Present total solutions for beautiful changes. DNC Cosmetic Introduction

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1 Present total solutions for beautiful changes DNC Cosmetic Introduction

2 Contents 01/ Introduction of Daewoong Pharmaceutical Company 02/ DNCompany 03/ DNC Cosmetic 04/ DW-EGF Cream 05/ EGF

3 Introduction of Daewoong Pharmaceutical Company 01 Daewoong Pharma l Established Chosun Liver-oil Pharmaceutical Industry Co., Ltd l Established Daehan Vitamin Chemical Industry Co., Ltd l Offered Company Shares to the Public l Transfer business name into Daewoong Pharmaceutical Co., Ltd l Launched Easyef, the First New Biopharmaceutical in Korea l Obtained Composition Patent on EGF in Japan 2008 l Easyef (EGF) acquired the International Nonproprietary Name (INN) of nepidermin by the WHO 2010 l URSA : Selected as World s First-Class Product. Patent for next-generation antibiotic acquired in Japan l Established Daewoong Lilly Pharmaceutical Co., Ltd l Obtained KGMP Approval for Daewoong Plants l Obtained First Genetic Engineering Patent in Korea l Established Technical Cooperation with Tongrentang in China L Easyef (diabetic ulcer treatment): Export Agreement signed for 11 countries; Easyef : Export Agreement signed with EGY-TEC for Egypt l Export Agreement signed for Turkey 2014 l Signed an MOU with Japan Institute (RIKEN) for new drug development 2015 l Nabota approved in 3 South American countries; Ursa selected as liver function improver in 2015 Consumer s Choice. 2016l Nabota approved in Mexico and India.

4 Introduction of Daewoong Pharmaceutical Company 01 Daewoong Pharma. Global Business (8 corporation) Having a largest number of overseas branches between Korean pharmaceutical companies U.S.A China Japan Philippines India Thailand Indonesia Vietnam

5 Introduction of Daewoong Pharmaceutical Company 01 Daewoong Pharma. Introduce advanced technology and entry into overseas markets (2008) (2013) (2015) (2009) Olsan New Facotry cgmp standard products Pharmaceutical Research Center Upgraded pharmaceuticals and DDS New Pharmaceutical Factory New pharmaceuticals and technology Bio research Center Bio new drugs and similar products

6 Introduction of Daewoong Pharmaceutical Company 01 Daewoong Pharma. Daewoong Pharma. has achieved a leap-forward development Listed in 1973 / maintained favourable balance during 41 years An average annual growth of 10% No.1 in prescription drugs The industry s first credit rating AA(2014) (Unit : 100million) 7,940 1, (year)

7 Introduction of Daewoong Pharmaceutical Company 01 Daewoong Pharma. Goal for 2020 : 1.4 billion China -450 million Expand new export countries -180 million Nabota -360 million (launching countries+100) Luphere, Olostar -360 million Upgraded pharmaceuticals -90 million No.1 of digestant, pediatrics, and medical devices New branches in Beijing, Tianjin, a nd three northeastern provinces Collaboration of factories and local companies Indonesia -90 million No.1 of bio pharmaceuticals Success models in surgery and medical devices Thailand -45 million No.1 in aesthetical field Local characteristic market Vietnam -90 million No.1 of digestant Local enterprise acquisition Improve bidding competition Leading ASEAN export markets Philippines -45 million No.1 of digestant

8 Introduction of Daewoong Pharmaceutical Company 01 Daewoong Pharma. Global healthcare group (Raw material) (Aesthetic products) Pharma ceuticals Medical devices (U-health) IT & Media Medical service (Aging issue) (Media & Logistics ) (Healthcare service) (Hospital IT) (Wellness center)

9 Introduction of Daewoong Pharmaceutical Company 01 Daewoong Pharma. Affiliate relationship Founded in 1945, and listed on Korean stock market in Companies over the world ( China, Vietnam, Thailand, Philippines, Indonesia, Japan) 5 R&D centers over the world ( Korea, 2 in China, India and USA) Founded in 2001 An affiliate of Daewoong Pharm., Korea s leading Pharmaceutical company Specialized in manufacturing and selling cosmetics, filler, toxin and other derma and plastic surgery related products.

10 02 DNC Derma & Plastic Surgery Network Company More than 4,000 accounts in Dermatology & Plastic Surgery clinics in South Korea Strong relationship with Korean Academic Society MRs cover 3,200 Derma & P/S accounts national-wide Worldwide Partnership DNC History Jan Received First Domestic Brand Award in Korea for 4 consecutive years and in China for 2 consecutive years Oct Easydew Domestic Home Shopping Jun Easydew launched in HONG KONG SASA for more than 70 stores 2013 Nov Perfecta awarded 2015 premium brand prize for female consumers in the filler market Sep TEOSYAL launched (Only for Korean Market) Dec DANAE (HA filler) launched Dec NABOTA (Botulinum toxin Type A) launched Jan Easydew EX launched 2012 Apr DNCannula launched Mar DW-PDT launched Feb Facetem(CA filler) launched 2011 Nov EGF Gel form & hair tonic launched 2009 Aug Exclusive distributorship contract of Perfectha for Asian market Apr Esthemed launched 2006 Jul Easydew launched 2005 Sep Cellisys launched 2001 Dec DNC Co., Ltd. Founded 2000 Apr Deawoong Pharmaceuticals Derma & Plastic Surgery Team formed

11 DNC Portfolio 02 DNC Full Service Line-up related to skin care and aesthetics (there was no full service-covered company in Korean market before) - ETC, OTC, medical devices, cosmetics - Developed by dermatologists from general hospital, clinics, plastic surgeries etc. - GMP standard pharmaceuticals, FDA approval, WHO registration, raw material R&D advantages - Possess Daewoong Pharma. Skin Research Center Cosmetic clinical trials in general hospital and SCI academic papers - Conducted by authoritative experts from Seoul National University, Chung-Ang University, Asan Medical Center, Hanyang University) Botulinum toxin Filler Medical cosmetics General cosmetics

12 Global DNC 02 DNC Export to China, U.S.A, Russia, Spain, Japan, Thailand, Vietnam etc. 38 countries. Spain, Poland Russia, Kazakhstan U.S.A Saudi Arabia, U.A.E, Lebanon, Iran China, Japan Hong Kong, Singapore, Indonesia, Malaysia, Vietnam, Philippines, Thailand, Myanmar DNC overseas branches China, Thailand, Vietnam, Indonesia, Philippines, India, U.S.A Brazil, Columbia, Ecuador, Peru, Venezuela, Bolivia, Paraguay, Uruguay, Chile, The Domminican Republic, Guatemala, Nicaragua, Mexico, Honduras, El Salvador, Costa Rica, Panama

13 DNC Cosmetic Brands 02 DNC Function-oriented brands for different demands under the Total Beauty Solution concept EGF reparation cosmetics Skin trouble-targeted solution containing pharmaceutical grade DW-EGF Premium anti-aging functional cosmetics Concentrated wrinkle care combined with DW-EGF and peptide Vitamin healing cosmetics To improve skin condition with pure vitamin and natural ingredients Target Customers after laser treatment Customers prefer home-shopping General customers Female after 30s Female and male between 20s-30s Concept Recommended by dermatologists To solve skin problems by EGF Moisturizing and rejuvenating Anti-aging function Combination of nature and science Market General hospitals/ Clinics Homeshopping channel Duty-free stores, on-line shop

14 Brand Positioning Premium price Basic cosmetic Professional and functional cosmetic New brands Reasonable price

15 Cellisys 03 Wake up the sleeping cells by anti-aging skin care system Cellisys Cosmetic Brand The amount of EGF in human body decreased dramatically after 29 years old leading to skin aging Premium anti-aging solution combined with highly concentrated DW-EGF and peptide Main line Skin care line EGF concentrated care line Daily skin care line that improves skin from inside to outside by providing elasticity Concentrated anti-aging program containing 10ppm DW-EGF shows a visible wrinkle improvement within 4 weeks EGF Wrinkle 29 Activator Market On-line shopping mall (Dr.Skin, Zero Shop), Duty-free Store

16 Cellisys EX 03 Cosmetic Brand Wrinkle Solution Skin Softener 140ml / KRW 54,000 Wrinkle Solution Concentrating Essence 35ml 1 set / KRW89,000 Wrinkle Solution Emulsion 140ml / KRW 58,000 EGF Wrinkle 29 Activatior 7ml 4ea / KRW 139,000 Wrinkle Solution Eye Contour Cream 15ml /KRW72,000 Wrinkle Solution Cream 50ml / KRW78,000 EGF Intense Mask 20g 4ea / KRW45,000

17 03 Cosmetic Brand Esthemed Esthemed s philosophy of healing and science Processing 50 years history with Daewoong vitamin development Containing vitamin C, vitamin B, carbonated spring water, and hyaluronic acid Main line Vita & Hydra Miracle Spa Water Magnet Energy solution of vitamin and deep sea water Improve skin condition with moisturizing and whitening effect The power from carbonated spring water Remove dirties from skin pores and provide nutrients to make skin look bright and hydrated The synergy of DW-EGF and 3 kinds of HA Enjoy moisturizing and winklereduction effect at the same time Market On-line shopping mall (Dr.Skin, Zero Shop), Healience Resort, Duty-free Store

18 C+ Whitening Line 03 Vita Essence in Toner 130ml/KRW 29,000 Whitening Serum 30ml/KRW 30,000 Laser White 15ml/KRW42,000 Cosmetic Brand Hydra Line Miracle Spa Hydra B3 Mist 100ml/KRW 19,000 Hydra B5 Serum 30ml/KRW 24,000 Hydra Facial Oil 30ml/KRW 30,000 Hydra B6 Cream 30ml/KRW 28,000 Miracle Spa Toner 100ml / KRW 28,000 Miracle Spa Cream 50ml / KRW 34,000 Multi Vita Line Water Magnet Capsule Cleansing Foam 120ml/KRW20,000 Multi Vita Fluid 100ml/KRW23,000 Multi Vita Serum 30ml/KRW23,000 Wrinkle Cream 30g/KRW38,000 Water Magnet Essence 20ml / KRW 82,000 Water Magnet Ampoule 30ml / KRW 68,000 Daily Pocket Mask Premium Bubble Mask 18g/KRW 3,500 Moisture Mask 23g/KRW 3,000 Whitening Mask 23g/KRW 3,000 Calming Mask 20g / KRW 2,000 Wrinkle Mask 23g / KRW 3,000 Gold Energy Cream 50g /KRW 56,000

19 03 Cosmetic Brand Easydew Study the skin, make a difference Easydew products have been developed by professional dermatologists and aim at providing a wide range of solutions to skin health issues with its core value of healing Main Line Easydew EX Easydew Daily Easydew DW-EGF Key Point Different skin problems, the same answer DW-EGF reparation solution Improve skin condition by 4 step core care program Cleansing-Peeling-Return-Sunscreen Whitening and wrinklereduction functional cosmetic with exclusive ingredient DW-EGF Cream Concept Skin trouble-healing products recommended by dermatologists Daily care for sensitive skin chosen by consumers Concentrated wrinkle care products for homeshopping channel Market Hospitals/clinics On-line shopping Home-shopping Main Products For sensitive skin, red skin, trouble skin, scalp care, and body barrier care Peeling gel, moisturizing cream, sun cream Cream, toner, serum

20 03 Cosmetic Brand Easydew EX Specialized cosmeceuticals for medical institutions First Brand Awards winner for 4 consecutive years Best-loved Brands of Korea award winner for 4 consecutive years

21 03 Cosmetic Brand Easydew EX Easydew EX products have been developed by professional dermatologists from general hospitals, clinics, plastic surgeries etc. and have passed a series of clinical trials. Clinical trials have been conducted by a professional agency to verify the effectiveness of ingredients such as DW-EGF

22 Easydew EX Repair Control 03 Pure Mild Cleansing Gel 150ml / KRW31,000 All-Calming Essential Toner 210ml/ KRW40,000 Moisture Essential Mist 120ml/ KRW17,000 Active Soothing Serum 40ml/ KRW63,000 Repair Control EGF 20ml/ KRW100,000 Renewal Moisture 50ml / KRW45, ml / KRW77,000 Renewal Intensive Moisture 50ml / KRW45, ml / KRW77,000 Cosmetic Brand Double Shield Sun Cream 50ml / KRW43,000 Mineral BB Cream 50ml / KRW45,000 Gel Dressing Mask 38ml*5ea / KRW 36,000 Easydew EX Red Control Easydew EX Trouble Control Calming Serum 40ml/KRW68,000 Calming Moisture 50ml/KRW45,000 Calming Cream 50ml/KRW55,000 Anti-Red BB Cream 50ml/KRW45,000 Concentrated Balm 25g/KRW75,000 Purifying Cleansing Foam 150ml/KRW25,000 All-clear Peeling Toner 220ml /KRW40,000 Trouble Control EGF 20ml /KRW40,000 Easydew EX Barrier Control Easydew EX Scalp Control Body Wash 200ml/KRW25,000 Face & Body Cream 50ml/KRW55,000 Revital Shampoo 200ml/KRW35,000 Revital Tonic 30ml/KRW55,000

23 03 Cosmetic Brand

24 03 Cosmetic Brand

25 03 Cosmetic Brand

26 03 Cosmetic Brand

27 03 Cosmetic Brand [ Subjects ] 22 patients [ Duration ] before use and after 2 weeks [Research Title : The improvement of Scalp Control Vital Shampoo on Scalp Sebum and Keratin Based on Human Body Test] - Ellead Skin & Bio Research, EL CW063

28 Easydew Daily 03 Cosmetic Brand To improve skin problems fundamentally by 4-step core care program(c-p-r-s) C Cleansing The beginning step of skincare with the gentle and detailed removal of impurities Empty -Out Fill-Up Return Step of returning to healthy skin condition with core ingredients P Sunscreen Step of maintaining healthy skin that is restored by protecting skin from UV rays. R Peeling Removing dead skin cells and promote skin s absorption of core ingredients S

29 03 Moist Cleansing Whip Foam 120ml/KRW 24,000 Mild Peeling Gel 120ml/KRW 26,000 2-Step Derma Peel Mask 32g/KRW5,000 Cosmetic Brand Double Hydra Toner 160ml/KRW 31,000 Double Hydra Essence 40ml/KRW 34,000 Double Hydra Cream 60ml/KRW 41,000 Finish All-in-One Moisture 60ml/KRW37,000 After Soothing Gel 에센셜 Essential 베리어 Barrier 미스트 Mist 120ml/KRW 24,000 50ml/KRW /18,00018,000 Double Hydra BB Cream No.1 40ml/KRW 39,000 Double Hydra BB Cream No.2 40ml/KRW 39,000 Double Hydra Cream Mask 34g/KRW 4,000 2-Step Toning Mask 25g/KRW 6,000 Ultra Shield Sun Cream 60ml /34,000 Baby 베이비 Smoothing 스무딩선로션 60ml /32,000 Sun Lotion 60ml /32,000 Waterproof Sun Cream 60ml /34,000 Fresh Mild Sun Cream 60ml /37,000 Homme 남성피부를위한 Day & Night 맞춤케어 Homme H Soothing 옴므수딩 Toner 토너 160ml 160ml / KRW34,000 / 옴므 Essential 에센셜 Lotion 로션 60ml / / KRW37,000 Sun Defense Lotion 60ml / 39,000

30 04 Hot Item Easydew DW-EGF For home-shopping channel Sales volume broke through 2.5million in total! 6 sold in 1 second! No.1 cream in Korea with an extensive popularity! Main Line DW-EGF Cream DW-EGF Derma Needle Program Dermis anti-aging premium solution DW-EGF Cream Premium home-care program with the combination of DW-EGF and patented technology Market On-line shopping mall (Dr.Skin, Zero Shop), Duty-free Store

31 04 Hot Item Build a protecting barrier on the surface of skin and improve skin elasticity by using dermis anti-aging DW-EGF cream Season 1 DW-EGF Toner 210ml / 35,000 DW-EGF Cream 50ml / 55,000 DW-EGF Serum 150ml / 53,000 Derma needle 3000 program Summer Edition DW-EGF Toner Limited 210ml / 35,000 DW-EGF Cream Limited 50ml / 55,000 Derma One Shot Ampoule 28ea & Derma 3000 Shot 4ea Season 2 DW-EGF DW-EGF DW-EGF Derma Essence Cream Premium Enriched Mask 150ml / 38,000 50ml / 55,000 1ea / 10,000 Derma 3000 Shot Roller 1ea

32 04 Hot Item DW-EGF Cream 25 clinical tests in total Help to improve the dry skin Collagen formation promoting In-vitro test completed Help to calm the reddish skin Calming the damaged skin stimulated externally Whitening effect Pigmentation improvement Help to increase the skin transparency Help to improve the skin tone Help to reduce freckles Help to reduce melanin in surface skin Help to reduce melanin in deep skin Improvement of eye wrinkles Help to improve temporary eye wrinkles Help to improve eye wrinkles Help to improve wrinkles below eyes Help to improve the number of eye wrinkles Help to improve the length of eye wrinkles Help to improve the area of eye wrinkles Help to improve the depth of eye wrinkles Help to improve nasolabial folds Help to improve wrinkles around the mouth Safety test completed Low irritation test completed Sensitive skin test completed Accumulative stimulation test completed Anti-aging in dermis Help to improve hydration in dermis Help to improve elasticity in dermis Help to improve skin lifting Help to improve density in dermis

33 DW-EGF Cream Season 1 _ clinical trial( 40~59) 04 Hot Item 4 Help to improve keratin Korea skin clinical test scientific institute people/anterior parts of wrists Compare the skin condition before using(after SLS irritation), after 2 weeks, after 4weeks. Th ere may be individual differences due to living environment.

34 DW-EGF Cream Season 2 _ clinical trial added 04 Hot Item Help to reduce speckles and spots Help to improve the keratin Help to improve wrinkles Help to improve skin elasticity Help to improve dermis density Help to improve pigmentation

35 04 Hot Item DW-EGF Derma Needle Program 3000 Multi-improvement effect on wrinkles, elasticity, freckles, spots, pores, lifting etc. One-off skin irritation test Facial triangle elasticity improvement Help to improve skin elasticity Help to improve dermis elasticity Help to improve resilience Face lifting Help to improve temporary nasolabial folds/cheek/eye position/marionette lines Anti-aging in dermis Help to improve deep eye wrinkles Help to improve dermis density Help to improve dermis moisturizing Wrinkle improvement Help to improve pigmentation Help to improve nasolabial folds/neck/hand/mouth/glabellar frown lines

36 04 Hot Item The combination of the exclusive ingredient DW-EGF and the patented technology makes it possible to enjoy the premium, convenient and safe home care on the basis of professional MTS care DW-EGF Derma Needle 3000 Shot Help to improve nasolabial folds Help to improve nasolabial folds Help to improve under-eye wrinkles Help to improve neck lines Help to improve wrinkles around mouth Help to improve wrinkle on the hand Help to improve marionette lines

37 05 EGF What is EGF? EGF (Epidermal Growth Factor) the active component of cell regeneration - The substance with remarkable cell regeneration property - The discoverer Dr. Stanley Cohen won the Nobel prize in physiology and medicine in 1986 Wound healing Pigmentation prevention EGF Cell proliferation Skin regeneration Collagen formation Wrinkle improvement Hydration Angiogenesis

38 Why do we need EGF? 05 EGF [The amount of EGF inside our body determines our skin's age! ] It s very important to increase EGF since it decreases with age. Age increase EGF decrease Epithelial cell proliferation decrease HA, elastin, collagen decrease Skin aging

39 EGF Efficacy 05 EGF Skin regeneration promote skin regeneration and enhance skin barrier by promoting the moving and proliferation of epidermal cells. Promote collagen synthesis improve elasticity and smooth wrinkles by promoting collagen and fibroblast synthesis. Prevent pigmentation prevent yellow speckles and freckles by inhibiting melanin and tyrosinase production. irritation irritation Skin regeneration Collagen synthesis endothelial cells Prevent pigmentation fibroblast blood vessels Angiogenesis The skin barrier returns to health thro ugh rapid cells regeneration Before damaged skin Afetr skin after using EGF

40 DW-EGF Efficacy 05 DW-EGF is the first EGF to be successfully pharmaceutilized anywhere in the world EGF The world-first EGF pharmaceutical patent No.1 New Biopharmaceutical in Korea (the first one to export) World-first listed in International Cosmetics Ingredient Dictionary Original international standard ingredient DW-EGF is the only ingredient listed by WHO as an INN under the name Nepidermin High purity, high activity, high concentration The unique EGF functional cosmetics The anti-aging functional cosmetic with DW-EGF The only national institute appointed by KFDA as EGF cosmetics quality assurance institute

41 05 Daewoong Pharmaceutical the pioneer of EGF development EGF DW-EGF Efficacy Daewoong Pharmaceutical Daewoong Pharmaceutical

42 DW-EGF Efficacy 05 The efficacy of DW-EGF has been proved sufficiently by EGF 11 academic papers

43 Contents Thank you!

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