TAIWAN’S NO. 1 MEDICAL SKINCARE

Company Introduction

Presented by Eric Wu

Chairman and CEO

2018

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

Agenda

3

1. Introduction to DR.WU Skincare 5

2. Forward Growth Strategies 10

3. 2018 Q1 Recap and Financial Results 25

1. Introduction to DR.WU Skincare

4

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

Founded 2003 by Dermatologist

170 Staffs HQ in Taipei and Shanghai

Current Market Cap of US$ 150 mn

1600 POS 8 Countries

12 Product Lines - 72 SKU

IPO June 2016

5

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.

6

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

7

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

20032003

20092009

20162016

Complete Listing on TPEX (6/16)

Expand to Myanmar

Increase to 5 counters in Beijing and Shanghai

2016

8

Launched in Watsons China and Malaysia

Launched CRM System with unique QR code2017

2018 Received the first 5% of the 4th (2017) Corporate

Governance Evaluation

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

GrowthSales

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

LeadingCosmeceutical 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

2.Forward Growth Strategies

- Channel Strategy

- Product Strategy

- Marketing Strategy

10

Online - China

TMALL

TAOBAO

JUMEI

VIP.COM

JD.COM

Cross Border EC

Offline - Taiwan

Drugstore chains channelsWatsons (550)Cosmed (390)Your Chance Pharmacies (45)Japan Med Store (12)

Department StoreFar Eastern Paoching

Beauty SpecialistPOYA(175)@Cosme (2)

OthersDuty Free Stores(13)W Clinics(4)

Online - Taiwan

DRWU.COMYAHOO ShoppingMOMOSHOP PCHOMEBOOKS.COMPAYEASY, 7netETMALL

Overseas marketsHong Kong, Macao(330)Singapore(50)Malaysia(170)Canada(20)New ZealandMyanmar(12)Thailand(30)

Complete Distribution Coverage of Online and Offline Sale Channels

Direct

One Level

Two Level

Channel Expansion: Distribution Channel - Regional Sales Channel Distribution Updates

Offline - China

Cosmetic Stores

Watsons (251 )

FIONA (40)

MYFACE (10)

LILYSTAR (10)

Miroco(3 )

11

Channel Strategy: China Market Potential- China Skincare Market remains upside

12

47.8

66.4

0

10

20

30

40

50

60

70

2014 2019E

(US$bn)

3.7

10.7

0

2

4

6

8

10

12

2014 2019E

(US$bn)China Cosmetic Market China Medical

Cosmetic Market

China’s Cosmetic Market Forecasts

Per Capita Cosmetics Consumption

Source: Company filings, Company website, Yuanta Investment Consulting, International Trade Administration, Euromonitor, broker reports.

1. Skincare, color, sun care, sets / kits products included; per-capita skincare spending excludes spending from duty-free stories.

24

139 139

171 174

229

0

50

100

150

200

250Per Capita Cosmetics Consumption (2014)

(US$)

China Beauty Market Expected To Grow On A Per Capita Basis

Per-capita Skincare Spending(1) (2015)

Cosmetics purchased per capita

(US$ / person)

(2014)

0

$50

$100

$150

0 $20,000 $40,000 $60,000 $80,000 $100,000

Per Capita GDP (US$)

Expected

growth

path to a level

aligned with

other Asian

countries

East Asian customers are generally more

aware of anti-aging and lightening

functions than Western customers –

inclined to purchase relatively more

functional and expensive skincare products

2015 Q3 2015 Q4 2016 Q1 2016 Q2

Channel Strategy: China Expansion - Online First Offline After Expansion

EC

電商

2015 Q1 2015 Q2 2016 Q3 2016 Q4

13

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

★ ★

Little Red Book

Channel Strategy: Watsons Expansion- 2017 China Entry Plan in WATSONS (3,300 Stores)

14

North: 57 doors

East: 30 doors

West: 48 doors

South: 64 doors

Wall Unit

Shanghai LongemontStore in Store

Shanghai Daning Store in Store

Middle: 52 doors

Beijing Counter

Shanghai SUPER BRANDStore in Store

TYPE 2017 1H 2017 2018Q1

Wall Units 76 236 237

Store in Store 4 13 14

Total 80 249 251

Channel Strategy: China Offline Expansion- Offline Strategy

STAGE 1

2016 Q4

STAGE 1

2016 Q4

STAGE 2

2017

STAGE 2

2017

STAGE 3

2018

STAGE 3

2018

15

DR.WU Capsule Mask exclusive launch in WATSONS

DR.WU enter Wall Unit and Shop-in-shop in WATSONS

Launch masks in 800 storesLaunch masks in 800 stores Full range product launch Full range product launch Improve store outputImprove store output

Shifting form store number growth to same store sales growth

Videos of Hannah sharing her beauty

tips using DR.WU Serum and Mask

during New York Fashion Week,

attracting 35M Unique Visitors.

Focus on one product at a time to

quickly catch customers’ eyeball

Channel Strategy: China Online Expansion- Online Strategy

STAGE 1

2015-2016

STAGE 1

2015-2016

STAGE 2

2016-2017

STAGE 2

2016-2017

STAGE 3

2018

STAGE 3

2018

16

Focus on One Start ProductFocus on One Start Product Celebrity Brings Eye BallsCelebrity Brings Eye Balls Channel centric Channel centric

Centralized marketing investment on

leading eCommerce channels to drive

growth

B2C Cross Border

Channel Expansion: Expansion Strategy- Global Skincare Market Potential

� NT$157bn ASEAN skincare market

3x Taiwan MKTSingapore, Malaysia

Thailand, Philippines

Vietnam, Indonesia

� NT$ 54bn Taiwan skincare market

#1 brand in Taiwan’s cosmeceutical market

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

SOURCE: EUROMONITOR 17

18

12 SERIES-

72 SKU

Average

Retail Price

USD 40

HYALUCOMPLEX HYDRATING SYSTEM

CAPSULE MASKVITAMINS & PLANT

VITAMIN C +WHITENING SYSTEM

AGEVERSALREPAIRING SYSTEM

AEKNI:17ANTI-ACNE SYSTEM

MANDALICRENEWAL SYSTEM

X11

39%

X6

26%

X8

10%

X6

7%

X5

X9

8%

SPECIAL CAREX2

SKINCARE FOR MENX6

PREMIUM SKINCAREX7

MINERAL MAKE UPX6

UV PROTECTSUNCARE SYSTEM

X2

MILD-OCLEANSING SYSTEM

X4

Product Strategy- New Product Development: Current Portfolio

-Complete Product Lines: 12 Key Lines x 72 SKU

19

Product Strategy- 2018 New Products and Continue to Elevate Existing Series

Total of 17 SKU to be upgraded with new formulation

Jan Feb NovJunMar Apr May OctJul SepAug Dec

HYDRATING

Toner Upgrade –

1 SKU

HYDRATING JUMBO-2SKUs Capsule Mask-4SKUs Sun care-2SKUs

15th Anniversary HYDRATING

JUMBO COLLECTION SET-3SKUs

Premium ampoule -1SKU

Mild-O Cleansing-4SKUs

High effectiveness

High priceLow 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

20

Marketing Strategy: Brand Differentiation- DR.WU – TW’s No.1 Medical Skincare Brand

- Brand Positioning Among Derma Skincare and Doctors’ Brands

21

2015-2016 Endorser

Hannah Quinlivan� Employed Celebrity as brand endorser for the first time.

� 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, successfully

enhanced brand awareness throughout ASIA.

2017 New Endorser

Mark Chao� Employed famous actor as brand endorser for the first time.

� Mark Chao starred China TV Drama” Eternal Love “，which

reached more than 40 billions of network playback volume,

and the number of Mark Chao weibo fans are skyrocketed to

12M . Engage famous celebrity as new endorser to bring

more eye balls .

Marketing Strategy: Endorser- Enlisted famous Actor as DR.WU Endorser

Marketing Strategy: Endorser- New Endorser in China

2018 China New Endorser

Janine Chang(張鈞甯)� Duration：2018

� Corporation Content：Capsule Mask Series

� Weibo fans 11M、Baidu Index 28952

� Representative works –

TV：The Empress of China(武媚娘傳奇) ;

The Advisors Alliance(軍師聯盟)

Here to Heart(溫暖的弦)

Movie：Girls 2(閨蜜2)

22

23

Transactions

Guessing Preferences

Relationships

Prediction for Customization

Cross-channel Integration

• Engage with customers through QRcode 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 toretain customers and boost their engagement

• Seamless, orchestrated, and personalized

CRM

SOCIAL MEDIA

BIG DATA

LOYALTY PROGRAM

PRM

Marketing Strategy: Omni Channel- From Transactions to Relationships

24

Marketing Strategy : New Social Media Concept- Build broad and depth of user generated contents (UGC)

Professionals:Doctors

Professors

Beauticians

Industry Experts

Media:Beauty Editors

Reporters

Celebrities:Musicians Actors

ArtistsKOLs:Internet Celebrities

Bloggers

Youtubers

IGmers

Loyal Customers:VIPs

Wu Club Fans

Channel Members

Utilizing different opinion leaders ( doctors,

artists, KOL and ordinary persons) to express their

professional view or exercise influence to build

broad and depth of user generated contents so as

to enhance our brand image.

3. 2018 Q1 Recap and Financial Results

25

-60%

-40%

-20%

0%

20%

-

100

200

300

400

500

Jan

-16

Fe

b-1

6

Ma

r-1

6

Ap

r-1

6

Ma

y-1

6

Jun

-16

Jul-

16

Au

g-1

6

Se

p-1

6

Oct

-16

No

v-1

6

De

c-1

6

Jan

-17

Fe

b-1

7

Ma

r-1

7

Ap

r-1

7

Ma

y-1

7

Jun

-17

Jul-

17

Au

g-1

7

Se

p-1

7

Oct

-17

No

v-1

7

De

c-1

7

Jan

-18

Fe

b-1

8

Ma

r-1

8The Number of Chinese Tourists

Chinese Tourists % change from benchmark level*

Financial Performance- 2018 Taiwan Macro Economy Status

26

• Taiwan economy shows an improving outlook in 2018 with GDP growth expecting to reach 2.3% , up from 1.9% in 2017

• Retail Sales has demonstrated consistent quarter-to-quarter improvement since 2Q17 with 4.8% growth rate in 1Q18

• The impact of the slowdown of Chinese tourists has been stabilized

1.9%

2.3%

1.9%1

2.3%

1.0%

1.2%

1.4%

1.6%

1.8%

2.0%

2.2%

2.4%

2015 2016 2017 2018E

Taiwan GDP Growth

2.8%

1.2%1.9% 1.7%

-0.6% -0.4%

1.9%

3.6%

4.8%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

900

950

1,000

1,050

1,100

2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 2017Q4 2018Q1

2016-2018Q1 Retail Sales

Revenue YOY

53.8% 55.0%

26.8% 25.4%

6.6% 7.8%6.5% 7.1%4.1% 3.2%

1.6%

0%

20%

40%

60%

80%

100%

2017 2018Q1

2017-2018Q1 Derma Market Share

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

*Benchmark level: the average monthly Chinese tourist visit during June 2015 to May 2016

27

Financial Performance- 2018Q1 Revenue Updates

• 2018Q1 revenue declined 16.9% YOY which is mainly due to Taiwan drugstore channel’s continuous

inventory de-stocking strategy, leading to slower inventory pull-in and therefore lower sales recognition

• Sign of stabilization appears with deceleration of revenue drop comparing to the previous three quarters

thanks to gradual sales recovery in Taiwan offline channels since 2017Q3, and strong China online revenue

growth (over 30% YOY in 2018Q1)

2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 2017Q4 2018Q1

Sales 234,133 271,854 291,389 353,219 257,982 199,945 216,535 262,460 214,307

YTD net sales 234,133 505,987 797,376 1,150,595 257,982 457,927 674,462 936,922 214,307

YOY Change 60.4% 47.4% 17.0% 23.6% 10.2% -26.5% -25.7% -25.7% -16.9%

YTD YOY Change 60.4% 53.2% 37.6% 33.0% 10.2% -9.5% -15.4% -18.6% -16.9%

QOQ Change -18.1% 16.1% 7.2% 21.2% -27.0% -22.5% 8.3% 21.2% -18.3%

-40%

-20%

0%

20%

40%

60%

80%

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

(NT$’000) Consolidated Revenues

28

Financial Performance- 2016-2018 Monthly revenue Updates

• Our monthly sales momentum started to slow down since April 2017, mainly due to:

• Drop in offline sales due to weak TW retail demand and fewer China tourists’ visit to TW since 17Q1

• Offline channels further slowed down their inventory pull-in in response to soft demand

• Our April sales reached NTD63mn, implying a 25% YOY growth as a result of our refocus on quality sales and

channel’s inventory restocking as current inventory level is relative low

Unit: NT$'000

2016 2017 2018 YOY YTD

Jan 67,423 70,005 74,732 6.8% 6.8%

Feb 46,577 62,940 59,075 -6.1% 0.6%

Mar 120,133 125,037 80,500 -35.6% -16.9%

Apr 94,562 50,172 62,856 25.3% -10.1%

May 75,228 76,574

Jun 102,064 73,199

Jul 77,278 64,479

Aug 101,596 76,595

Sep 112,515 75,461

Oct 126,953 70,682

Nov 130,033 138,001

Dec 96,233 53,777

Total 1,150,595 936,922

Channel 2016 2017 YOY 2017Q1 2018Q1 YOY

Offline Taiwan 696,218 504,062 -27.6% 167,513 124,796 -25.5%

Online Taiwan 161,445 108,731 -32.7% 36,967 25,443 -31.2%

Taiwan subtotal 857,663 612,793 -28.6% 204,480 150,239 -26.5%

Offline China 47,401 50,534 6.6% 18,681 13,317 -28.7%

Online China 179,026 219,409 22.6% 21,288 38,997 83.2%

China subtotal 226,427 269,943 19.2% 39,969 52,314 30.9%

Overseas 66,504 54,186 -18.5% 13,533 11,754 -13.1%

Total 1,150,594 936,922 -18.6% 257,982 214,307 -16.9%

Offline

Taiwan

60%Online

Taiwan

14%

Overseas

6%

Online

China

16%

Offline

China

4%

Channel Strategy: Distribution Split - Sales Contribution by Channel

Sales from China market continues to gain contribution from 2% in 2014 to 23% in 2018Q1.

Offline channel in Taiwan has decreased to 58% in 2018Q1.NT$'000

29

Offline

Taiwan

54%Online

Taiwan

12%

Overseas

6%

Online

China

23%

Offline

China

5%

China 28%China 20%

Offline

Taiwan

58%Online

Taiwan

12%

Overseas

6%

Online

China

18%

Offline

China

6%

China 24%

2016 2017 2018Q1

2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 2017Q4 2018Q1

Net profit 67,019 73,503 72,609 98,992 67,917 17,125 19,716 22,497 28,046

YTD net profit 67,019 140,522 213,131 312,123 67,917 85,042 104,758 127,255 28,046

EPS 1.58 1.71 1.58 2.19 1.48 0.37 0.43 0.50 0.62

Net margin 28.6% 27.0% 24.9% 28.0% 26.3% 8.6% 9.1% 8.6% 13.1%

YOY change 78.1% 288.2% -9.6% 8.2% 1.3% -76.7% -72.8% -77.3% -58.7%

YTD YOY Change 78.1% 148.4% 55.7% 36.7% 1.3% -39.5% -50.8% -59.2% -58.7%

-100%

-50%

0%

50%

100%

150%

200%

250%

300%

350%

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

(NT$’000) Consolidated Net Profit

30

• 2018Q1 net margin reached 13.1% from 2017Q4’s 8.6% and is the first quarter to return to double-digit net margin

since the trough of 2017Q2

• mainly driven by gross margin increase to 64.1% in 2018Q1, vs. 61.7% in 2017Q4

• On a YOY basis, 2018Q1 net margin is still lower than 2017Q1 and net profit declined 58.7% YOY

• mainly driven by sales decline in domestic market, and increased operating expenses due to China expansion

Financial Performance- 2018 Q1 Net Profit Updates

Item 2016 2017

YOY2017 Q1 2018 Q1

YOYAmount % Amount % Amount % Amount %

Revenue 1,150,595 100.0% 936,922 100.0% -18.6% 257,982 100.0% 214,307 100.0% -16.9%

Cost of Sales 355,088 30.9% 347,034 37.0% -2.3% 81,145 31.5% 76,886 35.9% -5.2%

Gross Profit 795,507 69.1% 589,888 63.0% -25.8% 176,837 68.5% 137,421 64.1% -22.3%

Distributor costs 120,191 10.4% 151,863 16.2% 26.4% 29,923 11.6% 31,016 14.5% 3.7%

Advertising 93,071 8.1% 77,227 8.2% -17.0% 10,833 4.2% 18,692 8.7% 72.5%

Personnel 125,554 10.9% 124,949 13.3% -0.5% 28,586 11.1% 35,047 16.4% 22.6%

Other operational 73,949 6.4% 92,770 10.0% 25.5% 15,686 6.1% 25,422 11.8% 62.1%

Operating Expenses 412,765 35.8% 446,809 47.7% 8.2% 85,030 33.0% 110,168 51.4% 29.6%

Operating Profit 382,742 33.3% 143,079 15.3% -62.6% 91,807 35.5% 27,253 12.7% -70.3%

Non-Op Income & Expenses -7,873 -0.7% 5,147 0.5% -165.4% -10,264 -4.0% 4,127 1.9% -140.2%

Profit Before Taxes 374,869 32.6% 148,226 15.8% -60.5% 81,543 31.5% 31,380 14.6% -61.5%

Income Tax Expense 62,746 5.5% 20,971 2.2% -66.6% 13,626 5.2% 3,334 1.5% -75.5%

Net Profit 312,123 27.1% 127,255 13.6% -59.2% 67,917 26.3% 28,046 13.1% -58.7%

EPS (NT$) 7.06 2.78 1.48 0.62

Financial Performance- Income Statement Summary

31

Unit: NT$'000Consolidated

Operating expenses according to company internal classification

Item 2016.12.31 2017.3.31 2017.12.31 2018.3.31

Cash and Cash Equivalents 870,206 667,418 578,897 440,364

Accounts Receivable 220,262 243,025 151,046 186,775

Inventories 147,588 175,758 216,767 219,010

Other Financial Assets 895,179 1,084,907 940,500 940,500

Total Assets 2,244,170 2,280,079 2,041,192 1,960,809

Total Liabilities 194,559 168,663 169,552 134,441

Total Shareholders' Equity 2,049,611 2,111,416 1,871,640 1,826,368

Key Indices

A/R Turnover Days 61 82 72 72

Inventory Turnover Days 143 191 202 272

A/P Turnover Days 46 69 77 65

Liability Ratio (%) 9 7 8 7

ROE(%) 21 13 6 6

Cash from OP activities 281,054 -1,544 93,828 -61,704

Financial Performance- Balance sheet & key Indices

32

Consolidated Unit: NT$'000

• Our inventory turnover days increased mainly due to our change of China’s distribution strategy on Tmall (from

outsourcing to self-operating) and inventory rollout on Watsons’ new stores

33

Thank YouThank You“Your Personal Doctor

For Your Perfect Skin”

-DR.WU

Contact Information

Eric Wu, CEO

Monica Wang, CFO ext. 830

TEL：+886-2-2369-9888

Mobile：+886-928-781-280

E-mail：ir@drwu.com