Corporate Presentation

February 2017

1

The presentation herein may contain forward looking statements by the management

of Best World International Ltd (BWI) that pertain to expectations for financial

performance of future periods vs past periods. Such forward looking statements

involve certain risks and uncertainties as they relate to future events. Actual results

may vary materially from those targeted, expected or projected due to various factors.

Such factors are, among others, general economic conditions, foreign exchange

fluctuations, competitive product and pricing pressures as well as changes in tax

regimes and regulatory developments. Such statements are not and should not be

construed as management’s representation on the future performance of BWI.

Therefore, the actual performance of BWI may differ significantly from expressions

provided herein. The reader is cautioned to not unduly rely on these forward-looking

statements.

Neither the Group nor its advisers and representatives shall have any liability

whatsoever for any loss arising, whether directly or indirectly, from any use or

distribution of this presentation or its contents.

This presentation is for information only and does not constitute an invitation or offer

to acquire, purchase or subscribe for shares in BWI.

2

• About Best World

• Business Model & Strategy

• Direct Selling Market Trends

• Growth Areas

• FY’16 Financial Highlights

Content

3

Our Vision

To be a global leading

health and wellness

company dedicated to

creating products that

enhance the lives of our

customers.

4

About Best World

• Founded in 1990, Best World

International specializes in

– Premium skincare,

– Health Supplements,

– Nutritional and wellness

products.

• Today, Best World is a key

regional player with a network

of over 435,000 independent

distributors and members in

the 12 markets we operate in.

5

About Best World

• In July 2004, Best World became

the first direct-selling company to

be public listed on the Singapore

Stock Exchange.

• Through our wholly owned

subsidiary in the PRC, we also

manufacture and distribute the

Aurigen line of supplements in

China through drugstores in

all provinces of the PRC.

6

• Founded in 1990

• Opening of first business centre in Malaysia in 1998

• Listed on SGX in 2004

• Entered into Thailand Market in 2004

• Expanded into Vietnam with new lifestyle center in

2005

• Expanded outside South East Asia with Hong Kong

Regional Center in 2006

• Expanded into Taiwan Market in 2006

• Grand launch of Indonesia Market in 2007

• Entered into Korea Market in 2009

• Ventured into Philippines in 2010

• Completed acquisition of Zhejiang SolidGold

Pharmaceutical Co., Ltd. in 2014

• Established a Joint Venture in Dubai, the United

Arab Emirates in 2016

• Best World obtains direct selling licence for

Hangzhou, China in 2016

Corporate Milestones

7

8

Our Markets

9

Our Core Products

80% of revenue

10

Our Top Brands

1

10% of revenue

11

Our Top Brands

2

8% of revenue

12

Our Top Brands

3

2009, 2008, 2015

13

Strong Brand Equity and Credibility

Business

Model &

Strategy

14

• Marketing through extensive regional

network

• Minimal start-up cost with no need to hold

large amounts of inventory

• Hierarchical commission structure – paid

out according to product type and rank (up

to approximately 35-40% of sales value)

• Holistic support structure for distributors

with comprehensive training and strong

culture of mentorship and peer support

• Highly scalable as compared to

conventional retail channel

Product Concept

3rd Party

Manufacturing

Marketing

Tools

Product

Registration

Direct Selling

15

Best World’s Direct Selling Model

Group’s Revenue

Direct Selling ExportManufacturing/

Wholesale

Accounts for 70.9% of

sales (FY2015: 79.2%)

Accounts for 26.8% of

sales (FY2015: 14.2%)

Accounts for 2.3% of

sales (FY2015: 6.6%)

Singapore,

Taiwan,

Indonesia,

Others

China,

Myanmar

China

(Aurigen)

16

Direct Selling

as Major Revenue Contributor

Transfer Price Export Retail Price

(a fraction of

members’ price)

Members’ Price

vs

Direct Selling Export

Best World HQ

Subsidary

D

D D D

D

D D D

Best World HQ

Third Party Agent

17

Direct Selling vs. Export Model

Our Winning Strategy

18

PeoplePlan

Products

Attract. Retain. Educate

Our Winning Strategy – The 3 “P”

19

Products

Effective products developed by in-

house product development team

People

Unique and proven training system

People

Attractive compensation plan

(pays out 35-40% of revenue)

20

Direct Selling

Market Trends

• The wellness sector commands

the largest share of direct retail

sales.

• It also is the fastest growing

sector and is expected to continue

growing

• Direct sellers who show a notable

change in their health and look

result in easy selling point

Direct Selling Market Trends

Growing Wellness Industry

• Advancement of e-commerce,

social media and mobile

technologies at rapid pace

• Broadens reach and efficiency of

direct selling companies

• Allows easy expansion for

distributors – online ordering,

easy-to-access training and no

need for inventory

Proliferation of Technology

21

• The Millennial Movement

Rise of Entrepreneurship

Search for flexible work

arrangement

Number of under 25 year olds

working as direct sellers has

increased by 16% since

2013, according to figures

released by the Direct Selling

Association (DSA).

Direct Selling Market Trends

New-Age Workforce

• Users looking for customised

product recommendations and

personal interaction as part of a

wholesome product experience

• Simplification of buying

experience to enhance

convenience

• Building of trusted influence as

consumers are less inclined

towards advertisements

Product Experience

and Innovation

22

23

Growth Areas

Growth Areas

• Penetrating the world’s second largest direct selling market – China

• Continues strong growth momentum

in Taiwan

• Digitalization and Social Selling

• Establishment of skincare

manufacturing facility in Singapore

• New products, new markets and

M&A

24

Penetrating the

world’s second

largest direct selling

market – China

25

1

China’s Direct Selling Market

• China direct selling market has achieved 10% growth in 2015, reaching US$19.2

billion in retail value and is projected to grow at 6% CAGR

• Top-two direct selling categories in China are expected to grow at 10% per annum

• Affluent household income group is expected to grow from 11% (2012) to 25%

(2022)

26Source: Euromonitor

2015 Global Direct Selling Market

(USD’ Million)

United States20%

China19%

Korea9%Germany

8%

Japan 8%

Others36%

Consumer Healthcare

Direct Selling 42%

Beauty and Personal Care Direct Selling

31%

Others 27%

China Direct Selling Market

Top 20 Direct Selling Companies in China (2015)

27

28.3

26.8

23.5 23.0

17.0

12.4

9.8

6.1 5.9

4.0 4.0 3.6 3.2 2.8 2.6 2.3 2.2 2.1 2.0 2.0

Sales Figure of Top 20 Companies (RMB’ Billion)

To be within Top 15 in the next 3-5 years

Source: http://finance.ce.cn/rolling/201602/17/t20160217_8905033.shtml

28

China’s Execution Strategy

1Emulate Taiwan’s

success system 2 Build on Strong

groundwork 3 Leverage on social

Selling and events

• China’s market has

similar dynamics as

Taiwan but is over 50x

larger than Taiwan

• Focus on expanding

distribution network,

ensure product quality

and cultivate a

premium brand

• Award of direct selling

licence set to spur

local interest and

demand

• Have registered its key

products and

established a strong

network of sales

representatives

• Currently has strong

presence in tier-2 and

tier-3 cities such as

Changsha, Wenzhou,

Harbin and Zhongshan

• Will expand

geographical and

product coverage for

direct selling licence

• Increase frequency of

large-scale recruitment

events especially in Tier 2

and Tier 3 cities

• Roll out more promotional

events and introduce

more complementary

products

• Recent launch of official

WeChat micro-site to

raise productivity of sales

representatives

Continues strong

Growth momentum

in Taiwan

29

2

Taiwan Direct-Selling Market (2015)

*= Estimated

Information extracted from: 直销世纪，Power Networking Monthly magazine （http://dscentury.com/brainet/?p=3171）

31

11.7

7.1

4.8 4.6 4.5 4.3 4.2

2.7 2.3 2.12.8

Sales (NT$'Billion) of Top 10 Companies

FY2016

In 2015, Best World was at 14th position with sales figure of NT$1.3 billion

1Higher member

engagement levels 2 Engaging the

right distributors 3 Expansion into

Northern Taiwan

• Growing user base

before ultimately

converting them to

distributors

• To supplement new

product offerings with

a series of more

generic, day-to-day

products such as

toiletries and instant

beverages

• Continues to recruit

young and business-

minded consumers as

their “young

entrepreneurs”

• Currently 70% of

distributors are under

the age of 35

• Currently has strong

presence in Central and

Southern parts of Taiwan

• Northern Taiwan has

higher population density

32

Taiwan’s Growth Strategy

Digitalization and

Social Selling

3

• Distributors are encouraged to make use of social media (i.e. Facebook)

to broaden reach

• The Company actively develops online and mobile tools (online store,

WeChat microsite, APPs) to enhance shopping experience

Best World’s Initiatives

Establishment

Of Skincare

Manufacturing

4

Skincare Manufacturing Facility

in Singapore• Acquisition of 4,550sqm facility in Tuas for S$10

million in 2016; to be operational by end-2017

• Modelled under Industry 4.0, the factory

would be fully automated from end-to-end with

integrated communication along the entire chain

and allows for customization and high efficiency

• Rationale:

Improve quality with greater control over

procurement of raw material and production

process

Reduce current lead time (approximately six

months) which will lead to holding of less

inventory on balance sheet

In anticipation of greater demand from

China and Taiwan

36

New Products

New Markets

M&A

5

Further Growth Driven By:

• Introduces an average of 3-4 products each year

• Enhances consumer appeal through product innovation and

improvement

New Product Launches

• Dubai Regional Centre as a springboard into other GCC markets

• To deepen penetration into countries such as Korea, Indonesia

and Singapore

New Markets & Deepen Penetration in Existing Markets

• Other direct selling companies that can provide access to new markets

• Complementary products and services that can be further marketed via Best World’s distribution network

M&A Opportunities

38

Peer Comparison

39

*FWD EPS Growth is calculated based on est. next year EPS

Information extracted from Bloomberg as at 22 February 2017

COMPANY

LAST

SHARE

PRICE

MARKET

CAP (SGD‘ Million)

TRAILING

P/E

FWD

P/E

FWD EPS

GROWTH* PB ROE

DIV

Yield

BEST SP

EQUITY BEST WORLD INTL1.93 533.53 15.4 13.3 215.9% 5.6 38.2 2.1

300147

CH

EQUITY

XIANGXUE PHARM-A 12.14 1,655.67 72.7 34.7 25.0% 2.4 3.2 -

874 HK

EQUITY KANGMEI PHARM-A17.56 17,915.68 24.6 20.9 35.2% 3.4 15.9 1.2

1707 TT

EQUITY GRAPE KING BIO208 1,282.84 22.3 17.3 49.2% 6.6 33.0 3.0

4137 TT

EQUITY CHLITINA HOLDING164 600.25 12.6 18.7 (40.3%) 3.7 29.2 4.0

HAIO MK

EQUITY HAI-O ENTERPRISE4.35 267.33 18.1 14.7 57.8% 3.2 18.4 4.1

AMW MK

EQUITY AMWAY MALAYSIA H7.72 404.25 26.3 19.3 2.9% 6.1 22.7 3.7

NUS US

EQUITY NU SKIN ENTERP-A48.08 3,713.71 19.0 13.8 34.7% 3.9 19.2 3.0

HLF US

EQUITY HERBALIFE LTD61.14 8,069.90 12.5 12.3 20.6% 46.0 - -

USNA US

EQUITY USANA HEALTH SCI59.35 2,053.09 14.9 12.7 17.0% 4.4 33.0 -

TUP US

EQUITY TUPPERWARE BRAND58.54 4,198.57 14.1 12.1 9.5% 13.3 116.6 4.7

AVERAGE 23.7 17.7 21.2% 9.3 32.4 3.4

39

Best World’s Investment Thesis

• Extension of reach in China market marks new era of growth

• Strong earnings momentum in Taiwan to be sustained

• Experienced management and highly scalable business model

allows success to be replicated in new and other existing markets

• Strong balance sheet and cash flow to fund growth

• Trading at 13.3x Fwd P/E (peers average 17.3x) backed by

strong EPS growth of 215.9% (peers average 38.9%) as at 22

February 2017

2017-2020: The Best is Yet to Be

40

FY’16

Financial

Highlights

41

FY2016

(S$’million)

FY2015

(S$’million)

Change

(%)

Revenue 200.8 101.7 97.5

NPAT Attributable to Owners of the

Company

34.6 10.1 242.1

Net Profit Margin (%) 17.2 9.9 7.3 (p.p)

EPS* (cents) 12.56 3.67 242.2

* The weighted average number of ordinary shares (excluding treasury shares) for 4Q2016 is 275,229,757 (4Q2015: 275,229,757) and for

FY2016 is 275,229,757 (FY2015: 275,229,757). For comparative purposes, the number of ordinary shares as at 31 December 2015 was

adjusted to include the issue of one bonus share for every four existing ordinary shares held for the calculation of basic and diluted earnings

per share.

FY2016 Performance Summary

9.0 12.8 13.535.28.8

18.3 21.0

51.6

9.2

19.226.2

52.2

14.0

25.0

40.9

61.8

0.0

50.0

100.0

150.0

200.0

250.0

2013 2014 2015 2016Q1 Q2 Q3 Q4

Revenue S$’(M)

44

Financial Highlights

FY2016 (By Segments)

Direct Selling70.9%

Export26.8%

Direct Selling

• Revenue improved 76.6 %

Backed by consistent growth from key

market Taiwan

Export

• Revenue improved 272.7%

Lifted by higher export volume to China due

to increased product demand

Manufacturing/Wholesale

• Revenue improved 30.3 %

Delay of product registration which led to

postponement of a product launch

Manufacturing/Wholesale2.3%

45

Financial Highlights Segmental Breakdown

Singapore 3.5%

China28.8%

Taiwan61.3%

Indonesia 2.7%

Others 3.7 %

FY2016 (By Countries)

Taiwan

• Revenue improved 118.0%, boosted by higher

consumption from existing members and the

reinvigoration of low consumption members

China

• Revenue improved 192.7% lifted by higher

demand for DR’s Secret products

Indonesia

• Revenue fell 16.4% due to shift in product focus

from weight management to skincare

Singapore

• Revenue fell 4.9% due to a weaker 1H2016

despite an improvement of 29.7% in 4Q2016

Others

• Revenue fell 35.7% primarily due to decline in

Philippines, Malaysia, Myanmar and Thailand,

offset by improvement from Hong Kong, Vietnam

and Korea

46

Financial Highlights Geographical Breakdown

435,765

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

2010 2011 2012 2013 2014 2015 2016

Membership (2010-2016)

45

Membership Growth

Stable financial margins & highly scalable business model

• Consistent high GPM throughout the years

• Improving NPM with stable distribution and administrative expenses

• FY2016 distribution expenses < 40% of revenue

S$’(M)

41.1

75.3

101.7

200.877.4%

74.4% 75.6%

73.2%

3.5% 5.4%9.9%

17.2%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

0

20

40

60

80

100

120

140

160

180

200

220

FY13 FY14 FY15 FY2016

Revenue

GPM

NPM

47

MarginsFinancial Highlights

Dividend Policy

• At least 30% of profit after tax, consistent dividend payout ratio of >35% since 2007

• Paid out S$48.7M (2004 to 2016 including final proposed dividend), which is almost

double the amount of cash it has raised from IPO

0.3 0.8

2

4.6#

43% 43% 44%

37%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0

1

2

3

4

5

FY13 FY14 FY15 FY16

Div

ide

nd

Pay

ou

t (

%)

Div

ide

nd

Pe

r Sh

are

(S

cts)

48

DividendsFinancial Highlights

# DPS was adjusted to include the issue of one bonus share for every four existing shares

Net cash position with negligible borrowings

• As at 31 December 2016, Best World has S$54.9 million in cash and cash equivalents

• Net cash position of S$46.6 million

FY13 FY14 FY15 FY2016

Cash and Equivalent

33.3 41.0 47.2 54.9

Total Borrowings

3.5 6.0 0.018 7.4

Net Cash 29.8 35.0 47.1 46.6

Gearing Ratio* 0.07 0.11 0.00 0.08

(S$’ million)

49

Cash HoldingFinancial Highlights

* Calculations based on formula Net Debt/Total Equity

Thank You!

Q&A

49