TAIWAN’S NO. 1 MEDICAL SKINCARE

Company Introduction Presented by Eric Wu

Chairman and CEO 2017

Ticker：6523

Disclaimer

• The information and forecast contained in this presentation and released at the same time, including the information regarding business outlook, financial status, and business forecast, is produced according to the internal data of this Company and the status of overall macroeconomic development.

• The actual operational outcomes, financial status, and sales results in the future may differ from the forecast for various reasons, including but not limited to market demand; changes in policies, laws and regulations, and macroeconomic condition; and other risk factors beyond the reasonable control of this Company.

• Information contained in this presentation reflects the future outlook of this Company until the present time. This Company makes no guarantee, either expressed or implied, for its accuracy, integrity, or reliability. This Company assumes no responsibility for the update or revision of such information according to its future changes or adjustments.

2

DR.WU – TW’s No.1 Medical Skincare Brand - Quick Facts About Us

Founded 2003 by Dermatologist

120 Staffs HQ in Taipei and Shanghai

Current Market Cap of US$ 280 mn

1600 POS 8 Countries

12 Product Lines - 70 SKU

IPO June 2016

3

DR.WU – TW’s No.1 Medical Skincare Brand - 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 – TW’s No.1 Medical Skincare Brand - 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

DR.WU – TW’s No.1 Medical Skincare Brand - 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 online: Yahoo! POS of total 500 stores. Product lines add to 6 series .

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

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

DR.WU becomes No.1 leading Taiwan’s Medical Skincare Sector and launched over 60 SKU

Expanded business into Malaysia Have received recognitions from major Beauty Awards

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

Received investment from L Capital Asia of LVMH Started E-commerce sales channel in China Chairman Eric Wu received 2014 EY Entrepreneur Of The Year award

Went public and listed on Emerging Stock Market Board Received 2015 National Cornerstone Award & Entrepreneur Recognition Setup first counter in Shanghai and launch in 40 FIONA Beauty China stores

2003

2005

2006

2007

2008

2011

2012

2013

2014

2015

2003

2009

2016 Complete Listing on TPEX (6/16) Expand to Myanmar Increase to 4 counters in Beijing and Shanghai

2016

6

DR.WU – TW’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

7

8

• DR. WU Sales of drugstores channel is 11% YOY in 2017Q1, and the growth rate is higher than Caring and same as Derma.

• DR.WU’s market share is 30%, playing the leading position among Derma Skincare Market.

Note: The data base of Taiwan pharmacy mark include personal care stores, drugstores, hyper market, super market, CVS and traditional stores.

Note: The data base of derma market share include the derma brand sales of personal care stores and drugstores channel .

DR.WU – TW’s No.1 Medical Skincare Brand - 2017Q1 Taiwan Skincare Market Overview

2,196

1,585

612 183

2,191

1,512

679 204

0

500

1,000

1,500

2,000

2,500

Caring Mass Derma DR. WU

TWD Million

2017Q1 Taiwan Pharmacy Market

2016Q1 2017Q1

YOY -0.2%

YOY -5%

YOY 11%

YOY 11% 52% 51% 51%

30% 30% 30%

6% 5% 5%

5% 6% 6%

5% 7% 7%

2015 2016 2017Q1

2017Q1 Derma Market Share

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

DR.WU – TW’s No.1 Medical Skincare Brand - Competitive Advantages and Our Success Formula

Growth Sales

Power

• 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

9

Brand

Power

• 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

Power

• 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

Our Future Prospects - Market Expansion - China Updates - Omni-Channel - New Product Development - Branding Innovation

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• Focus on market expansion in China and ASEAN countries for the next two years and adapt Omni-channel strategy to provide full customer services to increase customer satisfaction and loyalty.

Market Expansion & Omni-Channel

• Continue to develop leading Concept Cosmeceutical products and diversified product portfolio; innovate at 15% New Product Development rate.

Newness & Concept Products

• 360° Thematic marketing Theme, engaging multiple celebrities and KOLs to run promotion activities for the extension of brand popularities.

Thematic Marketing

Our Future Prospects - Growth Strategies: 1 Omni-Channel, 2 Concept Products, 3 Thematic Marketing

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China Channel

EC Channel

TMALL TAOBAO JUMEI VIP.COM JD.COM Cross Border EC

Department Store Shanghai(2) Beijing(2)

Cosmetic Stores FIONA (40) MYFACE (10) LILYSTAR (10) Watsons (New)

B&M Channel - Taiwan

Drugstore chains channels Watsons (520) Cosmed (400) Your Chance Pharmacies (45)

Department Store Far Eastern Mega City Far Eastern Paoching Far Eastern Kaohsiung

Beauty Specialist SaSa(23) POYA(145) @Cosme (New)

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(367) Singapore(52) Malaysia(80) U.S.A(10) Canada(25) New Zealand Myanmar(7)

Complete Distribution Coverage of Online and Offline Sale Channels

Direct One Level Two Level

Market Expansion: Distribution Channel - Regional Sales Channel Distribution Updates

13

NTD 000

Market Expansion: Distribution Split - Sales Contribution by Channel

B&M TW 482,689

73%

EC TW 126,436

19%

China 13,636

2%

Overseas 40,048

6% B&M TW 532,959

62%

EC TW 139,439

16%

China 138,671

16%

Overseas 54,145

6% B&M TW 695,338

60%

EC TW 162,325

14%

China 226,427

20%

Overseas 66,504

6%

Channel 2014 2015 2016 YOY

B&M TW 482,689 532,959 695,338 30%

EC TW 126,436 139,439 162,325 16%

China 13,636 138,671 226,427 63%

Overseas 40,048 54,145 66,504 23%

Total 662,809 865,214 1,150,594 33%

2014

2015

2016 Over the past three years, sales from China market continues to

gain contribution from 2% in 2014 to 20% by 2016. Brick and

mortar channel in Taiwan has also demonstrated strong growth

in 2016.

Market Expansion: Expansion Strategy - Global Skincare Market Potential

NT$157bn ASEAN skincare market 2.9x Taiwan MKT

Thailand Philippines

Vietnam Cambodia Indonesia

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

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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

2013 2014 2015 15-'13

14% 14% 14% -0.4%

31% 31% 31% 0.4%

6% 6% 6% -0.3%

14% 13% 13% -0.9%

65% 64% 63% -1.3%

15% 15% 15% -0.4%

13% 13% 14% 1.1%

8% 8% 8% 0.6%

35% 36% 37% 1.3%

100% 100% 100% 0.0%

Non-Store

Retailing

Direct Selling

Internet Retailing

Homeshopping

SubTotal

Total

Channel

Store-Based

Retailing

Grocery Retailers

Department Stores

Beauty Specialist

Parapharmacies/Drugstor

SubTotal

2015 Q3 2015 Q4 2016 Q1 2016 Q2

China Updates: Strategy 1- Online to Offline - Online First Offline After Expansion

EC

電商

2015 Q1 2015 Q2 2016 Q3 2016 Q4

15

DS

百貨

FIONA Beauty Stores

(41stores)

MYFACE Beauty Stores

(10stores)

LILYSTAR Beauty Stores

(11stores)

CS

美妝

SUPER BRAND Shopping Mall

Counter, Shanghai

BEIJJING - Longfor - Capitaland SHANGHAI - Longemont

BEIJJING - JoyCity ZY

China Updates: Strategy 1- Online to Offline - 2017 Entry Plan in WATSONS(3000 Stores)

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North: 20 doors

East: 15 doors

West: 5 doors

South: 10 doors

Stage 1: 2017 1H • Total of 50 doors • 45 Wall Units / 5 Counters & Store in Store Stage 2: 2017 2H • Total of 100 doors • 90 Wall Units / 10 Counters & Store in Store Wall Unit

Counter

Store in Store

North: 40 doors

East: 30 doors

West: 10 doors

South: 20 doors

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Daily Renewal Serum With Mandelic Acid

China Updates: Strategy 2 - Focus on One Star Product - Focus on Pore Control / Acne Prone problems with Mandelic Acid 6%

Focus on one product at a time to quickly catch

customers’ eyeball . Through high effectiveness to fast attract

customers’ interests.

Rapidly Establish Brand recognition and awareness in China.

T-mall NO.2 2015 best skincare brand of first-tier cities university students

China Updates: Strategy 3 - Celebrity Brings Eye Balls - Brand Endorser for 2016: Hannah Quinlivan

Continue Endorser in 2016, DR.WU has Successfully

Enhanced Brand Awareness throughout ASIA:

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

singer in Asia and her recent has children announcement

has created tremendous online chatter and followers.

18

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

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China Updates: Growing Brand Awareness in China - Baidu/Weibo/Wechat and UV indices

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

193

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Baidu Index

33,920

187,631

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Wechat/Weibo Fans

Wechat Fans Weibo Fans

69,163

240,626

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Jumei/Tmall Unique Vistors

Jumei UV Tmall Flagship UV

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Omni-Channel Strategy - From Transactions to Relationships

Transactions

Guessing Preferences

Relationships

Prediction for Customization

Cross-channel Integration

• Engage with customers through QR code across any channel interaction, physical and digital

• Integration of all data flow from multi-channels

CRM

• Analyzation of customer data through systems

• Deliver relevant experience to match behaviors, needs and increasing expectations.

Loyalty Program

• Through loyalty program design to retain customers and boost their engagement

• Seamless, orchestrated, and personalized

CRM

SOCIAL MEDIA

BIG DATA

LOYALTY PROGRAM

PRM

12 SERIES- 70 SKU

Average

Retail Price USD 40

HYALUCOMPLEX

HYDRATING SYSTEM

x12 BASIC CARE SYSTEM

x3

UV PROTECT

SUNCARE SYSTEM

x6

MINERAL MAKE UP

x6

PREMIUM SKINCARE

x7

SKINCARE FOR MEN

x6

21

CAPSULE MASK

x8 FIRST AID SERIES

x2

VITAMIN C +

WHITENING SYSTEM

x6

AGEVERSAL

REPAIRING SYSTEM

x9

ACNECUR

ANTI-ACNE SYSTEM

x5

MANDALIC

RENEWAL SYSTEM

x9

36%

30%

11%

7%

New Product Development: Complete Product Lines - Complete Product Lines: 12 Key Lines x 70 SKU

22

New Product Development: Complete Product Lines - Top 10 Best Sellers in 2016

NO. Product % NO. Product %

1

INTENSIVE RENEWAL SERUM WITH MANDELIC ACID 18% 15ML

7% 6

INTENSIVE REPAIRING SERUM WITH SQUALANE 35ML

4%

2

INTENSIVE RENEWAL SERUM WITH MANDELIC ACID 18% 30ML

7% 7

INTENSIVE HYDRATING GEL WITH HYALURONIC ACID 30ML

3%

3

INTENSIVE HYDRATING SERUM WITH HYALURONIC ACID 35ML

5% 8

ULTIMATE HYDRATING MASK WITH HYALURONIC ACID 3PCS

3%

4

EXTRA HYDRATING LOTION WITH HYALURONIC ACID 50ML

5% 9

INTENSIVE WHITENING SERUM WITH VITAMIN C+ 30ML

2%

5

INTENSIVE HYDRATING TONER WITH HYALURONIC ACID 150ML

4% 10

EXTREME MICRO-LIFTING CREAM WITH AGEVERSAL 30ML

2%

Taiwan China

NO. Product % NO. Product %

1

DAILY RENEWAL SERUM WITH MANDELIC ACID 6% 15ML

29% 6

INTENSIVE HYDRATING SERUM WITH HYALURONIC ACID 15ML

3%

2

DAILY RENEWAL SERUM WITH MANDELIC ACID 6% 30ML

8% 7 Deep Hydrating Capsule Mask With Vitamin A 3PCS

3%

3

ULTIMATE HYDRATING MASK WITH HYALURONIC ACID 3PCS

4% 8 Soothing Moisture Capsule Mask With Vitamin B

2%

4

INTENSIVE HYDRATING TONER WITH HYALURONIC ACID 150ML

4% 9

DAILY RENEWAL LOTION WITH MANDELIC ACID 15ML

2%

5

DAILY RENEWAL SERUM WITH MANDELIC ACID 6% 5ML

3% 10

EXTRA HYDRATING LOTION WITH AQUA-COLLAGEN 15ML

2%

TOP 10 = 45% TOP 10 = 60%

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•Products renewal rate remain at 15% per year. •Continue to develop high efficacy, non additive, medical skin care products. •Diversified product portfolio, extent product form type and reach new demographic.

Mineral Make-up:

1st Derma brands DD cushion. By using

the microcrystalline powder "Accurate Match Powder“ and multiple caring essence to have natural light-permeable make-up

Ultra Potency Concentrate :

This program can achieve micro surgery result through DR.WU’s high potency、 gentle、insensitive formula, suitable for in-house

treatment

Earth Resource Mask: Concept origins from using natural herbal and extracts ingredients for Mask. New hit products after hero items capsule mask.

New Product Development: 2017 - 2017 New Products and Continue to Elevate Existing Series

• Continuous formula upgrades for current products

Branding Innovation: 360° Marketing Theme -From one Endorser to multiple Endorsers with celebrities

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Brand Endorsers

Internet Celebrity We Media

Media Platform Channel Linkage Social Media

Different endorsers with quarterly theme

With Live video delivery KOL Management and Word-of-mouth

Collaboration with top content providers

Creates direct sales links to channel

Extension of fans club Wechat/Weibo

Our Future Prospects: Strategy Building Blocks -Product Innovation, Profit growth, and Market leading

Becoming

Asia’s Leading

Cosmeceutical Brand

Product Power “Deliver core values”

• R&D masstige products to drive micro surgery market

• Extension to cosmetics and natural extracts masks

• Product revamp by continuous upgrades

Brand Power “Taiwan Leading No. 1”

• Thematic marketing campaigns promotions

• Engage multiple celebrities to extend brand popularities

• Increase customer loyalty through CRM program

Sales Power “Channel Coverage”

• Establishment of Omni-channel to provide full customer services

• Organic growth in existing markets

• Continuous online and offline channel development

Infrastructure build out

• Organization enhancement • People development and retention • Process improvement plan

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Financial Performance

- Revenue and Net Profit Updates

- Income Statement Summary

- Balance Sheet and Key Indices

26

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Financial Performance - 2017 Q1 Revenue Updates

• 2017Q1 revenue is 10.2% higher than last year. Sales growth rate is slightly lower mainly due to

change of distributors in China, Malaysia and Singapore, as well as RMB depreciation impact at

consolidate level. Sales has been picking up from March.

145,995 184,375 248,980 285,864 234,133 271,854 291,389 353,219 257,982

330,370

579,350

865,214

505,987

797,376

1,150,595

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

1,100,000

1,200,000

1,300,000

Q1 Q2 Q3 Q4

Consolidated Revenue (NT$'000)

Sales-2015 Sales-2016 Sales-2017 2015 - Accumulated Revenue 2016 - Accumulated Revenue

2016: 33%

2017Q1: 10.2%

28

• 2017Q1 operating profit is 92m, YOY 12%, mainly driven by topline growth and improved gross margin in China, but net profit YOY is 1.3%, EPS 1.48 mainly offsetting by foreign exchange rate loss as a result of strong NTD impact.

Financial Performance - 2017 Q1 Net Profit Updates

37,635 18,934

80,348 91,473 67,019 73,503 72,609

98,992 67,917

56,569

136,917

228,390

140,522

213,131

312,123

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

Q1 Q2 Q3 Q4

Consolidated Net Profit (NT$'000)

Net Margin-2015 Net Margin-2016 Net Margin-2017 2015 -Accumulated Net Margin 2016 -Accumulated Net Margin

2016: 37%

2017Q1: 1.3%

Item 2015 2016

YOY% 2016Q1 2017Q1

YOY% Amount % Amount % Amount % Amount %

Revenue 865,214 100.0% 1,150,595 100.0% 33.0% 234,133 100.0% 257,982 100.0% 10.2%

Cost of Sales 273,890 31.7% 355,088 30.9% 29.6% 76,477 32.7% 81,145 31.5% 6.1%

Gross Profit 591,324 68.3% 795,507 69.1% 34.5% 157,656 67.3% 176,837 68.5% 12.2%

Operating Expenses 326,283 37.7% 412,765 35.9% 26.5% 75,966 32.4% 85,030 33.0% 11.9%

Operating Profit 265,041 30.6% 382,742 33.3% 44.4% 81,690 34.9% 91,807 35.6% 12.4%

Non-Op Income & Expenses

8,399 1.0% -7,873 -0.7% -193.7% -1,882 -0.8% -10,264 -4.0% 445.4%

Profit Before Taxes 273,440 31.6% 374,869 32.6% 37.1% 79,808 34.1% 81,543 31.6% 2.2%

Income Tax Expense 45,050 5.2% 62,746 5.5% 39.3% 12,789 5.5% 13,626 5.3% 6.5%

Net Profit 228,390 26.4% 312,123 27.1% 36.7% 67,019 28.6% 67,917 26.3% 1.3%

EPS (NT$) 5.40 - 7.06 - - 1.58 - 1.48

Financial Performance - Income Statement Summary

29

Unit: NT$'000 Consolidated

Financial Performance - Balance sheet & key Indices

30

Item 2015.12.31 2016.12.31 2016.3.31 2017.3.31

Cash and Cash Equivalents 286,476 870,206 264,671 667,418

Accounts Receivable 163,350 220,262 188,499 243,025

Inventories 113,347 147,588 135,731 175,758

Other Financial Assets 430,212 895,179 507,916 1,084,907

Total Assets 1,068,585 2,244,170 1,180,233 2,280,079

Total Liabilities 112,848 194,559 158,001 168,663

Total Shareholders' Equity 955,737 2,049,611 1,022,232 2,111,416

Key Indices

A/R Turnover Days 79 60 67 82

Inventory Turnover Days 146 143 161 191

A/P Turnover Days 45 50 56 69

Liability Ratio (%) 11 9 13 7

ROE(%) 25 21 27 13

Cash from OP activities 166,449 281,054 58,305 -1,544

Consolidated Unit: NT$'000

31

Thank You “Your Personal Doctor For Your Perfect Skin”

-DR.WU

Contact Information

Jennifer Tu, CFO ext. 83

Fiona Chiu, Financial Manager ext. 36

TEL：+886-2-2369-9888

Mobile：+886-905-685-503

E-mail：ir@drwu.com