PBF — Annual Report 2021

Dec 21, 2021

Panion & BF Biotech A Different Biotech Company

Footing Taiwan & Embrace the World

Piloting Taiwan in the Global Biotech Arena

WELCOME TO OUR AMAZING COMPANY

從台灣出發,拓展到全世界

Disclaimer

Panion & BF Biotech Inc. (The Company)

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.

CONTENTS

FINANCIAL STATEMENT

WHO IS PBF OUR VISION

GROUP 3 Missions

PBF Details

• Founded:January 7th, 1976
• IPO: January 23rd, 2018 Listed as Pharmaceutical (Ticker : 1760)

• Vertical Integration Converting R&D,Manufacturing、Brand & Channel Marketing,Diversification。
• Business Unit: New Drug、Medicine、Cosmeceutical、Nutriceutics、Antiseptics、Diagnostics and IVD
• Capital : NTD 857 Millions (Capital Increasing Issuance , 09/2021)
• Dual National Certified Pharmaceutical Company
• Taiwan: Medicine PIC/S GMP + Cosmeceutical GMP
• China: Cosmeceutical Factory & Antiseptic Factory
• CHENG FONG CHEMICAL (API Production)

Employees: Taiwan (432)、China (86)

總公司 : 台北市南港區園區街3號16樓 (F棟) 平鎮廠 : 桃園市平鎮區興隆路266號 汐止辦公室 : 新北市汐止區大同路一段306號6樓之3

FINANCIAL STATEMENT

2018-2021/1~9 COMPREHENSIVE INCOME

GROSS PROFIT
--------------	--

			In Thousands of New Taiwan Dollars
	2018	2019	2020	2021/1~9
OPERATING REVENUE	1,408,741	1,573,944	1,568,637	1,436,625
GROSS PROFIT	793,175	844,776	795,123	715,145
PROFIT BEFORE INCOME TAX	244,378	226,294	89,406	158,936
NET PROFIT	159,171	161,329	27,901	109,409
Basic earnings per share (In New Taiwan Dollars)	2.09	2.1	0.36	1.42
R&D Expense	110,686	103,418	127,016	119,804
R&D % Against Revenue	7.9%	6.6%	8.1%	8.3%

2018-2021/1~9 Revenue from Major products

WHO ARE WE

PBF Corporate Vision We Believe All Should Live to 120 Healthily

From Birth to Blossom Over 40 Years We Work Diligently Step by Step Created Glorious Results in Biotech Industry With Passion and Persistence We Vow to Glorify our Homeland-Taiwan

Health . Sharing . Caring

PBF Biotech Corporate Mission 1 Health – Focus Only on Healthy Products and Business

Healthy Possible Symptoms Illness

• ➢ Nutrious Food
• ➢ Cosmetics

Vitamin Supplement

Medical Treatment (Oral / External)

PBF Product Categories

Development Guidance

Disease Treatment

• ➢Innovative Medication Extend from Kidney Related New Drug Development
• ➢Taiwan PBF– Focus upon Professional Dermatology and Pain Management
• ➢API Business Unit Based upon Existing 16+1 Certificates and Assess Competitive Products
• 1. Ferric Citrate
• 1. Chlorhexidine
• 1. TCA

Development Extension

• 1. Developing Kidney Related API
• Diabetes
• metabolic arthritis

New Drug Development Division

2017 GLOBAL SALES US\$ 100+ MILLION

2022 GLOBAL SALES US\$ 200+ MILLION

PHARMACEUTICAL GRADE FERRIC CITRATE

醫藥級檸檬酸鐵美國銷售 US Auryxia Growth

• 2019 to 2020 YOY growth was 15.9%.
• 2021 Q1~Q3 total: >US\$99 M. Growth continues.

醫藥級檸檬酸鐵日本銷售 Japan Riona Growth

• Riona is estimated to grow from 6,507M (2020) Yen to 7,180M (2021) Yen which is 673M Yen up (10.3%) due to additional indication in anti-anemia.

Pharm. Grade Ferric Citrate Development Progress 醫藥級檸檬酸鐵新藥開發進度

*NDA results and timeline is subjected to authority's final decision. *新藥上市審查結果與時程以主管機關之最終決定為準。

Item	2021 1H	2021 2H	2022 1H	2022 2H
Taiwan 台灣 New indication/formulation 新適應症/新劑型	Phase III (PIII) enrolment 三期臨床收案	PIII last patient out. 最後病人出組
China 中國大陸 New Drug Approval 新藥上市研發	PIII last patient out. 最後病人出組	Data verify & statistic analysis 統計分析	PIII final report submission 三期臨床申報	New drug application 新藥上市申請
Korea 韓國 New Drug Approval 新藥上市研發	NDA review by MFDS of Korea 韓國食品醫藥品安全處之新藥上市技術審查	New Drug Approval* 新藥上市許可

備註 : 依照實際收案及進度而訂,請以公司發佈之重大訊息為主

Development Guidance

Disease Prevention

• ➢Professional Antiseptics (90% Market Shares in Taiwan Hospital)
• Operation Apparatus Antiseptics
• Operation Doctors/Nurse Antiseptics
• Operation Patients Opening Antiseptics
• ➢Household Environment Antiseptics (Including Long-Term Caring Facilities)
• ➢Daily Life Antiseptics
• Skin
• Oral

Development Guidance

(a) Skin Antiseptics Pack(Aqua)-New Drug (New Formulation Form)

(b) Skin Antiseptics Pack(Alcohol)-New Formulation Form

(c) Urethral Lubrication Disinfectant-New Formulation Form (DISPOSABLE)

(d) Oral Antiseptics (Toothpaste+Gel+Mouth Wash+Oral Tablet)-New Formulation Form

Skin Disinfectant Injecting into Medical Level Non-woven Cloth Target : Hospital + Nursing Home (For Long-Bedding Patients Skin Disinfectant)

Skin Disinfectant (Alcohol) Injecting into Medical Level Non-woven Cloth Target : Hospital + Clinics (Replacing Current Alcohol Swab

Disinfectant + Lubricant (Disposable Catheter) Target: #1 Infectious Route in Global Hospital is Catheter

Treating/Preventing Dental Plague & Periodontal Disease

(Quick Release + Lasting Layers) Double Pain Killing Effect

R&D

Ready for TFDA Submission

Ready Entering Clinical Trial

Ready for TFDA Submission /Clinical Trial

Ready Entering Clinical Trial

Disease Diagonostics

➢Respiratory IVD ➢Intestinal IVD ➢Major Disease Swift Diagnostics

PBF Diagnostics Division Establish in 2014

PBF Diagnostics Division Vstrip in the Future

1. Hospital

• Precise Medication/ Digitized Data
• Reader/ Multiple Target IVD / Molecular IVD

2. Home

• Simple/User Friendly/Convenience/ Swift
• APP/On-Line/Integrated IVD Kit

3. On-line Dr

• Big Data/Prevention Medication/Zero Contact
• On-Line Doctor/Cloud Data Base/AI

PBF Diagnostics Division The Main Focus for Vstrip Product Development

Development Guidance

Aging Prevention

➢Aging Reversal

• Surgery Apparatus
• Surgery Material
• ➢Aging Holding
• Aging Holding Caring
  • Hair
  • Hair-Loss Prevention
  • Accelerated Hair Growth
  • Grey Hair Prevention
  • Facial
  • Body
• Aging Holding Caring
  • detoxification
  • Balancing
  • Rejuvenation

Innovative Aesthetics Devlopment

Increased demand for cosmetic surgeries

• The global aesthetic medicine market size was valued at USD 86.2 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 9.8% from 2021 to 2028.
• Non-invasive procedures accounted for the largest revenue share of 52.5% in 2020.Popular noninvasive procedures include Botox injections, soft tissue fillers, and chemical peel.

Strong recovery post COVID-19 pandemic

• According to Aesthetic Insights report, Q2-2021 earnings reports from public companies in the aesthetic space were encouraging. We observed consecutive quarters of positive financial results across multiple market segments, including injectables, energy-based devices, and

physician-dispensed topicals.

Leading the pack of rep Calif., NYSE: AGN). The revenues from its aest 100% on a reported an Cosmetic net revenues on a reported and com were up 31%. "We're pleased with the	The Beauty Health Company (Long Beach, Calif. NASDAQ: SKIN), which markets the popular HydraFacial brand, announced Q2-2021 net sales of \$66.5M, an increase of 371.2% compared with \$14.1M in Q2-2020 and an increase of 57.1% compared with \$42.3M in Q2-2019. Continued strength in the U.S. and EMEA and significant advancement drove growth in APAC. Net sales in the Americas were \$42.7M in Q2-2021 versus \$9.5M in Q2-2020 and \$31.8M in Q2-2019. This was because of strong trends in the U.S. as markets reopened and consumer demand sped up. Net sales in the APAC region were \$12.4M in Q2-2021 compared with \$2.6M In Q2-2020 and \$2.8M in Q2-2019, driven by continued strength in China, Japan, Taiwan, and Australia. Net sales in the EMEA region reached \$11.4M in Q2-2021 versus \$2.1M in Q2-2020 and \$7.8M in Q2-2019, driven by strength in the U.K., Russia, and Middle East countries. Consumables net sales increased to \$31.6M against \$8.1M in Q2-2020 and \$21.4M in Q2-2019. The company also raised its fiscal 2021 net sales guidance	Beach, Calif., NASDAQ: EOLS) characterized its second 234.6% to \$26.1M, up from \$7.8M in the second quarter of ue at \$25.4M while international sales were \$0.7M. The 6,000 customers, with over 200,000 consumers enting a 66% increase compared with 122,000 at year-
driven by our increased	to between \$230M and \$240M — the previous net sales estimate was approximately \$200M. and COVID-related pent-up demand, stated Richard A. Gonzalez, AbbVie's Chairman of the Board and CEO. "We are raising our full-year	\$0.3M for the second quarter of 2020. Revenue for the six months ended June 30, 2021, was \$32.1M compared with \$0.4M for the same period in 2020. According to the company, the second-quarter revenue	DAQ: RVNC), Q2-2021 revenue totaled \$18.8M versus
guidance once again for revenue of approximate BOTOX Cosmetic and a the U.S. toxin and filler 2019."	(RF)-based platforms. Operations outside the U.S. represented 34% of InMode's business in H1-2021, 2021 is estimated revenues between \$305M and \$315M.	InMode Ltd. (Yokneam, Israel, NASDAQ: INMD) recorded quarterly revenues of \$87.3M, an increase of 184% compared with Q2-2020. InMode's minimally invasive platforms represented 71% of quarterly revenues, while 22% came from its hands-free platforms and 7% from its traditional laser and non-invasive radiofrequency compared with 23% in H1-2020. Asia and Europe were the most prominent regions supporting InMode's growth outside the U.S. during this quarter. The company's outlook for the period ending on December 31,	hal fillers, \$1.4M of collaboration revenue, and \$0.4M arding commercialization of the company's DAXI inumtoxinA for Injection to treat glabellar lines in

Various Growth Factors(GF) in Platelets

Cosmetics with GF

Commercial Goods

• ✓ Mostly are serum and lotion but it 's not suitable for GF storage, the activity would degrade gradually.
• ✓ No Quantification

PBF GF Cosmetics

• ✓ Through patented purification method and stored as lyophilized powder can keep GF activities.
• ✓ Quantify certain GF for certain purpose which enhance results, like skin healing, hair growing.

GF lyophilized powder HA skin booster

✓ Combined with HA skin booster to achieve requires of skin layers.

Listing Product –AIVÍA MNP Spot Erasers

Physical stores - Contract Ongoing

E-commerce - PBF self-operated

【BID Transition Tech】AIVÍA Spot Erasers 2 patches x 3 bags/box

Lighten color pigmentations and dark spots

Microneedle Patch Platform

PBF Biotech Corporate Mission 2

Sharing – Basing in Taiwan, Sharing Healthy Products and Ideologies to the World through Extensive Sales Channels

PBF Biotech Group

Taiwan PBF Innovative

Medication

Innovative Aesthetics

Footing Taiwan, Embracing the World

PBF Biotech Corporate Mission 3

Caring – Spreading Corporate Love

E S G

Corporate Operating Indicators Specialized Department Reporting Directly to Board

Human Rights Community Relation Customers Labor Relation Salary & Benefits Versatility & Inclusive Environment Employee Health & Safety

Air Pollution Energy Management Fuel Management Packaging Bio-Versatility Greenhouse Effect Water & Suage Management

Business Ethics Material Purchasing Competitive Behavior Stimulus Incentive Supplier Management Systematic Risk Accident & Safety

PBF Biotech-Pingzhen Production Site

	2019	2020	2021	Usage Lowering %	Money Saving %
Electricity Consumption (Remark 1)		Approximately 2,220,060KWh	Approximately 2,045,400KWh	Approximately Lower by 8%	Approximately Save of 7%
Water Consumption (Remark 2)		Approximately 27,754M3	Approximately 25,925M3	Approximately Lower by 7%	Approximately Save of 2%
Greenhouse Air (Remark 3)	Approximately 1,253,522	Approximately 1,232,720		Approximately Lower by 2%
Waste Management	Periodically Inspect Waste Output,Increasing Recycling %,Lowering Final Waste Output,Target : Increasing Recycling % by 3~5% annually,lowering environmental impact。
Water Suage Management	Adding 150CMD Equipment (originally 43CMD) ,Will be able to Better Physical + Chemical Management in 2022。 New Equipment Added Oxidized Tank and Final Sediment Tank Enabling Water Output will Fulfill National Requirements。

註1 :Replacing Production Equipment with Energy-Saving or Frequency-Switching Models,Projected Energy Saving will be over 20%。Using Thermal-Steady Control and LED/Sensor Lighting Apparatus,Projected Energy Saving will be 5%~10% annually 。

註2 :Recycling RO Waste Water System,Establishing Recycling Water Tank,Using Recycling Water for Sanitary Purpose,Increasing Water Recycling %,Projected Saving will be 5%~10% 。

註3 : Replaced with Fume Burning Boiler in 09/2019,Projected Carbon Emission can be Lower by 86,000 CO² (kg) ,Projected Decrease by 5~10%。

Business Waste Decreasing Plan

◆Adapting Rolling Dryer in 09/2021 ( NTD 9/kg)

Year	Quantity	Cost	Annual Quantity	Annual Cost
01/2021~08/2021	12,715kg/Mo	\$ 114,435/Mo	101,720kg	\$915,480
09/2021~12/2021	5,938kg/Mo	\$ 53,442/Mo	23,750kg	\$213,750
Monthly Differential	6,777kg/Mo	\$ 60,993/Mo	-	-

差異% - 114% - Result:Projected Decrease by 2022 - 82,000kg,Projected Saving NTD 738,000

◆Adapting Steaming Technique for Water Recycling。

• ➢ Planet Caring
• ◆ Energy Saving / Water Management / Lowering Greenhouse Emission / Waste and Usage Management
• ➢ Development Guidance
• ◆ Lowering Environmental Hormone Related Chemicals (Adapting Strict EU Standard)
• ◆ Decreasing Overly Packaging
• ◆ Study Bio-Degradable Packaging Materials
• ➢ Caring Those Needs
• ➢ Promote Healthy Ideology
• ➢ Establishing PBF Health Promotion Centre
• ➢ Caring for Investors (Complete and Professional Board Members + 3 Independent and Just Board Member)
• ➢ ESG Report
• ◆ Preparing Corporate CSR Report in Consistency with ESG and GRI Standard