2017 Annual Results

Announcement

March 19, 2018

Disclaimer

The presentation is prepared by Bestway Global Holding Inc. (the “Company”) and is solely for the

purpose of corporate communication and general reference only. The presentation is not intended

as an offer to sell, or to solicit an offer to buy or to form any basis of investment decision for any

class of securities of the Company in any jurisdiction. All such information should not be used or

relied on without professional advice. The presentation is a brief summary in nature and does not

purport to be a complete description of the Company, its business, its current or historical operating

results or its future business prospects. This presentation contains projections and forward looking

statements that may reflect the Company’s current views with respect to future events and financial

performance.

This presentation is provided without any warranty or representation of any kind, either expressed

or implied. The Company specifically disclaims all responsibilities in respect of any use or reliance of

any information, whether financial or otherwise, contained in this presentation. The Company

undertakes no obligation to publicly update or revise any forward-looking statements, whether as a

result of new information, future events or otherwise.

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A World-Leading Outdoor Leisure Products Brand

(1) Inflatable outdoor leisure products, according to Frost & Sullivan Report

(2) Adjusted net profit excluding IPO listing expenses

Over 33% Market Share(1)

2017-2021 Industry CAGR +11%(1)

Products Sale in 6 Continents

and 110 Countries

9 Overseas Subsidiaries

Bestway Sales Institutions over

80 countries

Over 40 Customer Service Centers

support for 70 countries

US$723M

Sales Revenue

US$53M(2)

Adjusted Profit

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Financial Review

(US$ Million) 2017 2016 Change

Revenue 722.5 584.5 23.6%

Gross ProfitGross profit margin %

182.825.3%

164.528.1%

11.1%-2.8 pts

Adjusted Operating Profit (1)

Adjusted operating profit margin %

69.09.6%

62.710.7%

10.0%-1.1 pts

Net ProfitNet profit margin %

47.66.6%

43.07.4%

10.6%-0.8 pts

Adjusted Net Profit (2)

Adjusted net profit margin %

52.67.3%

43.77.5%

20.4%-0.2 pts

Final DividendDividend per share (US$ cent)

14.31.35

- -

Financial Highlights

(1) Profit before finance expense and income tax, excluding IPO Listing expenses

(2) Excluding IPO Listing expenses

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For twelve months ended December 31

Revenue Breakdown

(US$ Million) 2017 % 2016 change

Europe 346.4 47.9 310.4 11.6%

North

America205.4 28.4 161.2 27.4%

Asia Pacific 64.6 8.9 45.6 41.5%

China 19.7 2.7 9.4 109.4%

Other Region 106.1 14.8 67.3 58.0%

Total 722.5 100.0 584.5 23.6%

(US$ Million) 2017 % 2016 change

Above ground pool

& portable spa327.5 45.3 274.3 19.4%

Recreation products 150.3 20.8 125.7 19.6%

Sports products 96.3 13.4 76.0 26.7%

Camping products 148.4 20.5 108.5 36.8%

Total 722.5 100.0 584.5 23.6%

By Region By Product

Revenue from Self-owned Brands account for close to 80%

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Gross Margin Development

28.1%+1.0% -2.0%

25.3%

• Better product pricing in FY2017 due to optimization of product mix and new products

• Forex impacts negatively on gross profit margin, especially in second half 2017

• Raw materials price went up in FY2017, mainly stainless steel and packaging paper

-1.8%

FY2016 Product

Pricing

Forex Price of Raw

MaterialFY 2017

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SG&A Improvements

Selling & Distribution Expenses as % of Revenue Administrative Expenses as % of Revenue

10.4%

9.5%

8.2%

7.7%

Adjusted (1) Adjusted (1)

FY2016 FY2017

(1) Excluding IPO Listing expenses

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FY2016 FY2017

Working Capital

(US$ Million) 31/12/2017 31/12/2016

Trade Receivables

Trade Receivables Turnover Days

139.6

59 Days

94.6

52 Days

Trade Payables

Trade Payables Turnover Days

154.7

83 Days

90.4

81 Days

Inventory

Inventory Turnover Days

251.0

140 Days

162.4

153 Days

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(US$ Million) 31/12/2017 31/12/2016

Cash and Cash equivalent (1) 114.5 26.1

Total Borrowings 157.8 101.4

Net Debt 43.3 75.3

Total Gearing 10.8% 36.9%

Capital Expenditure & Liquidity Position

Capex Liquidity

FY 2016 FY 2017

Majority CAPEX on capacity expansion

(1) Including Restricted Cash

104.4

36.9

(US$ Million)

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Business Review

Brand & product

Above Ground Pool & Portable SPA

Lay-z-spa Hawaii was

awarded SPA Product of

the Year by the UK Pool &

SPA Awards in 2017.

Lay-z-spa brand was

awarded the Gold Standard

by the UK Pool & SPA

Awards in 2016.

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Recreation Products

H2O GO! is the 2nd largest

brand name in the water

and sand recreation

product category with 4

items in the top 10

bestselling list in 2017 in

the U.S. according to NPD

statistics.

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Sports Products

Floating Islands: One of the market

pioneers in this product category

SUP: Functionally equivalent to

traditional fiberglass surfboards,

with clear advantages in portability,

weight and affordability

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Camping Products

Airbed Air Furniture: functionally

equivalent to traditional furniture,

while providing superior

portability and affordability.

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Product Innovation

Upgrade or replace 20-25% products each year

These 4 product lines account for over

19% of FY17 Revenue, up 44% YoY

Tri-tech Y-Beam

Polar shield

Drop-stitch

Inflata-shield Fortech

Track Record of Innovative Products Supported By In-house

Material Development

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Business Review

Geography

Europe

• Revenue increased by 11.6% to US$346.4 million,

or 47.9% of group revenue

• Retained #1 market position in Europe with 43%

market share

• All 4 major product categories achieved steady

growth, further reinforcing market leader position

• Top retailers include:

Camping

16.8%

Recreation

18.7%

Sports

10.3%

Pool & Spa

54.2%

REVENUE BY PRODUCT

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North America

• Revenue increased by 27.4% to US$205.4 million,

or 28.4% of group revenue

• Retained #2 market position in US market

• Market share grew from 6% to 27% in 5 year time

• Saw growth in all 4 major product categories

• Top retailers include:

REVENUE BY PRODUCT

Camping

20.6 %

Recreation

18.6%

Pool & Spa

39.8%

Sports

21.0%

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Asia Pacific

• Revenue rapidly increased by 41.5% to US$64.59

million, or 8.9% of group revenue

• Key markets include China, Australia，ASEAN

• Retained #1 market position in Australia

• Achieved 109.4% revenue growth YoY in China

REVENUE BY PRODUCT

Camping

36.0%

Sports

11.8%

Pool & Spa

23.7%

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Recreation

28.5%

Asia Pacific - China

Embrace China’s “New Retail”

• Majority (+80%) of sales achieved through online channels

• Strong cooperation with leading E-commerce players

(JD.com, T-mall, Taobao)

Brand Building

• Ongoing campaign and sponsorship on lifestyle events

• Sales and marketing through social media

Channels

• Increasing interest in outdoor leisure & sports by rapidly

rising middle class

• Lack of Consumer Knowledge but willingness to be

educated creates market opportunities

• Limited options for quality products with premium brand

• Extremely popular social media and

e-commerce make our products easy to access

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Other Regions

• Revenue rapidly increased by 58.0% to US$106.1

million, or 14.8% of group revenue

• Key markets include Central & South America,

Africa and Middle East

• Retained market leading position in Central &

South America

• Economic and financial recovery in South America

countries

REVENUE BY PRODUCT

Camping

23.6%

Recreation

27.1%

Pool & Spa

40.0%

Sports

9.3%

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Outlook

• Current orderbook (2018 delivery) stands over US$ 500M, or 20% increase over same

period last year

• Sales of all 4 main product categories poised for continued growth

• China sales expect to continue exponential growth with more product offerings

• Gross profit margin likely to keep stable

Revenue for FY 2018 expected to maintain steady growth

Outlook - Overview

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Outlook - New Products

Constant Blow

Air Play Center

Snow Tube

Swimming

Machine

New

Category

FORTECH

Airbeds

SPA with Smart

Control Pump

Large Scale

Water Platform

Product

Improvement

And More…

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• Balance growth and profitability

• Improve gross margin with

followings:

(1) Expand product portfolio

and new innovations

(2) More online sales

(3) Deeper/wider sales with

existing channels, addition

of diversified channels

North AmericaEurope China

Outlook - Regions

• Maintain market leader

position with steady growth

• Maintain consistent and good

profitability

• Build BESTWAY as the leading

brand amongst our clients

• More product offerings,

creating consumer acceptance

• Further broaden E-commerce,

e.g. Xiaomi, VIP Shop etc.

• More marketing campaigns

and events

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Outlook - Channels

Online Offline

Third Party eCommerce website

(Amazon, JD, TMALL, etc.)

Bestway Global Official eCommerce

Social Media marketing

(Facebook, Wechat,

Instagram etc.)

New Products Release

Marketing Campaigns

Sponsorships

Trade Shows

Press Conferences

Online Offline

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YOUR FUN IS OUR BUSINESSTM