SPT — Investor Presentation 2020

Sep 10, 2020

1789 TT

ScinoPharm

September 11, 2020

Disclaimer

This material has been prepared by ScinoPharm Taiwan, Ltd. (“ScinoPharm”).

Any opinions expressed in this material are subject to change without notice as a result of using different assumptions. ScinoPharm is under no obligation to update or keep current the information contained herein. The information contained in this presentation is ScinoPharm’s confidential information.

Any disclosure, copying, distribution or any action taken or omitted to be taken in reliance on it is prohibited and may be unlawful.

No representation or warranty , express or implied, is or will be made in or in relation to, and no responsibility or liability is or will be accepted by the Company as to , the accuracy or completeness of this material and any liability therefore is hereby expressly disclaimed.

Statements made in this material include forward-looking statements, which include, without limitation, statements about the issues, plans and expectations of ScinoPharm. Without limiting the foregoing, statements including the words “believes”, “anticipates”, “plans”, “expects” and similar expressions are also forward-looking statements. Forward-looking statements reflect, among other things, management’s plans and objectives for future operations, current views with respect to future events and future economic performances and projections of various financial items. These forward-looking statements involve known and unknown risks , uncertainties and other factors which may cause actual results to differ materially from those implied by such forward-looking statements.

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Table of Content

 Business Overview

 Business Update

 2020 Product Approval Plan

 Operating Results

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Business Overview

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ScinoPharm at a Glance

• Est. in 1997 in Taiwan (Tainan) with cGMP plants/R&D in Tainan and Changshu and marketing forces in Tainan, Shanghai and Tokyo

• Listed on TWSE in 2011 with market cap of c. USD 1 billion as of 2020/06/30. Major shareholders include Uni-President Group, National Development Fund and Taiwan Sugar Corporation

• Specializes in high potency (cytotoxic/steroid) API and injectable R&D and manufacturing with customers worldwide

• Generic API

• CDMO

• Drug Product - Injectables

 Certified by key international regulators - US FDA, EMA, EDQM, Australian TGA, Japanese PMDA, Korea KFDA, Mexico COFEPRIS and German Authority

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A. The achievements from three major business are being progressed

 1H 2020 revenue NTD 1,451 million with YoY 4%；net profit NTD 197 million with YoY 45% and net margin to be 13.61%

Business	Generic API	Drug Product	CDMO
Achievements	1.The market presence of our core products is being enlarged with aggressive sales approach and production advantage utilization 2.With the credentials earned and facility flexibility established, we have branched out into Japan and China markets	1.Several drug products are in developing upon our capability in API development 2.ANDA of 1st in-house prefilled-syringe product has been submitted to FDA in May 3.Registration batches of Cartridge product and Vial product have been completed in March and under processing respectively	1.One CDMO product (new drug MAA) has been approved by EMA 2.Two CDMO products have been submitted to EMA and FDA by customers

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B. The facilities cross-strait are being further integrated to provide flexibility for market dynamic

 Keep on enhancing the connection and collaboration between Tainan and Changshu

 To response to market dynamic

In the post-pandemic period, given the possible change in market segmentation and supply, we focus on fulfilling customers’ demand for FDA/CFDA dual filing and thus expanding API business under MAH regulation

 To utilize the two facilities

The resource allocation is being made under consideration of product attributes and two sites’ production advantages C. DMFs are being accumulated for business potential  73 generic APIs in portfolio with 31 referred and approved by ANDA/NDA. 853 active DMFs worldwide with 63 US DMFs

Data as of 2020/06/30

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Business Update

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Business Strategies

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Advancing to
Injectables
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Optimize
Existing Generic
API Portfolio
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Expand CDMO
Business
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Actively Develop Japan, China and Emerging Markets
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Advancing to Injectables

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Oral Solids
Extended Release
Oral Solids
Immediate Release
APIs
Dermatological
Semi-Solids
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Peptides
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Sterile
Injectables
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Pen Injectors
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Otics & Opthalmics Respiratory Devices

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Higher entry barriers due to more tech, IP and regulatory requirements
lead to more value
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In-House Injectables Portfolio

 Expected TFDA on-site inspection in 2H 2020

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5 3
2 2
Data as of 2020/06/30
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Data as of 2020/06/30

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Optimize Existing Generic API Portfolio

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40 37
Pipeline
35 Approved
30
20
25
20
12
15
10 17 7 6 6
5 4 2 3 2 2 2 2 1
5 2 4 3 2 1 2 2
1 1
0
Data as of 2020/06/30
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Expand CDMO Business

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12
12
10
8 6 8
7
8
1
SciAnda (Changshu)
4
6
ScinoPharm Taiwan
4
7 7
6
4
2
0
Phase 1 Phase 2 Phase 3 Commercial
Data as of 2020/06/30
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2020 Product Approval Plan

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2020 Product Approval Plan (I)

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Type	Product	Region	Indication	Brand Marketer
Generic API	Capecitabine	CN( )	Various cancers	Roche
Generic API	Dantrolene Sodium	CN( )	Skeletal Muscle Relaxant	Par Sterile Products
Generic API	Tamsulosin HCl	CN( )	Benign prostatic hyperplasia (BPH)	Sanofi Aventis
(＊)Generic API	Irinotecan HCl	CN( )	Colorectal cancer	Pfizer
Generic API	Fondaparinux Sodium	CN	Anti-thrombotic	Mylan
Generic API	Anastrozole	CN	Breast cancer	ANI Pharmaceuticals
Generic API	Sodium Phenylbutyrate	CN	Urea cycle disorders	Horizon Therapeutics
Generic API	Azilsartan	CN	Hypertension	Arbor Pharmaceuticals

：Approved

＊： Added due to earlier than expected approval obtained Data as of 2020/06/30

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2020 Product Approval Plan (II)

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Type	Product	Region	Indication	Brand Marketer
Generic API	Galantamine HBr	JP( )	Alzheimer’s disease	Janssen
Generic API	Topiramate	JP	Anti-convulsant	Janssen
Generic API	Topiramate	EU	Weight management	Vivus
(**)Generic API	Pemetrexed Disodium 7H2O CEP	EU	Non-small cell lung cancer	Eli Lilly
Generic API	Fulvestrant	US	Breast cancer	AstraZeneca
CDMO API	Donafenib	CN	Cancer	Suzhou Zelgen
CDMO API	Quofenix	EU( )	Anti-biotic	Menarini

：Approved

**： Collaborative project with partner for drug product development

Data as of 2020/06/30

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Operating Results

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Consolidated Income Statement

In NTD Million, except for EPS	1H 2020 (Reviewed)	1H 2020 (Reviewed)	YoY	1H 2019 (Reviewed)	1H 2019 (Reviewed)
Revenue	1,451	100%	4%	1,390	100%
Gross Profit	682	47%	13%	604	44%
Operating Profit	252	17%	41%	179	13%
Net Profit before Tax	252	17%	51%	167	12%
Net Profit after Tax	197	14%	46%	136	10%
EPS (NTD)	0.25	-	-	0.17	-

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1H 2020 Sales Distribution

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Drug
CDMO China Others
Product
India
18% 2% 7%
1%
15%
US+Canada
23%
Generic Japan
API 17%
EU
81%
36%
Others
CNS
by Business 6% by Region
23%
Oncology
71%
by Indication
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Sales Distribution – YoY

**Sales Distribution – YoY **	**Sales Distribution – YoY **	**Sales Distribution – YoY **	**Sales Distribution – YoY **
By Business Unit: USD
	Generic API	CDMO	Drug Product
1H 2020 Sales	39.1M	8.7M	0.5M
YoY	11.6%	-3.0%	-36.2%

By Indication	By Indication	By Indication	By Indication
	Oncology	CNS	Others
1H 2020 Sales	34.4M	10.8M	3.1M
YoY	13.3%	36.9%	-53.1%

By Region	By Region	By Region	By Region	By Region	By Region	By Region
	EU	US & Canada	Japan	India	China	Others
1H 2020 Sales	17.4M	11.2M	8.1M	7.4M	0.9M	3.3M
YoY	6.6%	20.1%	-6.2%	30.5%	-8.9%	-14.4%

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Consolidated Balance Sheet

In NTD Million	2020/6/30 (Reviewed)	2020/6/30 (Reviewed)	2019/6/30 (Reviewed)	2019/6/30 (Reviewed)
Cash and Cash Equivalents	3,803	31%	4,534	33%
Accounts Receivable	554	5%	434	3%
Inventories	1,299	11%	1,294	10%
Property, Plant & Equipment	4,255	35%	4,597	34%
Other Current/Non-Current Assets	2,197	18%	2,742	20%
Total Assets	12,108	100%	13,601	100%
Financial Debt	261	2%	1,368	10%
Other Current Liabilities	830	7%	863	6%
Other Non-Current Liabilities	636	5%	949	7%
Total Liabilities	1,727	14%	3,180	23%
Total Shareholders' Equities	10,381	86%	10,421	77%

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Consolidated Cash Flow Statement

In NTD million	1H 2020 (Reviewed)	1H 2019 (Reviewed)
From Operating Activities	368	444
From Investing Activities	123	(54)
From Financing Activities	29	(68)
Effect of foreign exchange rate changes	(22)	9
Net Change in Cash	498	331
Beginning Balance	3,305	4,203
Ending Balance	3,803	4,534

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Q & A

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Brand Quality with Asian Advantages

www.scinopharm.com

1789 TT

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