ADIM — Investor Presentation 2017

May 18, 2017

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TWSE 4142

May, 2017

Disclaimer

• The presentation and the relevant information mentioned in this material, including operating performance, financial performance and the business outlook, have been compiled from both internal and external resources.

• These forward looking statements involve known and unknown risks, uncertainties and other factors, including price variation, competition, global economy, exchange rate movement and market demand, which may cause actual results to differ materially from those implied by such forward-looking statements.

• This Presentation should not be considered as the giving of investment advice by the Company or any of its shareholders, directors, officers, agents, employees or advisers. Each party to whom this Presentation is made available must make its own

independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary. In particular, any estimates or projections or opinions contained herein necessarily involve significant elements of subjective judgment, analysis and assumptions and each recipient should satisfy itself in relation to such matters.

• The forward looking statements expressed in this material reflect the Company’s current view about the future as of today. The Company is not responsible for any updates if there are any changes in the future.

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Contents

1Q2017 Review & 2017 Outlook

Strategy for Future Growth

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2016 Review

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1Q2016-1Q2017 Revenue
NT$ mn
400
350
296
300
250
200
154
150
111
100
75
45
50
-
1Q2016 2Q2016 3Q2016 4Q2016 1Q2017
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1Q2016 2Q2016 3Q2016 4Q2016 1Q2017
0%
-150%
-300%
-450% GM OpM NM
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• 2016 revenue of NT$ 75.4mn, up 67% YoY

• 2016 earning of NT$ -198.9mn, down NT$ 47.6mn YoY

• The growth in revenue thanks to the stable shipment of Enoxaparin Sodium Injection to Europe.

• The increase of net lose is mainly due to the expenses of Quadrivalent flu vaccine phase III trial in Europe, causing higher R&D and G&A cost.

We strictly control cost, so in 1Q2017:

• GM up 54 PPt

• OpM up 66 PPt

• NM up 69 PPt

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1Q2017 Consolidated P&L

NT$ Mn	2016 Amount %	2016 Amount %	2015	%	YoY
	Amount		Amount
Revenue	75	100%	45	100%	67%
COGS	-163	-216%	-122	-270%	34%
Gross Profit	-88	-116%	-77	-170%	14%
S&M	-5	-7%	-6	-13%	-15%
G&A	-48	-64%	-38	-84%	27%
R&D	-46	-61%	-21	-47%	17%
Operating Expense	-99	-132%	-65	-144%	53%
Operating Income	-187	-248%	-142	-314%	32%
Non-Op	-12	-16%	10	22%	-653%
Profit before Tax	-199	-264%	-151	-336%	31%
Income Tax	-	-	-	-	-
Net Profit	-199	-264%	-151	-336%	31%
EPS (Basic)	-0.84		-0.63		33%

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1Q2017 Consolidated Balance Sheet

NT$ Mn	2017.03.31 Amount %	2017.03.31 Amount %	2016.12.31 Amount %	2016.12.31 Amount %	2016.03.31	2016.03.31
	Amount		Amount		Amount	%
Key Items
Cash & Equivalent	1,771	27%	1,670	25%	761	15%
AR & NR	56	1%	402	6%	44	1%
Inventory	560	9%	508	7%	543	10%
PP&E	2,709	42%	2,769	41%	2,928	56%
Current Liability	726	11%	818	12%	413	8%
Non-Current Liability	2,867	44%	2,872	42%	1,322	25%
Total Shareholder’s Equity	2,910	45%	3,095	46%	3,518	67%
Total Asset	6,502	100%	6,785	100%	5,254	100%

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2017 Outlook

Flu Vaccine

• Taiwan trivalent flu vaccine shipment remain stable

• Obtained quadrivalent flu vaccine approval in Taiwan

• Expect more shipment of trivalent flu vaccine to China, and obtain market access from more provinces/municipalities in China

• Completed enrollment in EU Phase III trial of quadrivalent flu, data analysis begun on schedule

Other Vaccine

• Started enrollment in Taiwan EV71 vaccine Phase III trial

• Obtained cell cultured Japanese Encephalitis vaccine (import) approval in Taiwan

Prefilled Syringe

• Enoxaparin Sodium Injection Started shipping to EU market

• US quadrivalent flu vaccine will start commercial batch shipping

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Contents

1Q2017 Review & 2017 Outlook

Strategy for Future Growth

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Value Creation – Adimmune Style

• We are a vertically-integrated, innovative bio-pharma

• company excel in high-quality human vaccine R&D and

manufacturing, aseptic prefilled syringe filling, multinational vaccine registration, branding and strategic producing partnership, with a steady revenue stream.

• We have deep collaboration relationship with national academic institutes (e.g. Academia Sinica, NHRI, DCB, ITRI) and ready to move on to other bio-pharma products.

• We are the only vaccine provider in Asia that has obtained USA, EU, China, Korea and Taiwan cGMP.

• Our superior quality is led by > 50 years of experience in cGMP vaccine manufacturing and collaborating with Japan and European MNCs.

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• Our solid capabilities in high-quality commercial scale human vaccine manufacturing and PFS filling enables us to expand our business to China, Europe and the US.

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The Most Qualified Vaccine Provider in Asia

0.3% 10.6% 28.8% 60.3% 0% 20% 40% 60% GSK Novartis Sanofi Adimmune 2016 Taiwan Flu Vaccine Market Share		Founded in 1965 Ticker: 4142 TT 278 Full Time Employees Dedicated research, development and manufacturing of human vaccine and aseptic PFS Filling Revenue of NT$290mn/607 mn in 2015/2016 Market cap of US$170 mn (as of 2017/05/15) Headquarters: Taichung, Taiwan cGMP Vaccine Facility: Certificate: EU, China, Korea and Taiwan cGMP obtained. Capacity: 25mn doses/yr (flu) cGMP PFS Filling Facility: Certificate: USA, EU and Taiwan cGMP obtained. Capacity: 25mn doses/yr

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Diversify Technology

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Egg Based Process

• -Flagship technology of Adimmune

• -Mature and stable

• -Flu vaccine mass production

Recombinant Protein

• -Months faster than Egg-based and cell-culture process to tackle outbreak

-Consistent high quality and competitive manufacturing costs

-Flu vaccine

Serum Free Cell Culture

• -Risk free from Mad cow disease

• -Easy to scale up with Bioreactor

• -Flu, Japanese Encephalitis, and Enterovirus vaccine, Monoclonal antibody

Advance Aseptic PFS Filling Technology

-Avoid cross contamination -Protein product need full aseptic environment

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Multiple Products

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Products in 2016 Products by 2018 Future Products
Trivalent Flu vaccine Trivalent Flu vaccine
Quadrivalent Flu vaccine Existing Products
Avian Flu pandemic vaccine
Mouse brain-derived Japanese Cell Cultured Japanese Monoclonal Antibodies
Encephalitis vaccine Encephalitis vaccine
Protein Drugs
Tetanus Vaccine Tetanus Vaccine
Tuberculin Tuberculin Other New Vaccines & Products
Enterovirus 71 vaccine
Bacillus Calmette-Guerin
Vaccine
New Strategic Producing
Enoxaparin Sodium (PFS) Partner
U.S. Flu vaccine (PFS)
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• Through its diligence in R&D, more products will enter domestic and global markets in the following 3 years.

• By 2018, new products: Quadrivalent flu vaccine, Cell cultured Japanese Encephalitis vaccine, Enterovirus 71 vaccine will hit the market. As well as PFS filling product Enoxaparin Sodium Injection and Flu vaccine for Protein Sciences.

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International Marketing

	Product	Partnership	2016	2017	2018	2019	2020
European Union	Enoxaparin Sodium Injection
	Quadrivalent Flu vaccine
USA	PSC Quadrivalent Flu vaccine
China	Trivalent Flu vaccine
SE Asia & South hemisphere	Quadrivalent Flu vaccine	TBD

• Adimmune is already #1 in Taiwan and ready to expand to the global market.

• By obtaining international cGMP certificate, Adimmune is collaborating with global partners in different stages of the value chain.

• Adimmune will provide self-branded Flu Vaccine to EU market.

• Already obtained market access in 19 provinces/ cities

• More strategic producing partners under discussion (Switzerland, Sweden, US, Brazil…etc).

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Taiwan Business Outlook

aiwan Business Outlook	aiwan Business Outlook	aiwan Business Outlook	aiwan Business Outlook	aiwan Business Outlook	aiwan Business Outlook	aiwan Business Outlook
Product Event 2016 2017 2018 2019 2020
Trivalent Flu vaccine	Taiwan government announced to increase procurement from 3mn/yr to 6mn/yr
Quadrivalent Flu vaccine	The government procurement market is expected to be shifted from trivalent to quadrivalent
Enterovirus 71 vaccine	EnImmune will launch the first EV71 vaccine in Taiwan by 2018
Cell Cultured Japanese Encephalitis vaccine (Imported)	Adimmune obtained import approval to replace current mouse-brain derived JEV
Cell Cultured Japanese Encephalitis vaccine (Adimmune)	EnImmune is planning to launch its self-developed cell culture JEV by the end of 2019
Bacillus Calmette-Guérin vaccine	Adimmune started to in charge of BCG vaccine supplier in Taiwan

• There are several policy changes to effect Adimmune’s business:

• Increasing procurement from 3mn doses/ year to 6 mn doses/year will double Adimmune’s flu vaccine

revenue in Taiwan

• Generation shift of flu vaccine will improve ASP.

• New products Bacillus Calmette-Guérin vaccine and Enterovirus 71 vaccine will further boost revenue.

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Global Market Expansion

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European Union
USA
China Taiwan
• Quadrivalent Flu
Vaccine • PFS Quadrivalent Flu
• PFS Enoxaparin Sodium • Trivalent Flu Vaccine • Quadrivalent Flu Vaccine Vaccine
• Enterovirus 71 vaccine
Injection
• Cell Cultured Japanese
Encephalitis vaccine
• Tetanus vaccine
• Tuberculin
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Product Pipeline

Completed In Progress Up coming Lab Animal Phase I Phase II Phase III NDA Development Trial H7N9 Avian Flu Vaccine EV71 Vaccine Cell Cultured JEV Recombinant Flu Vaccine EV71Monoclonal Antibody Zika Vaccine Dengue Vaccine

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Our Commitment to Shareholders

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• To maintain our position as the leading vaccine and PSF filling solution provider in Asia.

• To become the gateway to China and Global Market.

• To deliver a consistent high quality with proprietary technology, and to fully utilize our capacity.

We also pledge that our primary focus will be the maximization of returns to our shareholders via the potential of our promising growth strategy.

• We believe in high standards of corporate governance and investing in our employees and the communities where we do business.

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Contents

1Q2017 Review & 2017 Outlook Strategy for Future Growth

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