CorporatePresentation

Financialyear2016&Firstquarter2017ThepresentationhereinmaycontainforwardlookingstatementsbythemanagementofBestWorldInternationalLtd(BWI)thatpertaintoexpectationsforfinancialperformanceoffutureperiodsvspastperiods.Suchforwardlookingstatementsinvolvecertainrisksanduncertaintiesastheyrelatetofutureevents.Actualresultsmayvarymateriallyfromthosetargeted,expectedorprojectedduetovariousfactors.Suchfactorsare,amongothers,generaleconomicconditions,foreignexchangefluctuations,competitiveproductandpricingpressuresaswellaschangesintaxregimesandregulatorydevelopments.Suchstatementsarenotandshouldnotbeconstruedasmanagement’srepresentationonthefutureperformanceofBWI.Therefore,theactualperformanceofBWImaydiffersignificantlyfromexpressionsprovidedherein.Thereaderiscautionedtonotundulyrelyontheseforward-lookingstatements.NeithertheGroupnoritsadvisersandrepresentativesshallhaveanyliabilitywhatsoeverforanylossarising,whetherdirectlyorindirectly,fromanyuseordistributionofthispresentationoritscontents.Thispresentationisforinformationonlyanddoesnotconstituteaninvitationoroffertoacquire,purchaseorsubscribeforsharesinBWI.

WelcometoBestWorldCorporatePresentation

Overviewofourbusiness

AboutBestWorld BusinessModel&Strategy GrowthAreas 1Q2017FinancialHighlights

TobeoneoftheGlobalLeadingHealthandWellnesscompanydedicatedtocreaWngproductsthatenhancethelivesofourcustomers.

3

OurVisionAboutBestWorld

4

CompanyMilestoneAboutBestWorld

1990 1995 2000 2005 2010 2015 2016

July2004BestWorldbecamethe

firstdirect-sellingcompanytobepublic

listedontheSingaporeStockExchange.

2014AcquisiWonof

ZhejiangSoildGold.Manufactureand
DistributeAurigen

supplementsinChinathroughretaildrugstores

2016DirectSelling

licenseinChina,Hangzhou

1998Malaysia

2004Thailand

2005Vietnam

2006HongKong

2007IndonesiaTaiwan

2009Korea

2010Philippines

2016UAE

Foundedin1990BestWorldInternaWonalspecializesinPremiumSkincare,HealthSupplements,NutriWonal&Wellnessproducts.

1990Singapore

5

CompanyMilestoneAboutBestWorld

TodayBestWorldisakeyregionalplayerwithanetworkofover460,000independentdistributorsandmembersinthe12marketsweoperatein.

FY2013 FY2014 FY2015 FY2016 1Q2017

460,195435,765402,422377,830

298,251

MembershipGrowth2013-2016

6

OurMarketsOurMarkets

Seoul

Hangzhou

Taipei Taichung Kaohsiung

Changsha

Hong Kong

Manila

Jakarta

Kuala LumpurJohor Bahru

Singapore

Myanmar Bangkok

Ho Chi Minh City

Dubai

AboutBestWorld

7

BWL-BestWorldLifestyleAboutBestWorld

AllourDirectSellingsubsidiariesoperateundertheBWLbrand

8

CoreProductsAboutBestWorld

DR’sSecret,Aestier&Miraglo

BrandsforourSkincare

PentaLabPersonalCare

OptrimaxWellness&WeightManagement

AurigenHealthSupplements

9

AvanceHealthSupplements

BrandsforourHealthSupplements,PersonalCareandWellnessproducts

CoreProductsAboutBestWorld

DR’sSecretSkincarecontributedcloseto80%ofourrevenue

10

TopBrandsAboutBestWorld

11

TopBrandsAboutBestWorld

AvanceandOptrimaxcontributed10%and8%ofourrevenue.

12

StrongBrandEquityandCredibilityAboutBestWorld

Singapore 1000 Company 2016, 2015, 2014, 2013, 2010 SuperBrands Singapore Choice

Avance 2011, 2010, 2009, 2008, 2006, 2004

Singapore Fastest Growing 50 Certification 2008, 2007, 2005

200 Best Companies Under A Billion in Asia Pacific 2008, 2007

Singapore Prestige Brand Award 2015, 2009, 2008

ASEAN Business Award 2008

Singapore 500 SME 2009, 2008

Best Annual Report Under Sesdaq Listed Company 2006

Black Book AR 100 Award 2006

Grand Prix Winner Red Dot Design Awards Best World AR 2005 – Happy World

Bronze Award for Annual Report Best World AR 2005 – Happy World

PR Awards 2017 Gold Award for Best Investor Relations 2017

• Before product launch, begin product registration

• Prepare marketing information for respective markets

Assertivelyimplementone-to-oneplatformswhereas.

13

BestWorldDirectSellingModelBusinessModel&Strategy

DirectSelling

• Sold via the Group’s subsidiaries

• In ASEAN (except Laos and Cambodia), Hong Kong, Korea and Taiwan

• Begins with product conceptualisation by in-house product development team

• To develop and run the necessary tests on our products before any product launch

• Finalization of product formula and start manufacturing

• Mainly based in US, Korea and Taiwan

MarkeRngTools&ProductRegistraRon

3rdpartyManufacturingProductConcept

14

DirectSellingasMajorRevenueContributorBusinessModel&Strategy

GroupRevenue

DirectSelling

SingaporeTaiwan

IndonesiaOthers

1Q2017

51.9%ofsalesFY2016:70.9%ofsales

Export

ChinaMyanmar

1Q2017

46.2%ofsalesFY2016:26.8%ofsales

Manufacturing&Wholesale

ChinaAurigen

supplements

1Q2017

1.9%ofsalesFY2016:2.3%ofsales

15

DirectSellingvsExportModelBusinessModel&Strategy

Export

ExportPrice(afractionofmembers’price)

ImportAgent

} ExportProfitTransferPrice

MemberPrice

DirectSelling

} ExportProfit

SalesProfit

16

OurWinningStrategyBusinessModel&Strategy

Attract,Retain,Educate

Products Plan

People

17

OurWinningStrategyBusinessModel&Strategy

ProductsEffecWveproductsdevelopedbyin-houseproductdevelopmentteam

18

OurWinningStrategyBusinessModel&Strategy

PlanAiracWvecompensaWonplan(paysout35-40%ofrevenue)

Attract,Retain,Educate

ProductsPlan

People

19

OurWinningStrategyBusinessModel&Strategy

PeopleUniqueandProvenTrainingSystem

GrowthAreasCorporatePresentation

07.5

1522.5

30

Infin

tus⽆无限极

Amway安利利

Perfect完美

Quanjian权建

JoyMain中脉

MaryKay玫琳凯

New

Era新时代

HerbaLife康宝莱

SunHop

e尚赫

NuSkin如新

Rolm

exi罗⻨麦

Yand

i炎帝

BabyCare葆婴

Tien

s天狮

Apo

llo太阳神

Canai佳菜

KangWn

g康婷

Longrich隆隆⼒力力奇

Yofoto三⽣生

MerroIntl.美罗国际

2.52.62.62.82.82.833.54

4.54.9

7.57.59.39.5

12

19.2

2223

27

21

Top20DirectSellingCompaniesinChina2016GrowthAreas

SALES

(RMB’b)

FY2016

Recorded export sales of S$53.8m

(RMB265m) to China

Next 5 years

To be within

TOP 15

*Source:Informa/onextractedfrom:直销世纪，PowerNetworkingMonthlymagazine

22

China’sExecutionStrategyGrowthAreas

EmulateTaiwan’sSuccess

• SimilardynamicsasTaiwanbut50xlarger

• ExpanddistribuWonnetwork,improveproductqualityandculWvatepremiumbrand

• Awardoflicencespurlocalinterestanddemand

LeverageonSocialSellingandEvents

• Increasefrequencyof
large-scalerecruitmentevents

• Introducemoreproducts

• LaunchedofficialWeChatmicro-sitetoraiseproducWvityandpromote“sWcky”relaWonship

• Registeredkeyproductsandestablishedstrongnetworkofsalesreps

• GoodpresenceindifferentciWesinHunan,Zhejiang,Guangdong,Heilongjiang,Szechuan,Guizhou,etc

• ExpandcoverageoflicencetotheaboveciWes

BuildonStrongGroundwork

23

Top10DirectSellingCompaniesinTaiwanGrowthAreas

0

3

6

9

12

Amway

Pro-Partne

r

NuSkin

TotalSwissInt.Grp

MarketA

merica

Herbalife

Melaleu

ca

Jeun

esseGlobal

BestW

orld

E.Excel

2.32.9

3.53.84.54.64.64.8

8.7

11.8

FY2015

NT$1.3 billion in sales and ranked

14th Position

FY2016

NT$2.9 billion in sales and ranked

9th Position

*Source:直销世纪，PowerNetworkingMonthlymagazine

SALES

(NT’b)

24

TaiwanGrowthStrategyGrowthAreas

• ConWnuestorecruit 
“Millenials”

EngagingtheRightDistributors

ExpansionintoNorthernTaiwan

• StrongpresenceinCentralandSouthernparts

• NorthernTaiwanhaslargermarket

IncreasingDistributorsEfficiency

• ConvertUserstoDistributors

• Launchmoreday-to-dayproducts 
e.g.toiletriesandinstantbeverages

• IncreaseconsumpWonpermember

70%Under35yearsold

N

25

DigitalisationandSocialSellingGrowthAreas

26

SkincareManufacturingFacilityGrowthAreas

AcquisiRonof4,550sqmfacility• inSingaporeforS$10millionin2016

• tobecommissionedbyend-2017

Industry4.0• fullyautomatedend-to-endwithintegratedcommunicaWonalongtheenWrechainforcustomizaWonandhigherefficiency.

27

SkincareManufacturingFacilityGrowthAreas

RaRonale• GreatercontroloverrawmaterialandinprocessQ.Candfinalproductquality

• ReduceleadWme(approximateinsixmonths)willleadtolessinventoryonbalancesheet

• InanWcipaWonofgreaterdemandfromkeymarkets

28

NewProducts,NewMarkets,M&AGrowthAreas

NewMarkets• DubaiRCasagatewaytootherGCCmarkets

• DeepenpenetraWonintoKorea,IndonesiaandSingapore

M&AOpportunities

NewProduc

tLaunches

NewMarketsandD

eepen

PenetrationinExistingM

arkets

M&A• Companiesthatprovideaccesstonewmarketse.g.Directsellingcompanies

• Complementary 
productsandservices

NewProducts• Averageof3-4
productseachyear

• EnhancesconsumerappealthroughproductinnovaWonandimprovement

1Q2017FinancialHighlightsCorporatePresentation

1Q2017FinancialSummary FinancialHighlights MembershipGrowth

30

1Q2017PerformanceSummary1Q2017FinancialHighlights

1Q2017(S$million)

1Q2016(S$million)

Change%

Revenue 44.7 35.2 27

AttributabletoOwners 
oftheCompany 9.7 6.0 63.1

NetProfitMargin(%) 21.7 16.9 4.8pp

EPS(cents) 3.53 2.17 62.7

0

75

150

225

2013 2014 2015 2016 2017

61.8

40.9

25

14

52.2

26.219.2

9.2

51.6

2118.38.8

44.735.2

13.512.89

Q1Q2Q3Q4

31

FinancialHighlights-Revenue1Q2017FinancialHighlights

FY2013

–FY20

16CAGR

:63.3%

32

FinancialHighlights-SegmentalBreakdown1Q2017FinancialHighlights

1Q2017bySegment

Export46.2%

DirectSelling51.9%

Manufacturing&Wholesale

1.9% 4.9%DirectSellingRevenue

PrimarilyduetodecreaseinsalesinTaiwan,offsettinghighersalesfromSingapore,HongKongandKorea

110.0%ExportRevenue

LipedbyhighermarketdemandforDR’sSecretskincarerangeinChina

9.9%Manufacturing&WholesaleRevenue

Duetopendingchangestoproductregistrationrequirements

33

FinancialHighlights-GeographicalBreakdown1Q2017FinancialHighlights

1Q2017byCountries

China47.9%

Taiwan41.7%

7.6%TaiwanRevenue

Resultofagradualdeparturefrompromotionalactivitiestowardsinitiativesdesignedtoincreasedistributors’efficiency

102.7%ChinaRevenue

Lipedbylargershipmentstofulfilbackordergeneratedin4Q2016

20.1%IndonesiaRevenue

Duetostiffcompetitioninthemarketforweightmanagementline

Indonesia2.5%

Others4.3%

Singapore3.6%

34

FinancialHighlights-GeographicalBreakdown1Q2017FinancialHighlights

15.0%SingaporeRevenue

Successfulmarketingcampaignsandactivities

16.7%OthersRevenue

ImprovedsalesfromHongKong,ThailandandKoreaoffseqngPhilippines,Malaysia,MyanmarandVietnam

1Q2017byCountries

China47.9%

Taiwan41.7%

Indonesia2.5%

Others4.3%

Singapore3.6%

35

MembershipGrowth1Q2017FinancialHighlights

0

125,000

250,000

375,000

500,000

2010 2011 2012 2013 2014 2015 2016 2017

1Q2017

460,195 members

Growth of 5.6% compared to

2016

FinancialHighlights-Margins1Q2017FinancialHighlights

0

55

110

165

220

FY2013 FY2014 FY2015 FY2016 1Q2017

44.7200.8101.775.341.1

77.4% 74.4% 75.6% 73.2% 70.9%

3.5% 5.4%9.9%

17.2% 21.7%

RevenueS$million GPM% NPM%

Stablefinancialmargins
&highlyscalablebusinessmodel• ConsistenthighGPM
overtheyears

• ImprovingNPMwithstabledistribuWonandadministraWveexpenses

• FY2016distribuWonexpenses<40%ofrevenue

36

FinancialHighlights-Dividends1Q2017FinancialHighlights

0

1.25

2.5

3.75

5

FY13 FY14 FY15 FY16

4.6

2.0

0.80.3

43% 43% 44%

37%

Dividendspershare Dividendspayout%

DividendsPolicy• Atleast30%ofprofitapertax,consistentdividendpayoutraWoof>35%since2007

• PaidoutS$48.7M(2004to2016),almostdoublethecashraisedfromIPO

37#DPSwasadjustedtoincludetheissueofonebonusshareforeveryfourexis/ngshares

Cent

s

¢

¢

¢

¢#

FinancialHighlights-CashHolding1Q2017FinancialHighlights

NetcashposiRonwithnegligibleborrowings• Asat30April2017,BestWorldhasS$56.9millionincashandcashequivalents

• NetcashposiWonofS$50.2million

38

FY2013(S$million)

FY2014(S$million)

FY2015(S$million)

FY2016(S$million)

1Q2017(S$million)

CashandEquivalent

33.3 41.0 47.2 54.9 56.9

TotalBorrowings

3.5 6.0 0.018 7.4 6.7

NetCash 29.8 35.0 47.1 47.5 50.2

GearingRatio

NetCash NetCash NetCash NetCash NetCash

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