Slide 1: Beautify the World with AI Innovations
Beautiful AI Beautify the World with AI Innovations Company Presentation Q1 2024
Slide 2: Disclaimer
Disclaimer This presentation (the “Presentation”) has been prepared by Perfect Corp. (“Perfect”). The information contained in this Presentation is in summary form and does not purport to be complete. This Presentation has been prepared without taking into account the objectives or particular requir
Slide 3: Perfect Corp. #1 Beauty & Fashion Tech SaaS Company
3 Perfect Corp. #1 Beauty & Fashion Tech SaaS Company Vision Transform the World with Digital Tech Innovations Mission Solve consumer pain points to democratize the shopping experience for consumers and brands with AR & AI and digital technologies | 3
Slide 4: Perfect's Path To Becoming the Leader in Beauty & Fashion AR & AI
Perfect’s Path To Becoming the Leader in Beauty & Fashion AR & AI Over the past 8 years, we have partnered with over 665 brands1 and grown to offer over 745K SKUs1 for try-on at our Beauty, Skincare, Jewellery, and Fashion SaaS platform. 666 509 Number of Brands 434 366 311 257 187 116 63 2015 2016
Slide 5: Perfect Corp. #1 Beauty & Fashion Tech SaaS Company
Perfect Corp. #1 Beauty & Fashion Tech SaaS Company Founded in 2015 and listed on Oct 31, 2022 (NYSE: PERF) Headquartered in Taipei and Global Offices in New York, Paris, Tokyo, and Shanghai Paris, FR Operational in 9 Cities in over 7 San Jose, US New York, US Shanghai, CN Tokyo, JP Countries Hangzh
Slide 6: Perfect's Leadership Team
Perfect’s Leadership Team Seasoned management team working together for over a decade Alice Chang Louis Chen Johnny Tseng Wayne Liu Iris Chen Founder, CEO EVP and CSO SVP and CTO President of Americas & VP of Finance & Accounting CGO CEO of CyberLink from 20+ years with 25+ years with 13+ ye
Slide 7: Pillars That Fuel Our Growth Going Forward
is a company 4 Pillars That Fuel Our Growth Going Forward |7
Slide 8: Perfect's Beautiful AI – the Fusion of Beauty & AI
Perfect’s Beautiful AI – the Fusion of Beauty & AI Perfect has an unique business model that allows us to utilize the identical technology to serve both enterprises (2B) & consumers (2C). By testing products in retail market, we gather valuable feedbacks to optimize product offerings and provide ins
Slide 9: Evolution of Beauty Industry
Evolution of Beauty Industry 9
Slide 10: From Physical Trials to Virtual Try-On (VTO)
From Physical Trials (Try Before You Buy) to Virtual Try-On (VTO) In the world of beauty, more product trials bring more sales. Thus, brands make enormous efforts to encourage trials. Obstacles Preventing Users from more Physical Trials Physical Trials are Time Consuming Sanitary Concerns Tester Ava
Slide 11: 2022 & 2023 - Beauty 3.0 AI + AR for Expansion into Different Verticals
11 2022 & 2023 - Beauty 3.0 AI + AR for Expansion into Different Verticals Beauty 3.0 AI + AR Skin Analysis & Diagnosis Fashion, Watch, Jewellery Personalization Recommendation | 11
Slide 12: 2023 and Beyond: Generative AI Unlocks Unlimited Possibilities
2023 and Beyond: Generative AI Unlocks Unlimited Possibilities AI Makeup Transfer Gen AI Gen AI Gen AI Gen AI Hairstyle Avatar / Pet Selfie Fashion AI Headshot AI Studio AI Photo/Video Gen AI Editing and Enhancement Text-2-Image 1 Please note that results generated by generative AI may vary, dependi
Slide 13: AI/AR Technologies & Product Offerings
AI/AR Technologies & Product Offerings 13
Slide 14: Perfect Offers a Complete Line of Beauty AI SaaS Solutions
Perfect Offers a Complete Line of Beauty AI SaaS Solutions Our goal is to aid beauty companies in their Digital Transformations and optimize their Direct-to-Consumer (DTC) capabilities AR & AI AR & AI AR AR AI Makeup Hair Color/Style Nail VTO Video Consultation Face Attributes AI 3D facial modeling
Slide 15: Data Empowers Our Advanced Beauty Tech and Innovates Product R&D
Data Empowers Our Advanced Beauty Tech and Innovates Product R&D 3,900 -point 10+ Real-time facial 3D live meshes backed by visual computing Makeup textures 6 10m Texture mappings to deliver Training data sets across highly-realistic textures, material all ethnicities for AI deep learning reflection
Slide 16: Unique AI Skin Diagnosis with HD Capabilities Attracted Med Spa & Clinics
Unique AI Skin Diagnosis with HD Capabilities Attracted Med Spa & Clinics The AI skin diagnostic tool utilizes deep learning technology to provide users with real-time and high definition skin analysis by simply using an iPad/iPhone. This solution has achieved reliable test results for dermatology p
Slide 17: Fashion AI SaaS Solutions for Jewelleries and Watches with Stacking
Fashion AI SaaS Solutions for Jewelleries and Watches with Stacking This allows us to cross sell within major beauty groups, broaden the application of our technologies, and diversify our customer base. Our proprietary AR earring 3D model supports high resolution Lively try-on Earrings textures, mat
Slide 18: Perfect's AgileHand Technology
Perfect’s AgileHand® Technology AgileHand® supports highly realistic Physically Based Rendering (PBR) and movable dials, chronograph or even tourbillon Maker-Free Virtual Try-On Omnichannel Solutions Experience Seamless support across iOS and Industry leading AI detection and Android devices, as wel
Slide 19: Suite of Mobile Apps Complementing Core SaaS Business
In Addition to Our Comprehensive Enterprise SaaS Solutions, Perfect Also Has a Suite of Mobile App That Complement Its Core SaaS Business #1 AR makeover Powerful selfie Powerful AI Art Dynamic image #1 makeup Powerful nail app camera editor Generator enhancer video app design app 1 2 3 Leverage the
Slide 20: Generative AI
Generative AI 20
Slide 21: Riding the Generative AI Trends to Keep Growing
Riding the Generative AI Trends to Keep Growing With Generative AI, we can unlock a variety of new business opportunities and make the impossible possible1. AI Makeup Transfer Gen AI Hairstyle AI Hair Extension AI Headshot AI Studio AI Background Gen AI AI Image Extender Gen AI Replacement Object Re
Slide 22: AI Makeup Transfer
AI for Beauty AI Makeup Transfer Recreate desired makeup look from one image, now supports eyes, face, and lip makeup Reference AI Transferred Reference AI Transferred Original Reference AI Transferred Reference AI Transferred 1 Please note that results generated by generative AI may vary, depending
Slide 23: AI Makeup Transfer
AI for Beauty AI Makeup Transfer Will be supporting SKU color mapping & recommendation by brand 2. AI Makeup 3. Product SKU 1. AI Look Transfer Detection Mapping by Brand Lip Color: Brand A Texture: XYZ Lipstick Satin #546 Angle Lips Reference AI Transferred 1 Please note that results generated by g
Slide 24: AI Hairstyle
AI for Beauty AI Hairstyle 24 Virtual hairstyle powered by generative AI with hyper-realistic try-on experiences. Messy Top Bun Mermaid Waves French Braid Bobcut Tail Wavy Original Curtain Bangs Pixie Long Wavy Afro 1 Please note that results generated by generative AI may vary, depending on the tra
Slide 25: AI Hair Extension
AI for Beauty AI Hair Extension Original AI Transferred Original AI Transferred Original AI Transferred Original AI Transferred 1 Please note that results generated by generative AI may vary, depending on the training data used and other factors. | 25
Slide 26: AI Headshot
26 AI for Fashion AI Headshot Turn your daily photo into professional images and capable of presenting in different postures photos Original 1 Please note that results generated by generative AI may vary, depending on the training data used and other factors. | 26
Slide 27: AI Studio
27 AI for Fashion AI Studio Reproduce epic photoshoots from 8~12 images with real-to-life scenes as in fashion magazines Multiple input images 1 Please note that results generated by generative AI may vary, depending on the training data used and other factors. | 27
Slide 28: AI Replacement & AI Removal
28 AI for Editing AI Replacement & AI Removal 1 Please note that results generated by generative AI may vary, depending on the training data used and other factors. | 28
Slide 29: AI Smart Editing
AI for Editing AI Smart Editing AI Lighting AI Colorization AI Expansion 1 Please note that results generated by generative AI may vary, depending on the training data used and other factors. | 29
Slide 30: AI Text-to-Image
AI for Lifestyle AI Text-to-Image Turn the prompts into imaginary art masterpieces or practical stock images in 30+ styles Prompts Prompts Prompts Prompts Pointillism floral woman with Closeup of a young female with A leopard in pink and green A mechanical robot in Paris hundreds of flowers mixed in
Slide 31: Financial Highlights & Key Metrics
Financial Highlights & Key Metrics 31
Slide 32: Strong Organic Growth and Highly Scalable Cost Structure
Strong Organic Growth and Highly Scalable Cost Structure ($ in USD millions) Revenue Gross Profit & Margin 15% 86% 85% FY21-23 CAGR 81% 79% 78% 84% 54 FY21-23 Avg GP % 43 47 40 41 18% 35 YoY growth 14 12 11 10 FY21 FY22 FY23 1Q'23 1Q'24 FY21 FY22 FY23 1Q'23 1Q'24 Gross Profit Source: Company data an
Slide 33: Solid & Stable Growth in Profitability
Solid & Stable Growth in Profitability ($ in USD millions) Adjusted Net Income1 & Its Margin 7.0 5.4 13.1% 11.3% 10.9% 10.6% Adjusted Net Income Adjusted Net Income Margin (%) 1.3 1.5 -6.7% (2.7) 2021 2022 2023 1Q23 1Q24 1 Adjustments include one-time and non-recurring items as well as non-cash item
Slide 34: Perfect's Positive Operating Cash Flow
34 Perfect’s Positive Operating Cash Flow The Company had a positive operating cash flow of $3.5 million in Q1 2024, compared to $3.8 million in Q1 2023. The positive operating cash flow in both quarters demonstrated the company's ability to generate sufficient cash flow to support business operatio
Slide 35: Business Outlook for 2024
Business Outlook for 20241 ($ in USD millions) • Taking into account the recent advancements of Revenue products powered by AI and AR technology, the growing demand for the our enterprise SaaS solutions, 12-16% and the strong momentum in the mobile beauty app Estimated 13.1% YoY growth subscription
Slide 36: Perfect's Q1 2024 Financial Performance
Perfect’s Q1 2024 Financial Performance • Total Q1 Revenue was $14.3 million, compared to $12.1 million in the same period of 2023, +17.7% YoY. • AR/AI cloud solutions and subscription revenue was $12.4 million, compared to $10.4 million in Q1’23, +19.6% YoY. • Licensing revenue was $1.6 million, co
Slide 37: Scalable SaaS Business Model with Continued Expansion in Brands and SKUs
Perfect’s Scalable SaaS Business Model with Continued Expansion in Brands and SKUs Number of Brands by Quarter SKUs by Quarter CAGR of 27% CAGR of 34% 666 645 627 745 601 704 679 655 525 509 591 483 556 463 434 448 510 517 405 473 377 439 355 411 329 388 289 347 254 311 243 289 216 230 184 193 231 1
Slide 38: Mobile Beauty App Business Has Been Growing Strong
38 Perfect’s Mobile Beauty App Business Has Been Growing Strong In the first quarter, active subscribers increased by 3% from the prior quarter and about 30% from the same period last year, reaching a historical high of over 902,000 active subscribers1. 30% YoY Growth 1000 K 900 K 800 K 700 K 600 K
Slide 39: Multiple Avenues To Drive Growth
Multiple Avenues To Drive Growth We see significant growth opportunities from existing brands, new brands, new verticals, as well as from new Gen AI features launched in mobile app and synergistic M&A. Deepen Penetration Expand Into Skincare AI Penetrate to Fashion Innovate Premium Pursue Within Top
Slide 40: Key Partnership
Key Partnership 40
Slide 41: Perfect Forms Strategic Partnerships With World Class Tech Giants
Perfect Forms Strategic Partnerships With World Class Tech Giants This creates truly omnichannel support for our clients. Global Tech Giants Asian Tech Giants #1 Search #1 Video #1 Social One of the Most- #1 Mobile #1 Social & Digital #1 Video Social Engine Platform Network used Camera E-commerce Pa
Slide 42: 360° Beauty Tech Solutions Support Optimized Omnichannel Strategies
Perfect’s 360° Beauty Tech Solutions Support Optimized Omnichannel Strategies Whether online or offline, we are where our clients need us. Physical Stores E-commerce 360° Approach Shoppertainment Social Media | 42
Slide 43: Perfect's Proven Track Record in Supporting Client Success
Perfect’s Proven Track Record in Supporting Client Success We help drive brands’ sales, conversion, and customer engagement. Brand Perfect Solution Used ROI Improvement Customer Testimonials “Now this [high -touch] experience has been enabled by high Live AR Training for tech AI and AR to create a m
Slide 44: Perfect's ESG Commitment
Perfect’s ESG Commitment 44
Slide 45: Perfect Is Green Tech & an ESG Facilitator
Perfect Is Green Tech & an ESG Facilitator Consumers’ growing awareness of sustainability will further accelerate brands’ adoption of AR & AI, creating stronger tailwinds for Perfect. Everyone can benefit from Beauty AR & AI Technology Support the industry in furthering Industry sustainable beauty a
Slide 46: ESG Story of Kao
ESG Story of How Kao leveraged Perfect’s beauty tech to achieve amazing ESG results! Perfect has helped Kao to become more sustainable KAO’s ESG Achievements by the Numbers: 56 Tons Reduces Plastic Waste per Year 1 Million Simulations per Week 22 Try-ons per Visitor Scan Barcode to Try It Your
Slide 47: The AI & AR powerhouse helping beauty & fashion brands
The AI & AR powerhouse helping beauty & fashion brands to achieve successful digital transformation | 47