Slide 1: Cultivating Brands Embracing Technological Advancement
. Cultivating Brands Embracing Technological Advancement 2017 Annual Results Investor Presentation 26th June 2017 | Hong Kong Stock Code 2633
Slide 2: Agenda
Agenda • Welcoming Remarks and Key Events After IPO • M&A – Rationales & Approach • Key Elements of Our Growth Strategy • How Our Businesses Performed in FY2017 • Financial Results and Highlights • Outlook • Q&A SPEAKERS: Derek Sum, Chairman and CEO Raymond Yim, Executive Director Victor Lau, VP – F
Slide 3: Key Events After IPO
Key Events After IPO 09/2016 11/2016 11/2016 12/2016 01/2017 03/2017 04/2017 05/2017 06/2017 IPO M&A Operation R&D M&A M&A R&D M&A MSCI Incorporate Ho Chai Kung Brand Saplingtan Hong Gold Ning MSCI HK & Shiling Medipharma Medal Hong Micro-cap Oil HKIB Award Index Main Geneva Board Invention Synco 3
Slide 4: Merger & Acquisition: Rationales & Approach
Merger & Acquisition Rationales & Approach 4
Slide 5: Rationales of “M&A”
Rationales of “M&A” INDO- THAILAND SINGAPORE MALAYSIA JAPAN AUSTRALIA NESIA Defend & Attack CAMBODIA MYANMAR VIETNAM Assets on the chessboard are networked MACAU CHINA Putting the right asset in the right place HONG 兜安氏 十靈丹 MEDI- KAREN 何濟公 NING PHARMA 藥膏 十靈油 HONG PHARMA APT EURO- 秀碧 保濟丸 飛鷹 PHA
Slide 6: Goals of “M&A”
Goals of “M&A” Create chemistry Build long effect through term values shared data and for Jacobson customer reach IMPACT Add dimensions Gain access to new markets and broaden Catalyzing and to our portfolio paving way for geographic reach Generate next strategic Generate profit move sy
Slide 7: How To Approach “M&A”
How To Approach “M&A” “M&A” strategy has to be in sync with 1 business strategies Market intelligence & people network are 2 the keys to making a sensible “M&A” move “M&A” is an integral part of a bigger 3 corporate plan, not a stand-alone strategy 7
Slide 8: We Remain Focused…
We Remain Focused… Strategic Focus Pursue continued growth in Vision-Driven revenues, horizontally and vertically Build an expandable platform of Culture – proprietary brands to boost Challenge & revenue and deepen geographic Commit reach Pursue product differentiation to Strategic give us edge to c
Slide 9: Key Elements of Our Growth Strategy
Key Elements of Our Growth Strategy 9
Slide 10: Key Elements of Our Growth Strategy
Key Elements of Our Growth Strategy Sharpen Sustained investment in R&D Product Enter early with off-patent molecules (e.g. Entecavir, Portfolio Rosuvastatin, Celecoxib, UDCA, Mesalazine) Focus on Cultivate strong brands to attain growing revenue Sales stream and market reach & Marketing Str
Slide 11: How Our Businesses Performed in FY2017
How Our Businesses Performed in FY2017 11
Slide 12: How We Performed…
How We Performed… Solid growth of +15.9% in revenue and +30.7% in adjusted profit Performance Growth Drivers Generic: Revenue grew by Expanded market shares and price inflation for +16.2% to HK$1,097.6M respiratory and GI products in retail Public Sector grew by Strong sales momentum for respira
Slide 13: Financial Results and Highlights
Financial Results and Highlights 13
Slide 14: Key Financial Data
Key Financial Data (HK$’m) FY2017 FY2016 Changes Revenue 1,256.0 1,083.9 +15.9% Gross Profit 556.9 487.8 +14.2% Adjusted Profit Attributable to 201.9 154.5 +30.7% Shareholders Dividend – Interim and Final (HK cents) 2.2 N/A EPS - Basic and Diluted 11.39 11.13 (HK cents/shares) 14
Slide 15: Revenue
Revenue Revenue increased by 15.9% (HK$ ’M) to HK$1,256.0 million 1,300 1,256.0 • Increase in revenue of 1,200 158.4 $152.8 million in Generic 1,083.9 1,100 Drugs Segment (87%) and 1,000 139.1 HK$19.3 million in Proprietary Medicine 900 Segment (13%) 800 • Significant increase in 700 revenue contrib
Slide 16: Gross Profit
Gross Profit (HK$ ’000) 600,000 Gross Profit increased by 550,000 14.2% to HK$556.9 500,000 million 450,000 400,000 • Contributed by the increase in revenue of 350,000 $172.1 million while 556,888 300,000 487,755 offset by the increase 250,000 in production cost 200,000 150,000 100,000 50,000 0 2016
Slide 17: Profit Attributable to Shareholders
Profit Attributable to Shareholders (HK$ ’M) 220 Adjusted profit 201.9 attributable to the 200 22.6 shareholders increased by 180 30.7% to HK$201.9 million 154.5 160 8.9 140 • The increase in profit 120 attributable to 100 shareholders reflected 179.3 80 the increase in profit 145.6 60 from operatio
Slide 18: Key Balance Sheet Data
Key Balance Sheet Data (HK$’000) FY2017 FY2016 Total Assets Less Current Liabilities 1,911,578 1,005,215 Cash and Cash Equivalents 359,685 82,925 Inventories 261,313 196,915 Trade and Other Receivables 201,470 209,957 Net Gearing Ratio 32.6% 37.3% 18
Slide 19: Outlook For Future Growth
Outlook For Future Growth ® Jacobson Pharma Corporation
Slide 20: Outlook – Better Positioned For Future Growth
Outlook – Better Positioned For Future Growth Opportunity Management Response Hong Kong & Accelerate product development emerging markets in Strengthen our “First-to-opportunity” position SEA offers room of growth Deploy dedicated resources for export markets E-commerce in China 20 Realign r
Slide 21: Thank You
Thank You Cultivating Brands Embracing Technological Advancement 21
Slide 22: Q&A
Q&A Cultivating Brands Embracing Technological Advancement 22
Slide 23: Appendix
Appendix Cultivating Brands Embracing Technological Advancement 23
Slide 24: Annual consolidated statement of profit or loss and other comprehensive income
Annual consolidated statement of profit or loss and other comprehensive income Year ended 31 March 2017 2016 HK$’000 HK$’000 (audited) (audited) REVENUE 1,255,957 1,083,856 Cost of sales (699,069) (596,101) GROSS PROFIT 556,888 487,755 Other income 11,740 (465) Selling and distribution expenses (145
Slide 25: Annual consolidated statement of financial position
Annual consolidated statement of financial position As at 31 March As at 31 March 2017 2016 HK$’000 HK$’000 (audited) (audited) NON-CURRENT ASSET Property, plant and equipment 1,007,672 815,323 Leasehold land 48,839 51,418 Intangible assets 1,056,801 426,681 Non-current assets 20,420 27,710 Deferred
Slide 26: Cultivating Brands Embracing Technological Advancement
Cultivating Brands Embracing Technological Advancement 26