S.C.P.C — Investor Presentation 2020

Nov 19, 2020

Stock Symbol :1720

Standard Chem. & Pharm. Co., Ltd. (SCP) Investor Roadshow

2020.11.19

1

免責聲明 Safe Harbor Notice

本次簡報與討論包含特定預測性的說明，而其內容有關於營運結
果、財務狀況，以及對未來事件的預期。因為此等前瞻性說明是有關
於未來事件，而且取決於未來發生時的環境因素，所以必然含有風險
與不確定性。
本公司將不負擔公開更新或修改這些預測性的說明之義務，無論是
出現新資訊、未來發生任何事件，或其他情況。實際結果可能與此等
預測性說明推測的內容有重大差異。

In these presentations and discussions, there are certain forward looking statements regarding the results of operation, financial condition and current expectation about future events. As forward-looking statements relate to events and depend on circumstances in the future, they involve risk and uncertainty. We do not undertake any obligation to publicly revise or update any forward looking statements for availability of new information, future events or otherwise. Real result probably differ substantially from those expected in these forward-looking statements.

2

Agenda

Corporate Introduction to 2020 Q3 Forward-Looking Social Standard Group Operating s Strategie Responsibility (SCP Group) Results (CSR)  Milestones  Consolidated • Drivers of  Fan Dao Nan Financial Revenue Foundation  Resource Statements Growth Integration • • Status of Forward Past Internationaliza looking Financial tion Strategy Performance

3

==> picture [77 x 71] intentionally omitted <==

Introduction to Standard Group (SCP Group)

4

==> picture [95 x 41] intentionally omitted <==

International Accreditation

==> picture [608 x 46] intentionally omitted <==

----- Start of picture text -----

1998 2000 2008 2009 2010 2017 2018
----- End of picture text -----

==> picture [47 x 51] intentionally omitted <==

==> picture [32 x 42] intentionally omitted <==

==> picture [56 x 35] intentionally omitted <==

The first TW pharmaceutical company to be ISO9001 certified

==> picture [51 x 28] intentionally omitted <==

The first TW company to pass US FDA inspection

SCP passed subsequent US FDA cGMP inspections without 483

==> picture [55 x 38] intentionally omitted <==

==> picture [31 x 41] intentionally omitted <==

SCP received JP PMDA’s “Certificate Y2018 FDF Plant and API Plant of Foreign Drug Manufacturer” passed PMDA GMP Audit

==> picture [54 x 38] intentionally omitted <==

==> picture [53 x 39] intentionally omitted <==

==> picture [57 x 41] intentionally omitted <==

==> picture [65 x 41] intentionally omitted <==

SCP’s API plant passed AU TGA inspection

==> picture [49 x 39] intentionally omitted <==

Y2010 SCP passed TW PIC/S GMP inspection Y2012 SCP is certified GDP by the T-FDA

==> picture [79 x 34] intentionally omitted <==

Y2012 SCP passed K-FDA inspection

5

==> picture [95 x 41] intentionally omitted <==

SCP and Related/Affiliated Companies

==> picture [608 x 46] intentionally omitted <==

----- Start of picture text -----

1967 1982 1995 1999 2005 2016 2019
----- End of picture text -----

==> picture [73 x 65] intentionally omitted <==

SCP is established in Became TWSE listed company (1720) 1967 Syn-Tech is established Became listed company at in 1982 OTC market (1777) Syngen is established Became listed company at in 1999 OTC market (8279) Invested to Multipower in 2012 Invested to Your Chance Pharmacy in 2013 Taiwan Biosim is established in 2017

6

SCP Group Resource Integration

==> picture [574 x 47] intentionally omitted <==

==> picture [153 x 126] intentionally omitted <==

----- Start of picture text -----

Pharmace
uticals
----- End of picture text -----

==> picture [85 x 86] intentionally omitted <==

==> picture [85 x 86] intentionally omitted <==

==> picture [153 x 127] intentionally omitted <==

----- Start of picture text -----

Medical
Equipments
----- End of picture text -----

==> picture [86 x 86] intentionally omitted <==

==> picture [95 x 86] intentionally omitted <==

Software/Hardware service Inforight Technology

7

53 Years of Continuous Profit (Profit and Dividend Performance in past 15 years)

==> picture [663 x 350] intentionally omitted <==

----- Start of picture text -----

EPS
(Expressed in thousands of New Taiwan Dollars)
Net Income Cash Dividend Stock Dividend EPS
400,000 3.00
350,000
2.50
2.09 [2.15 ] 2.09
300,000 2.04
1.95 1.90 [2.03 ][2.09 2.11 ]
1.77 [1.81 1.88 ] 2.00
250,000 1.61 [1.73 ]
1.56
1.35 [1.47 ]
200,000 1.50
150,000
1.00
100,000 1.20 1.50 1.25 1.20 1.60 0.50 1.00 1.20 2.50 1.00 1.50 1.50 1.60 1.50 1.50
0.50
50,000 0.70
0.30 0.30
0 0.00
----- End of picture text -----

(Expressed in thousands of New Taiwan Dollars)

8

(1777) Historical Milestone Syn-Tech

2000 2004 2014 2019
1995 Passed US FDA inspection; products were exported to the US Passed ISO14001: Environmental Management System validation Passed ISO 45001 validation Awarded by TFDA for API cGMP Award 2009 Awarded TW Pharmaceutica l Industry Awarded TW Pharmaceutica l Industry R&D Award Passed subsequent US FDA and JPPMDA GMP inspection
R&D Award
1982 2000 2010 2020
1982 Syn-Tech was founded 1998 Awarded National Pharmaceutical Quality Award in the category of API plant and Single Medicine Passed ISO9001 validation 2002 Awarded Industrial Sustainable Excellence Award Awarded National Award of Outstanding SMEs 2018 Top 5% of Corporate Governance Evaluation of the listed company at OTC market for four consecutive years 2005 Officially listed in the OTC market 2011 Awarded the SMSs Innovation Award

9

==> picture [57 x 60] intentionally omitted <==

(8279) Syngen Biotech Historical Milestone

2019 2017 2011 2004 Awarded the Copper Prize 2014  Passed US NSF inspection  Awarded the Golden Award of Awarded the Silver of Awarded National The 33[rd] World Genius  Awarded National TW healthcare & Prize of TW agricultural Biotechnology Medical Innovation Award Convention & Education EXPO Pharmaceutical biotech ingredients Quality Award  Awarded by Taipei Biotech innovation  Awarded Golden Prize of Industry R&D Award Awards for the Silver Award of & excellence award TW Pharmaceutical Globalizing Award Industry R&D Award 1999 2000 2015 2020 2016 1999 Officially listed in the Syngen OTC market was 2018 founded 2012  Passed US FDA inspections without 483 2020 Acquired HACCP  Awarded Golden Prize 2010 certificate  Awarded the Golden Prize of Malaysia Passed ISO9001 and ITEX for Outstanding BioIndustry ISO22000 validation  Awarded by Taipei Biotech Awards for the Excellence Award of Globalizing Award

10

==> picture [77 x 71] intentionally omitted <==

2020 Q1~Q3 Operating Results

11

Income Statement

(Consolidated)

==> picture [599 x 345] intentionally omitted <==

12

Balance Sheet (Consolidated)

==> picture [594 x 354] intentionally omitted <==

13

Cash Flows (Consolidated)

==> picture [592 x 357] intentionally omitted <==

14

Global Revenue Ratio of Past 5 Years (Consolidated)

==> picture [577 x 358] intentionally omitted <==

15

Global Revenue Ratio Comparison (Consolidated)

(Expressed in thousands of New Taiwan Dollars)

==> picture [12 x 11] intentionally omitted <==

2020Q3 2019Q3

==> picture [663 x 277] intentionally omitted <==

----- Start of picture text -----

250,000
34% 40%
200,000
27%
150,000
22%
100,000
14%
11%
8%
50,000 6%
5% 6% 4% 6% 4% 6% 5%
3%
0% 0%
0
S.E.A. China Other - Japan Other - U.S.A Europe Africa Other
Asia Americas
----- End of picture text -----

16

Competitors Cons. Revenue Growth Amount & Growth Rate Ranking for 2020 Q1-Q3

( gro	( gro
282,128
	12.6%
9.7%	73% 5.1% 6.5%
	(45,356) 2.3% . 2.4% 6.0%
	248,190 135,589 126,398 81,451 63,957 21,507 19,445 (18,398) (342,557) 08%
	-2.4% -.
	-10.2%
S.C.P.C SYNMOSA CCPC SINPHAR TBC NANG KUANG GBL JCP CHI SHENG Y.S.P. TTY

17

Comparison of Quarterly Revenue of Past 4 Years (Consolidated)

(Expressed in thousands of New Taiwan Dollars)

2016-2020 Consolidated quarterly revenue

==> picture [517 x 179] intentionally omitted <==

----- Start of picture text -----

1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
Season 1 Season 2 Season 3 Season 4
2016 2017 2018 2019 2020
----- End of picture text -----

Consolidate d Revenue	Season 1	Season 2	Season 3	Season 4	Annual Statistics
2016	859,024	940,238	919,663	954,876	3,673,801
2017	909,933	976,177	1,056,753	905,821	3,848,684
2018	763,261	897,693	913,353	998,786	3,573,093
2019	846,177	1,010,837	1,048,886	1,031,229	3,937,129
2020	1,034,417	1,108,059	1,045,351		3,187,827

18

==> picture [77 x 71] intentionally omitted <==

Forward-looking Strategy

19

Future Milestone

Taiwan Generics

==> picture [391 x 241] intentionally omitted <==

International Better than Generics

20

SCP – Major International Businesses of the Past 2 Years

Taiwan China

• Continues export of antibiotic injection

• Generic Quality Consistency Evaluation(GQCE) ： 3 cases were closed; 5 ongoing applications

• Self-developed generic drug: one was submitted for review; one products passed the BE test

• Agent for 20 Mylan drugs, including biosimilar and anti-cancer drugs. 2 of them were launched to the market.

• Continues research & development for high technical threshold biosimilar drugs

Japan

• Continuous export of Asthma product to Japan

• Launch of Antiinflammatory Oral Solid Dosage in 2020

Revenue Growth Strategy - Taiwan

• Taiwan as Base of Operations for Global R&D and Pharmaceutical Manufacturing

• Export sales growth in 2020

• Continuous development in US, China, Japan, and ASEAN to maximize the products market share.

 Strengthen Manufacturing Capability

• Expansion of production line and upgrade equipment

• Manufacturing line complies with international standards; have passed numerous international audits

• Production line simplification

 In-licensing:

• Agent for 20 Mylan anti-cancer drugs in Taiwan; 2 biosimilar drugs have been launched in 2020.

22

Agent for 20 Mylan Anti-cancer Drugs

• 5 Biosimilar Drugs

• 3 ingredients, 5 drug licenses

• 3 drug licenses have been approved in Taiwan, 2 drugs were officially approved with NHIA price

• 15 kinds of Small Molecule Drugs

• 9 ingredients, 15 drug licenses

• 12 drug licenses have been approved in Taiwan with NHIA price

• Launched to the market in 2020

• Ogivri was launched on the 1[st] quarter

• Fulphila was launched on the 3[rd] quarter

23

Mylan Ogivri

 Herceptin

• Breast cancer ranks the 1[st] place for Taiwan female cancer, with the third spot of leading cause of death and an average incremental of 12,000 patient per year in Taiwan

• The product is ranked 4[th] in global drug sales, and it has taken the first spot of cancer NHIA reimbursement for many years.

• The product was approved with NHIA price in 2002. Current NHIA Price is NT$46,894 per dose. 2018 annual NHIA expenditure for the product was NT$2.206 billion with 5,030 applicants.

 Mylan Ogivri

• The product was approved and launched in the U.S. in December 2017, and also approved in Taiwan in December 2018; the sale is commenced in 2020.

• NHIA reimbursement Price: NT$ 39,860/dose, one dose usage for every 3 weeks, around 18 doses each year

• 、 、

• Indication: EBC MBC MGC

 Patient Support Program

• Patients, who are not covered by health insurance, can apply the support program after doctor’s evaluation to reduce the medical burden.

• Ovigri is used by medical center and local hospitals.

24

Mylan Fulphila

 Original Drug: Neulasta

• Indication ： to help reduce the chance of infection due to a low white blood cell count, while non-myeloid cancer patient receive anti-cancer medicines that can cause fever and low white blood cell count.

==> picture [98 x 291] intentionally omitted <==

• Short-acting, 3~10 injections per therapy; Long-acting, 1 injection per therapy

Product Name	Dosage	NHIA Price (NT$)	2018 NHIA Volume
Short-acting: Filgrastim inj. (Filgrastim)	75µg	$623	14,863 inj.
	150µg	$1,442	24,150 inj.
	300µg	$1,804	155,671 inj.
Long-acting: Neulasta inj. (Pegfilgrastim)	6mg	$18,158	1,309 inj.

 Mylan Long-acting GCSF: Fulphila(Pegfilgrastim)

• NHIA Price: NT$15,722. Fulphila is used by hospital

25

Avigan (Favipiravir)

• The clinical trial shows that it is effective against COVID-19

• One of the anti-flu drugs

• Fijifilm Toyama Chemical Co., Ltd. conducted phase III clinical trial in March 2020 and ends in September of the same year. 156 patients were tested.

• The study shows the improvement of symptoms and that is can shorten the recovery time

• Application was submitted for partial changes (new indication)

• Will be the first Japan-made drug to treat COVID-19

 SCP as an exclusive agent in Taiwan

• The Center of Disease Control imported 5,000 tabs of Avigan (dosage for about 4000 people)

• Hospitals can submit special import project to TFDA when necessary

• Japan has increased its production quantity for about 300 thousand people per month

26

Revenue Growth Strategy - China

c

SCP Competitiveness

• SCP has successful experience with

• U.S. and Japan regulatory dossiers

• SCP to continue to specialize

• expertise in BE design and execution

Mid-Term Goals

 Self-developed products submission  Increase revenue from profitsharing

==> picture [57 x 57] intentionally omitted <==

NMPA review of importation

• Continuous export of antibiotic injection products

• Erectile dysfunction ODT were submitted in 2002

• Diabetes products passed the BE test. Submission

NMPA Consistency Evaluation

• 8 contracts signed, 3 cases were closed, and 5 ongoing cases

• Collaboration Model  Tech-transfer

 Co-development

• BE Collaboration

• Profit-sharing Partnerships

Strategies

• Emphasize export and tech transfer simultaneously.

• Increase the number of cooperative projects and pharmaceutical companies

27

NMPA Reforms: Generic Quality Consistency Evaluation (GQCE) Progress

 Revised status of GQCE

Period	Received #	Approved #
2017	73	21
2018	585	85
2019	1,014	207
2020 Jan. to Oct.	812	452
Total	2,484	765

*Source ： www.yaozh.com Report of CDE Statistics

 Public traded pharmaceutical entities announced the 183 cases were passed; each R&D expenses are as follow: *Source: PharmCube

• <5 million, 26 cases (14.2%)

• 5~10 million, 89 cases (48.6%)

• 10~15 million, 41 cases (22.4%)

• Above 15 million, 27 cases (14.8%)

28

： NMPA Reforms GQCEPharmaceutical Companies’ Tendency

 Mostly applied by group company 、 self-developed API, and massive R&D expenditure

==> picture [590 x 269] intentionally omitted <==

----- Start of picture text -----

Company Name Top 7 companies’ cases approved under GQCE
齊魯製藥 15 25
中國生物… 11 25
揚子江藥業 22 13
石藥控股 17 15
四川科倫… 14 11
18 4
上海復星…
9 13
浙江華海…
0 5 10 15 20 25 30 35 40
補充申請 新註冊分類
----- End of picture text -----

NMPA Reforms: Centralized Procurement of Drugs

• 112 drugs were announced to be included in the Centralized Procurement list

• Sept. 2019: 1[st] group of 25 drugs were listed

• Dec. 2019: 2[nd] group of 32 drugs were announced

• Aug. 2020: 3[rd] group of 55 drugs were announced

 Centralized Procurement Area:

• Expending from 4+7 (11 major cities) to countrywide

30

NMPA Reforms: Market Tendency

==> picture [661 x 370] intentionally omitted <==

----- Start of picture text -----

Hospitals are
Encourage
encouraged to use
hospitals to
listed drugs via health
prioritize
insurance fund
the usage of
listed drugs
Eligible companies
increases from 6 to
8 firms.
Increase Constant
eligible price cut
companies on drugs
There is an average of
70% price cut on 3 [rd]
group of listed drugs
----- End of picture text -----

Revenue Growth Strategy - Japan

==> picture [81 x 76] intentionally omitted <==

Collaboration Model

 Japanese Distribution Partner  Contract Development, and Manufacturing

 License Holder

==> picture [85 x 78] intentionally omitted <==

Raw Material Strategy

 Strategic alliance with API manufacturer.

 API Vertical Integration with Syn-Tech.

==> picture [84 x 77] intentionally omitted <==

Current State

On Going

 Obtained marketing licenses

 NT$50million sales in 2020

for Montelukast (Asthma) and Celecoxib (Antiinflammatory)

32

Revenue Growth Strategy – U.S.A.

==> picture [201 x 126] intentionally omitted <==

U.S.A. Market

• Largest Rx Market

• Characterized by lengthy review timelines and costly compilation and filing work

• SCP’s long term goals

Strategy

• Strategic alliance with API manufacturer.

• API Vertical Integration with Syn-Tech.

Current Status

• Export of diabetic and amyothophic lateral sclerosis(ALS) drugs treatment

• Another approved drug, pending for patent expiration

Forward-looking Strategy Layout

==> picture [712 x 80] intentionally omitted <==

----- Start of picture text -----

Future:
2018 2020 2020
International
China Japan U.S.A.
Better-than-Generics
----- End of picture text -----

==> picture [182 x 123] intentionally omitted <==

----- Start of picture text -----

Increase
International
Revenue Ratio
----- End of picture text -----

• Increase international

• business resources

• Recruit international talents

==> picture [210 x 123] intentionally omitted <==

----- Start of picture text -----

Core technology and
professional development of
international performance
----- End of picture text -----

• Utilize Taiwan’s cutting-edge R&D technology to enhance potential revenue .

==> picture [188 x 123] intentionally omitted <==

----- Start of picture text -----

Leverage
Competitiveness in
Overseas Markets
----- End of picture text -----

• Stable foundation

• Rapid revenue creation

• Step-by-step optimization for minimization of loss

• Focus on market knowledge and business acumen

• Establish strategic

partnerships for mid- and long-term goals

34

2020.10.27

==> picture [140 x 90] intentionally omitted <==

==> picture [228 x 82] intentionally omitted <==

==> picture [323 x 90] intentionally omitted <==

35

==> picture [77 x 71] intentionally omitted <==

Corporate Social Responsibility

36

Fan Dao Nan Foundation

==> picture [158 x 118] intentionally omitted <==

Fan Dao Nan Foundation

 Established in 1987

 Endowment Fund: NT$196 Million

 Annual Budget: NT$12 Million

Principal Activities

==> picture [158 x 114] intentionally omitted <==

 Non-profit education

 Cultural and educational development activities

 Scholarships and Talent Cultivation  Sponsor R&D and Innovation

==> picture [157 x 114] intentionally omitted <==

Rewards and Honors Received

 2011: Special Recognition Award – Dept. of Education

 2012: Tainan City Govt. Grant for Scholarship Program

 2013: National Special Selection Award for After-School Program – Dept. of Education

37

Corporate Social Responsibility

==> picture [29 x 29] intentionally omitted <==

Scholarships

 University (related fields): 2 universities/5 students  High school: 8 schools/108 students  Middle school: 57 schools/797 students

 Elementary school: 226 schools/2,626 students Scholarship Total – NT$5.86MM

==> picture [29 x 29] intentionally omitted <==

==> picture [29 x 29] intentionally omitted <==

Hope After-school Class

Sunflower Wednesdays

 Weekday afternoons  22 schools

 Every Wednesday afternoon  6 schools  300 students

• 1,806 students

Scholarship Total – NT$1.75MM Scholarship Total – NT$400KK

==> picture [29 x 30] intentionally omitted <==

Other Sponsorships

==> picture [29 x 29] intentionally omitted <==

Meal-Assistance

==> picture [29 x 29] intentionally omitted <==

Charity

==> picture [29 x 29] intentionally omitted <==

 Sponsorship to 17 non-for In 2019, provided 6,000 meals to profit organization for cultural students during winter and summer and educational advancement vacation.

Assisted Total – NT$360KK

 SCP Children’s Drawing Competition  SCP National Table Tennis Competition Prize Total – NT$1.6MM

Grant Total – NT$950KK

38

Awarded Corporate Citizen Prize by Common Health Magazine

==> picture [201 x 201] intentionally omitted <==

 Long-term attention to disadvantaged children in rural areas to enhance their learning and competitiveness  Co-development and promotion of Tainan's local products: Burdock & wolfberry tea from Jiangjun Dist. and orchid essence skin care products from Houbi Dist., etc.  Donation of alcohol for epidemic prevention  Employees participation in SCP National Table Tennis Competition and Children’s Drawing Competition

==> picture [191 x 130] intentionally omitted <==

39

The First Senior Gym in Taiwan – Athletic Training and Health Center

==> picture [143 x 108] intentionally omitted <==

==> picture [142 x 108] intentionally omitted <==

• In 2020, 3 new athletic training & health centers and 8 service spots were established in various districts of Tainan City, with a total of 26,016 user times.

• On average, each user increased his/her grip strength by 11.2%, sitting and standing by 10.4%, and walking speed by 5.5%. Using the Center is a safer and efficient way improve the muscle endurance of elderly people and to prevent sarcopenia.

• Seven health seminars will be held in the second half of the year to promote sport and life care concepts.

• Aerobic and yoga classes will be added to enrich exercise course selection.

40

Free Bone Mass Measurement and Community Health Seminar

==> picture [206 x 162] intentionally omitted <==

 Cooperate with medical institution, local community, and pharmacy for free bone mass measurement activity. In the first half of the year 2020, the activity was postponed due to the coronavirus epidemic. The second half of the year, a total of 4 sessions have been held so far. A total of 500 people were measured

• 4 sessions of community health seminars have been held, with a total of 660 participants.

41

Q & A

42

Thanks for your attention

43