ADIM — Investor Presentation 2017

Mar 21, 2017

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TWSE 4142

Mar, 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

Executive Summary

Experienced and Solid Mgmt Team

Top in Asia

Strategy for Future Growth Appendix

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Contents

Executive Summary Experienced and Solid Mgmt Team Top in Asia

Strategy for Future Growth Appendix

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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$183 mn (as of 2017/03/09) 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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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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What to expect in 2017

In 2015

• The Company booked NT$ 290mn revenue.

• Only Taiwan domestic products (Taiwan flu vaccine, Japanese Encephalitis vaccine and Tetatus, Tuberculin).

In 2016, after dedication of the management team, the Company:

• Started shipping to Japan (KDSV 4 strains flu vaccine trial batch), USA (Protein Sciences 4 strains flu vaccine trial batch) and China (Adimmune 3 strains flu vaccine commercial batch).

• Won the tender while Taiwan government doubled influenza vaccination plan.

• Booked 2016 revenue of NT$ 607mn, had grown 109% YoY.

In 2017, on top of the achievement in 2016, the investor can expect:

• Taiwan flu vaccine sales remain stable

• Enoxaparin Sodium commercial batch started shipping to Europe. (PFS)

• More 3 strains flu vaccine commercial batch will ship to China

• 4 strains flu vaccine commercial batch will start shipping to USA. (PFS)

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Contents

Executive Summary

Experienced and Solid Mgmt Team

Top in Asia Strategy for Future Growth Appendix

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Excellent Leadership

Chi-Hsien Chan, M.D.

Chairman & CEO

• From 1997, Dr. Chan held several important positions in Taiwan government, including the Minister of Health and Welfare, Chairman of National Health Research Institutes, National Policy Advisor to the President and Senior Advisor to the President.

• He was the president at Chi Mei Medical Center for 15 years beginning in 1989.

• Dr. Chan trained as a medical doctor (Yale and Thomas Jefferson, USA), and following clinical practice at Pomona Valley Hospital Medical Center, California, and became the Director of the Department of Surgery at Pomona Valley Hospital Medical Center.

• Owing to his solid experience in both the private and public sectors, and extensive knowledge of the healthcare industry, Dr. Chan was nominated and elected to be the Chairman of Adimmune, since 2008.

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Experienced and Solid Management Team

Chung-Cheng Liu, Ph.D. General Manager Over 30-yrs experience VP General Director of Industrial Technology Research Institute (ITRI) Ph.D., Biochemistry, Princeton University

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Chin-Chuan Chang, Ph.D. COO, VP of R&D Over 25-yrs experience Scientist, Development Center for Biotech. Ph.D. Chemical Engineering and Material Science, UC Davis

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Chin-Yi Chiu, Ph.D. VP of Quality Assurance Over 25-yrs experience Sector Manager, Bureau of Food & Drug Analysis, TFDA Ph.D. Cell & Mol. Biology, Univ. of Massachusetts

Simon Kao

VP of Business Division Over 25-yrs experience Taiwan General Manager & Greater China Regional Manager, Medtronic EMBA, National Chengchi University

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Peter Pan

General Counsel Over 30-yrs experience General Counsel, Vanguard International Semiconductor Corporation LL.M. University of Pennsylvania

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Vic Chang, CIA

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CFO, Director of Strategic Planning 20-yrs experience Internal Auditing Manager, Special Assistant to Chairman MBA, University of Houston

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Contents

Executive Summary Experienced and Solid Mgmt Team Top in Asia Strategy for Future Growth Appendix

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Current Leadership Engineers Transformation

• Adimmune has over time developed from a vaccine agent to the state of the art cGMP facility with proprietary know-how and intellectual property.

• Led by Chairman Chan, Adimmune has transformed into a profit and shareholder value focused company and listed on TWSE since 2012. Dr. Chan introduced new management team and started a series of initiatives from innovation to international partnership. It is proved that Adimmune plays an important role in global vaccine and biologic product value chain.

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2017
Export Flu
Vaccine to 2016
Protein Sciences
for US market
• TWSE Listed 2015 Start shipping
• PFS facility obtained
Enoxaparin Sodium
Taiwan cGMP
(PFS) to EU
• Hong Kong flu vaccine 2014
approval obtained • Export vaccine
2013 antigen to KDSV for
Japan market
Supplied 10mn doses
• Founded Crucell for European Partnership with of A/H1N1 vaccine for pandemic use 2012 • Expected to obtain Flu Vaccine (4
•
Partnership Market 2011 Strains) approval in
with • Partnership with Taiwan
Kitasato Obtained Techdow for PFS • PFS facility obtained
2009
Institute Taiwan cGMP filling for EU market US cGMP
2008 • Total 15 European • China flu vaccine
Vaccine facility countries (1) flu
2007 obtained EU cGMP vaccine approval approval obtained
1992 New Mgmt Team in obtained • Taiwan Cell based
1965 place leading the • Licensed in EV71 Japanese Encephalitis
transformation of vaccine from NHRI vaccine approval
the new Adimmune obtained
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Note: (1) 15 European countries are including Germany, UK, Italy, Switzerland, Austrial, Ireland, Spain, Portugal, Nederland, Belgium,Luxembourg, Sweden, Norway, Denmark, Finland

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Key Strength

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Solid R&D
Capability
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Global
Value Chain
Partnership
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Strong
Technology
Background
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Scale-up &
Commercial
manufacturing
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Internationalized
Talent Pool
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Key Strength

• Solid R&D Capability

• R&D Track Record: Influenza Vaccine, Pandemic A/H1N1 Vaccine, Japanese Encephalitis Vaccine and Tetanus Vaccine

• Pipeline: pandemic H7N9/H5N1 Vaccine, Cell-cultured Japanese Encephalitis Vaccine, Enterovirus 71 vaccine, Recombinant Protein Production Platform and therapeutic/diagnostic monoclonal antibody

• Collaboration for future pipeline: National academic institutes such as Academia Sinica, NHRI, DCB and ITRI

• Strong Technology Background

• Flu vaccine international partner in the past: Kitasato Institute, Crucell (a J&J company)

• Obtained Certification: USA, Europe, China, Korea and Taiwan cGMP certificate

• Internationalized Talent Pool

• Management team captained leading academia institution and renowned MNCs with successful track record

• Highly professional production line staff with extensive experience from R&D to commercial scale manufacturing

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Key Strength

• Scale-up & Commercial manufacturing

Since founded in 1965, Adimmune has supplied:

• Flu vaccine: 20mn doses

• A/H1N1: 10mn doses

• Japanese Encephalitis: 21mn doses

• Tetanus: 16mn doses

• Capacity: vaccine 25mn/yr, PFS 25mn/yr

• Current capacity is sufficient for the growth strategy, no significant Capex needed in next 5 years

• Strategic Producing Partnership

• Collaborate with Techdow for Enoxaparin to export to Europe.

• Export PFS flu vaccine to Protein Sciences for US market

• Owing to the nature of bio-pharma industry, once a strategic producing partnership is established, relationships necessarily remain long term

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Top Flu Vaccine provider in Asia

• Adimmune is the most qualified and internationally recognized flu vaccine provider/ PFS filling facility in Asia, with ample capacity

Company	Country	Flu Vaccine	Flu Vaccine	Flu Vaccine	Flu Vaccine	Flu Vaccine	Flu Vaccine
		cGMP Obtained					Capacity (mn)
		EU	USA	Japan	China	Korea
Adimmune	Taiwan	√	√		√	√	25
BioFarma	Indonesia						4
IVAC Vabiotech	Viet Nam						1
GPO	Thailand						5
Panacea Biotec SII	India						10
Green Cross	Korea					√
Biken	Japan			√			10
Chemo-Sero-Therapeutic Research Institute	Japan			√			10
Denka Seiken	Japan			√			10
Kitasato Daiichi Sankyo	Japan			√			12
Hualan	China				√		25
Sinopharm (Tiantan)	China				√		4
Sinovac	China				√		10
Tianyuan	China				√		15

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Contents

Executive Summary Experienced and Solid Mgmt Team Top in Asia

Strategy for Future Growth Appendix

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Growth Strategy

Diversify Multiple International Technology Products Marketing

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• Existing technology to maintain high-quality, high throughput manufacturing

• New technology for new products

• New technology to reduce risk of contamination

• New technology to reduce time-to-market for emergency outbreak

• New product to respond to the needs of next generation vaccine

• • New product to fulfill unmet medical needs

• New product to enrich product mix and create new revenue source

• New product to tackle new markets

• Achieve market access though cGMP certification from different countries/region

• • Solid track record to become long term strategic producing partner with US and Europe MNCs

• Adimmune branded product for Europe and China

• Improve utilization rate

• Become the gateway into China and major healthcare countries

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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
Flu vaccine (3 strains) Flu vaccine (3 strains)
Existing Products
Flu vaccine (4 strains)
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: 4 strains 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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Global Market Expansion

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European Union
USA
China Taiwan
• Flu Vaccine (4 Strains)
• PFS Enoxaparin Sodium • • • PFS Flu Vaccine (4 Strains)
Flu Vaccine (3 Strains) Flu Vaccine (4 Strains)
Injection
• Enterovirus 71 vaccine
• Cell Cultured Japanese
Encephalitis vaccine
• Tetanus vaccine
• Tuberculin
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International Marketing

	Product	Partnership	2016	2017	2018	2019	2020
European Union	Enoxaparin Sodium Injection
	Flu vaccine (4 strains)
USA	PSC Flu vaccine (4 strains)
China	Flu vaccine (3 strains)

• 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 China and EU market.

• 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
Flu vaccine (3 strains)	Taiwan government announced to increase procurement from 3mn/yr to 6mn/yr
Flu vaccine (4 strains)	The government procurement market is expected to be shifted from 3 Strains to 4 Strains
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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Business and Capacity

Antigen Capacity

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Mn
Doses
25
20
15
10
5
0
2016 2017E 2018E 2019E 2020E
Flu- Japan Flu- EU Flu- China Flu- Taiwan
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PFS Capacity
Mn
Doses
45
40
35
30
25
20
15
10
5
0
2016 2017E 2018E 2019E 2020E
Protein Sciences Enoxaparin Sodium EV71 vaccine
Flu-EU Flu-China Flu-Taiwan
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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

Executive Summary Experienced and Solid Mgmt Team Taiwan No. 1 Strategy for Future Growth Appendix

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2004-2015 Int’l Vaccine Company M&A

Acquire	Target	Consideration (US MN)	Year of Transaction
ID Biomedical	Shire Vaccine Business	60	2004
GlaxoSmithKline	ID Biomedical (Vancouver, Canada)	1,400	2005
GlaxoSmithKline	Corixa (Seattle)	300	2005
Novartis	Chiron (Emeryville, California)	5,400	2005
Crucell	Berna Biotech	449	2005
Crucell	SBL Vaccin	52	2006
Intercell	Iomai (Gaithersburg, Maryland)	189	2008
Sanofi Pasteur	Acambis	549	2008
Sanofi Pasteur	Shantha Biotechnics	781	2009
Sanofi Pasteur	VaxDesign (Orlando, Florida)	55	2010
Johnson & Johnson	Crucell	2,300	2011
GlaxoSmithKline	Novartis (vaccine)	7,100	2014
CSL	Novartis (Flu)	275	2015

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Thank you!

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