TAIWAN’S NO. 1 MEDICAL SKINCARE

Company Introduction Presented by Eric Wu

Chairman and CEO 2016

DR.WU Company Introduction - Quick Facts About Us

Founded 2003 by Dermatologist

93 Staffs HQ in Taipei and Shanghai

Current Market Cap of US$ 250 mn

1200 POS 7 Countries

12 Product Lines - 68 SKU

Expected IPO June 2016

2

DR.WU Company Introduction - Management Team & Shareholder Structure

Eric I-Ju Wu, Chairman and CEO

In Charge of Company Strategy and Development

Columbia University, BS in Engineering

DR.WU Skincare Co / GM

W Clinic Group / GM

AIG Investment Corp Taiwan / VC Associate

PricewaterhouseCoopers LLP / Senior Financial Analyst

Jennifer Hsu, General Manager

In Charge of Operations, Sales and Marketing

Joined DR.WU in June 2015

MBA in Marketing and Bachelor in International Trade

Clarins Taiwan / GM

Elizabeth Arden Taiwan / GM

Johnson & Johnson (LifeScan) / Director

Coca Cola Taiwan / Marketing Director

Uniliver Taiwan / Marketing Manager

67.7%

3

Shareholder Stake

Wu I Ju 29.6%

L Capital Taiwan Beauty

22.0%

DEF Investment Holdings

18.2%

Dong Lin Biomedical 8.0%

W Clinic Biotechnology

8.0%

Hsieh Pie Lin 3.9%

Wei Nien Tzu 1.8%

Fidelity China Special Situations Fund

1.3%

Grandeur Peak Global Reach Fund

0.8%

Grandeur Peak Emerging Markets

Opportunities Fund 0.6%

Public Float 5.8%

Leading Medical Skincare Brand – DR.WU - Our Philosophy About Skincare

Taiwan’s No.1 Medical Skincare

DR.WU is a line of highly effective skincare products

developed with advanced patented technologies to target

various problems in Asian skins. Our philosophy behind our

pursuit for enhancing beauty and wellness is through simple,

effective products backed by the latest discovery in Science,

Biotechnology and Cosmetics. We believe in the partnership

between innovation and science to bring about non-surgical

solutions in enhancing one’s beauty and wellness.

4

Leading Medical Skincare Brand – DR.WU - Brand Origin of DR.WU

Renowned Dermatologist and Aesthetic Surgeon in Asia Brand Founder of DR.WU Clinical Professor of National Taiwan University Hospital (NTUH) Founder and Chief Physician of WCLINIC and WSPA

• 1978 Opened his first dermatology clinic • 1981 Institut National de la Santé et de la Recherche Médicale –

Immunology Researcher. • 1990 Developed esthetic medical treatments and dermatology ointments

and emulsion formula • 1996 Developed first Intensive Whitening Serum with Arbutin

1.5 Generation Entrepreneur

Founder of DR.WU SKINCARE CO

Columbia University, School of Engineering and Applied Science

• 1998 PwC Chairman’s Office, Corporate Development Associate

• 2001 Return Taiwan to work for VC funds and started planning for re-organization of family business

• 2003 Founded DR.WU SKINCARE CO and launched first product under the Brand DR.WU

「Create perfect skin

through simple but effective ways」

--Our Philosophy & Goal .

Eric Wu, Chairman & CEO

DR. Wu Ying-Chin

5

Leading Medical Skincare Brand – DR.WU - The Milestones of DR.WU

Full Launch in Cosmed Chain Drugstores DR.WU’s Hydrating and Whitening Serum was recommend by Barbie Hsu “the Beauty Queen”

Launch in SASA, Health Drugstores, Etc.

Expanded business overseas: Hong Kong, U.S.A ,New Zealand and Yahoo! POS of total 500 stores. Product lines add to 6 series .

Launch in Watsons and regional expansion to Singapore. POS of total 900 stores

DR.WU Clinical Skincare brand and the Company were formally incepted

DR.WU’s Total Sales has reached No.1 in Cosmeceuticals Sector and launched over 100 SKU

Set up Department Store Counters in Shinkong Mitsukoshi, becoming the first medical skincare brand having outlets in a department store

Expanded business into Malaysia, Have received recognitions from major Beauty Awards

Launched product in Canada Chairman Eric Wu won TOP 100 MVP Managers award

Number of sales points surpasses 1,200 Vitamin C+ Whitening System and UV Protect Suncare System launched Received numerous awards, #1 among local brands Company renamed as DR.WU Skincare

Received investment from L Capital Asia of LVMH Started E-commerce sales channel in China Setup of Medical Skincare Concept Stores in Taipei 101 Chairman Eric Wu received 2014 EY Entrepreneur Of The Year award

Went public and listed on Emerging Stock Market Board Employed artist as brand endorser for the first time Received 2015 National Cornerstone Award Chairman Eric Wu received 2015 National Entrepreneur

2003

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2003

2009

2015 Approval from TPEX for IPO Apply 2016 6

Leading Medical Skincare Brand – DR.WU - Competitive Advantages and Our Success Formula

Growth Sales

• 100% penetration in drugstore

chains

• Full coverage of virtual online stores

• Present footprint in overseas

Chinese-speaking market

• First Taiwanese brand entering

cosmeceutical market

• Non-surgical cosmetic medicine

more common and reaching

younger market which drives

growth of cosmeceuticals

• Consumption habits changing from

emotional to rational. Consumers

trying to select cosmeceutical vs

general skincare products

• Cosmeceutical market growing at

double digits

Complete Coverage of Online/Offline Channels

High Potential Markets + Necessity of Skincare

7

Brand

• Market leader: Taiwan’s No.1

Medical Skincare /First to enter the

cosmeceutical market

• High popularity, high reputation,

high reliability from consumers

• One of few Asian cosmeceutical

brands to truly stem from doctors

and clinics

• Only IPO cosmeceutical company

founded by professional teams with

medical background

Leading Cosmeceutical Brand

Product

• Complete product line developed by

authoritative dermatologists with

patented formula in Asia

• 15% new product development rate

• Advanced knowledge and skills in R&D

• 100 patented active ingredients from

global pharmaceutical companies

• 12 full product lines (cyclical, risk

diversification, synergy), satisfying

needs of Asian skin care

• Insist on applying 5 principles to

develop high effectiveness,

hypoallergenic and high quality

products

R&D by Authoritative Dermatologist in Asia

40 Years of Clinical Studies Fix various skin problems based on 40 years

of clinical experience

Functional Solutions Target Asian Skin Developed specifically for Asian skin type

DR.WU CLINICAL SKINCARE

Taiwan’s No.1 Medical Skincare Brand

Micro- Surgery Concept Skincare

Advanced Clinical Skincare Solution - Brand Concept

High

Po

ten

cy Effective an

d rap

id resu

lt for th

e beau

tiful skin

For Se

nsitive

Skin

Suitab

le for th

e fragile and

tend

er skin after th

e co

smetic su

rgeries

Micro

- Surge

ry Co

nce

pt Skin

care

Co

ncep

t for th

e med

icinal treatm

ent

-Co

ntin

uatio

n o

f med

ical skin care an

d

main

tenan

ce at ho

me

EFFECTIVE

Medical Professional, Scientific Testified

Patented Active Ingredient with Effectiveness

• DR.WU is a professional brand positioned to offer Micro-Surgery Concept Skincare with fast effective functional Skincare.

• Mid to High-end Skincare solutions developed by renowned Asian dermatologist for Asian skins, Targeting 18-40 year old.

TRUST

No Additives. No Alcohol. High Concentration.

High Grade Actives. High Safety Level.

EXCELLENCE

Innovation Technology, Good Quality of Process

CARING

One on one Care, Exclusive Physician,

Customized Programs, Corporate Responsibility

8

Advanced Clinical Skincare Solution - Complete Product Lines: 12 Key Lines x 69 sku

12 SERIES 69 SKU

ASP 800-1500

HYALUCOMPLEX

HYDRATING SYSTEM

x11

VITAMIN C +

WHITENING SYSTEM

x6

ACNECUR

ANTI-ACNE SYSTEM

x5

MANDALIK

RENEWAL SYSTEM

x7

BASIC CARE SYSTEM

x3

UV PROTECT

SUNCARE SYSTEM

x6

MINERAL MAKE UP

x3

PREMIUM SKINCARE

x7

SKINCARE FOR MEN

x5

AGEVERSAL

REPAIRING SYSTEM

x6

9

CAPSULE MASK

x8 FIRST AID SERIES

x2

Advanced Clinical Skincare Solution - Research Core Competency & Safety Management

Global Technical Cooperation Laboratories

over 100 international patented active ingredients

Patented Formula

Ying-Chin Wu, M.D. 40 years of clinical experience

Innovative Technology

3 major Microinject Delivery Technology-

Cellulose/Microinject mask

5 major cosmetic manufacturing companies

ISO Certified (ISO9001/ISO022716/GMP)

DR.WU R&D Core Competency

293 Non-Additives

Checks

70 Quality Checks

Accurate Rigorous

Process Clinical Safety

Optimized Quality

Assurance

Feedback DR.WU Safety Management

System

DR.WU is developed based on such principles: No Additives, No Alcohol, High Concentration, High Grade Actives, that are safe and effective even for use on sensitive skins

10

Advanced Clinical Skincare Solution - R&D Labs / Patent/ Trademark

Cooperation Pharmaceutical MNC’s Laboratories / USE over 100 Patented Active Ingredients

Exclusive development of 5 formulation patents and registered 85 trademarks -SensiPhyte™ – Anti-redness soothing factor -Ageversal ™– Properties of multi-peptides -HyaluComplex ™– Most advanced hydrating formula DR.WU brand was registered over 5 markets -Taiwan, China, Hong Kong, Singapore, US, etc

11

Taiwan’s No.1 Medical Skincare Brand - Brand Positioning Among Derma Skincare and Doctors’ Brands

High effectiveness

High price Low price

Low effectiveness

• DR.WU is a PROFESSIONAL brand positioned to offer Non-Surgical Cosmetic Medicine Concept Skincare with fast effective functional skincare

• Mid- to High-end Skincare solutions developed by renowned Asian dermatologist for Asian skins, targeting 18-40-year-old segment

12

13

8,427

6,236

2,192 585

8,657

6,228

2,429 727

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

Caring Mass Derma DR. WU

TWD Million 2015 Taiwan Skincare Market

2014/1-12 2015/1-12

YOY 3%

YOY -0.1%

YOY 11% YOY 24%

• DR. WU Sales of drugstores channel grew 24% YOY in 2015, and the growth rate is 2.2x higher than Derma, 8x higher than Caring.

• In Derma Market, DR.WU’s market share is 30%, 3% increase compare to last year, which is the highest growth rate among Derma brands.

55% 54% 53% 54% 54% 52%

24% 25% 27% 27% 28% 30%

13% 12% 11% 10% 9% 9%

6% 5% 5% 5% 4% 4% 2% 2% 3% 3% 3% 3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2014H1 2014/1-9 2014 2015H1 2015/1-9 2015

2015 Derma Market Share

other(AVENE、Bio、FOB…..) DR. WU Vichy Curel Neogence

Taiwan’s No.1 Medical Skincare Brand - Market Leader Among Derma Skincare Market

Taiwan’s No.1 Medical Skincare Brand - Taiwan Skincare Market: Mass vs Derma

Taiwan’s skincare market is estimated at NTD 8.6bn in 2015, with 5-year growth rate of 3-5%

14

Annual growth rate of Derma Skincare market estimated at 10-15%, 3x that of Mass market

Caring-Mass Caring-Derma

30% 33% 36% 40%

Taiwan’s No.1 Medical Skincare Brand - Medical Skincare Demand Drivers

Cosmeceutical market driven by changing consumption habits and surge in sensitive skin

• Global climate change leads to surge in number of people with sensitive skin:

In addition, growing popularity of micro-surgery treatments results in increased demand for post-treatment sensitive skin repair. Hence the demand for hypoallergenic, non-irritating skin-care products.

• Consumption habits have migrated from emotional to rational: Main consumer age falls between 29 and 45 year-old women who are more independent

and willing to invest on themselves. They spend wisely and are aware of personal demands. Therefore, strict inspection, scientific experiment, high effectiveness and hypoallergenic skincare products fit the demand from these clever consumers. Product safety is main concern. Hence skincare products with testimonies become increasingly attractive.

• Endorsement by professional teams, equipped with both effectiveness and safety: These are key for persuading consumers. Products with scientific experiment clinical data and approval by dermatologists provide "effectiveness and safety" signs to consumers.

15

16

Taiwan’s No.1 Medical Skincare Brand - Growing Brand Awareness in Taiwan and China

Brand Awareness, Positive Word of Mouth and Client Loyalty have surged coupled with Increasing attention from media

57,817

27,285

142,365

0

20000

40000

60000

80000

100000

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140000

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Jun

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4

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Facebook/Wechat/Weibo Fans

FB Fans Wechat Fans Weibo Fans

0

100

200

300

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Jun

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g-1

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Baidu/Taobao Index

Baidu Index Taobao Index

30,111

119,784

198,016

050000

100000150000200000250000300000350000400000450000500000

Jun

-14

Jul-

14

Au

g-1

4

Sep

-14

Oct

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Jan

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5

Jumei/Tmall/.COM Unique Vistors

.com.cn UV Jumei UV Tmall Flagship UV

Taiwan’s No.1 Medical Skincare Brand - Recognized by the Most Prestige Beauty Awards and Honors

17

COSMOPOLIAN BEAUTY QUEEN BELLA COSMOPOLIAN UrCosme UrCosme

FashionGuide GQ ELLE BEAUTY

AWARD BEAUTY BAZAAR WATSONS HWB

2012 MVP MANAGER 2014 EY ENTREPRENEUR 2015 NATIONAL

CORNERSTONE AWARD 2015 NATIONAL ENTREPRENEUR

18

China Channel

EC Channel

TMALL JUMEI TAOBAO MEI.COM Cross Border

Department Store SUPER BRAND Shopping Mall, Shanghai

Cosmetic Stores FIONA Beauty

Stores(41)

B&M Channel - Taiwan

Drugstore chains channels Watsons (516) Cosmed (380) Your Chance Pharmacies (36)

Department Store Taipei 101 concept store Far Eastern Mega City

Beauty Specialist SaSa(23)

Others Duty Free Stores(13) W Clinics(4)

EC Channel - Taiwan

DRWU.COM YAHOO MOMOSHOP PCHOME BOOKS PAYEASY, 7net ETMALL

Overseas markets Hong Kong, Macao(369) Singapore(60) Malaysia(62) U.S.A(10) Canada(25) New Zealand

Strong Distribution Channel Management - Regional Sales Channel Distribution

Complete Distribution Coverage of Online and Offline Sale Channels

19

B&M

482,689

73%

EC

126,436

19%

China

13,636

2%

Overseas

40,048

6%

Channel 2014 2015 YOY

B&M TW 482,689 531,234 10%

EC TW 126,436 141,163 12%

China 13,636 138,671 917%

Overseas 40,048 54,146 35%

Total 662,809 865,214 31%

B&M

531,234

62%

E Commerce

141,163

16%

China

138,671

16%

Overseas

54,146

6%

2014 Revenue By Channel 2015 Revenue By Channel

Strong Distribution Channel Management - Sales Contribution by Channel

NTD 000

Strong Distribution Channel Management - Medical Skincare Concept Store and Department Store Counter

TAIPEI 101 MEDICAL SKINCARE CONCEPT STORE

20

Far Eastern Mega City DEPARTMENT STORE

Strong Distribution Channel Management - Chain Pharmacies and Personal Care Specialty Stores

COSMED WATSONS

MANNINGS SASA

21

Strong Distribution Channel Management - Duty Free Channel

EVER RICH DUTY FREE STORES

TAIPEI / TAOYUAN / TAICHUNG / KAOSHING / KIMMEN

22

Strong Distribution Channel Management - E-Commerce Sales Channel

DRWU.COM YAHOO PCHOME

MOMOSHOP TMALL JUMEI

23

Strong Distribution Channel Management - 360 Complete Marketing Activities

•Print Ads / Out Door

•Beauty column

•Pop Up Store

•Sampling

• EPR • KOL Management • Vertical Beauty Portals • Video Ads • Short Movies

• Facebook

• WeChat

• Weibo

• Baidu Search

• Word-of-mouth

•Brand launch event/

Media gathering

•Media trip

•PR Editorials

Offline Marketing PR Activities Digital Marketing Social Media

24

25

Financial Performance - Major Financial Indicators

565,499 662,809 865,214

0

200,000

400,000

600,000

800,000

1,000,000

2013 2014 2015

Sales Revenue

17.2%

30.5%

221,580 249,159 265,041

0

50,000

100,000

150,000

200,000

250,000

300,000

2013 2014 2015

Income from Operations

12.5 % 6.4 %

NTD 000

68.21% 67.44% 68.34%

32.65% 36.10%

26.40%

52.12%

34.79% 24.65%

0%

10%

20%

30%

40%

50%

60%

70%

80%

2013 2014 2015

Profitability Metrics

Gross margin Net profit margin ROE

205,093

294,031 286,476

11.73% 12.30% 9.91%

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

0%

2%

4%

6%

8%

10%

12%

14%

2013 2014 2015

Debt Ratio & Cash Equivalents

Cash equivalents Debt ratio

Financial Performance - Income Statement Summary

26

Unit: NT$ Thousands Applied IFRS (Consolidated)

Item 2013 2014 2014 vs

2013

2015 2015vs 2014 Amount % Amount % Amount %

Net Revenue 565,499 100.0% 662,809 100.0% 17.2% 865,214 100.0% 30.5%

Cost of Revenue 179,797 31.8% 215,798 32.6% 20.0% 273,890 31.7% 26.9%

Gross Profit 385,702 68.2% 447,011 67.4% 15.9% 591,324 68.3% 32.3%

Operating Expenses 164,122 29.0% 197,852 29.9% 20.6% 326,283 37.7% 64.9%

Income from Operations 221,580 39.2% 249,159 37.6% 12.5% 265,041 30.6% 6.4%

Non-Op Income & Expenses 3,118 0.6% 43,970 6.6% 1310.2% 8,399 1.0% -80.9%

Income before Income Tax 224,698 39.7% 293,129 44.2% 30.5% 273,440 31.6% -6.7%

Income Tax Expense 40,036 7.1% 53,885 8.1% 34.6% 45,050 5.2% -16.4%

Net Income 184,662 32.7% 239,244 36.1% 29.6% 228,390 26.4% -4.5%

Capital Stock 200,000 - 281,938 - - 281,938

EPS (NT$) 8.5 - 8.68 - - 8.10

Our Future Prospects - Growth Strategies: Expand, Innovate and Control

Market Expansion

Focus on market expansion in China and ASEAN countries for the next two years Great potential driving from increasing disposable incomes along with consumption power

Innovative Creation

15% per year new product development rate Continue to develop market leading cosmeceutical products Focus on functional products in whitening, moisturizing, anti-wrinkle and acne treatments categories

Multi-Channel

Continue diversify sales contribution from pharmacy channel to e-commerce, department counters. Activate O2O sales model to get closer to customers

2016 IPO on TW’s OTC

Enhance organization, finance, management and internal controls Listed on Emerging Stock Exchange on April 30, 2015 Shooting for completion of IPO on TPEX in JUNE 2016

27

Our Future Prospects: Market Expansion - Global Skincare Market Potential

NT$157bn ASEAN skincare market 2.9x Taiwan MKT

NT$ 54bn Taiwan skincare market #1 brand in Taiwan’s cosmeceutical market

28

Taiwan share by Category

Global share by Category

China share by Category

NT$ 3.3tn global skincare market 62x Taiwan MKT

NT$693bn China skincare market

13x Taiwan MKT

2011 2012 2013 13-'11

14% 14% 14% 0.4%

32% 32% 31% -0.7%

6% 6% 6% -0.3%

14% 14% 14% -0.6%

66% 65% 65% -1.0%

16% 15% 15% -1.2%

11% 12% 13% 1.5%

7% 8% 8% 0.7%

34% 35% 35% 1.0%

100% 100% 100% 0.0%

Store-Based

Retailing

Grocery Retailers

Department Stores

Beauty Specialist

Parapharmacies/Drugstores

SubTotal

Non-Store

Retailing

Direct Selling

Internet Retailing

Homeshopping

SubTotal

TOTAL

Channel

2015 Q3 2015 Q4 2016 Q1 2016 Q2

Our Future Prospects: Market Expansion - China Expansion Strategy: Online and Offline

E Co

mm

erce

2015 Q1 2015 Q2 2016 Q3 2016 Q4

Cross Border EC (Jumei/Tmall)

TMALL.COM Flagship Store

JD.COM

VIP.COM

JUMEI.COM Flagship Store

29

FIONA Beauty Stores (41stores)

SUPER BRAND Shopping Mall, Shanghai

Store B

ased

Other EC platforms

Other Cosmetic Stores and Department Counters

Our Future Prospects: Market Expansion - New Markets Expansion Road map

Focus on China and ASEAN countries expansions for next 3-5 years

Current Sales Region

Taiwan(970) China(48) HK/Macau(369) Singapore(60) Malaysia(62) USA Asian(10) Canada Asian(25) New Zealand

3-5 Expansion Plan

Myanmar Vietnam Thailand Indonesia Philippines UK Japan Korea Bahrain

30

Our Future Prospects: Innovative Creation - Brand Endorser for 2016: Hannah Quinlivan

Continue Endorser in 2016, DR.WU has Successfully

Enhanced Brand Awareness throughout ASIA:

Hannah's marriage to Jay Chu who is the most popular

singer in Asia and her recent has children announcement

has created tremendous online chatter and followers.

31

Videos of Hannah sharing her beauty tips using DR.WU Serum and Mask during New York Fashion Week, attracting 34,822,000 Unique Visitors.

Our Future Prospects - Enhance Consumer Counter Experiences with 2.0 Concept Stores

32

2.0 Concept Store Design & Shanghai Supermall Counter (Oct. 2015) DR.WU 2.0 CONCEPT STORE aims to deliver Lifestyle consumer experiences with light industrial decor to deliver Trendy, Young, Fun and Professional aspects of DR.WU.

2016 2018 2020

Our Future Prospects - New Products Development Strategy

33

•Products renewal rate remain at 15% every year. •Insistence on applying 5 principles to develop high effectiveness, hypoallergenic and high quality products. •Diverse product lines, increase applications and expend consumer groups.

．Insist on formula upgrade of present products

．Develop new product lines for Pre- Mature segment

．Develop makeup and whitening body care products

．Insist on formula upgrade of present products

．Develop body, hand, foot care products

．Develop scalp and hair care products

．Insist on formula upgrade of present products

．Develop clean and skincare products suitable

for pregnancy & baby

．Develop new products with Organic and

Nature concept

DR.WU

DR.WU

DR.WU

1-2 years 2-3 years 3-5 years

Our Future Prospects - Corporate Social Responsibility

34

Social and public

interests

Talent training

and social education

Industry coexistence & prosperity

Employees welfare

Corporate governance

Green supply chain

Actively promoting CSR

35

Thank You “Your Personal Doctor For Your Perfect Skin”

-DR.WU