY BUFFET BRAND PROTEIN

PLUS MULTI-VITAMINBEAUTY BUFFET DIETARY SUPPLEMENT

PRODUCT (VEGGIES BERRIES)

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Health Products Actual 2018 : 21 items, 21 SKUs

Target 2019 : 30 items, 30 SKUs

LANSLEY DIET COCOA PLUSLANSLEY DIET COFFEE PLUS

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Marketing PR

Digital mediaBlogger & Micro agencies : China

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We Chat : Beauty Buffet Official Dou Yin (Tik Tok)

Baidu & QA

Marketing PR

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Digital media

Blogger & Micro agencies : Japan

Lipstick Semi-Matte from Japan to Thailand

Marketing PR

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Digital media

Blogger & Micro agencies : Thailand

Lipstick Semi-mattGINO McCRAY The professional make up powder

Marketing PR

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Presenter & Blogger : Thailand

Meet & Greet “Sweet Saint”

By Beauty Buffet “#แป้งทองค ำซับทุกฟีล”

Marketing PR

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Digital media

Presenter & Blogger : Thailand

“Saint” Beauty newest presenter of

Scentio Milk Plus Whitening Facial

Foam Q10

Traditional media Chiangmai Airport

Marketing PR Digital media

Presenter & Blogger : Thailand

“Maprang” Beauty newest presenter of Beauty Cottage Elegant Impressionist Semi Matte Lipstick

BEAUTY Idol

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Marketing PR

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EventBeauty Blossom is Blooming with I'm Mayyr

11th Anniversary Beauty Buffet

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Business trend & Performance analysis

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Revenue Target Summary

Revenue 2,200 million baht and maintain net profit 12-15% Maintain gross profit (%GP) no less than 60%

2020 Target : Revenue growth 20% and maintain net profit 15% Maintain gross profit (%GP) at 60%

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2019 Target :

71%

29%

Y2018

75%

25%

FY2019

65%

35%

FY2020

Domestic

International

76%

24%

1H19

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Revenue Structure 2018-2020

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56%

14%

2%

26%

3%

Y2018

57%17%

1%23%

2%

1H19

56%

17%

1%22%

4%FY2019

46%

18%1%

29%

6%

FY2020

Retail Shop

Commerce

other Sales

China

other Countries

Revenue Structure 2018-2020

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56% 57% 56%

46%

0%

10%

20%

30%

40%

50%

60%

Retail Shop

Y2018

1H19

FY2019

FY2020

14%

17% 17%18%

0%

5%

10%

15%

20%

Commerce

Y2018

1H19

FY2019

FY2020

26%23% 22%

29%

0%

5%

10%

15%

20%

25%

30%

35%

China

Y2018

1H19

FY2019

FY2020

3%

2%

4%

6%

0%

1%

2%

3%

4%

5%

6%

other Countries

Y2018

1H19

FY2019

FY2020

Revenue Structure 2018-2020

*Excludes Other sales

Performance Summary

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A transformation from retail-based business into more Consumer & Overseas.

Opportunity for Success – BEAUTY is fundamentally strong – yet very adaptive – organization to contend with constant external changes knowing the potential within beauty industry.

Target – BEAUTY aims to establish a strong distribution channel with the supportive components of wide range of products and well-recognized brand.

Management concentrates on the competency of minimizing evitable expenses to improve the profit margin.

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