EXCELSIOR — Investor Presentation 2021

Sep 24, 2021

Excelsior Medical Co., Ltd.
2021 H1 Investor Conference

Notes:

Disclaimer

This presentation is prepared according to the reviewed financial
statements by CPA and the financial figures hereby are based on
IFRS, please refer to the published financial statements for full content.
The presentation may contain forward-looking information and may differ materially from the actual results. Excelsior does not warranty as to the accuracy or completeness of such information and nor assume any undertaking further information becomes available or in light of changing circumstances. You shall not place undue reliance on any forward-looking information.
The presentation and its contents may not be reproduced to a third party without the prior written consent by Excelsior.
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Notes:

Table of Contents
P.4
1.公司概況(Corporate Overview)
P.8
2.市場概況(Market Overview)
P.11
3.營運概況(Business Overview)
P.14
4.財務概況(Financial Overview)
P.17
5.轉投資概況(Investment Overview)
P.23
6.2021策略及展望(2021 Strategies and Outlook)
P.26
7.補充資料(Appendix)
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Corporate Overview

Chairman
Group President
Tony Fu
“Dedication, Discipline, Innovation, Proactive” are the core values of Excelsior.
“Human Healthcare” is the basis of medical service industry.
Therefore, “Dedication” to our service target is what matters the most.
We focus on public healthcare, using the innovative management model,
providing the most suitable product and service to the market.
Meanwhile, achieve our vision of becoming
the most valuable total healthcare solution provider among Asia.
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Notes:

The Most Valuable Total Healthcare Solution Provider
among Asia with Exceptional Investment and Operating Teams！

Excelsior Medical Co., Ltd. was established in 1988, Excelsior started with the distribution of hemodialysis equipments and supplies. Gradually transformed into integrated medical services channel provider.
In 2001 “Enfield Medical Co., Ltd.“ successfully listed on the OTC. With the success in integration and diversification, Enfield became a listed company in Taiwan Stock Exchange (TSE) in 2007. Enfield was later renamed as Excelsior in 2009.
Up to now the Group has three listed companies ( Excelsior : listed at TSE ,stock code 4104. Dynamic and Arich : listed at OTC, stock code 4138 and 4173).
In the future, Excelsior will continue to expand its investment and operation in biotechnology and medical industries, based on “New Southbound Policy”, in the Southeast Asia region and countries around the world.

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Notes:

Revenue structure

Excelsior yearly consolidated sales is more than NT $ 6.6 billion in 2020, the primary revenue comes from Excelsior (Hemodialysis), Dynamic (Aesthetic Medical), Arich (Pharmaceutical Logistics) and others.
According to the company’s function, the business type can be characterized as a trading business, medical service provider and Logistic.

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The Business Types

Hemodialysis
Aesthetic Medical
Medical Devices

Trading Business
Medical Consumables
Home Appliances
Product
Planning

Sales
Promotion
Information
Analysis

Market
Management
Creative
Development
Hemodialysis channel

Medical Information System
Aesthetic Medical channel
Pharmaceutical Distribution
Long-term Care channel
Pharmaceutical Warehousing

Medical Service
Provider
Logistic
District Hospital channel
GMP Relabelling
Ophthalmic/ Dental
channel
Professional Maintenance
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Market Overview
Excelsior(Hemodialysis)

Taiwan benefited from the implementation of the national health insurance system in 1995 and the hemodialysis technology and quality gradually mature, the patient's survival rate has gradually increased. According National Health Insurance Administration
, as of the 2nd quarter of 2021, The total number of Taiwan hemodialysis and peritoneal dialysis populations has reached 89,485 people.

Hemodialysis brand

Data Source: National Health Insurance Administration
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Notes:

Dynamic(Aesthetic Medical)

According to the Asian-Pacific Market Study issued by Medical Insight, Inc. in Mar. 2021, total Asian sales of all aesthetic products and equipment reached US$2.9 billion in 2019 and are expected to increase by 9.6% per year through 2024. Furthermore, medical aesthetic market can be divided into 4 sections: Energy-Based Device, Body Shaping and Skin Tightening ,Dermal Filler and Neurotoxin, and DMT’s distributed products covers the first 3 sections.

Product Portfolio
| Percentage of sales in Asian |
| --- |

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Notes:

Arich (Pharmaceutical Logistics)

Drugs cost approximately 1/4 of National Health Insurance expenditures.  In Taiwan, although demand for medication is growing, but the prices approved/reimbursed by NHI are declining.  Consequently the multinational pharmaceutical companies keep on outsourcing, for the sake of cost down, the distribution/logistic service more and more.

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Data Source: National Health Insurance Administration

Business Overview
Excelsior(Hemodialysis)

Excelsior’s operating income was NT $ 319,114 thousands in 2020 and NT $ 263,303 thousands in 2019; the growth rate was 21.2%. The greater profit in 2021 H1 than which of 2020 H1 is increased because of higher gross margin and control of operating expenses.
Unit: NTD in thousands

Unit: NTD in thousands

In 2021 H1, Excelsior’s hemodialysis products accounted for 52% of its operating revenue, the surgical products accounted for 37%, the other products (blood bags, ostomy, preventive healthcare and home appliances) accounted for 11%. The greater revenues of 2021 H1 than which of 2020 H1 is due to the increase in sales of surgical products and blood bags.
In 2020 the sales of dialysis products increased by 0.7%, meanwhile the sales of surgical products increased by 5.0%. The overall operating revenue increased by 5.9%.
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Notes:

Dynamic(Aesthetic Medical)

Operating income was NT $ 140,848 thousands in 2020 and NT $ 157,823 thousands in 2019 due to decline of revenues because of the pandemic. However, the company keeps optimizing the portfolio of products that leads to rise of gross margin offsetting the impacts from decline of revenues.
Operating Income of 2021 H1 has increased compared with 2020 H1. The revenue of 2020 was dropped since March due to COVID-19 epidemic while the revenue of 2021 H1 was increased since COVID-19 was under control and the business operation was gradually stabilized.

Unit: NTD in thousands

Unit: NTD in thousands
In 2021 H1, equipments accounted for 19% of the revenue, supplies and parts accounted for 59%, maintenance and others accounted for 22%.
Revenues of 2021 H1 has increased compared with 2020H1. The revenue of 2020 was dropped since March due to COVID-19 epidemic while the revenue of 2021 H1 was increased since COVID-19 was under control and the sales of consumables and spare parts were increased.
 In comparison to 2019, revenues decreased by 14.3% in 2020: equipments -26.5%, supplies and parts -15.7%, maintenance and others +12.9%.
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Notes:

Arich (Pharmaceutical Logistics)

ARICH’s operating income was NT$ 48,329 thousands in 2020 and NT$ 65,522 thousands in 2019, mainly due to employee stock subscription fees of cash capital increase in 2020, new storage rents and increased insurance premiums.
Affected by COVID-19, ARICH’s operating income in 2021 H1 was lower than 2020 H1.
Unit: NTD in thousands

Unit: NTD in thousands

In 2021 H1, sales promotion revenue accounted for 67% of ARICH’s operating revenue and distribution logistics revenue accounted for 33% of ARICH’s operating revenue.
Affected by COVID-19, ARICH’s operating revenue in 2021 H1 was lower than 2020 H1.
The increase in operating revenue in 2020, is mainly due to the increase in sales promotion revenue of PCV vaccine.
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Notes:

待改

Financial Overview

Consolidated gross profit
Unit: NTD in thousands
Consolidated revenue
Unit: NTD in thousands

Consolidated Operating Income
Unit: NTD in thousands
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Notes:

Unit: NTD in thousands

Unit: NTD in thousands
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Notes:

Unit: NTD in thousands
Unit : NTD in Dollars

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Notes:

Investment Overview
Hemodialysis channel – Excelsior Renal Service Co., Limited
&Jiate Excelsior Co., Ltd

【 Hemodialysis channel Introduction 】
Excelsior has entered into a  joint venture with Fresenius which is the world's largest manufacturer of dialysis products, and has established long-term cooperative relationship with more than 100 Hemodialysis Centers, also ERS is the largest professional medical services provider. Excelsior’s professional hemodialysis team counsels dialysis Centers management, provides dialysis equipment and consumables with the best quality, professional training, and medical advisory team to help medical staff to provide the best care to patients with quality care and nutrition services.
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Hemodialysis channel – Excelsior Renal Service Co., Limited
&Jiate Excelsior Co., Ltd
Unit : except ERS channels, NTD in thousands

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Area	Total channels	ERS channels	%
North	284	34	12.0%
Central	200	45	22.5%
South	195	21	10.8%
other	38	1	2.6%
Total	717	101	14.1%
keelong：3
Taipei：21

Taoyuan：8

Hsinchu：2
Miaoli：2

Taichung：26
Yilan ：1
Changhua：7
Yunlin：2
Nantou：6

Chiayi：2
pingtung：4
Tainan：9

Kaohsiung：8
Hemodialysis channels
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Long-Term Care Channels– Asia Best Healthcare Co., Ltd.
Xi-zhi Nursing Home

內部配置
【 Long-Term Care Channels Introduction 】
Excelsior combines the experiences and advantages in the medical industry, with innovative concepts to build higher service standards of long-term care channels. We provide Long Term Care Facility Services and also provided Home-Based Care with professional medical care. Moreover, along with the implementation of the Ten-Year Long-term Care Program, we are now actively setting up a legal entity for long-term care. Together with daycare centers and medical clinics, we provide fine care for residents’ health. Not only to enhance grading of care service for different levels, but we are also providing a care pattern that combines medical service with daily care. Furthermore, Excelsior long-term care centers have established a strengthening system with regional hospitals and medical centers to protect the residents of emergency medical requirements.
招大廳
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Notes:

Long-Term Care Channels– Asia Best Healthcare Co., Ltd.
Unit: except ABH Beds, NTD in thousands

招大廳
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Notes:

Long-term care channels
| Hospital/long-term care | Beds |
| --- | --- |
| Hospital | 532 |
| Long-term care | 2,732 |
| Total | 3,264 |

keelong：114 beds

Xizhi
Taoyuan : 204 beds
Taipei：165 beds

New Taipei City：1,292 beds

Ping-zhen
Taichung：581 beds

Tai
-chung
Changhua: 200 beds
Yunlin ：131 beds

Kaoh
-siung
Nantou ：294 beds
Tainan ：99 beds
Kaohsiung ：184 beds
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2021 Strategies and Outlook
Excelsior(Hemodialysis)

Excelsior develops from Taiwan to Asia, and follows the government’s direction “The New Southbound Policy ”, we will  proceed  to focus on Southeast Asia to lay a good foundation for long-term profit model.

Externally, the Company will integrate medical resources, introduce competitive new products related to medical and health care, increase number of strategic partners, continue to expand medical channels, and to expand to the rest of Asia from our base in Taiwan to solidify a long-term, profitable basis.
Internally, we will simplify the organizational structure to reduce various administrative and marketing costs and increase operation performance.

In terms of hemodialysis, we will maintain the existing channels and scales of hemodialysis centers and increase the market shares of relevant devices and consumables. In addition, we will actively pursue for agency of medical products needed by other medical fields to develop diversified product marketing and sales.
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Notes:

Dynamic(Aesthetic Medical)

Southeast Asia Market
Strategic Alliance

New Product Development
Preventive Medicine
Home-Use Beauty Device
Aesthetic Consumables
Body Contouring Market Development
Brand/Channel Expansion
Launching Cosmetic Neurotoxin: Neuronox
Launching Muscle Toning Device
Enhance the Sales of Aesthetic Consumables
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Notes:

Arich (Pharmaceutical Logistics)

Long-Term Planning

1.Sales Promotion
A.To seek strategic partners
and to expand the variety of
our products.
B.To integrate Excelsior group’s
dialysis and long term care
centers and to enter into
potential market.
2.Distribution Service
A.To establish an custom made
logistic center according to
Principal’s request.
B.To keep investing in IT and
warehousing system.

Mid-Term Planning

1.Sales Promotion
Actively looking for the
opportunity of promotion of
new products.
2.Distribution Service
A.To find business
opportunities in medical
device logistic market.
B.Differentian strategy,
provide tailor-made service to
fulfill customers’ requierments.

Short-Term Planning

1.Sales Promotion
A.Instruction medicine expand
the product line to strengthen
the coverage market.
B.Extend the channel of
distribution from pharmacy to
hospital.
2.Distribution Service
A.To stabilize relationship with
key customers/pharmaceutical
companies.
B.Uitra-low temperature cold chain.

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Notes:

Appendix

Balance Sheet

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Notes:

Balance Sheet

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                Statement of Comprehensive Income

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Statements of Cash Flows

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Statements of Cash Flows

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Statements of Cash Flows

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Growing up with Long-term partners

Excelsior has been operating for 30 years, accumulated core competitiveness with new ideas created, new models to integrate various professional medical fields. Excelsior will keep taking root in the Asia market, the business scope includes Taiwan, Hong Kong, China, Philippines and Malaysia. Through continuously cooperate and integrate with long-term partners, Excelsior expects to become Asia's most valuable Integrated medical healthcare provider.

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Growing up with Long-term partners

Excelsior has been operating for 30 years, accumulated core competitiveness with new ideas created, new models to integrate variously professional medical fields. Excelsior will keep take root in the Asia market, the business scope includes Taiwan, Hong Kong, China and Philippines regions .Through continuously cooperate and integrate with long-term partners, Excelsior expect to become Asia's most valuable Total healthcare solution provider.

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