Coland Holdings Limited - 康聯藥業-生技醫療整合平台 ... Coland Holdings Limited. TWSE 4144. 2. ... competition, global economy, exchange rate movement and market demand,

www.colandpharma.com

Aug, 2014

Coland Holdings LimitedTWSE 4144

www.colandpharma.com2

2014 1H Results


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.


2014 1H Financial Highlights

1H 14 net sales were NT$ 1,036mn, YoY+14%2014 1H Net Sales +14%

1H 14 profit were NT$ 260mn, YoY+9%2014 1H Profit +9%

Sales from acquisition accounted for 36% of 1H 14 salesAcquisition

1H 14 sales from new products Bi Duo Yi, Yi-Qing, Detrol, Lezhiping and Ursa accounted for 6%New products

1H 14 gross margin of 50%, gross profit decrease 5% over H1 14 were mainly due to product mix changeGP 50%

1H 14 EPS is calculated at NT$ 3.342014 1H EPS 3.34


Consolidated Income Statement

NTD Million 2014 Q2 2014 Q1 +/-% 2014 1H 2013 1H +/-%

Net Sales 530 100% 506 100% 5% 1,036 100% 912 100% 14%

Gross Profit 268 51% 253 50% 6% 521 50% 502 55% 4%

Operating Expense 183 35% 176 35% 4% 359 35% 343 37% 5%

Operating Profit 85 16% 77 15% 10% 162 16% 159 18% 2%

Non-Opt income/Exp 91 17% 94 19% -3% 185 18% 150 16% 23%

Profit Before Tax 176 33% 171 34% 3% 347 33% 309 34% 12%

Profit After Tax 140 26% 148 29% -5% 287 28% 254 28% 13%

Minority Interest 14 3% 13 3% 8% 27 3% 15 2% 80%

Net Profit 126 24% 134 27% -6% 260 25% 239 26% 9%

Basic EPS (NTD) 1.62 1.72 3.34 3.42

Notes: EPS is based on 77,847,000 of total number of shares issued.


Consolidated Balance Sheet

NTD Million 2014-6-30 2014-3-31 2013-12-31

Cash & Equivalent 712 19% 988 27% 930 25%

Accounts Receivable 602 16% 478 13% 464 13%

Inventory 187 5% 250 7% 194 5%

Long Term Investment 1,231 32% 1,189 32% 1,149 31%

Fixed Assets 12 0% 12 0% 13 0%

Intangible Assets 586 15% 604 16% 615 17%

Total Assets 3,835 100% 3,704 100% 3,686 100%

Short term Liability 533 14% 222 6% 257 7%

Long term & other liability 159 4% 161 4% 161 4%

Shareholder’s Equity 3,143 82% 3,321 90% 3,268 89%

Days Sales Outstanding 83 85 81

Inventory Turnover Days 76 81 58


Trend Chart of Quarterly Net Sales

(NT$M)

456 433511 506 530

0

100

200

300

400

500

600

2Q'13 3Q'13 4Q'13 1Q'14 2Q'14

2Q'13 3Q'13 4Q'13 1Q'14 2Q'14

Net Sales 456 433 511 506 530

QoQ -0.3% -5% 12% -1% 5%

YoY 12% -1% 28% 11% 16%7


Q2 Product Portfolio

Hepatits,

68%

Respiratory, 2%

Medical Device,

12%

Cardiovascular,

9%

Others,

9%

2013 Q2

Hepatits,

54%

Respiratory,5%

Medical Device,

19%

Cardiovascular,

9%,

Others,

13%

2014 Q2


1H Product Portfolio

Hepatits70%

Respiratory 2%

Medical Device,

11%

Cardiovascular, 8%

Others,9%

2013 1H

Hepatits56%

Respiratory4

%

Medical Device,

15%

Cardiovascular, 10%

Others,

15%2014 1H


Dynamic Growth of Non-Daiding Sales

• Non-Daiding products grew from 0% in 2007 to 54% in Q2 2014

• Non-Daiding sales grew at a 67.9% CAGR in 2008-2014

0.0% 2.3% 2.2%8.5%

17.7%24.7%

41.1%

49.9%54.0%

0%

10%

20%

30%

40%

50%

60%

2007 2008 2009 2010 2011 2012 2013 Q12014

Q22014

Non-Daiding Sales and Growth


Peer Comparison Charts

05

1015202530

Coland Taiwan peermedian

GC peermedian

ROE

2011

2012

2013

H1140123456


GC peermedian

Dividend Yield

2011

2012

2013

H114

05

101520253035


GC peermedian

Net Profit Margin

2011

2012

2013

H1140

10

20

30

40

50


GC peermedian

P/E

2011

2012

2013

Notes: Taiwan peer median: SINPHAR(1734-TW)、Y.S.H(3705-TW)、TTY(4105-TW)、SYNMOSA(4114-TW)、MICROBIO(4128-TW)GC peer median: Sihuan Pharm(460-HK)、CMS(867-HK)、Lee’s Pharm (950-HK)、Sino Biopharm(1177-HK)、United Lab (3933-HK)


Development Strategy

PfizerDaewoongMedtronic

Mathys

Product in-licensing/Co-developmentStrategic investmentM&AJV

Heilongjiang TongZe

Hefei Guozhen

HC Bios

RenduSuzhou Microclear

ScinoPharm

TWIPharmaDax

Nankuang

Taiwan Biotech

Lotus

TIPR

Xianju PharmaZhejiang Jianfeng

Hainan Jinrui

East-Asia Pharma

Shechen


Milestones Accomplished since IPO in 2011

Expanded therapeutic areas to respiratory products and broaden pipeline portfolios including hepatitis, respiratory, oncology, cardiovascular, and other fields.

Diversify product offering

In-licensed international brands such as Pfizer’s Lezhiping andDetrol, Daewoong’s Ursa, and Mathys’ Orthopedic products

Co-promote withtop MNC

Obtained a 51% stake in Heilongjiang Tongze Pharma in 2012, 60% stake in Hefei Guozhen Pharma in 2013, continue to expand sales network and deepen channel coverage

Deepen coveragevia M&A

Strategically invested in HC-BIOS-Dental Implant, Suzhou Micro Clear-Ophthalmology, Rendu Biotechnology-IVD reagents to strengthen device product lines

Introduce new medical device products

Established strategic collaboration with Taiwan ScinoPharm in developing oncology products: Bortezomib, AzacitidineStrategic alliances

Partnered with PharmaDax Taiwan in developing special formulation drugs targeting Asian market

New businessjoint -venture


Pipeline Planning

Pharmaceuticals

Hepatitis

Respiratory

Cardiovascular

Oncology

Medical Devices

Orthopedic

Dental

Ophthalmology

IVD reagents

CT/NG/UU/MG

HIV/HBV/HCV

Oncology


Pharma Product Pipeline

Medicine Name Indications Supplier Launch Year

HepatitisEntecavir dispersible tablets Anti-HBV Zhejiang Zhongyi 2016

Tenofovir Anti-HBV East-Asia Pharma 2019

Respiratory Compound ipratropium bromide COPD Taiwan Biotech 2015

Oncology

Irinotecan Injection Colorectal Cancer Nangkuang Pharma 2015

Temozolomide capsule Brain cancer Lotus Pharma 2016

Bortezomib Multiple myeloma ScinoPharm 2017

Vorinostat Skin Cancer Hainan Jinrui 2018

Capecitabine Gastric and colorectal Cancer TIPR 2018

Imatinib Leukemia TIPR 2018

Azacitidine Multiple myeloma ScinoPharm 2020

Cardiovascular Metoprolol succinate sustained-release tablets Hypertension, Angina Pectoris PharmaDax 2018

OthersAlvimopan Gastrointestinal surgery recovery TIPR 2016

Epalrestat Diabetic neuropathy East-Asia Pharma 2019


0 5 10 15 20 25 30

EU

POLAND

ROMANIA

CHINA

The Rise of IVD Market

• "Long-term Scientific and Technological Development Rules (2006-2020)", "theState Council on accelerating the cultivation and development of strategic emergingindustries" are included in the key biological detection technologies and strategicindustry development in September 2010.

• 4P medical approach will replace traditional therapy-lead diagnosed approach

• IVD consumption per capita is only USD$2 in China, while in developed countries reached USD$25-30.

(source: EDMA, CMS)

Predictive Preventive Participatory Personalized


IVD Market Size

• IVD Market (unit: million)

• The estimation of China IVD Market»» 2012 China IVD Segments Market

(Source: McEvoy & Farmer)

IVD Market 2010 2014 CAGRGlobal USD 40,000 50,000 12%China RMB 15,000 25,000 30%

0

50

100

150

200

250

300

2008 2009 2010 2011 2012 2013 2014 2015market size( hundred miilion in RMB)

China IVD market will reach 30,000 million RMB in 2015

Immunodiagnostic29%

Biochemical diagnosis

26%Hematological

diagnostics12%

Molecular diagnostics

9%

others24%


The Rise of Molecular Diagnosis

• Market Size: The global market of molecular diagnosis will reachUSD$8,000 million from 2014 to 2020, and the Asia market willenjoy the strongest growth at 12.7%

• Positive Future Outlook: From 2012 to 2017, the CAGR of globalmolecular diagnosis market is estimated to achieve at 12.6%,which is more positive than the number in the fields of immunediagnosis and self-monitoring of blood glucose.

• Potential Market: For the time being, the molecular diagnosis takesless than 10% share in total IVD market in China, which means itstill has considerable opportunities to exploit markets.

(Sources: Grand View Research、Frost & Sullivan)


The Applications of Molecular Diagnosis

• The global molecular diagnostic market grows rapidly, which accounted for 2% in 1995 ofIVD market share, up to 10 percent in 2009, its growth has exceeded 10% per annum, of which the China’s market has reached 20%+.

0

5

10

15

20

25

30

35

0

3

6

9

12

15

2008 2009 2010 2011E 2012E 2013E 2014E

China’s molecular diagnostics market size and forecast

Molecular Diagnostic Market Growth %

2010Sales %

2015Projected

Sales%

Infection Test 2,375 50 4,375 54

Blood Test 720 15 890 11

Biopsy Test 965 20 1,620 20

Cancer Test 150 3 300 4

Prenatal care 170 4 250 3

Agglomerate Check 135 3 175 2

Tissue Typing 100 2 165 2

Generic Disease 100 2 110 1

Drug Diagnostics 50 1 200 2

Total 4,765 100 8,085 100

Global Molecular Diagnostics product Sales & Sales (%)


Rendu- IVD reagents

• Supplier: Rendu Biotechnology

• Product name:RNA Diagnosis

• Detection:(1)CT/NG/UU/MG(2)TB

• (3)HFMD

Advantage Competitors Future growth1. By a Chinese-American scientist

developed the SAT (Simultaneous Amplification and Testing) equipment & reagents

2. Fully automatic , improves process standardization, and reduces operator workload.

3. Higher sensitivity and specificity for pathogen testing.

4. Less contamination - RNA degrades easily.

5. Convenient testing method (urine test), rapid delivery of results (2hrs vs. 14 days).

1. Rendu is the only China-based company that has RNA detection products and pipelines.

2. National competitors such like Gen-Probe (TMA), Biomerieux(NASBA) have not entered the China market.

3. China-based competitors usePCR testing such like Molecular, Immuno-assay, Sansure.

1. Global IVD market is US$35B, or 12% of total lab tests, and RNA detection is a leading method.

2. China IVD market is only 1-2% total lab tests, and RNA detection is just beginning.

3. RNA Diagnosis market growth in China is 25-30% annually, higher than general IVD market.


Our Vision

21


Q&A


Thank you

COLAND GROUPTEL: +86-21-5137-1880FAX: +86-21-5137-1882/51371883ADD: 1st Floor, No. 866, Halei Rd, ZhangjiangHightech Park, Shanghai, China

Taipei OfficeTEL: +886-2-2546-9288FAX: +886-2-2546-6599 ADD: Rm. D, 10F., No.170, Dunhua N. Rd., Songshan Dist., Taipei City 105, Taiwan

WEB: www.colandpharma.com


Coland’s Existing Collaborations

Taiwan China MNCs

Pharma

Medical Devices

IVD Reagents

Documents

Coland Holdings Limited - 康聯藥業-生技醫療整合平台 ... Coland Holdings Limited. TWSE 4144. 2. ... competition, global economy, exchange rate movement and market demand,