China Biologic Products Holdings Inc
China Biologic Products — Investor Presentation (June 2012)
49 slides from China Biologic Products's investor presentation, Jun 4, 2012
Slide 1: China Biologic Products, Inc. June 2012
, China Biologic Products, Inc. . y - A = j y June 2012
Slide 2: Safe harbor statement
Safe harbor statement This presentation includes or incorporates by reference statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements relate
Slide 3: Today's agenda
Today’s agenda i - China Biologic overview - Introduction to blood products . Introduction to China Biologic - Financial highlights and future growth é 15 China Biologic Products, Inc.
Slide 4: China Biologic overview
China Biologic overview China Biologic is a leading independent plasma-based company in China China Biologic summary China Biologic Products, Inc. Mr. Zhu Chen, China’s Minister of Health, has recently encouraged China plasma Shandong Taibang [Guizhou Taibang Xan Huitian industry to double plasma su
Slide 5: David (Xiaoying) Gao, Chairman and Chief Executive Officer
Mr. David (Xiaoying) Gao, Chairman and Chief Executive Officer + Joined the Board of Directors in 2011, became Chairman on March 30, 2012 and CEO on May 10, 2012. Chaired the Board's compensation ‘committee and served on its audit committee and governance & nominating committee before becoming CEO.
Slide 6: Introduction to blood products
Introduction to blood products ] a y e 1’ China Biologic Products, Ine.
Slide 7: What is plasma?
What is plasma? White cells Plasma (95%) White blood cells ‘and platelets (<1) Immunoglobulin Coagulation Factors t ik: i Albumin : Plasma Freeze (-30°C) Others !
Slide 8: China Biologic product summary
China Biologic product summary » & Our plasma-based products are used as critical therapies in medical emergencies and for immunization & treatment of life-threatening diseases, including — + Immune & auto-immune deficiencies + Rabies + Emergency blood loss * Tetanus * Hepatitis B + Measles Product
Slide 9: China's Minister of Health supports blood products industry
China’s Minister of Health supports blood products industry Mr. Zhu Chen, China's Minister of Health, said in the Biopharmaceutical & National Health Forum held on December 25, 2011 — “Blood products are necessary for modern medical treatment of many diseases. They are one of China’s strategic resou
Slide 10: Blood products
Blood products National strategic supplies, irreplaceable for prevention and treatment of specific diseases * Blood products mainly use the plasma of healthy donors as raw material. The plasma is then processed through separation and purification using biotechnology. These products are strategically
Slide 11: Policies on raw material collection
Policies on raw material collection The blood products industry is safe, because China has the strictest policy on raw material collection. 1990s In the early 1990s, there was an “AIDS village” in Henan, where the blood collected was mixed together and the resulting plasma was contaminated and there
Slide 12: Other related policies
Other related policies Regulatory reform on blood products The stringent rules further strengthened the supervision and standardization of blood products: China blood products industry is a sub-sector of the biological products industry and it is strictly supervised by the Chinese government. The Go
Slide 13: Actions of Ministry of Health
Actions of Ministry of Health Doubling the plasma supply is part of China’s newest five-year plan * In 2010, China plasma collection volume was 4,180 metric tons. It can barely meet half of the potential demand for plasma protein products. + Minister Chen encouraged the plasma industry to double pla
Slide 14: Global plasma collection
Global plasma collection Global annual plasma collection is 33,000 metric tons (new and recycled plasma) + In 2010, there were 78 blood production companies in the world (25 in China). The plasma separation volume was 3.3 WT, with the largest factories located mostly in North America and west Europe
Slide 15: Domestic and foreign plasma production
Domestic and foreign plasma production China plasma collection & production* in 2010 Plasma collection & utilization of global companies 32 registered and 3classes and 6 were halted 11 varieties Plasma Plasma ‘Average plasma collection utilization collection 4180 tons 3281 tons 26.8 tons per station
Slide 16: The disadvantages: Chinese versus foreign plasma industries
The disadvantages: Chinese versus foreign plasma industries 1 2 Smaller | | Lower plasma company ~ ~ utilization rates scale a “~ 3 4 Less R&D Fewer product investment categories Chain effect: Unable to Similar 4 ? 5 - Few products with Serious waste of realize resource technologies 75 newer = high
Slide 17: Introduction to China Biologic
Introduction to China Biologic 1 Company overview Company development Core competitive strengths - Plasma sources - Research & development - Production line & quality control - Pipe line é 15 China Biologic Products, Inc.
Slide 18: Company overview
Company overview China Biologic: one of the largest suppliers for blood products China Biologic China Biologic Products, Inc., founded in 2002, was listed (Delaware) on Nasdaq in December 2009, with the ticker symbol CBPO. Taibang China Biologic Products, Inc., based in Beijing, owns 3 Biological (B
Slide 19: Three production bases
Three production bases & China Biologic Products, Inc.
Slide 20: Company milestones and recognition
Pl ae OF a CBPO listed on Nasdaq Global Market 2011 Ranked as Asia’s “200 Best Under a =~ a ar Billion” in Forbes Magazine for the 24 time 75 WT +z OE Ww Forbes GE = zi S886, wRawRIE HREM E89, cizmscinmee RE UEKI A ame eas. HE REGION'S TOP 200 Recognized as a state-level high-tech enterprise BERR Me
Slide 21: Fully integrated biopharmaceutical company
Fully integrated biopharmaceutical company Stringent internal control system, international standard production technology, and unique sales model Manufacturing Unique distribution (Fractionation) model . Plasma collection ‘Among first blood products company that initiated a model to sell directly t
Slide 22: Introduction to China Biologic
Introduction to China Biologic i Company overview Company development Core competitive strengths - Plasma sources - Research & development - Production line & quality control - Pipe line é 15 China Biologic Products, Inc.
Slide 23: Domestic market share
Domestic market share Domestic leading position in R&D, plasma collection, scale and manufacturing capacity, production volume, and product quality China Biologic’s estimated 5 IVIG market share Shandong Guizhou Xi'an based on output volume = 19.1% Taibang Taibang2 —Huitian? Plasma collection center
Slide 24: Product sales mix
Product sales mix Immunoglobulin products account for an increasing share in our product sales mix, in line with the worldwide trend 2010 Sales 2011 Sales % 2011 (millions) (millions) Sales Human albumin $67.1 $83.4 54.5% Human immunoglobulin for intravenous injection (IVIG) aon a8 Hei Human hepatit
Slide 25: China Biologic growth
China Biologic growth Total sales (US$ millions) tsa 140 ye 139.7 120 e a 100 Eas 80 60 8 o) go 2 | 20 “ | = 2005 © 2006 «2007 2008.) 2009 20102011 1074 2005 ©2006 += 2007S 2008» 2009-2010 2011 For the year 2012 -Expected sales growth 10-15% Expected net income growth 4-10% * Please see China Biolog
Slide 26: Summary income statement
Summary income stateme Year ended December 31 Ph aegis ended (US$ in millions) = ee “en Total sales $46.8 $119.0 $139.7 $153.1 $47.2 Gross profit $32.7 $86.4 $102.7 $107.1 $31.5 Gross margin 70.0% 72.6% 73.5% 69.9% 66.7% Operating income $20.3 $61.4 $69.5 $32.2 $18.8 Operating margin 43.5% 51.6% 49.
Slide 27: Selected balance sheet
Selected balance sheet As of December 31, As of March 31, ($ in millions) 2010 2011 2012 Cash and cash equivalents 64.9 89.4 85.0 Inventory 52.3 71.4 70.6 Total current assets 132.8 183.7 186.9 Total assets 220.9 248.9 254.2 Total current liabilities 71.4 67.8 53.3 Total other liabilities 44 2.0 1.9
Slide 28: Introduction to China Biologic
Introduction to China Biologic q Company overview Company development Core competitive strengths - Plasma sources - Research & development - Production line & quality control - Pipe line é 15 China Biologic Products, Inc.
Slide 29: Plasma material collection centers
Plasma material collection centers 14 plasma material collection centers — international model plasmapheresis collection centers Qihe Plasma Collection Center in Shandong Fuping Plasma Collection Center in Shaanxi & Chi ina Biologic Products, Inc.
Slide 30: Plasma donor management
Plasma donor management Five steps to assure safe plasma from healthy donors Five times Facial identification fingerprint identification Identification system Physical examination before donating plasma. Fully-automatic plasma collection machine. Assures up to standards for HBsAg, HCV, HIV, ALT, and
Slide 31: Plasma donor management: safety measures
Plasma donor management Safety measures in every production phase Reducing the hidden safety risks of plasma collection with a triple virus detection defense system First day for plasma donator Waiting for plasma 1 Disqualification Donated plasma sample after 90 days 110 days Detection of sample pla
Slide 32: Introduction to China Biologic
Introduction to China Biologic q Company overview Company development Core competitive strengths - Plasma sources - Research & development - Production line & quality control - Pipe line é 15 China Biologic Products, Inc.
Slide 33: Research & Development
Research & Development Captive research center with 40 years of R&D experience + Several ongoing R&D collaboration projects with prestigious research institutions and laboratories | Ongoing research objectives + Expand portfolio of plasma-based biopharmaceutical products + Maximize manufacturing eff
Slide 34: R&D Awards
R&D Awards q Re ME © Fee ED URSRANEEAROR: See. ReuRRRERE OMA o BUALENES 5 70007 8 “888 S WARE MLSE WAR ABER RT f urxuues BE uReHR Re UR iE #8 i # & China Biologic Products, Inc.
Slide 35: Introduction to China Biologic
Introduction to China Biologic q Company overview Company development Core competitive strengths - Plasma sources - Research & development - Production line & quality control - Pipe line é 15 China Biologic Products, Inc.
Slide 36: Production line & Stringent Quality Control
Production line &Stringent Quality Control Top production line in China + Three manufacturing bases with about 1,300 metric tons of annual capacity. + Top blood products production line in China. Honors and Awards received + Advanced High-tech Enterprise Certification by Ministry of Science and Tech
Slide 37: Introduction to China Biologic
Introduction to China Biologic 1 Company overview Company development Core competitive strengths - Plasma sources - Research & development - Production line &Quality Control - Pipe line é 15 China Biologic Products, Inc.
Slide 38: Products
Products Human Prothrombin Complex Concentrate Human Coagulation Factor VIII Human Hepatitis B Immunoglobulin (pH 4) for Intravenous Injection Human Fibrinogen Varicella Hyperimmune Globulins Human Immunoglobulin for Intravenous Injection - 10% & China Biologic Products, Inc. Preclinical Phase | Pha
Slide 39: Summary
umma Boosting core competitiveness is vital to China Biologic’s future growth Plasma collection Core » competitiveness & China Biologic Products, Inc.
Slide 40: China Biologic Products, Inc.
& China Biologic Products, Ine.
Slide 41: Peer comparison
Peer comparison The comparison leads to the conclusion that our shares are significantly undervalued eS 42 months ended 12 months ended e " March 31, 2012 March 31, 2012" oneey Nae. Revenues (2012/05/17) (mil) P/s® EPS PIE® oo2007.sz = CNY 24.25 © CNY 971 14.4x CNYO.64 —38.0x 600161.sh © CNY 15.15 C
Slide 42: China Biologic's strategy for the blood products market
China Biologic’s strategy for the blood products market + Enlarge and cultivate the talent pool that can adapt to the development trend of the blood products industry, promote corporation culture, establish stable distribution channels, build China Biologic as an international brand. + Develop into
Slide 43: Challenges bring opportunities
Challenges bring opportunities. They can guide our R&D direction and show a better way to profit growth and higher & China Biologic Products, Inc. Development d and challenges for the plasma products industry and manufacturers New packaging New technologies New drug forms New indications
Slide 44: New Packaging & New Technologies
New Packaging & New Technologies | New packaging(Glass bottle versus soft pack) + Lower transportation & storage cost. + Higher safety. + Better recyclability. New technologies Cold ethanol method + chromatography(Complete chromatography) + Produces more plasma protein products + Higher quality & yi
Slide 45: Clinical applications of Immunoglobulin
Clinical applications of Immunoglobulin Extra indications permitted by USFDA - Chronic lymphocytic leukemia (CLL) - HIV infection in children - Bone marrow transplantation - Chronic inflammatory demyelinating polyneuropathy Indications not permitted by USFDA (up to 50% of hospital usage) - Acute Gui
Slide 46: Contacts
Contacts China Biologic Products, Inc. Independent auditor David Gao, Chairman & CEO KPMG 18th Floor, 19 Chaoyang Park Road Chaoyang District, Beijing 100127 Legal counsel People’s Republic of China Wilson Sonsini Goodrich & Rosati Beijing +86 10 6598 3088 ir@chinabiologic.com IR Agent Christensen K
Slide 47: Appendix I: Reconciliation of Adjusted Financial Measures
Appendix I: Reco! usted Financial Measu China Biologic Products, Inc. and Subsidiari Reconciliation of Non-GAAP Financial Measures For the years ended December 31, 2009, 2010, and 2011 Year ended December 31 US dolare 708 7008 a Ea Dated Dies Died 7 Dass etree aids > Eee ESS Eee ‘Adjusted net income
Slide 48: Appendix I: Reconciliation of Adjusted Financial Measures
Appendix |: Reconc! Adjusted Financial Measures THREE MONTHS ENDED} CHINA BIOLOGIC PRODUCTS. INC. AND SUBSIDIARIES Reconciliation of Non-GAAP Financial Weesures FOR The Three Months Ended March 31, 2012 AND 2011 Tame aust Eaed 331002 Netlnue Died 29S Jekom ES duced Neem iedimetrbcompersae NGAP SSG S
Slide 49: Thank you!
Me O 6 Thank you! ] ze e 1’ China Biologic Products, Ine.
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