Scinopharm Taiwan, Ltd. · TWSE:1789

Scinopharm Taiwan — Investor Presentation (March 2014)

30 slides from Scinopharm Taiwan's investor presentation, Mar 24, 2014

  1. Slide 1: ScinoPharm Corporate Presentation

    ScinoPharm Corporate Presentation TWSE 1789

  2. Slide 2: Disclaimer

    Confidential Disclaimer This material has been prepared by ScinoPharm Taiwan, Ltd. (“ScinoPharm”). Any opinions expressed in this material are subject to change without notice as a result of using different assumptions. ScinoPharm is under no obligation to update or keep current the information cont

  3. Slide 3: Table of Content

    Confidential Table of Content Overview of ScinoPharm Industry Overview Key Strengths and Strategy CSR Update Outlook 3

  4. Slide 4: Overview of ScinoPharm - An API + ANDA Company

    Overview of ScinoPharm - An API + ANDA Company

  5. Slide 5: Background

    Confidential Background  Established in 1997 in Taiwan by founders from Syntex, listed on TWSE, current market capitalization around US$1.9 billion  Major investors including Uni-President Group, Government’s Development Fund, Taiwan Sugar, etc.  Facility & organization designed & built in Taiwan

  6. Slide 6: Mission

    Confidential Mission  Maintain dominant position in Specialty APIs for generic market  Provide API custom synthesis services to new drug & brand companies  Process R&D and clinical supplies leading to future contract manufacturing opportunities of new chemical entities (“NCEs”)  Contract manufac

  7. Slide 7: Major Milestones

    Major Milestones Confidential 1997 ScinoPharm Taiwan, Ltd. established 2000 CGMP production began in small-scale units 2001 Passed first US FDA site inspection at Taiwan manufacturing site 2001 Established ScinoPharm Kunshan in China and ScinoPharm Biotech 2003 First generic API supplied for commerc

  8. Slide 8: Business Overview

    Confidential Business Overview  Maintain dominant position in Specialty APIs for generic market. Strong customer base (300+) in US/EU/Japan, some through Indian generics. Aggressively developing Japan and China markets  Developed ~70 generic APIs with 23 launched. Filed 47 DMFs in US (664 DMFs WW)

  9. Slide 9: World Class Facilities

    World Class Facilities Confidential Taiwan China  6.6 hectares of land, 330K sqft facilities  6.6 hectares of land with ~250M3 with >200M3 reactor volume after 2 reactor volume large product lines expansion  1st phase completed in Q1, 2012  8 of 18 production lines equipped with high 2nd phase c

  10. Slide 10: Cumulative P&L - Consolidated

    Cumulative P&L - Consolidated 1Q~4Q,’13 1Q~4Q,’12 In NT$ million, except for EPS YoY (Audited) (Audited) Net Sales 5,088 4,573 11% Gross Profit 2,543 2,313 10% Gross margin 50% 51% Operating Expenses (1,145) (1,053) 9% Operating Income 1,398 1,260 11% Operating margin 28% 28% Other Rev.(Exp.) 11 112

  11. Slide 11: Balance Sheet- Consolidated

    Balance Sheet- Consolidated 2013/12/31 2012/12/31 In NT$ million (Audited) (Audited) Cash and Cash Equivalents 2,289 20% 3,035 29% Accounts Receivable 971 8% 841 8% Inventories 2,512 22% 1,870 18% Long-Term Investments 258 2% 168 2% Fixed Assets 4,214 37% 3,559 34% Total Assets 11,484 100% 10,340 10

  12. Slide 12: Cash Flows- Consolidated

    Cash Flows- Consolidated 1Q~4Q 2013 1Q~4Q 2012 In NT$ million (Audited) (Audited) Cash and cash equivalents at 3,035 3,294 beginning of period Cash flows from operating activities 939 982 CAPEX (1,226) (873) Long-term Investment (107) - Short-term borrowings 426 264 Cash Dividends (780) (631) Others

  13. Slide 13: Sales by Business

    Sales by Business FY2012 FY2013 CMO CMO CRO 28% 2% 26% Generic Generic 72% 72% CRO <1% 13

  14. Slide 14: Sales by Indications

    Confidential Sales by Indications Others Others 29.58% 31.09% Oncology Oncology 70.42% 68.91% 學名藥 學名藥 90.91% 88.56% 14

  15. Slide 15: Sales by Region

    Confidential Sales by Region 15

  16. Slide 16: Key Strengths and Strategy

    Key Strengths and Strategy

  17. Slide 17: Business Strategies

    Confidential Business Strategies  Maintain balance between generic & brand business, non-competing on same products  Provide comprehensive (life cycle) services to NCE development companies from clinical materials to commercial  Focus on generic APIs with high technological barrier to entry  Pro

  18. Slide 18: Competitive Advantages

    Confidential Competitive Advantages  Combination of cost advantages and GMP/IP/EHS compliance from China & Taiwan  Rich generic pipeline driven by a seasoned & cost effective R&D infrastructure  Familiarity with drug development & registration requirements  Track record of timely and extensive c

  19. Slide 19: High Profile Talents

    High Profile Talents Whole Company R&D Dept. * Represents ScinoPharm Taiwan staff only 19

  20. Slide 20: Strong Generics Product Portfolio

    Confidential Strong Generics Product Portfolio Focus on High Barrier and High Potency Generic API Products Type # of Product Oncological 30 CNS 7 Cardiovascular 3 Hormonal 3 Gastrointestinal 1 Muscle 4 Antiviral 5 Respiratory 2 Peptides 6 Miscellaneous 6 11 20

  21. Slide 21: Global DMF Filings

    Confidential Global DMF Filings 台灣神隆DMF全球註冊概覽表 Number of DMF filed 800 台灣神隆DMF全球註冊概覽表 730 700 662 631 600 587 537 500 435 400 370 300 287 200 170 100 34 38 41 43 47 53 22 27 29 0 2006 2007 2008 2009 2010 2011 2012 2013 2014(E) US DMF Accumulation Worldwide DMF Accumulation ScinoPharm’s Strengths in

  22. Slide 22: ScinoPharm - Oncological API Leader

    ScinoPharm - Oncological API Leader Source: FDA 2013Q4 DMF database 22

  23. Slide 23: Corporate Social Responsibility (CSR) Update

    Corporate Social Responsibility (CSR) Update

  24. Slide 24: ScinoPharm's CSR Concept

    ScinoPharm’s CSR Concept E（Environment） - Energy savings - Environmental Protection - Balance between Human and Environment G（Corporate S（Social） Governance） - Labor Safety is priority - Comprehensive and fair - Balanced compensation CSR disclosure - Healthy working - Financial transparency environm

  25. Slide 25: ScinoPharm CSR results

    ScinoPharm CSR results Social ScinoPharm Seminars, Welfare Baseball Camp, PC Welfare donations, Emergency Aids, Charitable Auctions Industry/College Holding lectures and plant tours for college students, Exchange helping students to understand industries Sustainability Environmental protection from

  26. Slide 26: ScinoPharm CSR results (cont'd)

    ScinoPharm CSR results (cont’d) Labor Compliance with labor laws, Non-discriminations, Relations Career development plans, Healthy activities Corp. Establishment of Corp. Governance and moral Governance standards, Code of conduct, Integrity as top priority Info. Info disclosure complied with TWSE re

  27. Slide 27: Outlook

    Outlook

  28. Slide 28: Outlook

    Confidential Outlook  Sustain Leadership in Oncological APIs Continue to launch and develop oncological injectable APIs & others with high technological barriers including Peptides  Establish Presences in China Develop API business to timely capture the generic business and CMO by MNCs  Japanese

  29. Slide 29: Questions & Answers

    Questions & Avnswers ae ee ScinoPharm

  30. Slide 30: Brand Quality with Asian Advantages

    Brand Quality with Asian Advantages www.scinopharm.com 30

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