Chlitina Holding Limited Group Introduction 1 Chlitina Holding

Chlitina Holding Limited Group Introduction 1

Chlitina Holding Limited CONTENTS A. About CHLITINA B. Market Environment in China C. Core Competencies 　　1. A relatively large market 　　2. A comprehensive training system 　　3. Professional R&D and production mechanisms 　　4. A substantive brand concept D. Financial Ratios 2

Chlitina Holding Limited A. About CHLITINA 3

Chlitina Holding Limited A. About CHLITINA Company Information ➲ Company Name: Chlitina Holding Limited ➲ Chairperson: Chen Pei-hua ➲ Paid-in capital: NT$757 million ➲ Total number of employees: 631 ➲ Market segments: R&D and Production Channel Management Skincare Products 2012 Annual Sales Results Sales Regions Mainland China Other* Total Unit: Thousand RMB Unit: Thousand NT Dollars % 505, 087 2, 365, 825 98. 23 9, 123 42, 734 1. 77 514, 210 2, 408, 559 100. 00 *Note: Sales results in Hong Kong and Taiwan. 4

2013 A. About CHLITINA Chlitina Holding Limited Named "Most Valuable Beauty Institute" at China Beauty Expo "Most Influential Entrepreneurial Brand" award Gold Medal, Joining China Franchise & China Venture Exhibition Top 10 Business Models, Business Model Summit for Beauty Industry Listed among China's Top 50 High-Growth Franchises (Franchise 50) by ENTREPRENEUR magazine 2012 Honored at the 17 th China Beauty Expo as a "Leading Brand" and "The Most Influential Beauty Chain Salon" Listed among China's Top 50 High-Growth Franchises (Franchise 50) by ENTREPRENEUR magazine Named one of "Top 10 Most Investment Value Brand in Asia" at ASIA BRAND ANNUAL MEETING 2012 Company Milestones Number of CHLITINA stores 2008 Formed an R&D alliance with a French partner; CHLITINA saw the 15, 000 th person complete its elite skincare consultant training program 1989 Launched the CHLITINA brand in Taiwan 3, 000 1997 Chlitina Group set up operations in Shanghai, officially expanding into the Mainland China market 1999 2, 000 2003 Obtained ISO 9001: 2000 certification and the GMP certification for cosmetics manufacturers 2011 Listed among China Famous Trademarks Opened the first flagship store in Shanghai 1989　　　　　　1997　　1999　　　　2003　　2005　　2008　　　2011　2012　2013 Year 5

Chlitina Holding Limited Product and Services A. About CHLITINA Category Product Type At-home skincare Liquid makeup removers, cleansing creams, toners, lotions, creams Function Cleansers Hydrators Treatments Moisturizers Protectors Bio-regenerating collection Eye treatment collection Anti-wrinkle collection Salon Products Fairness (whitening) collection Hydration collection NATUREX collection Skin treatment collection Aromatherapy Body Essential oil (including blends) Essential oil, lotion Slimming collection 6

Chlitina Holding Limited B. Market Environment in China "China is a land of opportunities, and we are in a season of harvest. " 7

Chlitina Holding Limited Size of China's Cosmetics Market B. Market Environment in China "Mainland China: a high-growth, competitive market despite its relative immaturity" Unit: 100 million RMB 3, 000 Compound Annual Growth Rate (CAGR): 8. 12% 2, 500 2, 000 1, 500 1, 000 1, 816 1, 968 2011 2012 2, 130 2, 303 2014 2, 488 2, 684 500 0 Source: Euromonitor 2015 2016 8

Chlitina Holding Limited B. Mainland China Market for Skincare Products, 2011 -2016 Market Environment in China Face care Hand care 銷售額（人民幣億元） Body care 1200 1000 800 600 400 200 0 Category/Yea r 2011 2012(F) 2013(F) Body care 27. 32 29. 31 31. 41 Face care 695. 93 769. 65 849. 97 8. 32 9. 33 10. 42 Hand care 2014(F) 2015(F) 2016(F) 33. 61 35. 93 38. 37 937. 1 1, 013. 76 1, 134. 09 11. 61 12. 88 14. 25 Source: Euromonitor（May 2012） 9

Chlitina Holding Limited B. 2011 -2016年中國大陸臉部護理類�品市場 Market Environment in China Facial masks Facial cleansers Facial moisturizers Lip care Anti-aging Toners 450 銷售額（人民幣億元） Acne treatments 500 400 350 300 250 200 150 100 50 0 2011 2012(F) 2013(F) 2014(F) 2015(F) 2016(F) Category/Year 2011 2012(F) 2013(F) 2014(F) 2015(F) 2016(F) Acne treatments 5. 37 5. 74 6. 12 6. 51 6. 91 7. 32 Facial masks 58. 62 66. 95 76. 26 86. 63 98. 14 110. 89 Facial cleansers 80. 64 84. 33 88. 01 91. 71 95. 4 99. 06 Facial moisturizers 301. 96 329. 99 359. 88 391. 63 425. 62 461. 65 Lip care 4. 74 5. 11 5. 5 5. 9 6. 31 6. 75 Anti-aging 199. 62 226. 01 255. 35 287. 71 323. 26 362. 19 products Toners 44. 98 51. 52 58. 85 67. 01 76. 12 86. 23 % 0. 65% 9. 78% 8. 73% 40. 71% 0. 60% 31. 94% 7. 60% Source: Euromonitor（May 2012） 10

Chlitina Holding Limited Analysis of China's Beauty & Recreation Industry B. Market Environment in China "China's beauty & recreation services are mostly delivered by independent businesses, without any differentiated industry leaders. " Western Countries Mainland China Chain stores 3% Independent stores 52% Chain stores 48% A whopping 45% difference in growth rate! Independent stores 97% Source: Annual Survey of Aesthetic, Recreation and Wellness Chains, China Chain Store & Franchise Association 11

Chlitina Holding Limited B. Market Environment in China Beauty & Recreation Service Providers Worldwide Rely on the "Chain/Franchising" Business Model for Survival "Economies of scale is key to success for chains and franchises. " Only 10% of new stores survive! Franchise beauty brands Approx. 9, 000 stores (3%) Lack of branding leads to isolation Industry regulatory measures are inefficient Some services providers are unqualified Competition in the market is not properly regulated Non-franchise beauty brands 291, 000 stores (97%) Franchising leads to successful brand expansion! Survival among new stores increases to 90% Franchise beauty brands (Mainland China) Non-franchise beauty salons (Mainland China) Source: Annual Survey of Aesthetic, Recreation and Wellness Chains , China Chain Store & Franchise Association 2011 -2015 Prospects of Operating a Beauty Chain in China or Making Related Investments , Beijing-based Zhi-Yan Scientific Information Consulting Co. (www. abaogao. com) 12

Chlitina Holding Limited B. Market Environment in China Mainland China's Market for Skincare Products Brand Name Business Model Target Markets Main Products Number of Stores Listed among China Famous Trademarks? (Y/N) CHLITINA A franchise system (Franchisees must pay the deposit and franchise fee) Mainland China, Taiwan, Hong Kong and Southeast Asia Skincare products Approx. 3, 000 Yes Natural Beauty A franchise system (Franchisees must pay the deposit and franchise fee) Mainland China, Taiwan, Hong Kong, Macau and Southeast Asia Skincare products Approx. 1, 500 Yes AESTHETIC A franchise system (A "no-franchisefee" policy during promotional period) Mainland China Skincare products Approx. 2, 000 No SIYANLI A combination of regular chains and franchisees (Franchisees must pay a franchise fee) Mainland China Skin and body care products Approx. 130 No Mostly comprising regular chain Mainland China, Taiwan, Malaysia and Skincare and makeup products Approx. 800 No 13 BIO JOURDENE SS

Chlitina Holding Limited C. Core Competencies "It's not the only option, but the most competitive one. " 14

Chlitina Holding Limited C. Core Competence TOTAL SOLUTION A relatively large market Over 3, 000 retail chains Hundreds of stores join the CHLITINA Group each year 11 distribution centers A comprehensive training system 22 regional training centers Over 15, 000 beauticians Professional R&D A substantive brand production concept mechanisms Customized products/treatments China Famous Trademark GMP-certified manufacturing facilities Enlightenment Educational Program A technological R&D alliance with a French company CSR efforts 15

Chlitina Holding Limited C. Core Competence Market Number of CHLITINA Stores in Mainland China "China's largest professional beauty chain is taking shape. " Number of CHLITINA stores in China A relatively large market 3500 3000 2500 2000 1500 2656 3004 3121 2012 2013 Q 3 2687 1000 500 0 2011 16

Chlitina Holding Limited C. Core Competence CHLITINA's Locations across China Heilongjiang Province 32 locations Xinjiang Uyghur Autonomous Region 13 locations Market Jilin Province 29 locations A relatively large market Liaoning Province 79 locations 　 Northeast China 　 North China Tibet Autonomous Region 7 locations Inner Beijing City Mongolia 202 locations Tianjin City Ningxia Hui Autonomous 76 locations Region Autonomous Shanxi Region 76 locations Hebei Province 6 locations Province Shandong 70 locations 75 locations Province Gansu 90 locations Province Henan 4 locations Shaanxi Province 25 locations 32 locations Jiangsu Anhui Province Shanghai City Province 105 locations 343 locations Sichuan Province Hubei Province 79 locations Chongqing City 54 locations 171 locations Jiangxi Zhejiang Province Hunan 89 locations 525 locations Province Guizhou 150 locations Fujian Province 　 East China 　 Southeast China 　 　 Northwest China Southwest China Taiwan Yunnan Province 17 locations Province 40 locations Guangxi Zhuang Autonomous Region 25 locations n As of 2013 Q 3, CHLITINA has: 1) 2 regular chain stores and 3, 121 franchisees in Mainland China 2) 126 distributors in Taiwan 58 locations Guangdong Province 301 locations Taiwan 126 locations Hainan Province 5 locations 17

Chlitina Holding Limited C. Core Competence Market Presence of CHLITINA Franchisees in Urban Areas "Rendering superior service in an ever-expanding franchise network" A relatively large market Major geographic regions Northeast China Southeast China 2010 2011 2012 Sep 2013 31 32 34 32 76 71 72 76 North China 24 24 24 23 East China 124 128 139 146 9 9 13 15 44 46 47 41 308 310 329 333 Northwest China Southwest China Total At least 700 cities in China have enough target customers to support Chlitina stores—suggesting there is much room for further growth. 18

Chlitina Holding Limited C. Core Competence High-Quality Storefront and Interior Design "A client-oriented, sophisticated service environment" Market A relatively large market 19

Chlitina Holding Limited C. Core Competence TOTAL SOLUTION A relatively large market Over 3, 000 retail chains Hundreds of stores join the CHLITINA Group each year 11 distribution centers A comprehensive training system 22 regional training centers Over 15, 000 beauticians Professional R&D and production mechanisms A substantive brand concept Customized products/treatments China Famous Trademark GMP-certified manufacturing facilities Enlightenment Educational Program A technological R&D alliance with a French company CSR efforts 20

Chlitina Holding Limited 25 Regional Training Centers • Basic storefront management courses for new franchisees • Basic/advanced product-related knowledge and ordinary skincare skills • Advanced warehousing and market expansion capabilities • High-level seminars on how to expand operations • Knowledge about new products and skincare Tianjin Inner Mongolia Beijing Dalian Hebei Shandong Shaanxi Chengdu Anhui Hubei Shanghai Hangzhou Ningbo Chongqing Accommodates up to 2, 000 trainees and is supported by a highly qualified teaching staff A total of 15, 000 well-trained elite beauty consultants currently work at franchised CHLITINA salons nationwide CHLITINA has provided nearly 300, 000 trainees with professional courses Nanjing Suzhou Wenzhou Hunan Jiangxi Taipei Fukien Taichung Guangzhou Kaohsiung Shenzhen CHLITINA aims to provide better services while reducing employee turnover 21

Chlitina Holding Limited C. Core Competence Comprehensive A Three-Stage Training Mechanism for Elite Aestheticians "Nurturing well-rounded professionals with comprehensive, career-long training solutions" A comprehensive training system Store Managers & Aesthetic Consultants Senior Consultants Corporate Culture Business Administration Consumer Psychology Treatment Planning Marketing Instructor Training Programs Skincare Consultants Beauty Ambassadors Corporate Culture Occupational and Professional Image Building Skin Physiology Skincare Consultancy Skincare Techniques (advanced) Product-related Knowledge Beauticians Basic Training Corporate Culture Skincare Techniques (basic) Customer Service Etiquette 22

Chlitina Holding Limited C. Core Competence Training Facilities "A European-style beauty academy where all professional training courses begin in the HEART" Comprehensive A comprehensive training system 23

Chlitina Holding Limited C. Core Competence TOTAL SOLUTION A relatively large market Over 3, 000 retail chains Hundreds of stores join the CHLITINA Group each year 11 distribution centers A comprehensive training system 22 regional training centers Over 15, 000 beauticians Professional R&D and production mechanisms A substantive brand concept Customized products/treatments China Famous Trademark GMP-certified manufacturing facilities Enlightenment Educational Program A technological R&D alliance with a French company CSR efforts 24

Chlitina Holding Limited C. Core Competence Guidelines for the Research and Development of Diversified Products Professional R&D and production mechanisms Anti-aging and anti-sagging Expertly rendered All-purpose products with salon-quality results that last all day skincare treatments CHLITINA's technical alliance with a top-notch fashion & beauty consultant from France 25

Chlitina Holding Limited C. Core Competence Organization of CHLITINA's R&D Division Department Location Department Roles R&D Head Office Training the R&D staff Professional Developing and introducing new technologies Professional R&D and production mechanisms Product R&D Dept. 1 st Technology R&D Dept. Developing new products Taiwan Providing the Production Dept. and Quality Assurance Dept. with technical support Evaluating external labs and OEM manufacturers; Implementing partnership projects Verifying product safety, stability and efficacy Managing confidential documents with regard to product formulation and technologies Finding and confirming material suppliers Maintaining and confirming the legal compliance of products Communicating and coordinating with the Shanghai-based R&D staff to ensure technological consistency Confirming product formulations/preparations and the legal compliance of product information texts 2 nd Technology R&D Dept. Shanghai Handling the conversion, editing, confirmation and output of product information texts Offering assistance in trial production and technology transfers Handling the input and output of technology transfer documents Finding suppliers of China-produced raw materials and conducting experiments accordingly Providing the Production Dept. and Quality Assurance Dept. with technical support R&D Center France Tracking the latest developments in global beauty/cosmetics technologies and introducing them to CHLITINA 26

Chlitina Holding Limited Flagship Collections C. Core Competence "More than 140 professional skincare products!" Professional R&D and production mechanisms E. P. O. Collection This cellular metabolismbooster keeps skin cells intact with an adequate moisture level despite potential damage. It seals in moisture to effectively reduce signs of aging, symptoms of dryness or chapped skin. NATUREX toner collection Pure plant extracts of flowers, stems and leaves are formulated with a highconcentration serum to tackle skin conditions caused by excessive sebum secretions, sensitivity, aging, (comedonal) acne, skin damage, dryness, spots or dullness. FANTASIA collection ALIGHTS collection The collection adds a jade-like glow to the face by hydrating, revitalizing and nourishing every skin cell. It is a longlasting moisturizer that keeps the skin functioning properly, while at the same time giving it the muchneeded revitalizing touch. This terrific sun screen collection effectively shuts out UVA/UVB rays. It contains specially formulated porous powder to protect skin without leaving Etc… it greasy. 27

Chlitina Holding Limited C. Core Competence Certificates of Compliance with R&D and Manufacturing Standards Professional R&D and production mechanisms 28

Chlitina Holding Limited C. Core Competence CHLITINA's Manufacturing Facilities Professional R&D and production mechanisms 29

Chlitina Holding Limited C. Core Competence TOTAL SOLUTION A relatively large market Over 3, 000 retail chains Hundreds of stores join the CHLITINA Group each year 11 distribution centers A comprehensive training system 22 regional training centers Over 15, 000 beauticians Professional R&D and production mechanisms A substantive brand concept Customized products/treatments China Famous Trademark GMP-certified manufacturing facilities Enlightenment Educational Program A technological R&D alliance with a French company CSR efforts 30

Chlitina Holding Limited C. Core Competence China Famous Trademark CHLITINA is an iconic business that achieved the highest honor for a brand Substantive A substantive brand concept ➲In a rare example, CHLITINA and Ke-Li-Ti-Na (the Chinese name of CHLITINA) were simultaneously designated as China's Famous Trademarks. ➲ "China Famous Trademark" is the highest-level trademark awarded by the State Administration for Industry and Commerce of the People's Republic of China. ➲ Only 14 Taiwan-based businesses have been awarded the Famous Trademark designation. ➲ China's Famous Trademarks reflect excellence in terms of brand awareness, reputation and customer services, as well as favorable recognition from both authorities and consumers. 31

Chlitina Holding Limited Branding and Product Promotion 2002 -2009: • Sponsored the advertising campaign for Shanghai International Arts Festival in a successful brand positioning effort 2004: • Sponsored Tsai Chin's concert "Under the Moon Light" • Sponsored the 4 th China Peking Opera Art Festival • Started a year-round advertising campaign in SHANGHAI TIMES for franchisee recruitment 2006: • CHLITINA published a series of brand stories and new product ads in VOGUE, MODERN WEEKLY and MINI 2007: • Launched a prime-time advertising campaign on CCTV to raise CHLITINA's brand awareness • Sponsored "Her Village, " a TV show hosted by Yang Lan • Started a brand-awareness advertising campaign via Focus Media 32

Chlitina Holding Limited Branding and Product Promotion 2008: • Sponsored the 11 th Shanghai International Film Festival • Started a year-round brand-awareness advertising campaign in Hong Kong Daily News • Started a year-round brand-awareness advertising campaign via Focus Media • Advertised new products in MODERN WEEKLY and JESSICA 2009: • Advertised the new FANTASIA collection in MODERN WEEKLY • Published franchisee recruitment ads for regional franchise meetings 2011: • Advertised new products in nearly 10 fashion magazines, including Xinmin BELLA • Chairperson Chen Pei-hua, CEO Richard Yu and VP Ye Meifeng were interviewed by JESSICA, Top Golf, The Week and many other fashion magazines • Launched outdoor advertising campaigns in multiple places nationwide to enhance brand awareness

Chlitina Holding Limited Branding and Product Promotion 2012: • Chairperson Chen Bihua and CEO Richard Yu interviewed by leading business and beauty industry media outlets, including Business Today, Hers and GLOBAL FORTUNE • CHLITINA's new products featured by Hers among other popular fashion magazines 2013: • Chairperson Chen Pei-hua and CEO Richard Yu interviewed by numerous prominent Internet media outlets

CSR & Charitable Efforts Chlitina Holding Limited • Started a years-long campaign called "Project Hope" for impoverished people and needy students • 2004: CHLITINA Group contributed to Indonesian Tsunami relief efforts • 2004: Sponsored the CHLITINA Cup Bridge Tournament • 2004: Donated cash to Chongqing City for a charitable drive • May 2007: Sponsored the centenary celebration of Tongji University • 2008: Donated RMB 3. 8 million to Sichuan earthquake victims • 2009: Started sponsoring the Enlightenment Educational Program and Project Hope teacher training programs 35

Chlitina Holding Limited China Beauty Expo - Shanghai C. Core Competence The Most Influential Beauty Salon Chain Leading Brand Most Valuable Beauty Institute Substantive A substantive brand concept China Alliances Industry Association Asia Brand Awards Most Promising Chain 36

C. Core Competence Chlitina Holding Limited Hers magazine ENTREPRENEUR Women's Favorite Brand: CHLITINA 2012 and 2013 Top 50 High-Growth Franchises (Franchise 50) Substantive A substantive brand concept 2013 China International Investment & Franchise Expo The Most Influential Entrepreneurial Brand award Gold Medal, Joining China Franchise & China Venture Exhibition 37

Chlitina Holding Limited ASIA BRAND ANNUAL MEETING 2012 C. Core Competence Top 10 Highest Investment Value Brand in Asia Substantive A substantive brand concept 2013 Business Model Summit for Beauty Industry Top 10 Business Models 38

Chlitina Holding Limited D. Financial Ratios 39

Chlitina Holding Limited CHLITINA's Operating Results D. Financial Ratios In millions of NT Dollars 1500 Net operating profit 1200 900 600 300 0 177 388 791 612 2010　　 　　　　2011　　　 　　　2012　　　　 　　2013 Q 3 In NT Dollars EPS (after tax) 15 12 9 6 8. 84 3 0 1. 72 4. 12 7. 61 2010　　　 　　　2011　　　 　　　2012　　　　 　　2013 Q 3 40

Chlitina Holding Limited D. An Industry with High Gross Profits Financial Ratios CHLITINA L'OCCITANE ESTEE LAUDER Natural Beauty 82. 71% 80. 10% 78. 57% Shiseido KOSÉ L’Oréal 76. 11% 73. 54% 70. 67% Source: 2012 annual reports 41

Chlitina Holding Limited Net Profit D. Financial Ratios 30. 00% 27. 91% 24. 51% 25. 00% 20. 00% Chlitina 14. 10% 15. 00% 2012 Bio-tech profitable company in TW 11. 42% 10. 00% 7. 22% 5. 00% 0. 00% 2010 2011 2012 2013 Q 3 Source: CPA-audited annual pro-forma affiliation reports, released by the aforementioned companies 42

Chlitina Holding Limited Return on Equity (ROE) D. Financial Ratios 120. 00% 100. 00% 98. 08% 90. 09% 82. 03% 80. 00% 60. 25% Chlitina 60. 00% 2012 Bio-tech profitable company in TW 40. 00% 20. 00% 11. 32% 0. 00% 2010 2011 2012 2013 Q 3 Source: CPA-audited annual pro-forma affiliation reports, released by the aforementioned companies 43

Chlitina Holding Limited Return on Assets (ROA) D. Financial Ratios 40. 00% 34. 79% 35. 00% 31. 93% 30. 00% 24. 35% 25. 00% Chlitina 20. 00% 2012 Bio-tech profitable company in TW 15. 51% 15. 00% 11. 91% 10. 00% 5. 00% 0. 00% 2010 2011 2012 2013 Q 3 Source: CPA-audited annual pro-forma affiliation reports, released by the aforementioned companies 44

Chlitina Holding Limited Thanks For Your Attention Q&A 45