Slide 1: Investor & Analyst Presentation 1H24 Financial Results
INVESTOR & ANALYST PRESENTATION 1H24 FINANCIAL RESULTS Ho Chi Minh City August 2024
Slide 2: Solid performance in H1 with momentum building through Q2
Solid performance in H1 with momentum building through Q2 Net revenue H1 Net revenue Q2 VND 1,008 bn VND 517 bn Tier 2 ETC ▲ 10% YoY ▲ 5% QoQ market market share position EBITDA H1 EBITDA Q2 VND 215 bn 39% VND 110 bn Gross 37% ▼ 7% YoY profit 34% ▲ 5% QoQ margin 20% 21% 21% PBT H1 EBITDA PBT Q2 marg
Slide 3: Imexpharm is on track to meet its FY24 target
Imexpharm is on track to meet its FY24 target Key drivers • Increase in orders received for No. Target (VND Bn) 2023 2024 Growth IMP4’s high-margin products 1 Gross revenue 2,113.9 2,630.1 24% • New distribution agreements reached with major chains for • OTC 1,083.0 1,214.0 12% multiple SKUs • ETC 8
Slide 4: IMP boosted production at its higher-margin EU-GMP factories
IMP boosted production at its higher-margin EU-GMP factories 4% Factory Production volume vs. 1H23 6% 1H24 IMP1 (17%) IMP2 19% 4% 39% IMP3 2% 2% IMP4 453% 1H23 37% 30% 53% Others 61% 12% TOTAL (10%) Proactive balancing of inventory levels, especially IMP1 given slower OTC market. Under constant revi
Slide 5: H1 costs reflect a prudent response to varying market conditions
H1 costs reflect a prudent response to varying market conditions COGS (VND bn) +27% COGS increase caused by: Active Pharmaceutical Ingredients price rise (3% on average) 627 495 Proactive rebalancing of finished goods inventory amid slower OTC market 1H23 1H24 Depreciation costs at IMP4 SG&A expense
Slide 6: Regulatory climate increasingly favors local EU-GMP manufacturers
Regulatory climate increasingly favors local EU-GMP manufacturers IMP is positioned strongly Newly restricted • New Vietnam government circular SKUs: (03/2024) increases the number of 6% products subject to restricted import in public tender • Of the 93 medications added to the list, IMP has secured
Slide 7: Imexpharm is capitalizing on its leading ETC position
Imexpharm is capitalizing on its leading ETC position We are now the number THREE player in Vietnam’s ETC-Hospital channel, far ahead of all other local players Top 10 players in Vietnam ETC-Hospital channel (% M/S) 4,1% 2,9% 2,3% 2,2% 2,2% 2,0% 2,0% 1,9% 1,8% 1,7% Source: IQVIA (excluding vaccines)
Slide 8: Imexpharm's growth is in line with expectations
Imexpharm’s growth is in line with expectations ETC network Northern area +49% 1000 Strong progress in growing 2.3x domestic ETC customer base: 20 • Total customers up 49% YoY 500 10 Transformation in Northern 0 0 Region: 1H23 1H24 1H23 1H24 • 9 new hospitals and clinics won OTC network (1H23: 7) •
Slide 9: Continued dominance in Tier 2 tenders; improvement across all levels
Continued dominance in Tier 2 tenders; improvement across all levels Market tender value 1Q IMP tender value (VND tn) (VND bn) 5,0 0.8% 18.4 5.2% %MS 0.3% 13.1 % 0.3% % 2,7 2,7 174 177 2,5 2,1 142 1,3 1,0 0,7 1Q23 1Q23 17 1Q24 8 8 1Q24 Branded Tier 1 Tier 2 Tier 3-5 Tier 1 Tier 2 Tier 3-5 Source: DA
Slide 10: ETC growth compensated for OTC market softness
ETC growth compensated for OTC market softness Revenue (VND bn) ETC Channel Gross revenue ETC continued to outperform due to: +22% • Hospital channel growth ETC 33% yoy • Customer network expansion +49% yoy 1127 925 • New product launches Overall, the ETC market grew 15% in Q1, indicating IMP outper
Slide 11: Outstanding R&D capability
Outstanding R&D capability Top five bestselling new drugs in Vietnam over the last twelve months Sales revenue (VND) Capecitabine - Remedica 93,2 Bn Doripenem - Pharbaco (TW1) 54,2 Bn IMP’s high-value Moxifloxacin injectable is Vietnam’s #3 leading Moxifloxacin - Imexpharm 29,3 Bn new product from t
Slide 12: Outstanding R&D capability
Outstanding R&D capability No. Factory Product name Dosage form 93 total 10 new 1 Imemoti Tab Tablets SKUs projects IMP1 in pipeline launched 2 Murocin 200 POS Power (oral) 3 Imerixx 200 FCT Tablets 10 new SKUs 5% 4 Imedoxim 100 FCT Tablets IMP3 5 Imecefzol 125 SC POS Powder (oral) H1 Net Oral Other
Slide 13: Exciting growth prospect with IMP5 plan
Exciting growth prospect with IMP5 plan Product Portfolio finalizing Feasibility study completed IMP5 Funding plan 13
Slide 14: Planned bonus share issuance will take IMP to the next level
Planned bonus share issuance will take IMP to the next level Issuance designed to: Post issuance, IMP Support IMP’s expansion plans will become the largest listed pharmaceutical Strengthen IMP’s capital base company in terms of charter capital. Enhance liquidity in IMP’s shares This will reinforce I
Slide 15: Committed to sustainable growth
Committed to sustainable growth VNSI Top 50 corporate sustainability awards Top 20 listed sustainable corporates Nhipcaudautu Magazine (2024) HOSE (2024) Pharmaceutical industry representatives • 3 consecutive years selected • Astrazeneca • The only name from healthcare sector • Sanofi-Aventis • Ime
Slide 16: Positive YTD stock performance
Positive ytd stock performance Note: As of 30 Jul 2024 Industry avg. %YTD Stock price (VND) 83,000 IMP Market cap (VND) 6,391 Bn DHG TRA EPS (VND) 3,947 DBD DHT P/E 19.1 23.9 VN- Index P/B 2.5 2.9 EBITDA multiple 11.7 29-Dec 29-Jan 29-Feb 31-Mar 30-Apr 31-May 30-Jun Revenue multiple 2.5 IMP DHG TRA
Slide 17: Thank You
Thank You For further discussion, please contact our IR team ir@imexpharm.com 17