Slide 1: 3Q 2012 Performance Results
Dong-A’ Pharm. 3Q 2012 Performance Results Investor Relations October 2012
Slide 2: Forward Looking Statements
Forward Looking Statements The business results for the 3rd quarter of 2012, 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 stateme
Slide 3: Table of Contents
Table of Contents I. Financial Performance (K-IFRS Separate) II. Performance by Division III. Major Management Issue – Demerger IV. Appendix 2
Slide 4: I. Financial Performance (K-IFRS Separate)
I. Financial Performance (K-IFRS Separate) 3
Slide 5: Financial Performance – Sales & OPM
Financial Performance – Sales & OPM [KRW bil.] 12.0% (29.1) 11.7% (28.2) 6.6% (16.2) 0.5% -1.3% 241.9 243.2 246.5 3Q '11 3Q '12 2Q '12 Sales OPM 4
Slide 6: Financial Performance – Margin Analysis
Financial Performance – Margin Analysis 3Q ‘11 2Q '12 3Q '12 YoY QoQ Cost of Goods Sold Ratio 47.0% 50.0% 46.4% -0.6%p -3.6%p SG&A Expenses 40.9% 42.4% 42.0% 1.1%p -0.4%p HR Related Cost per Sales 11.5% 14.3% 14.1% 2.6%p -0.2%p (Salary + Severance + Fringe Benefit) R&D Cost per Sales 7.1% 7.8% 7.9%
Slide 7: 2012 3Q Balance Sheet
2012 3Q Balance Sheet [KRW bil.] 2012. 06 2012. 09 QoQ Major Financial Ratios 103.0% Total Asset 1,297.9 1,474.6 13.6% 78.3% Liability to Equity Ratio Cash 250.6 421.8 68.3% 71.8% Debt to 47.8% Receivable 143.1 145.0 1.4% Equity Ratio Inventory 121.3 120.6 -0.6% 13.4% 13.7% Net Debt to Total Liabili
Slide 8: II. Performance by Division
II. Performance by Division 7
Slide 9: Performance by Division
Performance by Division Sales Portion Sales by division [KRW bil.] Growth Division 3Q ‘11 2Q ‘12 3Q ‘12 YoY QoQ 44.6% 56.2% ■ ETC 135.9 117.2 108.5 -20.2% -7.4% ■ Bacchus 46.7 49.7 51.3 9.9% 3.2% 21.1% 19.3% ■ OTC 24.0 36.4 33.1 37.6% -9.1% 13.6% 9.9% 7.1% ■ Medical 17.8 18.0 17.2 -3.9% -4.8% 7.4% 1
Slide 10: Performance by Division – ETC & Major Products
Performance by Division – ETC & Major Products -4.8% 21.0 [KRW bil.] 20.0 -28.7% -25.5% -36.3% 10.5 11.3 9.7 -3.4% 8.4 7.5 6.2 6.0 5.8 -20.2% -7.4% Stillen Plavitor Lipinon Opalmon Growtropin -26.4% 135.9 0.5% -40.3% 6.1 New 5.3 -36.6% 117.2 5.2 5.2 4.8 108.5 4.5 4.4 3.1 2.8 0.0 3Q '11 3Q '12 2Q '12
Slide 11: Performance by Division - OTC & Major Products
Performance by Division - OTC & Major Products [KRW bil.] 84.4 -2.0% 86.1 2.1% 45.4 46.3 19.3% 70.7 33.1 -9.1% 36.4 37.6% 24.0 9.9% 51.3 3.2% 49.7 46.7 274.9% 25.8% 67.1% 20.1% 5.6 21.3% 5.0 5.2 4.5 4.1 4.9 3.1 2.5 3.0 1.3 3Q '11 3Q '12 2Q '12 Bacchus Bacchus F Panpyrin Garglin Bigen Morning D Care
Slide 12: Performance by Division – Medical & Major Products
Performance by Division – Medical & Major Products [KRW bil.] 11.9% 17.8 -3.5% -4.8% 18.0 4.3 17.2 3.8 10.0 10.9 3.7% 10.3 -5.1% 0.1% 2.3 2.3 -5.2% -11.9% 1.7 1.7 3.9% 1.4 1.2 1.1 1.1 7.8 7.1 -12.7% 6.8 -4.3% 3Q '11 3Q '12 2Q '12 Arificial Blood Prosthetic Dental Surgical Joint Vessel Stent Heart Va
Slide 13: Performance by Division – Export
Performance by Division – Export Major Regions [KRW bil.] 185.2% 87.4% 5.7 17.0% 5.7 333.6% 4.5 4.4 10.4% 3.9 New 3.1 2.5 -3.0% 2.0 93.4% 1.2 1.0 0.8 0.0 Growtropin Cycloserine Terizidone Atorvastatin Zydena Bacchus 26.7 Major Products 24.2 157.6% 55.5% 154.9% 4.8 4.2 4.4 13.8 New 221.4% 2.7 -63.9%
Slide 14: R&D Roadmap - NCE/Phyto
R&D Roadmap - NCE/Phyto 2013~2014 2015~2016 2017~ DA-8159* - BPH (JP) DA-8159 - PAH (KR) DA-8159* DA-7218 DA-8159* - ED (US) - ABSSSI (KR) - BPH (US) DA-6034 DA-6034 DA-8159* - Gastritis (KR) - Dry Eye (KR) - PH (EU) DA-8031 DA-6886 DA-7218* - Premature Ejaculation (KR) - Irritable Bowel Syndrome (K
Slide 15: R&D Roadmap - Bio
R&D Roadmap - Bio 2013~2014 2015~2016 2017~ DA-3030 DA-3091* - Diabetic Neuropathy (KR) - Diabetes (KR) DA-3031* - Neutropenia (KR) DA-3002 DA-3808 - Idiopathic Short Stature (KR) - Hemophilia (KR) DA-3801 - Ovulation Induction (KR) DA-3051** DA -3111** - Multiple Sclerosis (BR) - her2 Breast Cancer
Slide 16: III. Major Management Issue – Demerger Plan
III. Major Management Issue – Demerger Plan 15
Slide 17: Demerger into Different Companies
Demerger into 3 Different Companies 1. Establishing holding company through spin-off and a new ETC focused OC(Operating Company) 2. Establishing a new OTC subsidiary through split-off Before After Dong-A Pharm. Dong-A Socio Holdings (Listed) (Relisting) ① Spin-off ETC New OC Other Overseas (Dong-A)
Slide 18: Background & Purpose of Demerger
Background & Purpose of Demerger Making 80th anniversary as a starting point to find the new growth engine to cope with the changing market environment HC(Holding Company) is established to expand into medical equipment and healthcare service, and secure group’s growth engine HC will focus on
Slide 19: WHY 1)
WHY 1) To achieve our vision of becoming a “Total Healthcare Solution Provider” Value Human Genome Medical Healthcare Technology Equipment U-Healthcare Dong-A Pharm (ETC) Dong-A Pharm (OTC) Dong-A Pharmtech (ETC) ST Pharm (API) DM Bio (Bio New/similar) Medical Disease Prevention/ Business Area Treat
Slide 20: HOW)
HOW) An innovative drug research laboratory is to be established under HC to discover Dong-A’s growth engine, and a new OC will generate profits from commercialization of HC’ s new business • Research lab. under HC will be Maximizing effectiveness and profits using knowhow of the new Dong-A’s core g
Slide 21: WHY 2)
WHY 2) To enhance flexibility and the management accountability for divisional strategy establishment through a separation of ETC and OTC divisions Dong-A Pharm. ETC | OTC ETC OTC ETC vs. OTC Need for separate OTC End Distribution Recent Changes in Major Regulations strategy Demand Channel Governmen
Slide 22: Merck case
Merck case Merck split ETC & OTC companies to cope with the changing market environment Merck Fanily Company Profile 100% • Established in1668 • IPO in 1995, Frankfurt • 40,000 employees: E. Merck KG Shareholders • 176 subsidiaries in 64 countries 70.3% 29.7% • Sales in 2010 : 7.9bil. euro • Acquire
Slide 23: Demerger Schedule
Demerger Schedule Planning to complete HC establishment and restructuring of subsidiaries until 2013 2012.10.23 2012.12.27 2013.1.28 2013.2.27 2013.3.1 2013.4.12 ~ 4.11 BOD Notification General Suspension Demerger Listing Meeting of The Result Shareholders of Trading Change of Listing Meeting and El
Slide 24: Pro-forma B/S When Demerger (Based on 2H 2012)
Pro-forma B/S When Demerger (Based on 2H 2012) No significant changes on financial status after demerger [KRW bil.] Before After Demerger Ratio Dong-A Pharm. New OC Total Assets 1,297.9 864.0 Book Value of Demerger Ratio** Current Assets 524.5 299.6 Net Assets* Cash & Equivalents 220.6 80.6 Receivab
Slide 25: Pro-forma P/L When Demerger
Pro-forma P/L When Demerger New OC’s profitability has declined until 1H 2012 because of April’s Blanket Drug Price Cuts; however, it is significantly recovered in 3Q [KRW mil.] 2011 1H 2012 3Q 2012 Before New OC Before Ne Before New OC Sales 907,294 655,043 465,031 313,701 243,207 158,838 COGS 403,
Slide 26: Appendix
Appendix 25
Slide 27: Condensed Statements of Financial Position (Separate)
Condensed Statements of Financial Position (Separate) [KRW bil.] 1Q ‘11 2Q ‘11 3Q ’11 4Q ‘11 1Q ‘12 2Q ‘12 3Q ‘12 Total Assets 1,137.8 1,150.7 1,195.0 1,236.8 1,268.1 1,297.7 1,474.6 Current Assets 403.4 416.1 458.9 466.2 496.7 524.5 694.8 Cash & Equivalents 146.8 144.4 198.3 194.6 218.6 250.6 421.8
Slide 28: Condensed Statements of Income (Separate)
Condensed Statements of Income (Separate) [KRW bil.] 1Q ‘11 2Q ‘11 3Q ‘11 4Q ‘11 2011 1Q ‘12 2Q ‘12 3Q ‘12 Sales 210.2 224.5 241.9 230.7 907.3 218.6 246.5 243.2 COGS 82.3 93.0 113.7 114.2 403.3 106.9 123.3 112.9 Gross Profit 128.0 131.5 128.2 116.4 504.0 111.7 123.1 130.3 SG&A 99.9 104.1 98.8 102.4
Slide 29: Performance by Division
Performance by Division [KRW bil.] Division 1Q ‘11 2Q ‘11 3Q ‘11 4Q ‘11 2011 1Q ‘12 2Q ‘12 3Q ‘12 ETC Total 114.5 120.9 135.9 125.1 496.5 107.7 117.2 108.5 OTC Total 51.9 62.2 70.7 68.0 252.9 66.0 86.1 84.4 Bacchus 26.6 38.7 46.7 38.2 150.1 32.7 49.7 51.3 Other OTC 25.3 23.5 24.0 29.8 102.7 33.3 36.
Slide 30: Major Products Sales (ETC)
Major Products Sales (ETC) [KRW bil.] Product 1Q ‘11 2Q ‘11 3Q ‘11 4Q ’11 2011 1Q ‘12 2Q ‘12 3Q ‘12 Stillen 22.1 21.9 21.0 23.2 88.1 21.0 20.2 20.0 Lipinon 11.5 11.7 11.3 11.5 46.0 7.7 9.6 8.4 Plavitor 10.5 11.7 10.5 11.4 44.2 8.2 8.3 7.5 Opalmon 8.9 9.8 9.7 8.7 37.0 6.1 6.7 6.2 Orodipine 6.8 7.0 6.
Slide 31: Major Products Sales (OTC)
Major Products Sales (OTC) [KRW bil.] Product 1Q ‘11 2Q ‘11 3Q ‘11 4Q ‘11 2011 1Q ‘12 2Q ‘12 3Q ‘12 Bacchus 26.6 38.7 46.7 38.2 150.1 32.7 49.7 51.3 Panpyrin 6.9 4.8 4.5 6.3 22.4 7.3 5.9 5.6 Bigen 3.8 3.8 4.0 3.6 15.4 3.8 4.4 4.9 Garglin 3.4 3.3 3.1 3.5 13.3 5.3 5.7 5.2 Morning Care 2.8 2.8 2.5 3.3
Slide 32: R&D Pipeline - NCEs (New Chemical Entities)
R&D Pipeline - NCEs (New Chemical Entities) TYPE CODE NAME MAJOR INDICATION DESCRIPTION STAGE Phase 3 completed (US) Erectile Dysfunction Warner Chilcott Benign Prostatic Under Phase 2 (JP) DA – 8159 Hyperplasia PDE-5 Inhibitor Meiji Seika Pharma. Under Phase 2 (EU) Portal Hypertension Dr. Falk Pulm
Slide 33: R&D Pipeline – Phyto & Biological Entities
R&D Pipeline – Phyto & Biological Entities MAJOR TYPE CODE NAME DESCRIPTION STAGE INDICATION Phyto DA-9801 Diabetic Neuropathy Herbal Extracts Under Phase 2 (KR) Infertility (Ovulation DA-3801 Induction) Recombinant FSH Under Phase 3 (KR) DA-3803 Infertility Recombinant hCG Under Phase 3 (KR) DA-303
Slide 34: R&D Pipeline – Other Biological Entities
R&D Pipeline – Other Biological Entities 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, Herce
Slide 35: Thank You
Thank You wy