Slide 1: Company Presentation Q3 2023
Company Presentation Q3 2023 | 1
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 625 brands1 and grown to offer over 678K SKUs1 for try-on at our Beauty, Skincare, and Fashion SaaS platform. Number of Brands Founded and Refined Rolled out Introduced Partnered with
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 London, UK Paris, FR Dusseldorf, DE Operational in 12 Cities in over 10 San Jose, US New York, US Shanghai, C
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: Perfect's Hybrid Business Model
Perfect’s Hybrid Business Model 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 insights for brand cli
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Slide 9: Evolution of Beauty Industry
Evolution of Beauty Industry
Slide 10: Before 2015: Beauty 1.0 Physical Trials
Before 2015: Beauty 1.0 Physical Trials (Try Before You Buy) Brands make enormous efforts to encourage trials In the world of beauty, Obstacles Preventing Users from more Physical Trials More Product Trials Physical Trials are Time Consuming = Sanitary Concerns More Sales Tester Availability | 10
Slide 11: 2015-2021 Beauty 2.0 AR Technology for True-to-Life Trials
2015-2021 - Beauty 2.0 AR Technology for True-to-Life Trials More Trials = More Sales Try Before You Buy Try Unlimited SKUs Increase Engagement & Sales | 11
Slide 12: AI/AR Technologies & Product Offerings
AI/AR Technologies & Product Offerings
Slide 13: Four Pillars of Perfect's AI Technology will Fuel Our Growth
Four Pillars of Perfect’s AI Technology will Fuel Our Growth Going Forward Beauty Tech Skin Tech Fashion Tech Generative AI Plethora of AI-Powered Cutting-Edge AI Skin analysis Pioneering Watch/Jewelry New Generative AI Beauty Solutions & Simulation Technologies VTO Technologies Innovations | 13
Slide 14: Perfect Offers a Complete Line of Beauty Tech SaaS Solutions
Perfect Offers a Complete Line of Beauty Tech 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 modelin
Slide 15: Data Empowers Our Advanced Beauty Tech and 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: Enhanced AI Skincare Analysis using SkinTech
Perfect Has Expanded into Enhanced AI Skincare Analysis using SkinTech The AI skin diagnostic tool utilizes deep learning technology to provide users with real-time skincare analysis by simply using an iPad/iPhone. This solution has achieved reliable test results for dermatology practices. Skin Repo
Slide 17: Fashion Tech SaaS Solutions for Jewelleries and Watches
Fashion Tech SaaS Solutions for Jewelleries and Watches 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, material reflec
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 #1 makeup Dynamic image Powerful nail Powerful AI Art app camera editor video app enhancer design app Generator 1 2 3 Leverage the
Slide 20: Financial Highlights & Key Metrics
Financial Highlights & Key Metrics
Slide 21: Strong Organic Growth and Highly Scalable Cost Structure
Strong Organic Growth and Highly Scalable Cost Structure ($ in USD millions) Revenue Gross Profit & Margin 26% 87% 86% 85% 86% 85% FY20-22 CAGR 80% 81% 47 86% FY20-22 Avg GP % 41 39 40 36 13% 35 30 YoY 31 32 growth 26 15 13 11 12 FY20 FY21 FY22 9M22 9M23 3Q'22 3Q'23 FY20 FY21 FY22 9M22 9M23 3Q'22 3Q
Slide 22: Solid & Stable Growth in Profitability
Solid & Stable Growth in Profitability ($ in USD millions) Adjusted Net Income1 & Its Margin 5.1 18.7% 17.6% 4.1 4.1 13.1% 11.2% 2.7 2.3 8.6% Adjusted Net Income Adjusted Net Income Margin (%) -4.3% -4.5% (1.3) (1.8) 2020 2021 2022 9M22 9M23 3Q'22 3Q'23 1 Adjustments include one-time and non-recurri
Slide 23: Business Outlook
Business Outlook1 ($ in USD millions) Revenue Taking into account the recent advancements of products powered by AI and AR technology, the 11.5-14.5% growing demand for our enterprise SaaS solutions, YoY and the strong momentum in mobile beauty app growth subscriptions, we reiterates 2023 full-year
Slide 24: Perfect's Income Statement
24 Perfect’s Income Statement PERFECT CORP. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2023 (Expressed in thousands of United States dollars) Three months ended September 30 Nine months ended September
Slide 25: Scalable SaaS Business Model with 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 28% CAGR of 37% 627 601 679 655 525 509 591 463 474 556 434 448 510 517 405 473 377 439 355 411 329 388 289 347 254 311 243 289 216 230 184 193 231 192 206 172 120 1
Slide 26: Mobile Beauty App Business Has Been Growing Strong
26 Perfect’s Mobile Beauty App Business Has Been Growing Strong Active subscribers increased by 8% from the prior quarter and over 63% from the same period last year, reaching a historical high of over 835,000 active subscribers1. 63% 900 K YoY Growth 800 K 700 K 600 K 500 K 400 K 300 K 200 K 100 K
Slide 27: Multiple Avenues To Drive Growth
Multiple Avenues To Drive Growth We see significant growth opportunities from existing brands, new brands, new verticals, and synergistic M&A, as well as from our expansion into new geographies and new channels. Deepen Penetration Expand Reach In Expand To Pursue Within Top 20 Long Tail Of New Verti
Slide 28: Generative AI
Generative Al PERFECT
Slide 29: Generative AI Power Our Business Growth In Different Verticals
29 Generative AI Power Our Business Growth In Different Verticals With Generative AI technologies, we can unlock a variety of new business opportunities and make the impossible possible1. AI Avatar: AI Hairstyles AI Style Digital Twin Generative AI unleashes Generative AI generates Generative AI ble
Slide 30: Generative AI Style
30 Generative AI Style2 Render a single image into multiple artistic style images Original Style A Style B Style C Style D Style E Original Style F Style G Style H Style I Style J 1 Please note that results generated by generative AI may vary, depending on the training data used and other factors. 2
Slide 31: AI Avatar
31 AI Avatar2 Generate the most imaginative photos of yourself and your pet AI uses multiple images to generate multiple avatar renderings in a short period of time. 1 Please note that results generated by generative AI may vary, depending on the training data used and other factors. 2 Available in
Slide 32: Generative AI Virtual Hairstyle Try-On
Generative AI Virtual Hairstyle Try-On2 32 A Breakthrough in AI Tech, and A Growing Phenomenon in Consumer Trend 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 trai
Slide 33: Key Partnership
Key Partnership PERFECT
Slide 34: 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 35: 360° Beauty Tech Solutions Support 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 | 35
Slide 36: 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 37: Perfect's ESG Commitment
Perfect’s ESG Commitment PERFECT
Slide 38: 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 39: 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 40: Women's Empowerment & Gender Equality
40 40 Perfect is Doing Our Part to Support What We Believe in: Women’s Empowerment & Gender Equality May 2022 – Perfect Corp. pledged May 2022 – Perfect Corp. supported June 2022 – Perfect Corp. partnered support for UN Women’s Empowerment young sustainability activist (Hong with The Pink Agenda Cam
Slide 41: The AI & AR powerhouse helping beauty & fashion brands
The AI & AR powerhouse helping beauty & fashion brands to achieve successful digital transformation | 41