Slide 1: Expanding Our Reach: 3Q 2011 Performance Results
Expanding Our Reach ee 3Q 2011 Performance Results ee October 2011 (f%) DONG-A PHARM.
Slide 2: Audit review and forward-looking statement notice
The business results for the 3rd quarter of 2011, 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 statement.” Forecasts and projecti
Slide 3: Table of Contents
Table of Contents I Financial Performance(K-GAAP) i Performance by Division i. R&D Update IV. Other Managerial issue Appenelix 2 (% DONG-A PHARM.
Slide 4: I. Financial Performance (K-GAAP)
I, Financial Performance (K-GAAP)
Slide 5: Sales and operating profit YoY and QoQ
Sales grew 14.1% YoY, 7.8% QoQ to KRW241.9bil. Operating profit lowered 11.1% YoY to KRW26.2bil. With 10.8% operating profit margin YoY QoQ [KRW bil.] [KRW bil.] 13.9% 11.0% 10.8% 10.8% 14.1% 7.8% 241.9 224.5 241.9 212.1 3Q '10 3Q '11 2Q '11 3Q '11 Sales OPM 4
Slide 6: Like-for-like sales growth excluding GSK products
• GSK„s Hepsera, Zeffix, Avohalers‟s started to be recorded on Dong-A‟s I/S from 3Q • On like for like, sales grew 6.1% YoY, 0.2% QoQ YoY QoQ [KRW bil.] [KRW bil.] 16.9 16.9 212.1 6.1% 225.0 224.5 0.2% 225.0 3Q '10 3Q '11 2Q '11 3Q '11 Sales 5
Slide 7: Operating profit margin decreased due to increase in CoGS
Operating profit margin decreased 3.1%p due to increase in CoGS 3Q ’10 2Q ‘11 3Q '11 YoY QoQ Gross Profit Margin 58.6% 58.1% 52.6% -6.0%p -5.5%p Operating Profit Margin 13.9% 11.0% 10.8% -3.1%p -0.2%p SG&A per Sales 44.7% 47.1% 41.8% -2.9%p -5.3%p HR Related Cost per Sales 11.7% 15.3% 12.3% 0.6%p
Slide 8: Major Financial Ratio K-GAAP (K-IFRS)
[KRW bil.] 2011. 06 2011. 09 Change Major Financial Ratio K-GAAP (K-IFRS) Total Asset 1,211.3 1,257.2 3.8% 59.2% (61.3%) 60.6% (62.6%) Liability to Equity Ratio Cash* 147.4 198.3 34.5% 37.0% (33.6%) 35.7% (37.0%) Debt to Payable 143.0 148.8 4.1% Equity Ratio 17.6% (13.4%) Inventory 115.9 110.3 -4.8%
Slide 9: II. Performance by Division
Slide 10: ETC sales YoY, QoQ
ETC sales grew 17.8% YoY, 12.4% QoQ General Hospital sales increased 21.5% YoY, Clinic sales increased 14.3% YoY ETC 2Q YoY, QoQ [KRW bil.] 135.9 17.8% 12.4% 120.9 115.3 66.9 14.3% 9.2% 58.5 61.3 Clinic General Hospital 69.0 56.8 21.5% 15.8% 59.6 3Q '10 3Q '11 2Q '11 9
Slide 11: Major ETC Products Growth
Major ETC Products Growth [KRW bil.] 1.7% 20.7 21.0 -27.0% -3.8% 10.3% 13.2 10.9 10.5 11.3 9.7 10.2 -12.1% 16.3% 26.4% 0.3% -2.1% 7.0 6.1 5.1 5.2 4.9 4.9 4.4 4.1 4.4 4.3 Stillen Opalmon Plavitor Lipinon Orodipine Zydena Talion Gaster Cozartan 3Q '10 3Q '11 10
Slide 12: OTC 3Q YoY, QoQ
OTC sales improved 18.7% YoY buoyed by 24.2% growth in Bacchus OTC 3Q YoY, QoQ [KRW bil.] 70.7 18.7% 13.7% 62.2 59.6 24.0 9.3% 2.1% 23.5 22.0 Other OTC Bacchus 24.2% 46.7 20.8% 37.6 38.7 3Q '10 3Q '11 2Q '11 11
Slide 13: Major OTC Products Growth
Major OTC Products Growth 24.2% [KRW bil.] 46.7 37.6 -8.8% 4.2% -4.1% 32.9% 5.0 4.5 4.2 4.0 2.9 3.1 2.4 1.8 Bacchus Panpyrin Garglin Begen Morning Care 3Q '10 3Q '11 12
Slide 14: Medical 3Q YoY, QoQ
Medical Equipment sales decreased 4.0% YoY Diagnostics sales decreased 9.9% YoY Medical 3Q YoY, QoQ [KRW bil.] 26.0 -21.4% 22.0 -7.1% 20.4 12.3 10.4 -4.0% -18.6% 10.0 Medical Equipment Diagnostics 13.7 11.6 -9.9% 10.4 -23.8% 3Q '10 3Q '11 2Q '11 13
Slide 15: Major Medical Products Growth
Major Medical Products Growth [KRW bil.] -6.0% 4.1 3.8 8.8% -19.0% 2.3 2.2 2.1 3.1% 1.4% 1.7 1.3 1.3 1.0 1.1 Artificial Joint Blood Vessel Stent Prosthetic Heart Valve Dental Implant Sphygmotonograph & Surgical Equipment 3Q '10 3Q '11 14
Slide 16: Export 3Q YoY, QoQ
Export sales grew 14.8% YoY, 3.2% QoQ Export 3Q YoY, QoQ 14.8% 3.2% 13.8 13.4 12.0 3Q '10 3Q '11 2Q '11 15
Slide 17: Regional Growth Products Growth
Regional Growth Products Growth [KRW Bil.] -5.7% [KRW Bil.] -33.6% 4.1 3.9 4.1 169.3% 3.1 -34.8% -15.3% 2.8 2.7 2.3 21.3% 2.0 -31.8% 118.5% -15.8% 1.8 1.7 335.2% 1.4 1.3 1.3 1.2 1.0 1.1 0.9 0.8 0.6 0.2 Brazil India S. Africa Russia Turkey Gtowtropin Leucostim Cycloserine Terizidone Bacchus 3Q '10 3Q
Slide 18: III. R&D Update
iil. R&D Update
Slide 19: NCE pipeline by code, indication and stage
MAJOR TYPE CODE NAME DESCRIPTION STAGE INDICATION Phase 3 completed (US) Erectile Dysfunction Warner Chilcott Benign Prostatic Phase 2 planned (US) Hyperplasia Warner Chilcott DA – 8159 PDE-5 Inhibitor Under Phase 2 (EU) Portal Hypertension Dr. Falk Pulmonary Arterial Under Phase 2 (KR) Hypertension
Slide 20: Phyto and Bio pipeline
TYPE CODE NAME MAJOR INDICATION DESCRIPTION STAGE Motilitone Functional Dyspepsia Herbal Extracts NDA Approved (KR) Phyto DA-9801 Diabetic Neuropathy Herbal Extracts Phase 2 planned (KR) Infertility (Ovulation DA-3801 Induction) Recombinant FSH Under Phase 3 (KR) DA-3803 Infertility Recombinant hCG
Slide 21: R&D on Bio at Beginning Stage
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, Herceptin Biosimilar) 20
Slide 22: Development timeline 2011 to beyond 2014
2011~2012 2012~2013 2013~2014 2014~BEYOND DA-8159 (BPH – U.S. / PAH) DA-7218 DA-1229 (MRSA - U.S.) (Diabetes) DA-8159 DA-6034 (PH) (Dry Eye) DA-9701 DA-8159 (Dyspepsia) (ED – U.S.) DA-3803 DA-8031 (Infertility) (Premature DA-3801 DA-6034 Ejaculation) (Anovulation) (Gastritis) DA-3031 (Neutropenia) D
Slide 23: IV. Other Managerial Issue
IV. Other Managerial issue
Slide 24: IFRS vs. K-GAAP Reconciliation
IFRS vs. K-GAAP Reconciliation [KRW bil.] Statements of Income Statements of Financial Position Account K-GAAP K-IFRS Account K-GAAP K-IFRS Sales 241.9 241.9 Current Assets 458.7 458.9 CoGS 114.7 113.7 Gross Profit 127.2 128.2 Non-current 798.5 741.4 SG&A 101.0 98.8 Assets Other Income 1.0 Other L
Slide 25: Appendix
Apppenclix
Slide 26: Balance sheet history
[KRW bil.] 2008 2009 1Q ‘10 2Q ‘10 3Q ‘10 4Q ‘10 1Q ‘11 2Q ‘11 3Q ‘11 Total Assets 731.6 1,000.0 1,025.8 1,188.2 1,175.0 1,160.4 1,193.7 1,211.3 1,257.2 Current Assets 292.7 294.7 301.7 448.2 438.6 380.4 401.2 417.6 458.7 Cash 44.5 44.8 54.9 177.5 181.8 132.6 147.0 147.4 198.3 Receivables 134.9 133.
Slide 27: Income statement history
[KRW bil.] 2008 2009 1Q ‘10 2Q ‘10 3Q ‘10 4Q ‘10 2010 1Q ‘11 2Q ‘11 3Q ‘11 Sales 702.3 801.1 201.0 221.4 212.1 212.3 846.8 210.2 224.5 241.9 CoGS 259.2 323.2 81.7 86.4 87.9 89.6 345.6 83.7 94.1 114.7 Gross Profit 443.1 477.9 119.3 135.0 124.2 122.7 501.3 126.5 130.4 127.2 SG&A 361.4 386.0 96.0 106.3
Slide 28: Sales by division
[KRW bil.] Division 2008 2009 1Q ‘10 2Q ‘10 3Q ‘10 4Q ‘10 2010 1Q ‘11 2Q ‘11 3Q ‘11 ETC Total 399.0 463.1 120.0 124.2 115.4 122.1 481.3 114.5 120.9 135.9 General Hospital 208.2 227.5 60.9 60.7 56.8 57.1 235.5 55.8 59.6 69.0 Clinic 190.8 235.6 58.7 63.5 58.5 65.0 245.7 58.7 61.3 66.9 OTC Total 199.0
Slide 29: Sales by product
[KRW bil.] Products 2008 2009 1Q ‘10 2Q ‘10 3Q ‘10 4Q ‘10 2010 1Q ‘11 2Q ‘11 3Q ‘11 Stillen 74.8 85.4 22.1 22.4 20.7 22.5 87.7 22.1 21.9 21.0 Opalmon 31.9 40.6 11.0 12.3 13.2 7.8 44.3 8.8 9.7 9.7 Plavitor 29.9 39.7 10.5 10.5 10.9 11.8 43.6 10.5 11.7 10.5 Lipinon 9.6 30.9 9.6 10.4 10.2 10.6 40.9 11.5
Slide 30: Sales by product: Bacchus and OTC
[KRW bil.] Products 2008 2009 1Q ‘10 2Q ‘10 3Q ‘10 4Q ‘10 2010 1Q ‘11 2Q ‘11 3Q ‘11 Bacchus 118.8 116.5 23.0 36.8 37.6 31.0 128.3 26.6 38.7 46.7 Panpyrin 16.3 19.9 7.2 5.0 4.9 6.7 23.8 6.9 4.6 4.5 Bigen 15.4 15.3 3.4 3.5 4.2 2.6 13.7 3.7 3.7 4.0 Garglin 12.2 15.6 4.2 4.6 2.9 3.2 14.9 3.4 3.2 3.1 Mor
Slide 31: Corporate Information & IR Information
MAG OCSCRIPNON The Main Ding ot Dong A Pearmacmtis! Mesciosrtaes CORPORATE INFORMATION & IR INFORMATION CORPORATE INFORMATION IR INFORMATION Banwol Plant 434-3 Me http://www. DONG-A PHARM.