Dong-a Socio Holdings Co., Ltd. · KRX:000640

Dong-a Socio — Dong-A Pharm. — Q2 2011 Earnings Presentation

32 slides from Dong-a Socio's earnings presentation, July 2011

  1. Slide 1: Expanding Our Reach: 2Q 2011 Performance Results

    Expanding Our Reach ee 2Q 2011 Performance Results ee July 2011 (f%) DONG-A PHARM.

  2. Slide 2: Audit review and forward-looking statement notice

    The business results for the 2nd quarter of 2011, currently under audit review, are presented here for investors’ convenience. Hence, please be advised that some of their contents may be altered in the course of audit. This presentation may contain “forward-looking statement.” Forecasts and projecti

  3. Slide 3: Table of Contents

    Table of Contents I Financial Performance(K-GAAP) i Performance by Division i. R&D Update IV. Other Managerial issue Appenelix 2 (% DONG-A PHARM.

  4. Slide 4: I. Financial Performance (K-GAAP)

    I, Financial Performance (K-GAAP)

  5. Slide 5: Sales and operating profit YoY and QoQ

     Sales grew 1.4% YoY, 6.8% QoQ to KRW224.5bil.  Operating profit lowered 14.3% YoY to KRW24.6bil. With 11.0% operating profit margin YoY QoQ [KRW bil.] [KRW bil.] 12.9% 12.2% 11.0% 11.0% 1.4% 6.8% 221.4 224.5 210.2 224.5 2Q '10 2Q '11 1Q '11 2Q '11 Sales OPM 4

  6. Slide 6: Operating profit margin decreased due to increase in CoGS

     Operating profit margin decreased 1.9%p due to increase in CoGS 2Q ’10 1Q ‘11 2Q '11 YoY QoQ Gross Profit Margin 61.0% 60.2% 58.1% -2.9%p -2.1%p Operating Profit Margin 12.9% 12.2% 11.0% -1.9%p -1.2%p SG&A per Sales 48.0% 48.0% 47.1% -0.9%p -0.9%p HR Related Cost per Sales 15.8% 15.1% 15.3% -0.5%p

  7. Slide 7: Net debt to equity ratio lowered due to increase in cash

     Net debt to equity ratio lowered due to increase in cash [KRW bil.] 2011. 03 2011. 06 Change Major Financial Ratio K-GAAP (K-IFRS) Total Asset 1,195.7 1,211.3 1.5% 61.6% (1.6%) Liability to 59.2% (61.3%) Equity Ratio Cash* 147.0 147.4 0.3% 38.3% (35.3%) 37.0% (33.6%) Debt to Payable 123.4 132.2 7.

  8. Slide 8: II. Performance by Division

  9. Slide 9: ETC 2Q YoY, QoQ

     ETC Sales dropped 2.6% YoY, grew 5.6% QoQ ETC 2Q YoY, QoQ [KRW bil.] 124.2 -2.6% 120.9 5.6% 114.5 63.5 61.3 4.4% -3.5% 58.7 Clinic General Hospital 60.7 -1.8% 59.6 6.7% 55.8 2Q '10 2Q '11 1Q '11 8

  10. Slide 10: Major ETC Products Growth

    Major ETC Products Growth [KRW bil.] -2.3% 22.4 21.9 -20.5% 11.9% 12.7% 12.3 11.7 11.7 10.5 10.4 -5.8% 9.7 7.5 7.0 6.4% 0.0% -0.1% 15.1% 4.7 5.0 5.1 5.1 4.6 4.6 4.5 5.1 Stillen Opalmon Plavitor Lipinon Orodipine Zydena Talion Gaster Cozartan 2Q '10 2Q '11 9

  11. Slide 11: OTC 2Q YoY, QoQ

     OTC sales improved 2.3% YoY buoyed by 5.2% growth in Bacchus OTC 2Q YoY, QoQ [KRW bil.] 60.8 2.3% 62.2 19.9% 51.9 24.0 -2.0% 23.5 -7.1% 25.3 Other OTC Bacchus 36.8 38.7 5.2% 45.6% 26.6 2Q '10 2Q '11 1Q '11 10

  12. Slide 12: Major OTC Products Growth

    Major OTC Products Growth [KRW bil.] 5.3% 38.7 36.7 -5.7% -30.5% 6.4% 4.8% 5.0 4.7 4.6 3.2 3.5 3.7 2.6 2.7 Bacchus Panpyrin Garglin Begen Morning Care 2Q '10 2Q '11 11

  13. Slide 13: Medical 2Q YoY, QoQ

     Medical Equipment sales grew 5.2% YoY  Diagnostics sales improved 20.8% YoY Medical 2Q YoY, QoQ [KRW bil.] 26.0 2.5% 25.3 12.9% 23.1 12.3 -5.0% 12.9 11.7 5.2% Medical Equipment Diagnostics 13.7 12.4 11.4 20.8% 5.2% 2Q '10 2Q '11 1Q '11 12

  14. Slide 14: Major Medical Products Growth

    Major Medical Products Growth [KRW bil.] -6.5% 5.5 5.1 23.7% -4.8% 2.7 2.2 7.8% 59.6% 2.2 2.1 1.3 1.4 1.4 0.8 Artificial Joint Blood Vessel Stent Prosthetic Heart Valve Dental Implant Sphygmotonograph & Surgical Equipment 2Q '10 2Q '11 13

  15. Slide 15: Export 2Q YoY, QoQ

     Export sales grew 7.8% YoY, 9.0% QoQ Export 2Q YoY, QoQ 7.8% 9.0% 13.4 12.4 12.3 2Q '10 2Q '11 1Q '11 14

  16. Slide 16: Regional Growth Products Growth

    Regional Growth Products Growth [KRW Bil.] 18.0% [KRW Bil.] 5.6% 4.1 -15.9% 3.4 3.6 9.9% 3.1 3.5 3.3 2.6 -40.4% -50.9% 2.6 116.8% 2.3 2.2 1.9 -4.6% -36.2% 1.4 0.9 0.8 0.8 1.0 1.0 0.6 Brazil India S. Africa Russia Gtowtropin Leucostim Cycloserine Terizidone Bacchus 2Q '10 2Q '11 2Q '10 2Q '11 15

  17. Slide 17: III. R&D Update

    iil. R&D Update

  18. Slide 18: R&D highlights: DA-7218, DA-8159, DA-3031, DA-3051

     DA-7218 - Trius and Bayer form global strategic collaboration excluding U.S., Canada and E.U. - Lung Infection indication completed phase 1 and phase 2 planned - Systematic Infection indication added and phase 3 planned  DA-8159 - Dong-A Pharmtech KOSDAQ listing planned  DA-3031 - Neutropenia ph

  19. Slide 19: New chemical entity pipeline (DA-8159, DA-7218)

    MAJOR TYPE CODE NAME DESCRIPTION STAGE INDICATION Phase 3 completed (US) Erectile Dysfunction Warner Chilcott Benign Prostatic Phase 2 planned (US) Hyperplasia Warner Chilcott DA – 8159 PDE-5 Inhibitor Under Phase 2 (EU) Portal Hypertension Dr. Falk Pulmonary Arterial Under Phase 2 (KR) Hypertension

  20. Slide 20: Phyto and Bio pipeline

    TYPE CODE NAME MAJOR INDICATION DESCRIPTION STAGE Motilitone Functional Dyspepsia Herbal Extracts NDA (KR) Phyto DA-9801 Diabetic Neuropathy Herbal Extracts Phase 2 planned (KR) Infertility (Ovulation DA-3801 Induction) Recombinant FSH Under Phase 3 (KR) DA-3803 Infertility Recombinant hCG Phase 3 p

  21. Slide 21: R&D on Bio at Beginning Stage

    R&D on Bio at Beginning Stage  Biosimilar/better- DA-3811 (Gaucher Disease, Cerezyme Biosimilar) DA-3808 (Hemophilia A, Advate Biosimilar) DA-3880 (Anemia of Chronic Renal Failure, Aranesp Biosimilar)  Antibody - DA-3111 (her2 Positive Breast Cancer, Herceptin Biosimilar) 20

  22. Slide 22: Expected development and launch timeline

    2011~2012 2012~2013 2013~2014 2014~BEYOND DA-8159 (BPH – U.S. / PAH) DA-7218 (MRSA - U.S.) DA-1229 (Diabetes) DA-8159 (PH) DA-6034 DA-9701 DA-8159 (Dry Eye) (Dyspepsia) (ED – U.S.) DA-3803 (Infertility) DA-8031 DA-3801 DA-6034 (Premature (Anovulation) (Gastritis) DA-3031 Ejaculation) (Neutropenia) D

  23. Slide 23: IV. Other Managerial Issue

    IV. Other Managerial issue

  24. Slide 24: 2011 Performance target revised

     2011 Performance target revised  ETC sales target revised  Sales of GSK co-promotion products (Zeffix, Hepsera, Seretide Evohaler) included in 2H  Diagnostics sales target revised  Export sales target revised Sales : Grow 8% YoY (6.4% initially announced) OPM : 100 bil. (unchanged) 23

  25. Slide 25: IFRS vs. K-GAAP Reconciliation

     IFRS vs. K-GAAP Reconciliation [KRW bil.] Statements of Income Statements of Financial Position Account K-GAAP K-IFRS Account K-GAAP K-IFRS Sales 224.5 224.5 CoGS 94.1 93.0 Current Assets 401.2 416.1 Gross Profit 130.4 131.5 SG&A 105.7 104.1 Non-current 792.5 739.7 Assets Other Income 3.4 Other Lo

  26. Slide 26: Appendix

    Apppenclix

  27. Slide 27: Income statement summary

    [KRW bil.] 2008 2009 1Q ‘10 2Q ‘10 3Q ‘10 4Q ‘10 2010 1Q ‘11 2Q ‘11 Sales 702.3 801.1 201.0 221.4 212.1 212.3 846.8 210.2 224.5 CoGS 259.2 323.2 81.7 86.4 87.9 89.6 345.6 83.7 94.1 Gross Profit 443.1 477.9 119.3 135.0 124.2 122.7 501.3 126.5 130.4 SG&A 361.4 386.0 96.0 106.3 94.7 105.6 402.7 100.8 1

  28. Slide 28: Balance sheet summary

    [KRW bil.] 2008 2009 1Q ‘10 2Q ‘10 3Q ‘10 4Q ‘10 1Q ‘11 2Q ‘11 Total Assets 731.6 1,000.0 1,025.8 1,188.2 1,175.0 1,160.4 1,193.7 1,211.3 Current Assets 292.7 294.7 301.7 448.2 438.6 380.4 401.2 417.6 Cash 44.5 44.8 54.9 177.5 181.8 132.6 147.0 147.4 Receivables 134.9 133.8 134.9 138.0 136.0 132.3 1

  29. Slide 29: Sales by division

    [KRW bil.] Division 2008 2009 1Q ‘10 2Q ‘10 3Q ‘10 4Q ‘10 2010 1Q ‘11 2Q ‘11 ETC 398.4 463.1 120.0 124.2 115.4 122.1 481.3 114.5 120.9 Bacchus 118.8 116.5 23.0 36.8 37.6 31.0 128.3 26.6 38.7 OTC 80.2 93.2 24.2 24.0 22.0 31.1 93.4 25.3 23.5 Medical 32.6 39.7 12.9 11.7 10.4 11.0 46.0 12.9 12.3 Equipme

  30. Slide 30: ETC products sales

    [KRW bil.] Products 2008 2009 1Q ‘10 2Q ‘10 3Q ‘10 4Q ‘10 2010 1Q ‘11 2Q ‘11 Stillen 74.8 85.4 22.1 22.4 20.7 22.5 87.7 22.1 21.9 Opalmon 31.9 40.6 11.0 12.3 13.2 7.8 44.3 8.8 9.7 Plavitor 29.9 39.7 10.5 10.5 10.9 11.7 43.6 10.5 11.7 Lipinon 9.6 30.9 9.6 10.4 10.2 10.7 40.9 11.5 11.7 Orodipine 23.2

  31. Slide 31: OTC products sales

    [KRW bil.] Products 2008 2009 1Q ‘10 2Q ‘10 3Q ‘10 4Q ‘10 2010 1Q ‘11 2Q ‘11 Bacchus 118.8 116.5 23.0 36.8 37.6 31.0 128.3 26.6 38.7 Panpyrin 16.3 19.9 7.2 5.0 4.9 6.7 23.8 6.9 4.6 Bigen 15.4 15.3 3.4 3.5 4.2 2.6 13.7 3.7 3.7 Garglin 12.2 15.6 4.2 4.6 2.9 3.2 14.9 3.4 3.2 Morning Care 9.5 12.2 2.0 2

  32. Slide 32: Corporate Information & IR Information

    CORPORATE INFORMATION & IR INFORMATION CORPORATE INFORMATION IR INFORMATION Banwol Plant 434-3 Me http://www. MAG OCSCRIPNON The Main Ding ot Dong A Pearmacmtis! Mesciosrtaes

Dong-A Pharm. — Q2 2011 Earnings Presentation on 6ix