Global Cord Blood Corporation · OTC:CORBF
Global Cord Blood — Investor Presentation (November 2021)
27 slides from Global Cord Blood's investor presentation, November 2021
Slide 1: Corporate Presentation – November 2021
Corporate Presentation – November 2021 GLOBAL CORD BLOOD CORPORATION (NYSE:CO) 1
Slide 2: Disclaimer
DISCLAIMER This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. These statements relate to future events or the Company’s future financial performance. The Company has attempted
Slide 3: Executive Summary
EXECUTIVE SUMMARY The Largest Cord Blood Bank in China • Multiple Licenses: holds 3 out of 7 licenses currently available in China • Sizable Market: 1.8 mil annual new born in Beijing+Guangdong+Zhejiang out of 3.7 mil in 7 authorized regions in China • Largest Client Base: 938,092 accumulated subscr
Slide 4: Table of Contents
TABLE OF CONTENTS • Industry Dynamics • Cord Blood Stem Cells Application • Global Peers and Overall Market Size • Regulatory Policy in China • Market Size in China • Company Overview • Timeline and Milestones • Market Share in China • Operational Procedures • Revenue Model • Marketing Model • Publi
Slide 5: Cord Blood Stem Cells Application
CORD BLOOD STEM CELLS APPLICATION Hematopoietic Stem Cell Proven Therapies • Hematopoietic stem cells (HSC) is the only type of cell • HSC is proven to treat blood and immune system within the human blood system that possess the ability related diseases and potentially would enjoy of both multi-pote
Slide 6: Global Peers and Overall Market Size
GLOBAL PEERS AND OVERALL MARKET SIZE Global Number of Private Cord Blood Banks & Annual Newborn (“nb”) Estimation EU China North America 126 banks 7 banks 35 banks 5.8 mil nb 12.0 mil nb 6.7 mil nb 25 14 Millions 12 20 10 15 8 10 6 India 4 12 banks 5 2 South America 23.5 mil nb - - 54 banks 7.4 mil
Slide 7: Regulatory Policies in China
REGULATORY POLICIES IN CHINA Dynamic License Policy & Other Regulation • Under the “One License per Region” policy, only one cord blood banking license is issued in any single province / municipality, precluding more than one cord blood licensee from operation in the same jurisdiction. Beijing Only
Slide 8: Market Size in China
MARKET SIZE IN CHINA Large Potential Addressable Market 2020 Births Estimation in 7 Licensed Regions in China GCBC’s operating regions GCBC’s minority investment 1 • 3.7 mil newborns per year in 7 licensed regions 1,200 12+ mil newborns per year in 31 regions in China, Thousands 1,070 a large potent
Slide 9: Timeline and Milestones
TIMELINE AND MILESTONES 2003 • Beijing cord blood bank begins commercialization • Beijing cord blood bank becomes the 1st 2005 cord blood bank in China to receive ISO9001 2007 • Acquires Guangdong cord blood bank • Invests in Cordlife, largest cord blood • Capacity expansion in Beijing completed 200
Slide 10: Market Share in China
MARKET SHARE IN CHINA Total Newborn Breakdown Among Authorized Regions in China Beijing Province / Newborn Percentage of 5% Municipality Population Total (%) Sichuan Beijing 186,545 5% 19% 49% Guangdong 1,069,814 29% Zhejiang 547,112 15% Shanghai Guangdong 1 6% Shandong 863,545 23% 29% Tianjin 118,0
Slide 11: Operational Procedures
OPERATIONAL PROCEDURES Cord Blood Collection Stem Cells Lab Testing Stem Cells Processing & Validation Storage • Cord blood is collected by • Remove red blood cells, • Test for bacteria and viruses • Pre-storage programmed qualified physician in hospitals platelets, and other freezing to minus 90 de
Slide 12: Revenue Model
REVENUE MODEL • Revenue from subscription fees consist of two components: • Processing fee RMB9,800 (RMB6,800 before April 1, 2019) • Annual storage fee (RMB860 / year for 18 years) • Revenue recognition is based on service delivery (graphed below) over the 18 years, though cash flow profile could v
Slide 13: Single Customer Cash Flow Stream
SINGLE CUSTOMER CASH FLOW STREAM Normal Payment Plan 10,660 • Cash flow most closely matches revenue recognition (for all payment methods) under U.S. GAAP, which is based on service delivery • Steady & recurring 18 years’ cash flow on a growing cumulative subscriber base 9,800 Processing Fee 860 860
Slide 14: Revenue Model – Recurring Revenue
REVENUE MODEL – RECURRING REVENUE • The recurring revenue model builds a solid payment structure for a steady stream of long-term revenue inflow • Generation of substantial upfront cash • Annuity-like recurring storage fee flow • Increasing storage fee revenues as Processing Fee Storage Fee • Growth
Slide 15: Marketing Model
MARKETING MODEL Advanced Channels Prenatal Education Media & Word of Mouth Herd Behavior • GCBC salesforce • Organize prenatal class • Employ multiple media • Large client base approaches potential to educate potential platforms and enhances the “word-of- clients at consultancy clients on the clinic
Slide 16: Public Bank Operation
PUBLIC BANK OPERATION • GCBC operates multiple public cord blood banks in China, and applies the highest operation standards to meet the embedded social responsibilities Units Units AccumulatedDonated Accumulated DonatedUnits Units 82,138 74,060 67,302 60,958 51,543 43,538 39,612 33,225 26,525 21,12
Slide 17: Subscriber Growth and Seasonality
SUBSCRIBER GROWTH AND SEASONALITY Units ‘000 Annual New Subscriber Sign-ups Units ‘000 Quarterly New Subscriber Sign-ups 23.4 COVID-19 Impact 91.8 COVID-19 Impact 89.4 84.2 19.7 19.4 19.1 75.0 18.5 17.8 72.0 17.2 17.6 FY17 FY18 FY19 FY20 FY21 3QFY20 4QFY20 1QFY21 2QFY21 3QFY21 4QFY21 1QFY22 2QFY22 A
Slide 18: Financial Highlight – 5 Years Track
FINANCIAL HIGHLIGHT – 5 YEARS TRACK Revenues Non-GAAP Operating Income2 RMB million 1,221.5 1,159.6 RMB million 608.5 594.0 986.8 936.8 760.0 414.7 434.0 377.6 FY17 FY18 FY19 FY20 4 FY21 4 FY17 FY18 FY19 FY20 4 FY21 4 Net Income ex. CB Interests Operating Cash Flow RMB million RMB million 516.2 818.
Slide 19: Financial Highlight – 2QFY22
FINANCIAL HIGHLIGHT – 2QFY22 RMB’000 Key Financials Quarterly Trend 2 Revenues Gross Profit Operating Income Non-GAAP Operating Income 400,000 350,000 334,733 315,174 313,670 299,888 302,321 285,607 290,798 300,000 283,127 280,913 267,333 267,461 256,430 256,413 240,909 245,920 250,000 237,450 200,0
Slide 20: Thank You Q & A
THANK YOU Q&A (9! ey Pere RS free 1D Fes Ee Se Global Cord Blood Corporation 20
Slide 21: Appendix – Income Statement Summary (U.S. GAAP)
APPENDIX – 1 INCOME STATEMENT SUMMARY (U.S. GAAP) Three months ended September 30, Six months ended September 30, 2020 2021 2021 2020 2021 2021 (In thousands) RMB RMB US$ RMB RMB US$ Revenues 285,607 313,670 48,681 566,520 628,844 97,595 Gross profit 240,909 267,461 41,509 478,359 534,794 82,999 Sal
Slide 22: Appendix – Selected Balance Sheet Items (U.S. GAAP)
APPENDIX – 1 SELECTED BALANCE SHEET ITEMS (U.S. GAAP) March 31, 2021 September 30, 2021 (In thousands) RMB RMB US$ Cash and cash equivalents 6,075,798 6,390,632 991,812 Total current assets 6,298,141 6,648,463 1,031,827 Property, plant and equipment, net 498,656 484,434 75,183 Total assets 7,906,329
Slide 23: Appendix – Financial Highlight – 5 Years Track
APPENDIX – 1 FINANCIAL HIGHLIGHT – 5 YEARS TRACK In RMB ‘000 FY2017 FY2018 FY2019 FY20203 FY20213 FY ended March Revenues 759,978 936,768 986,754 1,221,460 1,159,639 Revenues Growth % 14.6% 23.3% 5.3% 23.8% -5.1% Gross Profit 617,338 755,285 800,727 1,032,332 980,692 Gross Margin % 81.2% 80.6% 81.1%
Slide 24: Appendix – Regulation G Compliance
APPENDIX – 1 REGULATION G COMPLIANCE About Non-GAAP Financial Measures The Company makes reference to non-GAAP financial measures, as supplemental measures to review and assess our operating performance: Non-GAAP Operating Income, Non- GAAP Operating Income Margin, Net Income ex. CB Interests. The p
Slide 25: Appendix – Economics of GCBC's Licensed Regions
APPENDIX – 2 ECONOMICS OF GCBC’S LICENSED REGIONS • GCBC operates in Beijing, Guangdong and Zhejiang, and has exposure to Shandong province through a minority investment • These are some of the wealthiest regions in China with high population density and abundant hospital resources, with significant
Slide 26: Appendix – Diseases Treatable with Cord Blood Stem Cells
APPENDIX – 3 DISEASES TREATABLE WITH CORD BLOOD STEM CELLS Cancers Blood Disorders Immuno-deficiencies • Acute lymphoblastic leukemia (ALL) • Sickle-cell anemia (hemoglobin SS) • Ataxia telangiectasia • Acute myeloid leukemia (AML) • HbSC disease • Chronic granulomatous disease • Burkitt's lymphoma
Slide 27: Thank You
THANK YOU >) alee 8 oe SEE Global Cord Blood Corporation 27
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