Distribution Proposal: SK planet’s K-Beauty Products

1

ContentsI. Introduction to SK planetII. Introduction to SCINIC

IV. SCINIC ProductsIII. K-Beauty Opportunity

V. Distribution Opportunity

2

I. Introduction to SK planet

SK planet Summary

Largestcoalitionloyaltyprogramintheworldwith37Mmembers

Leading e-Commerce Marketplace and Offline-to-Online Commerce

ThemostpopularshoppingcompanionintheUSANo.1DigitalwalletinS.Koreaandthe

leadingO2Otechnologyplatform

LeadingMarketplacesinTurkey,Malaysia,Indonesia,andThailand

No.1OpenMarketplaceinS.Koreawithmore-than$6.5BGMV

DigitalGiftingplatformforJapan

SKplanetHeadquarters,S.Korea

!"

#$

Revenue: $1.6B USD (2015)

!%&'

SK planet is the No.1 Open Marketplace and O2O Commerce company in S. Korea and a leader in several markets around the world including the United States, Turkey, and Southeast Asia

No.1DigitalGiftingserviceinS.Korea

3

II. Introduction to SCINIC About Us

Our Brand

SCINICisacompoundof“Science,”“NaturalIngredients,”and“Clinic”

+ +

Our Slogan and Mission

Oursloganis“TheRightSelf-Clinic”

Ourmissionistocreateexcellentskincareatareasonablepricebycarefullyintegratingthebestingredientstomaximizethepowerofa

singledropletofproduct

Our Values

Ingredients Technology Safety

Weimprovetheefficacyofrarematerialsthrough

appliedscienceandproductiontechnology

Weonlyselectnaturalingredientsknowntostrengthentheskin’sownhealingpower

Wetesteachproducttoensureitcontainsno

harmfulingredientsthatcouldcauseirritation

SCINIC has been selling high quality skin care products at affordable prices in Korea for more than ten years with a focus on the best natural ingredients, technology, and consumer safetySCINIC Introduction

4

II. Introduction to SCINIC Performance: Korea

SCINIC is sold through major online and offline Health & Beauty distribution channels in Korea; it is a leading brand among conscientious consumers seeking high quality affordable skin care

Girl’sDay:SCINICOfficialModels(2016)

Distribution in Korea

Offline

Online

SCINICisdistributedthroughthebestOfflineandOnlineretailersinKorea

Business Overview

200+ Unique SKUs

100% Made in Korea

390,000 Units Sold

Best Seller: Aqua EX (2014)

5

II. Introduction to SCINIC Performance: Internationally

SCINIC began selling internationally in 2015, signing distribution deals in the United States, China, and high growth emerging markets like Turkey where it is currently the leading K-Beauty brand

Distribution in Worldwide

SCINIChasonlybegunworldwidedistributionandislookingforselectpartners

Worldwide Distribution: 2016

No. 1 K-Beauty Brand

Turkey (2016)

200+ Watson’s Stores

Worldwide (2016)

AquaEXline

Offline

Online

6

III. K-Beauty Opportunity Korean Health & Beauty Industry

Production Innovation Korean brands can launch new products in

4-6 months (competitors: +1 year)

$0Bn

$1Bn

$3Bn

$4Bn

2012 2013 2014 2015 2016

Estimated Value of K-Beauty Exports

In 2015 Korea became the second largest exporter of cosmetics to China ($1.1Bn)

ChinaChina

Korea Is the 10th Largest Cosmetics Market Korean consumers bought $8Bn of

cosmetics, nearly 80% local brands (2015)

K-Beauty has become a global industry, surpassing US cosmetics as the No. 2 exporter to China in 2015, and growing by more than 30% per year since 2012

Source: Fung Global Retail, Yonhap News, export.gov

Research and Development Korea is ranked 5th worldwide for R&D in

Healthy and Beauty (3.6% GDP)

Korean Is a World Leader in Beauty

CompetitionSavvy Consumers InnovationInvestment

MarketDynamicsdriveKoreanCosmeticInnovation

7

III. K-Beauty Opportunity Global Opportunity: United States

In leading markets like the United States, SCINIC is well positioned as a niche brand (Korean Skin Care) with a focus on natural ingredients and proven ability to adapt to Korean consumer trends

Drivers for Skin Care Market Growth

K-Beauty Trends

Focus on Ingredients

Niche Brands

SCINIC

Skin Care Growth in Select Categories

Source: Euromonitor

Source: Euromonitor

SCINICisanichebrandleaderinSkinCarefocusedonextractingthemostfromeachdropletofproduct

✔

✔

✔

SCINIC Is Well Positioned for Growth

8

III. Korean Skin Care Opportunity Global Opportunity: Emerging Markets

Global Growth for Beauty

Source: Euromonitor

Select Markets by Category: India, Saudi Arabia

Source: Euromonitor

Skin Care is a major growth driver in emerging markets as well; SCINIC is well positioned as a trusted Korean Skin Care brand with the ability to produce high quality products at competitive prices

Skin Care represents a major growth category in Key Emerging Markets

High Growth Emerging Markets

China

Brazil

USA

India

Saudi Arabia

Indonesia

Turkey

Iran

Thailand

Mexico

Chile

SCINIC Is a Leader in High Demand Categories

9

IV. SCINIC Products Overview

SCINIC products receive high ratings from Korean consumers and cover all major Skin Care categories including Moisturizing (Hydration) and Elasticity, Facial Masks, Anti-Aging, and Pore Tightening

Complete Skin Care Portfolio

Moisturizing

Whitening

Pore Tightening

Nutrition & Elasticity

Special Care

Facial Mask

Sun Care

Cleansing

Advanced Formula

Moisturizing

Pore Tightening

Nutrition & Elasticity

Hair

HOMME SUPERAQUAEX

SUNCARE PORETIGHTENING

Select Product Lines Product Portfolio Categories

WomenMen

10

Innovative Products

Scinic consistently innovates its product lines to address demand from Korean consumers, improving the effect of traditional products or diversifying with new ingredients and packaging

IV. SCINIC Products

Examples of Skin Care Innovation

SCINICconsistentlyproducestrendyproductsforvariouscustomersegmentsandholdsseveralpatents

Snails and Red GinsengFast-Fashion Facial Masks On-the-Go

5X Industry Standard Hydration

11

Focus on Natural Ingredients (1)

SCINIC products contain natural ingredients with specific effects that improve the efficacy of Skin Care and holds several patents for improving the intended effects of some products

IV. SCINIC Products

Focus on High Quality Natural Ingredients: Pore Super Clay Mask

KoreaRSP:18,000KRW(100g)

Designed for Deep Cleaning with Amazon Clay

Amazon Clay is exceptionally fine so it transfers more nutrients to your skin while also removing excess sebum or unwanted excretions.

Contains 10,000mg of Amazon Clay.

Carbonic Acid makes your skin and pores moist and gives them a smooth feel. Alaskan Glacial Water and several patented elements are added to provide Relaxation, Cleansing, and Cooling.

Contains 50% Carbonated Alaskan Glacial Water.

Dollop Applied

MainNaturalIngredients

AmazonClay Carbonation GlacierWater

5a-Avocuta TeaExtract AloeExtract

12

Focus on Natural Ingredients (2)IV. SCINIC Products

Focus on High Quality Natural Ingredients: Super Aqua EX Ampoule

Applied Absorbed

KoreaRSP:25,000KRW(50ml)

Designed for Hydration and Moisture Retention

Deep Sea Water is collected from Kona where flowers bloom under water year round. This water refreshes the skin and improves moisture retention.

Contains 50% Hawaiian Deep Sea Water

Extractsfrom8TypesofSeaweed

Surface Water

Deep Sea Water

13

SCINIC sources natural ingredients from remote places around the world renowned for their purity, and our ability to combine those ingredients to improve the intended effects are recognized by consumers

SCINIC is growing its foot-print abroad and is seeking new distribution partners interested in offering high quality Korean Skin Care to their customers Opportunity to Distribute SCINIC

V. Distribution Opportunity

Michael A. Lesniak Sr. Manager, Global Strategy and Business Development

malesniak@sk.com www.skplanet.com www.scinic.com

14