TAIWAN’S NO. 1 MEDICAL SKINCARE

Presented by Eric Wu Chairman and CEO

DR.WU Brand Introduction - Quick Facts About Us

Founded 2003 by Dermatologist

83 Staffs HQ in Taipei and Shanghai

2014 Net Income of US$ 8 mn

22% Invested by LVMH Group

1200 POS 7 Countries

10 Product Lines - 60 SKU

DR.WU Company Introduction Brand Introduction - Our Philosophy About Skincare

- Brand Origin of DR.WU

- Milestones of DR.WU

- Affiliated Enterprise

3

DR.WU Company Introduction - 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

DR.WU Company Introduction - 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 .

5

Eric Wu, Chairman & CEO

DR. Wu Ying-Chin

DR.WU Company Introduction - Milestones

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

2003

2004

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2003

2009

2015 6

W Clinic

• Nanjing store

• Dazhi store

• Dunnan store

• Xinyi store

Dermatology

Esthetic Medicine

Non-Surgical Cosmetic Medicine

Beauty Injections

Body Care

W CLINIC GROUP DR.WU SKINCARE CO., LTD.

DR.WU (Taiwan)

• Brand Management

• Marketing & PR

• Design

• Product Development

• Procurement

• Finance

• Accounting

• Admin & Legal

DR.WU Company Introduction - Affiliated Enterprise

DR.WU (Shanghai)

• Brand Marketing

-Planning

-Media relations/PR

-E-commerce

-Offline sales

• Operations

-Accounting

-Administration

7

Note: No cross shareholding, but owners of the 2 companies are father and son.

DR.WU Product Line Overview - Brand Concept

- Product Line Overview

- Brand Positioning

- R&D Core Competency

8

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

DR.WU Product Line Overview - 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

9

VITAMIN C +

WHITENING SYSTEM

ACNECUR

ANTI-ACNE SYSTEM

AGEVERSAL

REPAIRING SYSTEM

MANDALIK

RENEWAL SYSTEM

HYALUCOMPLEX

HYDRATING SYSTEM

UV PROTECT

SUNCARE SYSTEM

MINERAL MAKE UP

PREMIUM SKINCARE

SKINCARE FOR MEN

SENSIPHYTE

BASIC CARE SYSTEM

DR.WU Product Line Overview - 10 Key Product Lines x 80 SKU

10 SERIES 80 SKU

ASP USD 30

10

MANDALIK RENEWAL

DR.WU Product Line Overview - TOP 5 Star Products

HYDRATING SYSTEM

VITAMIN C + WHITENING SYSTEM #1 Intensive Hydrating Serum with Hyaluronic Acid

#2 Intensive Renewal Serum with Mandelic Acid 18%

#3 Microinject Hydrating Mask with Hyaluronic Acid

#4 Intensive Whitening Serum with Vitamin C+

#5 Intensive Repair Serum with Squalane

Serum and Mask Focused

11

DR.WU Product Line Overview - Brand Positioning vs Competitors

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 18-35-year-old segment

12

DR.WU Product Line Overview - 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/ISPO022716/GMP)

DR.WU R&D Core Competency

200 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

13

DR.WU Product Line Overview - R&D Labs / Patent/ Trademark

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

Exclusive development of 3 formulation patents and registered 83 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

14

Skincare Market Overview - DR.WU Sales Channel Summary

- Global Skincare Market

- Taiwanese Skincare Market

- Medical Skincare Trends

15

DR.WU Sales Channel Summary - Regional Sales Channel Distribution

Store-Based: Taipei 101 concept store SK Mitsukoshi Xinyi A8 W Clinic Nanjing, Hsinyi, Dazhi, Dunnan

Drugstore chains channels: Watsons (504) Cosmed (369) Duty Free Stores (12) Your Chance Drug Chain Store(49) SaSa(12)

E-commerce: DRWU.COM YAHOO/PCHOME PAYEASY/ETMALL MOMOSHOP/7net TMALL/JUMEI

Overseas markets: China, Hong Kong, Macao, Singapore, Malaysia, Canada, U.S.A, New Zealand

16

Skincare Marketing Overview - 2014 Global Skincare Market Size

NT$157bn ASEAN skincare market 2.9x Taiwan MKT

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

17

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

Skincare Marketing Overview - Taiwan Skincare Market Overview

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

18

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

Caring-Mass Caring-Derma

Skincare Marketing Overview - Taiwan Skincare Market Overview

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.

19

Medicine

Beauty Biotech

Cosmeceutical

Financial Performance - Revenue & Net Income

- Income Statement

- Sales Contribution by Region

- Balance Sheet

20

Financial Performance - Revenue & Net Income

475,389

565,499

662,809

178,146 184,662

239,244

2012 2013 2014

Net Revenue

Net Income

Note: 2013-2014 are IFRS consolidated reports, 2012 is ROC GAAP. In above graph, 2012 revenue has been adjusted based on the standard of 2013 and 2014.

Unit: NT$ Thousands

Applied IFRS (Consolidated)

Financial Performance - Income Statement Summary 2013 & 2014

22

Item

For the Year Ended December 31, 2013

For the Year Ended December 31, 2014 Growth%

Amount % Amount %

Net Revenue 565,499 100.00% 662,809 100.00% 17.21%

Cost of Revenue 179,797 31.79% 215,798 32.56% 20.02%

Gross Profit 385,702 68.21% 447,011 67.44% 15.90%

Operating Expenses 164,122 29.02% 197,852 29.85% 20.55%

Income from Operations 221,580 39.18% 249,159 37.59% 12.45%

Non-Operating Income and Expenses

3,118 0.55% 43,970 6.63% 1310.20%

Income before Income Tax 224,698 39.73% 293,129 44.23% 30.45%

Income Tax Expense 40,036 7.08% 53,885 8.13% 34.59%

Net Income 184,662 32.65% 239,244 36.10% 29.56%

Capital Stock 200,000 - 281,938 - -

Earnings Per Share(NT$) 8.5 - 8.68 - -

Unit: NT$ Thousands

Skincare Marketing Overview - 2015H1 Taiwan Skincare Market Overview

23

• DR. WU Sales of drugstores channel grew 31% YOY in 2015 H1, and the growth rate is 2.5x higher than Derma, 4x higher than Caring.

• In Derma Market, DR.WU’s market share is 27%, 3% increase compare to last year, which is the highest growth rate among Derma brands.

Financial Performance - Income Statement Summary 2015 H1 vs 2014 H1

24

Item

For the Six Months Ended June 30,2014

For the Six Months Ended June 30,2015 Growth%

Amount % Amount %

Net Revenue 227,988 100.00% 330,370 100.00% 44.91%

Cost of Revenue 72,108 31.63% 110,393 33.41% 53.09%

Gross Profit 155,880 68.37% 219,977 66.59% 41.12%

Operating Expenses 85,175 37.36% 151,905 45.98% 78.34%

Income from Operations 70,705 31.01% 68,072 20.60% -3.72%

Non-Operating Income and Expenses

2,296 1.01% (803) -0.24% -134.97%

Income before Income Tax 73,001 32.02% 67,269 20.36% -7.85%

Income Tax Expense 14,053 6.16% 10,700 3.24% -23.86%

Net Income 58,948 25.86% 56,569 17.12% -4.04%

Earnings Per Share(NT$) 2.22 2.01

Applied IFRS (Consolidated) Unit: NT$ Thousands

25

Financial Performance - Sales Contribution by Region

82%

101,011 75%

78,219

76%

155,136 67%

154,465

70%

108,915 57%

100,087

13%

15,780 16%

16,879

17%

34,372 23%

53,263

14%

20,744

18%

30,842

2% 4,554 4% 9,082

7% 11,375 20%

34,995

5% 6,389 9% 9,710 5% 10,513 6% 13,436 9% 13,717

5% 9,665

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2014Q1 2014Q2 2014Q3 2014Q4 2015Q1 2015Q2

TW-PC TW-EC CN Overseas Unit: NT$ Thousands

Financial Performance - Balance Sheet Summary

26

Item 2013.12.31 2014.6.30 2014.12.31 2015.6.30

Amout % Amout % Amout % Amout %

Current Assets 530,046 98% 788,968 98% 1,002,194 98% 1,015,896 97%

Property, plant and equipment 4,866 1% 11,080 1% 10,284 1% 9,727 1%

Intangible assets 1,463 0% 1,613 0% 2,613 0% 1,745 0%

Other noncurrent assets 4,808 1% 6,825 1% 8,430 1% 17,864 2%

Assets 541,183 100% 808,486 100% 1,023,521 100% 1,045,232 100%

Current liabilities 62,956 12% 94,362 12% 125,226 12% 261,410 25%

Non-Current liabilities 531 0% 140 0% 702 0% 0 0%

Total liabilities 63,487 12% 94,502 12% 125,928 12% 261,410 25%

Capital stock 200,000 37% 281,938 35% 281,938 28% 281,938 27%

Capital surplus 80,051 15% 348,746 43% 348,746 34% 348,746 33%

Retained earnings 193,476 36% 83,261 10% 263,557 26% 150,964 14%

Others 0 0% 39 0% 3,352 0% 2,174 0%

Total equity 477,696 88% 713,984 88% 897,593 88% 783,822 75%

Debts Ratio(%) 11.73% - 11.69% - 12.30% - 25.01% -

Current Ratio(%) 841.93% - 836.11% - 800.31% - 388.62% -

Average Collection Turnover (Times) 6.91 - 7.42 - 5.93 - 4.76 -

Average Inventory Turnover (Times) 3.34 - 1.85 - 2.76 - 1.75 -

Applied IFRS (Consolidated) Unit: NT$ Thousands

Updates on 2015 H1

27

- New product Launched

- Brand Awareness in China

- Channel Expansion

28

Jan Feb Mar Apr May Jun Jul

Deep Hydrating Capsule Mask -A

Soothing Moisture Capsule Mask -B

Instant Whitening Capsule Mask -C

Perfect Renewal Capsule Mask -D

Anti-Wrinkle Firming Capsule Mask -E

Intensive Hydrating Serum With HA-Light NTD800

Extra Hydrating Lotion With HA NTD850

NTD 299

Quick Soothing Cream-Gel Mask NTD950

Deep Moisture Butter Mask NTD1000

JUMBO-SIZE BEST SELLING HYDRATING PRODUCTS

New product Launched - 2015H1

Brand Awareness Indicators China - Major Indicators have shown substantial increments

29

0

100

200

300

400

500

600

Baidu/Taobao Index

Baidu Index Taobao Index

0

10000

20000

30000

40000

50000

60000

70000

Wechat/Weibo Fans

Wechat Fans Weibo Fans

0

100000

200000

300000

400000

500000

Jumei/Tmall/.COM Unique Vistors

.com.cn UV Jumei UV Tmall Flagship UV

Channel Expansion - New Channel To Be Launched

30

Tmall 2015 Mar

Department store NEW

China

CS Beauty Specialist NEW

Jumei Overseas Aug

Other Ecommerce NEW

Jumei

Overseas

Hong Kong / Macau - Manning's

Singapore – Guardians, Robinsons

Malaysia - SASA

Canada - BE Beauty (Loblaws)

USA, NZ Wholesale

E.U.– Ecommerce NEW (Amazon, Beauty Bay, etc)

Taiwan

Other Drugstore Chains NEW

Your Chance Drug Chain Store(49)

Department store(2)/ Clinic (4)

E-commerce DRWU.COM/YAHOO/MOMO….

Ever Rich/Tasa Meng Duty Free Shops(12)

Watsons (504)

Cosmed (369)

SASA x 30 stores 2015 July/Aug

Our Future Prospects - Marketing Theme in 2015

- Our Competitive Advantages

- Future Prospects & Growth Drivers

31

2015 Marketing Theme - Brand Endorser for 2015: Mrs. Hannah Chou

With New Endorser in 2015, 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.

32

2015 Marketing Theme - Marketing Event: Hannah’s Beauty Dairy (4 Micro Movies)

DR.WU X Hannah Beauty Dairy

Video 1.Honey Moon 2.Mrs.Chu Marriage life 3.On the stage 4.Perfect life

• Share the happiness of honey Moon

• Share Marriage life experience with girl friends

• Share the beauty secrets of working

• Share skincare tips and how to balance life

Releasing viral video on digital platform to create DR.WU brand awareness.

2015 Marketing Theme - Marketing Event: Pop-Up Store

Asia’s first-of-its-kind MOBILE CLINIC

Through DR.WU’s unique skin diagnostics, consumers are able to experience cosmeceutical-concept skincare directly.

Customized skincare solutions for various skin types increase user experiences and DR’s brand awareness

The Pop-Up store was moved from Northern to Central to Southern Taiwan, creating buzz among consumers.

34

Our Future Prospects - Competitive Advantages and Our Success Formula

Growth Sales Product Brand

• Complete product line developed by

authoritative dermatologists with

patented formula in Asia

• Advanced knowledge and skills in R&D

• 100 patented active ingredients from

global pharmaceutical companies

• 10 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

• 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

• 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

Leading cosmeceutical brand

R&D by authoritative dermatologist in Asia

Chain drug stores + Online platform

High-potential markets + essential skincare

35

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 including whitening, moisturizing, anti-wrinkle and acne treatments

Multi-Channel

Resilient local brand with diverse channels, targeting global market

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 OTC in 2016

36

Thank You Looking Forward to

Our Cooperation!

“Your Personal Doctor For Your Perfect Skin”

-DR.WU 37