#1ZINUS Live in wonder INVESTOR RELATIONS 2020#2DISCLAIMER This presentation has been prepared by Zinus INC. solely for information purposes. The informa- tion contained in this presentation has not been independently verified. No representation or war- ranty express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or any opinion contained herein. The information contained in this presentation should be considered in the context of the circumstances prevailing at the time and will not be updated to reflect material developments that may occur after the date of the presentation. Neither Zinus Inc. nor any of its affiliates, officers, directors or advisors shall have any liability whatsoever (in negligence or otherwise) for any loss arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. 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Accordingly, Zinus Inc. makes no representations as to the accuracy or completeness of that data, and such data involves risks and uncertainties and is subject to change based on various factors. You agree to keep the contents of this presentation strictly con- fidential. All or any part of this presentation may not be taken away, reproduced, redistributed or retransmitted in any man- ner. By attending this presentation, you are agreeing to be bound by the foregoing limitations. Whatever your sleep style we've got a mattress for you#3Table of Contents ⚫ 1. Prologue 2. Company Overview 3. Industry Overview 4. Understanding Company Business 5. Strength & Strategy 6. Growth Strategy 7. Appendix INVESTOR RELATIONS 2020#4CHAPTER 01 1. Corporate Identity Prologue#51. Corporate Identity Undisputed Global No.1 On-line Furniture Company. Global No.1 On-line Furniture Company with "Bed in a box" Vertically Integrated Value Chain 315/Load Mattress in a Box 80/Load Non- compressed Mattress Smart Bane eTra ZINUS Customer Feedback R&D and Design Sales & Marketing Category & Geographic Expansion Home Production & QC (Quality Control) Office Furniture Bed Room Mattress Logistics Living Room Other Global Markets ZINUS/05#6CHAPTER 02 Company Overview 1. Company Overview 2. Organization & Share Holding Structure 3. Corporate History 4. Company Presence 5. Financials Snap Shot#72-1. Company Overview Zinus is led by a proven management team with more than 40 years of experience. Company Overview Senior Management Company Name CEO Establishment Capital Stock No. of Employees Business Area Head Quarter Homepage 8F, Yatap-ro 81-10, Bundang-gu, Seongnam-si, (Amigo Tower) https://www.zinus.com Zinus Inc. TP (Youn-Jae Lee) | Chairman & Founder TP (Youn-Jae Lee) March 08, 1979 '79- '75-'77 '75 Zinus Inc., Chairman & Founder KOTRA Political Science, Yonsei University KRW 7,103 million 4,630 (HQ: 50, Overseas: 4,580) (as of Dec 2020) Wang-Hee Lee | CFO Furniture Manufacture & Sales '88- Zinus Inc., President '88 Accounting, Chung-Buk National Univ. Gyeonggi-do, Korea Queen ZINUS 6A ZINUS/07#82-2. Organization & Share Holding Structure Zinus has expanded globally through the establishment of wholly owned subsidiaries. Organization Structure Chairman 35% Zinus Korea 100% 100% 100% 100% 100% 100% Zinus Xiamen Inc Zinus Fujian Inc PT. Zinus Global Indonesia Zinus USA & Canada Inc Best Price Mattress Inc Zinus Australia PTY LTD Zinus Japan KK 100% Zinus Zhangzhou Inc Zinus Xiamen Inc operates all 3 corporations in China Zinus Singapore Pte. Ltd. Shareholding Structure 55.5% 4.8% 39.7% Chairman & Related Parties Treasury Shares Others Note: Shares can be traded on the KOSPI exchange (Korean Composite Stock Price Index) -As of Apr. 2020, treasury shares are 6.0% due to share buyback ZINUS/08#92-3. Corporate History Since 2014, Zinus has moved from being an Off-line OEM manufacturer to become the leading brand in the burgeoning US e-Commerce furniture market. N Developed Mattress-in-a-box Off-line / OEM On-line / Own Brand Category Expansion In Bedroom In Furniture Geographic Expansion Developed Offline to Online Frame-in-a-box - Living Room - Bed Room - Dining Room 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Source: DART, Company Amazon Bestseller Walmart Sole Mattress Supplier for Store ZINUS/09#102-4. Company Presence Zinus has successfully established a global presence in strategic locations. Sales & Marketing Head Quarter Zinus Korea R&D, Design, Sales & Marketing Manufacturing Zinus Xiamen Inc 713,600 sq ft Zinus Zhangzhou Inc Manufacturing 713,400 sq ft Zinus Fujian Inc Manufacturing 2,500,000 sq ft Zinus Zinus Japan Sales & Marketing Singapore Pte. Ltd. Sales & Marketing Source: Company PT. Zinus Global Indonesia Mattress Manufacturing 2,155,000 sq ft Zinus Canada, Inc Sales & Marketing Zinus, Inc USA Sales & Marketing, Logistics BPM Inc East Logistics & Charleston CS Center 440,000 sq ft West Logistics & Tracy CS Center 664,000 sq ft Zinus Australia PTY LTD Sales & Marketing Total Manufacturing Facilities 6,082,000 sq ft Total Logistics & CS Center 1,134,000 sq ft ZINUS/10#112-5. Financials Snap Shot Zinus has achieved robust financial performance. Revenue (Unit:KRW billion) 900 800 Operating Income (Unit:KRW billion) 120 817 100 700 87 622 81 603 600 80 500 400 300 209 200 100 342 60 60 40 40 35 20 20 Net Income (Unit:KRW billion) 90 104 80 70 63 60 50 53 53 40 30 25 20 20 10 0 0 0 FY2015 FY2016 FY2017 FY2018 FY2019 FY2015 FY2016 FY2017 FY2018 FY2019 K-GAAP Audited (FYE 2015), K-IFRS Audited (FYE 2016, 2017, 2018, 2019) Source: DART, Company 45 44 72 22 FY2015 FY2016 FY2017 FY2018 FY2019 ZINUS/11#12CHAPTER 03 1. Global Furniture Market Overview 2. US Furniture Market Overview 3. US Mattress Industry Overview Industry Overview#133-1. Global Furniture Market Overview Global furniture market growth is strongly driven by online sales, especially in the US, China and Western Europe. Global Furniture Market Growth (Unit: USD million) 2,500,000 % Online M/S Global Furniture Online Global Furniture 17.8% 17.4% 16.5% 2,000,000 15.3% 13.9% 12.9% 12.3% 1,500,000 CAGR 10.2% 288,783 273,391 250,803 224,709 196,977 175,979 160,993 1,000,000 1,308,891 1,364,183 1,417,104 1,468,691 1,520,021 1,571,215 1,622,377 500,000 CAGR 3.6% 0 2017 2018 2019E 2020E 2021E 2022E 2023E Source: Statista, as of Aug 2019 Global On-line Furniture Market Share (2017) 42.0% USD 160,993 18.4% 8.2% mn 6.9% 6.3% 2.1% 4.9% 2.6% 4.3% 4.2% US China France Canada Germany Japan UK South Korea Brazil Others Source: Technavio, Company, as of Dec 2017 ZINUS/13#143-2. US Furniture Market Overview Online sales are steadily growing in the US furniture market, and bedroom furniture is one of the largest sectors. US Furniture Market (Unit: USD million) 350,000 % Online M/S US Online Furniture US Furniture 21.0% 300,000 20.5% 19.6% 18.4% 17.1% 16.0% 15.1% 250,000 US Furniture Market Breakdown 10.4% 31.0% 16.8% USD 259,740 CAGR 200,000 6.4% 1.6% mn 5.9% 38,688 41,278 44,416 48,115 51,598 54,328 56,023 150,000 23.2% 11.0% 100,000 256,211 257,987 259,742 261 496 263,255 265,016 266,777 50,000 CAGR 0.7% 0 2017 2018 2019E 2020E 2021E 2022E 2023E Source: Statista, as of Aug 2019 Living & Dining Room Office Bedroom Plastic & Other Floor Covering Source: Statista, as of Aug 2019 Kitchen Lamp & Lighting ZINUS/14#153-3. US Mattress Industry Overview US mattress market has shown robust growth, driven by increasing online channel sales. US Mattress Online Market US Mattress Sales by Distribution Channel (2016) (Unit: USD million) 2,000 1,800 1,600 1,400 1,200 CAGR 1,100 1,000 800 600 400 200 44.3% 325 796 250 275 196 577 1% 3% 1,767 4% 5% On-line On-line Retailers 12% 0 2011 2012 2013 2014 2015 2016 2017 Source: Internet Retailer Source: ISPA 2017 Furniture Stores 30% Specialty Stores On-line Retailers Warehouse Clubs Others Specialty Stores 45% Furniture Stores Department Stores Factory Directs ZINUS/15#16CHAPTER 04 Understanding Company Business 1. Zinus DNA : Tailor-made for the on-line furniture business 2. Business Breakthrough Process 3. Value of In-house R&D and Production#174-1. Zinus DNA: Tailor-made for the online furniture business Zinus offers innovative furniture products tailor-made for on-line sales, based on a comprehensive understanding of the customer's needs. Joyful Design & Comfort GOOD DESIGN Innovative Design - Multi-award winning designs - Design for everyone to enjoy Effortless Assembly Easy Set Up Satisfying Value Cost Effective - Fun to Assemble - Fail Proof Assemble Z - Excellent Quality - Reasonable Price Delivery in a box - Easier Delivery - Compact Packaging Quick Snap Assembly Not just offering “Furniture, On-line", but offering "Furniture for On-Line" ZINUS/17#184-2. Business Breakthrough Process Design & R&D in Korea, production in China & Indonesia, and localized sales & marketing Zinus offers its own-branded products to end-customers through retailers. Zinus Global Business Overview ZINUS - Production Source: Company - Head Quarters - Trading - Design / R&D - Sales - Marketing - Logistics - C/S Retail Channel On-line Amazon amazon Walmart WMT.com Danis CLUB Sa Samsclub.com Wayfair.com Wayfa way GLESA Costco.com Ooverstock. Overstock.com ebay Walmart Off-line 9275 Amazon Canada AliE Etc Walmart Store Costco Club Store) ZINUS 99% Own Brand Products ZINUS/18#194-3. Value of In-house R&D and Production Zinus has established its own in-house R&D and production platform to maintain product competitiveness & brand power. Zinus' Product Value Chain Continuum Key Benefits Customer Feedback Source: Company R&D and Design Sales & Marketing Constant and prompt Production & QC (Quality Control) R&D reflecting customer feedback 1 2 3 4 Flexibility in shipping & delivery to customers Logistics Zinus Brand Power High level of quality assurance with "Satisfying Value" products Expand innovative and unique flat-pack furniture Provides agility in product mix, while maintaining product quality He ZINUS/19#20CHAPTER 05 Strength & Strategy 1. Fully Vertically Integrated Value Chain 2. Accumulated Customer Reviews & Star Ratings 3. Category Killer with Growing Number of Best Sellers#215-1. Fully Vertically Integrated Value Chain Zinus is maintaining an unreachable gap versus its peers by securing full vertical integration in the value chain. Brand ZINUS Bed in a Box Global Leader Price ⚫ USD 353.69 (Zinus Memory Foam 12 Inch Green Tea Mattress, Queen) # of Products . 358 items covering full bedroom category (incl. 136 Mattresses) . Diversifying into various furniture categories Production . Wholly owned manufacturing facilities in China & Indonesia .Most efficient manufacturing facility with economies of scale Owns 32 manufacturing facilities in certain areas in USD 2,999.00 T*** 45 Bedroom Products (incl. 12 On-line Mattresses) Conventional Offline Retailer .Focused on bed & bedroom items US C USD 995.00 *** Marketing Oriented Online Retailer Source: Amazon.com, Company Website, as of Aug 2019 29 Bedroom Products (incl. 5 Mattresses) Mainly focused on mattress No manufacturing facility Logistics .Direct handling with two sizable warehouses in US -Jointly cooperate with giant retailers - Amazon, Walmart etc. .Efficient logistics partners • Heavily relies on specialty stores Marketing .Digital marketing & Social media campaigns .Dominate Sponsor Ads in major online channels using in-house marketing team ⚫ Mass marketing Retailing -Mainly through online channels .In cooperation with Walmart for offline channel Owns small warehouses in US ⚫ Mass marketing to attract traffic to its own online channel . Heavily relies on offline channels including mattress & furniture specialty stores . Mainly through its own online channel ZINUS/21#225-2. Accumulated Customer Reviews & Star Ratings Zinus distinguishes its brand from competitors with incomparable No. of customer reviews and highest "Star Ratings". Accumulated customer reviews 130,482 Accumulated customer reviews & Star Ratings (Amazon) 614,010 Others 224,510 416,471 Sam's.com Walmart.com Wayfair.com 248,382 67,801 43,161 25,750 2013 2014 2015 2016 2017 2018 2019 Source: Company, as of Dec 2019 Zinus 4.4 32,294 *** 4.2 4,816 P*** 3.9 3,406 T*** 3.9 1,526 C*** 3.9 Amazon.com Source: Company, as of Dec 2019 1,026 S*** 4.2 667 S*** 4.1 ZINUS/22#235-3. Category Killer with Growing Number of Best Sellers Zinus has been expanding its list of best sellers and has transformed into a category killer in bedroom furniture. # of Zinus Items among Amazon Top 100 bestsellers in bedroom furniture # of Zinus Items among Amazon Top 20 bestsellers in bedroom furniture 50 49 45 40 35 30 15 2252 20 10 5 2015 Average 15 14 12 2015 Average 6 2016 Average 7 2016 Average 22 10 2018 Average 34 2017 Average 27 8 6 2019.1H Average 35 4 2 2019.1H Average 9.5 2018 Average 9 2017 Average 8 0 0 15-Jan 15-Jul 16-Jan 16-Jul 17-Jan 17-Jul 18-Jan 18-Jul 19-Jan 15-Jan 15-Jul 16-Jan 16-Jul 17-Jan 17-Jul 18-Jan 18-Jul 19-Jan Source: Company, as of Jun 2019 Source: Company, as of Jun 2019 ZINUS/23#24* CHAPTER 06 1. Production Facilities Expansion 2. Category Expansion 3. Geographic Expansion 4. Vision Growth Strategy SLUMBER O inch 10 ay top TRESS#256-1. Production Facilities Expansion Zinus has successfully expanded its production facilities in Indonesia. Establishment of PT. Zinus Global Indonesia Tano Gunung Jakarta Bey 자카르타 Jakints capt Bekasi South Jakarta Sindur 드폴 Depok Cibinong 보카시 Bekasi Cileungsi Conung Putr apanunggal Chodak 보고르 Bogor B Csana Cigombong Pannon Code 2 Weat fejembe C Sung Pas Bogor Facility Karawang Facility Bogor, Indonesia Okampek 0 Bedeng Factory Acquisition in Sep, 2018 (116,934 m²) Completed in Aug, 2019 (83,300 m²) Purwakarta D Keraja . Two mattress manufacturing facilities near Jakarta ⚫ Invested USD 60M Started delivery from Feb 22, 2019 • Expected Annual Production Capacity: 4.7 million+ pcs Calong ZINUS/25#266-2. Category Expansion Zinus has continuously expanded into relevant categories by developing "Furniture for On-line". 2013-2015 Mattress & Foundation Mattress SmartBase Box Spring Platform Bed 2016-2017 2018 2019 H1 Bedroom Furniture Livingroom & Office Furniture Outdoor & Other Furniture Sofa Wooden Table Platform & Set Bed Hybrid Platform Desk Bed Standing Pet Bed Frame Box Spring supply Source: Company Outdoor Multi- functional Frame Adjustable Frame ZINUS/26#276-3. Geographic Expansion Backed by proven success in the US, Zinus is expanding its global reach. Global Market Expansion Roadmap UNITED KINGDOM | 2019 OTHER EU | 2020 SOUTH AFRICA | 2020 CANADA | 2017 KOREA | 2018 JAPAN | 2019 CHINA | 2019 MEXICO | 2020 INDIA | 2020 THAILAND | 2019 Singapore | 2020 INDONESIA | 2020 BRAZIL | 2020 Year New Countries AUSTRALIA | 2018 2017 2018 NEW ZEALAND | 2019 2019 2020 ZINUS/27#28Vision Global No.1 e-Commerce Furniture Company ZINUS USD 10 billion by 2039 In 100 Countries Vertically Integrated Value Chain Category & Geographic Expansion ZINUS/28#29CHAPTER 07 Appendix 1. Consolidated Financial Statements 2. Zinus Products Spa Sensations 8 inch memory foam MATTRESS QUEEN#307-1. Consolidated Financial Statements Statement of Financial Position Income Statement (Unit: KRW million) (Unit:KRW million) 2019 2018 2017 2016 2019 2018 2017 2016 Current Asset 531,195 364,335 261,795 196,206 Sales 817,138 621,764 602,755 341,519 COGS 556,943 445,400 423,600 210,094 Non Current Asset 223,873 150,449 78,574 50,281 Gross Profit 260,195 176,364 179,155 131,425 Total Assets 755,068 514,784 340,369 246,487 SG&A 156,326 123,278 91,954 50,072 Current Liabilities 307,376 256,612 180,172 123,738 Operating Income 103,868 53,086 87,201 81,353 Non Current Liabilities 73,548 81,922 28,658 29,265 Other Income 2,169 6,767 1,462 503 Total Liabilities 380,924 338,524 208,830 153,003 Other Expenses 2,366 1,644 7,497 523 Capital Stock 7,103 6,225 6,225 6,225 Financial Income 25,630 18,569 12,224 15,229 Retained Earnings 250,015 178,693 135,659 80,978 Financial Expenses 36,841 18,582 27,662 12,567 Accumulated Other Comprehensive Income (5,882) (10,785) (9,572) 9,289 Income before Tax 92,460 58,196 65,728 83,995 Other Capital 122,907 2,117 (773) (3,007) Income Tax 20,034 14,587 20,576 21,380 Total Equity Source: DART, Company 374,144 176,250 131,539 93,485 Net Income Source: DART, Company 72,426 43,609 45,152 62,615 K-IFRS Audited (FYE 2016, 2017, 2018, 2019) K-IFRS Audited (FYE 2016, 2017, 2018, 2019) ZINUS/30#317-2. Zinus Products Conventional Bed vs Zinus Conventional Bed Mattress Source: Company Zinus Mattress Box Spring Box Spring BiFold Box Spring Quick Lock Box Spring Wood Box Spring Smart Box Spring Standing Box Spring Bed Frame Bed Frame ZINUS/31#327-2. Zinus Products Conventional Bed vs Zinus Conventional Bed Source: Company Foundation Zinus Steel Foundation Platform Bed Wood Platform Bed Hybrid (Wood + Steel) Foundation ZINUS/32#33ZINUS 8th Floor, 10, Yatap-ro, 81beon-gil Bundang-gu, Seongnam-si, Gyeonggi-do, 13497, Korea Tel: 82-31-622-1700 | Fax: 82-31-622-1701 | www.zinus.com