CHC — Investor Presentation 2018

Apr 10, 2018

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Performance Presentation for Biotechnology and Medical Care Industry (2018.04.11) 4164 TT

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Disclaimer

• The information contained in this confidential document ("Presentation") has been prepared by CHC Healthcare Group (the "Company"). It has not been fully verified and is subject to material updating, revision and further amendment.

• While the information contained herein has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers give, have given or have authority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability or completeness of the information in this Presentation, or any revision thereof, or of any other written or oral information made or to be made available to any interested party or its advisers (all such information being referred to as "Information") and liability therefore is expressly disclaimed. Accordingly, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers take any responsibility for, or will accept any liability whether direct or indirect, express or implied, contractual, tortious, statutory or otherwise, in respect of, the accuracy or completeness of the Information or for any of the opinions contained herein or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this Presentation.

• Neither the issue of this Presentation nor any part of its contents is to be taken as any form of commitment on the part of the Company to proceed with any transaction and the right is reserved to terminate any discussions or negotiations with any prospective investors. In no circumstances will the Company be responsible for any costs, losses or expenses incurred in connection with any appraisal or investigation of the Company. In furnishing this Presentation, the Company does not undertake or agree to any obligation to provide the recipient with access to any additional information or to update this Presentation or to correct any inaccuracies in, or omissions from, this Presentation which may become apparent.

• 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.

• This Presentation includes certain statements that may be deemed “forward-looking statements”. All statements in this discussion, other than statements of historical facts, that address future activities and events or developments that the Company expects, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in forward-looking statements.

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Company Operational Future
Q & A
Overview Results Guidance
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Company Operational Future
Q & A
Overview Results Guidance
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Company Introduction

• Name ： CHC Healthcare Group (4164 TT)

• Date of Establish ： 2009/11/27

• (First subsidiary, Chiu Ho Instruments & Reagent, was founded in 1977)

• President ： Mr. Pei-Lin, Lee

• Headquarters ： Taipei

• Branches ： Taichung, Kaohsiung, Beijing, Guangzhou & Jakarta

• Major Business ： Providing Medical Equipment Full Service Solutions

• Paid-in Capital ： NT$ 1.39913621 billion

• Listing Date ： 2012/10/24

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Company Milestones

Company Milestones
1977 1985 1997 2009 1999 2006 2011 Founded Chiu Ho Instruments & Reagent Co., Ltd Introduced radiotherapy equipment Became Taiwan distributor for Elekta Install the first Elekta IMRT linac in Taiwan Established Ophthalmology Dept & become Taiwan distributor for Bausch & Lomb Founded CHC Healthcare Group Listed in Taipei Exchange (originally known as GreTai Securities Market) as Emerging Stock Become South China distributor for Elekta	2013 2015 2014 2012 2017 2016 Listed in Taiwan Stock Exchange on Oct 24, 2012 Became Taiwan distributor for IBA Proton Therapy System Became Taiwan distributor for GE of diagnostic imaging equipment and molecular medical imaging systems Became Greater China distributor for Novadaq Acquired SHIH-LU Official entering into Indonesia market IBA first official direct selling contract signed in Taiwan Announce entering Taiwan’s long-term care market Holding “2017 International Elderly Care Industry Leaders Forum” IBA first official revenue sharing contract signed in Taiwan

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Members of BoD & Functional Committees

Director

Pei-Lin, Lee

President / Representative of a Juristic Person Director

Tien-Ying, Lee Vice President

Independent Directors

Audit Committee Compensation Committee

Gui-Duan, Chen Independent Director

CPA, EnWise CPAs & Co.

Chun-Shung, Huang Director

Honorary Physician and Consultant, Mackay Memorial Hospital

Yung-Shun, Chuang Representative of a Juristic Person Director

President, Yen-Hsin Investment Ltd.

Chang-Jian, Ho Independent Director

Special Physician, Heping Fuyou Branch, Taipei City Hospital

Geng-Wang, Laiw Independent Director Director, Research Department , YeeZen General Hospital

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Solid Partnership with Top Global Brands

Radiation Oncology Medical Imaging Ophthalmology & Neuroscience

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Full Service Solution Provider “TurnKey Solutions”

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Manufacturer Technical & Service
Product Strength Strength
Top Global Brands Service Team Certified
CHC Healthcare Group
• by Manufacturers
Radiation Oncology
• Neuroscience Revenue ．Site Planning
Technical
• Ophthalmology Sharing Direct Selling Services ．Site Construction
Partnership
• ．
Medical Imaging Operational Consulting
• ．
Surgery Hospital & Clinic Installation
．
Education & Training
．
Maintenance
．
Patient Upgrades
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Professional Team

Goung-Yu, Chen General Manager

Great China

(Sales Director, GE Healthcare)

Yee-Min, Jen Chief Executive Officer Oncology Business Group

(Director, Dept. of Radiation Oncology, Tri-Service General Hospital)

Ming-Ta, Wen Vice President Oncology Business Group

(Supervisor, Dept. of Radiation Oncology, Mennonite Christian Hospital)

Chia-Ming, Wu Assistant Vice President Oncology Business Group

(Leader, Medical Physics Team, Dept. of Radiation Oncology, CGMH Kaohsiung)

• CHC’s experienced consulting and professional technical supporting team is a critical factor in our success.

• CHC already trained over 70 manufacturer certified engineers up to now.

• Manufacturers also rely on CHC’s technical support and after-sales service.

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Operational Future
Q & A
Results Guidance
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Annual Results

12 -200,000 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 2,200,000 2,400,000 (NT$ thousand)	Operating Revenue Gross Profit Net Operating Income Net Profit Profit (parent) 2016 Annual 2017 Annual		2016	2017
		Operating Revenue	2,205,206	2,117,116
		Gross Profit	619,611	688,653
		Gross Margin(%)	28%	33%
		Net Operating Income	308,155	352,875
		OP Margin (%)	14%	17%
		Net Profit	160,604	-89,286
		Net Margin (%)	7%	-4%
		Profit (parent)	158,932	-86,695
		Net Margin (parent)(%)	7%	-4%
		EPS	1.14	-0.62

Product Mix

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Service
Service
Revenue Revenue
13% Sales 9%
Revenue
Sales
38%
Revenue
Revenue
Sharing 49%
42%
Revenue
Sharing
49%
2016 Annual
Value-Added Business Model
2017 Annual
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Monthly Sales

0 50,000 100,000 150,000 200,000 250,000 300,000 (NT$ thousand)		2017 2018 YoY 2017 2018 YoY Jan 110,226 141,057 27.97% Jul Feb 163,062 105,849 -35.09% Aug Mar Sep Apr Oct May Nov Jun Dec (NT$ thousand) YTD 273,288 246,906 -9.65% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 2017 2018	2017 2018 YoY 2017 2018 YoY Jan 110,226 141,057 27.97% Jul Feb 163,062 105,849 -35.09% Aug Mar Sep Apr Oct May Nov Jun Dec (NT$ thousand) YTD 273,288 246,906 -9.65% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 2017 2018	2017 2018 YoY 2017 2018 YoY Jan 110,226 141,057 27.97% Jul Feb 163,062 105,849 -35.09% Aug Mar Sep Apr Oct May Nov Jun Dec (NT$ thousand) YTD 273,288 246,906 -9.65% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 2017 2018	2017 2018 YoY 2017 2018 YoY Jan 110,226 141,057 27.97% Jul Feb 163,062 105,849 -35.09% Aug Mar Sep Apr Oct May Nov Jun Dec (NT$ thousand) YTD 273,288 246,906 -9.65% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 2017 2018	2017 2018 YoY 2017 2018 YoY Jan 110,226 141,057 27.97% Jul Feb 163,062 105,849 -35.09% Aug Mar Sep Apr Oct May Nov Jun Dec (NT$ thousand) YTD 273,288 246,906 -9.65% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 2017 2018	2017 2018 YoY 2017 2018 YoY Jan 110,226 141,057 27.97% Jul Feb 163,062 105,849 -35.09% Aug Mar Sep Apr Oct May Nov Jun Dec (NT$ thousand) YTD 273,288 246,906 -9.65% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 2017 2018	2017 2018 YoY 2017 2018 YoY Jan 110,226 141,057 27.97% Jul Feb 163,062 105,849 -35.09% Aug Mar Sep Apr Oct May Nov Jun Dec (NT$ thousand) YTD 273,288 246,906 -9.65% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 2017 2018	2017 2018 YoY 2017 2018 YoY Jan 110,226 141,057 27.97% Jul Feb 163,062 105,849 -35.09% Aug Mar Sep Apr Oct May Nov Jun Dec (NT$ thousand) YTD 273,288 246,906 -9.65% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 2017 2018	2017 2018 YoY 2017 2018 YoY Jan 110,226 141,057 27.97% Jul Feb 163,062 105,849 -35.09% Aug Mar Sep Apr Oct May Nov Jun Dec (NT$ thousand) YTD 273,288 246,906 -9.65% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 2017 2018	2017 2018 YoY 2017 2018 YoY Jan 110,226 141,057 27.97% Jul Feb 163,062 105,849 -35.09% Aug Mar Sep Apr Oct May Nov Jun Dec (NT$ thousand) YTD 273,288 246,906 -9.65% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 2017 2018	2017 2018 YoY 2017 2018 YoY Jan 110,226 141,057 27.97% Jul Feb 163,062 105,849 -35.09% Aug Mar Sep Apr Oct May Nov Jun Dec (NT$ thousand) YTD 273,288 246,906 -9.65% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 2017 2018	2017 2018 YoY 2017 2018 YoY Jan 110,226 141,057 27.97% Jul Feb 163,062 105,849 -35.09% Aug Mar Sep Apr Oct May Nov Jun Dec (NT$ thousand) YTD 273,288 246,906 -9.65% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 2017 2018	2017 2018 YoY 2017 2018 YoY Jan 110,226 141,057 27.97% Jul Feb 163,062 105,849 -35.09% Aug Mar Sep Apr Oct May Nov Jun Dec (NT$ thousand) YTD 273,288 246,906 -9.65% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 2017 2018

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Company
Overview
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Future
Q & A
Guidance
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Future Guidance

• Introduce High-Tech Product & Precise Medicine

• Medical Management Service Output to Overseas

• Enter Elderly Care Market with New Perspective

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Introduce High-Tech Product & Precise Medicine

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IBA Proton Therapy Business Model for Both Direct Selling & Revenue Sharing

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Introduce High-Tech Product & Precise Medicine

< Global Proton Therapy Capacity Gap Today >

*Source: IBA

Number of PT rooms sold by the end of 2016, 250 of which 191 in operation 2,502 Numbers of PT rooms needed 709,995 PT potential cases/year 13,966,642 Diagnosed cancer cases/years 7,457,905,000 Global population

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Taiwan
Population by the end of 2015
23,492,074
New diagnosed cancer cases in 2015
105,156
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Introduce High-Tech Product & Precise Medicine

< Estimation of RT & PT rooms needed by 2035 >

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25000
20000
15000
RT Rooms
PT Rooms
10000
5000
0
Source: IBA 2015 2035
19
(Room)
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Introduce High-Tech Product & Precise Medicine

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Introduce High-Tech Product & Precise Medicine

IBA - Unrivaled Experience 30+ 40+ 50,000+ 60%+ YEARS OF EXPERIENCE PARTNER INSTITUTIONS PATIENTS TREATED PATIENTS TREATED BY IBA

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Introduce High-Tech Product & Precise Medicine

< Proton Design Flexibility >

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Proteus PLUS

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Proteus ONE

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1,800m [2 ]
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300 m [2 ]
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Introduce High-Tech Product & Precise Medicine

< Pencil Beam Scanning by IBA >

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Introduce High-Tech Product & Precise Medicine

< Premium IOL >

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Introduce High-Tech Product & Precise Medicine

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< G-free® Technology - Guaranteed 100% Glistening-Free >

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PhysIOL G-free[® ]

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Hydrophobic IOL with Glistenings

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Introduce High-Tech Product & Precise Medicine

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Introduce High-Tech Product & Precise Medicine

< MR-Linac >

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Soft Tissue Imaging with Diagnostic Quality + HD Dynamic Radiosurgery

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Introduce High-Tech Product & Precise Medicine

< Elekta - Unity >

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Medical Management Service Output to Overseas

< Present Revenue Sharing Partnership >

Taiwan

China

Indonesia

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Medical Management Service Output to Overseas

Hospital over 300 Beds Taiwan X Hospital in Taiwan 136 (2016) Source: MOHW Around 1,250 Beds Revenue for Radiation Oncology Hospital over 500 Beds Department in 2017 NT$ 224 million* China 3,060 (2015)

• *Source: National Health Commission of the PRC

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Medical Management Service Output to Overseas

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Chenzhou NO.1 LiXian
People’s Hospital People’s Hospital
3,581 Beds 1,500 Beds
Zhejiang Mayapada Hospital
Xiaoshan Hospital 485 Beds
2,400 Beds
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Medical Management Service Output to Overseas

< Partnership with Leading Manufacturer of Medical Equipment & Service in China >

Neusoft Corporation (SHA: 600718)

• Date of Establish: 1993/06/07

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• Chairman & CEO: Jiren Liu

• Headquarters: Shenyang, China

• Major Business: Providing industry solutions and product engineering solutions, related software products, platforms and services

• (industries included: telecom, energy, finance, healthcare, education, mobile Internet, etc.)

• Paid-in Capital: RMB 1,243,197,745

• China’s first listed software company (1996/06/18 listed on Shanghai Stock Exchange)

• Top 10 of 2017 China’s Top 100 Software Enterprises

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Medical Management Service Output to Overseas

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Hospital
Management
Equipment
Provider
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Enter Elderly Care Market with New Perspective

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Enter Elderly Care Market with New Perspective

	Year when ageing status changed	Year when ageing status changed	Year when ageing status changed	Speed of population ageing (Year)	Speed of population ageing (Year)
	Ageing Society (7%)	Aged Society (14%)	Super-Aged society (20%)	7% to 14%	14% to 20%
**Taiwan **	1993	2018(e)	2026(e)	25(e)	8(e)
Japan	1970	1994	2005	24	11
South Korea	1999	2018(e)	2026(e)	19(e)	8(e)
Singapore	1999	2019(e)	2026(e)	20(e)	7(e)
United States	1942	2013	2028(e)	71	15(e)
Canada	1945	2010	2024	65	14(e)
United Kingdom	1929	1976	2027(e)	47	51(e)
Germany	1932	1972	2008	40	36
Norway	1885	1977	2036(e)	92	59(e)
Australia	1939	2011	2034(e	72	22(e

*Source: National Development Council

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Enter Elderly Care Market with New Perspective

159,823 158,552 157,140 155,666 154,274 152,751151,145149,513 437,556459,541 483,071 506,945 528,870 552,248 576,309 600,082 - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 2018 2019 2020 2021 2022 2023 2024 2025 under 65 years old 65 years old and over 6 Estimation of Demand for Elderly Care 597,379 618,093 640,211 704,999 683,144 727,454 749,595 662,611 Total *Source: MOHW	Estimation of Demand for Elderly Care Total		Cost for Elderly Care	Cost for Elderly Care
		Item	Description	Estimate Amount (NT$ thousand)
	159,823 158,552 157,140 155,666 154,274 152,751151,145149,513 437,556459,541 483,071 506,945 528,870 552,248 576,309 600,082 597,379 618,093 640,211 704,999 683,144 727,454 749,595 662,611
		One-time Expense	Medical Equipment	50~200
			Assistive products
			Barrier Free Environment
		Caring Service Fee (Monthly)	Home Care	5~18
			Community Care	15~18
			Institutional care	25~40
			Caregiver	25~70
			family member	Salary, pension
		Consumable Cost (Monthly)	Diaper, nutrition, medical consumables, etc.	10~30
		*Source: TAFC

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Enter Elderly Care Market with New Perspective

High-End Brand & Elder-Friendly Design

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Company
Overview
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Q & A
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Thank you

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