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Page I 2
Safe Harbor Statement
Except for historical information contained herein, the matters set forth in this presentation are forward
looking statements that are subject to risks and uncertainties that could cause actual results to differ
materially. These forward looking statements are not based on historical facts but rather on
management’s expectations regarding future growth, results of operations, performance, future capital
and other expenditures, competitive advantages, business prospects and opportunities. Statements in
this presentation about our future plans and intentions, results, level of activities, performance, goals or
achievements or other future events constitute forward looking statements. Wherever possible, words
such as “anticipate”, “believe”, “expect”, “may”, “could”, “will”, “potential”, “intend”, “estimate”, “should”,
“plan”, “predict”, or the negative or other variations of statements reflect management’s current beliefs
and assumptions and are based on the information currently available to our management. Investors
are cautioned not to place undue reliance on these forward looking statements, which are made
as of the date of this presentation and we assume no obligation to update or revise any forward
looking statements.
Page I 2
Page I 4
COMPANY OVERVIEW
• A fast growing, pan-regional, generic and specialty
pharma company with access to advanced markets
through industry leading pipeline
• 63.4% owned by Alvogen, a specialty pharmaceutical
company with global presence
• 1 US FDA, EU EMA, and Japan PMDA approved
manufacturing facility, 2 KGMP approved
manufacturing facilities and R&D centers
• #1 in Korea in terms of sales from anti-obesity drug,
and strong presence in Taiwan for oncology and CNS
drugs
Key Highlights
• Robust international pipeline:
– Distribution rights of 2 biosimilars under development by Alvotech
– 10 products in pipeline / filed ANDA for US
– 8 products and CMO projects for Japan in pipeline
– 8 products filed and 1 product approved in China
– 4 products for EU Asia scope in pipeline
Strong Pipeline
Market Leader in the Highly Attractive Asia Pacific Generic Pharmaceutical Industry with Access to Other Advanced Markets
Page I 4
Strong Growth and Margin
Gross Profit
Net Profit
Gross Margin (%)
Revenue
Q2’15
760
125
56.8%
1,337
Q1’15
EPS (NT$) 0.37
Unit: NT$mm
Operating Income 91
Q3’15
873
17
61.6%
1,417
0.06
162
745
(21)
57.5%
1,294
(0.13)
70
Cash EPS1 (NT$) 0.95 1.150.43
1 Cash EPS = Cash flows from operating activities / number of outstanding shares
6.8% 11.4%5.4%Operating Margin (%)
Page I 5
COMPANY OVERVIEW
Lotus History and Key Milestones
1966
Page I 5
Manufacturing
Facility Obtained
Japan PMDA
Approval
Lotus Acquired
Dream Pharma
Founded in 1966
Manufacturing
Facility Obtained
US FDA Approval
First Product
Launch in the
US
Manufacturing Facility
Obtained EU EMA
Approval
First Product
Launch in Japan
US FDA
Compliance
Inspection Passed
Alvogen Became a Majority Shareholder of Lotus
Lotus Acquired Alvogen’s Korea, Taiwan and India Businesses
Aug 11
Dec 19
EU EMA
Compliance
Inspection Passed
Listed in GreTai
Stock Exchange
(1795.TT)
Jun 1Korea Operations, Kunwha and Dream
Pharma, Merged into Alvogen Korea
Page I 6
COMPANY OVERVIEW
Shareholding Structure
Note: as of September 30, 2015 Page I 6
Alvogen Asia Pacific
Holdings Ltd.
63.4%
Lotus Pharmaceutical
Co., Ltd.
(Taiwan)
Alvogen Taiwan
(Taiwan)
100.0% 100.0%
100.0%
100.0%
Lotus Lab, Ltd
(UK)
Lotus Pharmaceutical,
HK Inc.
(HK)
美喬生技有限公司
(Taiwan)
100.0%
Alvogen Korea
Holdings Ltd.
(Korea)
Alvogen Korea Co.,
Ltd.
(Korea)
82.5% 100.0%
98.0%
Alvogen Pharma India
Pvt Ltd.
(India)
Norwich Clinical
Services Pvt Ltd.
(India)
100.0%
100.0%
樂特仕生物科技諮詢
(上海)有限公司
(China)
Lotus International Pte.
Ltd.
(Singapore)
Merger between Kunwha
and Dream Pharma has
been completed on June
1, 2015
Page I 7
KEY OPERATIONS – LOTUS TAIWAN
Page I 7
Strong Presence in Taiwan
Key
Milestone
• Founded in 1966 and has been listed in Taiwan GreTai
market since 2010
• Strategic partnered with Alvogen in 2014
• Among the Top 3 of pharma companies in Taiwan by
revenue on consolidated basis
Product
Mix
• Specialized in CNS (~16-20% of total sales), oncology
(~8%-12% of total sales), and hormonal drugs (~14%-
18% of total sales)
• Also covering general care, including pain (~25%-30%
of total sales), CV, and others
R&D
• Strong R&D center with a special focus on US, Japan
and other APAC market
• Leading R&D personnel: 65% with a postgraduate
degree and extensive pharmaceutical career
experience
Production
• US FDA, EU EMA, Japan PMDA, and TFDA PIC/S
approved production facilities focusing on high potency
and cytotoxic products
Sales
Network
• 3 sales offices national wide
• c. 3,400 clinics and c. 480 general hospitals in Taiwan
Employee• 335 employees in total as of October 2015 – G&A (46),
R&D (76), S&M (74), Plant (139)
Head office in Taipei
Plant in Nantou
Sales office
in Taipei
Sales office
in Taichung
Sales office
in Kaohsiung
Page I 8
Comprehensive Footprints in Korea
KEY OPERATIONS – ALVOGEN KOREA
Page I 8
Key
Milestone
• Kunwha was founded in 1958 and acquired by Alvogen
in October 2012
• Dream Pharma was established as the pharmaceutical
division of Hanwha Corporation in 1996 and acquired
by Kunwha in December 2014
• Kunwha and Dream Pharma has merged and
become Alvogen Korea in June 2015
Product
Mix
• Anti-obesity drugs (~35%-40% of overall business): #1
player in Korea with 30+% market share
• Other prescription (“Rx”) drugs (~55%-60% of
business): competitive advantages in nephrology,
cardiology, urology, gastroenterology, and metabolic
disease treatment
R&D
• Leading R&D personnel: 74% with postgraduate
degree, 49% with pharmaceutical career experience
over 10 years
• Secured Korea’s New Drug Development Technical
Award for Bonviva Plus (Dream Pharma in February
2014)
Production• Two production facilities compliant with KGMP (Korea
Good Manufacturing Practice)
Sales
Network
• 12 sales offices national wide: 4 in Seoul and satellite
cities and 8 in other areas
• Accounts in network: ~6,000 clinics and ~670 general
& community hospitals in Korea
Employee • 576 employees in total as of October 2015 – G&A (61),
R&D (43), S&M (278), Plant (194)
Plant in Hyangnam
Head office in Seoul
Plant in Kongju
Page I 9
Strong CRO Capabilities Support to Lotus/Alvogen
KEY OPERATIONS – CRO CAPABILITIES IN INDIA
Page I 9
Norwich Clinical Services provides Biostudy, Clinical and pharmacovigilance services to
Lotus/Alvogen and 3rd party customers
Bangalore
• Clinical Area: 17,000 sq.ft
Located within a multi-specialty hospital
72 bed facility
Medical and surgical IC units
Emergency unit
Oncology center
Well equipped laboratory and pharmacy
• Office/Lab: 30,000 sq.ft
Corporate offices
Pharmacovigilance
Bio-analytical
PK, Biostats, and Medical writing
Clinical Data management
QA
Page I 10
2015 OUTLOOK & YTD PROGRESS
Page I 10
Goals in 2015
• Successful integration of Dream Pharma and Kunwha in Korea
Two companies completed the logistic integration on April 1st and has officially merged into one legal entity and
renamed as Alvogen Korea effective June 1st
The combined entity successfully launched Sarpogrelate XR and gained more than 30% market share in Korea as
of June 2015
The combined efforts also enhanced its product portfolio and successfully launched Seroquel (Quetiapine) to
establish a solid foothold in Korean CNS market
• Further expand Lotus’ export business by launching more products in the US
ANDA of Levonorgestrel has been officially approved by US FDA in June
• Officially launched with the first shipment to the US market in September
Tentative approval for ANDA of Paricalcitol Capsules from US FDA was granted in July
• Achieve solid profit and positive EPS
Profitability of New Lotus Group is improving as realizing the synergies of integration gradually with a reported
consolidated gross margin of 57.5% for Q1’15
• Gross margin further expanded to 61.6% in Q3’15
The continuous improvement of operational efficiency also makes the Company to report a positive EPS for Q2’15
and continue to grow in Q3’15
Page I 11
2015 OUTLOOK & YTD PROGRESS (CONT’D)
Page I 11
2015YTD MA recevied
Generic Name Indication Country Approval
Date
Remarks
Levetiracetam 750mg Tab CNS TW Jan 2015 Lotus
Thalidomide Oncology KR Feb 2015 Lotus
Entecavir Tab Antiviral KR Feb 2015 Alvogen Korea
Temozolomide 20mg, 100mg, 140mg, 180mg Brain cancer EU Mar 2015 Lotus
Meropenem 500mg, 1000mg Anti-infection TW Apr 2015 Lotus
Irbesartan + HCTZ 25mg Tab CV TW May 2015 Lotus
Lamotrigen 100mg Tab CNS TW May 2015 Lotus
Amlodipine/Losartan CV KR May 2015 Alvogen Korea
Tadalafil Erectile dysfunction KR May 2015 Alvogen Korea
Cefepime Anti-infection KR May 2015 Alvogen Korea
Levonorgestrel 1.5mg Contraceptive US Jun 2015 Lotus
Lamivudine Antiviral HK Jun 2015 Lotus
Rosuvastatin 10mg, 20mg, Tab CV TW Jun 2015 Lotus
Entecavir ODF Antiviral KR Jul 2015 Alvogen Korea
Rosuvastatin/Ezetimibe CV KR Sep 2015 Alvogen Korea
Imatinib 100mg, 400mg Oncology TW Sep 2015 Lotus
Temozolomide 20mg, 100mg Brain cancer HK Sep 2015 Lotus
Diosmin 500mg Metabolism TW Oct 2015 Lotus
Paricalcitol 1mcg, Softgel Cap Nephrology TW Oct 2015 Lotus
Note: as of October 31, 2015
Page I 12
2015 OUTLOOK & YTD PROGRESS (CONT’D)
Page I 12
2015YTD Product Launch
Generic Name Indication Country Launch Time Remarks
Bicalutamide Oncology TW Feb 2015 Lotus
Ceftriaxone Sodium Anti-infection TW Feb 2015 Lotus
Exemestane Oncology TW Feb 2015 Lotus
Doxorubicin Hydrochloride Oncology TW Mar 2015 Lotus
Epirubicin hydrochloride 10mg, 50mg Oncology TW Apr 2015 Lotus
Carboplatin Oncology TW May 2015 Lotus
Sarpogrelate 300mg Antithrombotics KR May 2015 Alvogen Korea
Celecoxib NSAIDs KR Jun 2015 Alvogen Korea
Ranitidine/Tripotassium Bismuth
Dicitrate/Sucralfate
Gastrointestinal KR Jul 2015 Alvogen Korea
Amlodipine/Losartan CV KR Aug 2015 Alvogen Korea
Buprenorphine/Naloxone 2/0.5mg, 4/1mg Addiction TW Jul/ Aug 2015 Lotus
Tadalafil Erectile dysfunction KR Sep 2015 Alvogen Korea
Nafamostat CV KR Sep 2015 Alvogen Korea
Cefepime Anti-infection KR Sep 2015 Alvogen Korea
Levonorgestrel Contraceptive TW/US Jul/ Sep 2015 Lotus
Irbesartan CV TW Sep 2015 Lotus
Quetiapine CNS KR Oct 2015 Alvogen Korea
Entecavir (Tab/Flim) Antiviral KR Oct 2015 Alvogen Korea
Note: as of October 31, 2015
Page I 14
INVESTMENT HIGHLIGHTS
Lotus is Committed to Delivering Value-Driven Medicine
Strong in Highly Attractive and Fast Growth Markets, and Continue
to Grow Asia and Advanced Countries Sales (US/JP/EU)
Execute Strategic M&A
Strong Support from Majority Shareholder - Alvogen
2
3
6
1
Page I 14
Page I 15
INVESTMENT HIGHLIGHTS
Well-positioned in Highly Attractive and Fast Growth Markets in Asia…
Page I 15
Pharma Market Size
(US$bn)
5yr CAGR
(%)
2.1%
9.9%
11.6%
3.7%
9.2%
7.1%
7.3%
5.2%
13.9%
11.5%
9.2%
8.0%
7.6%
• Well-established presence in key markets of North Asia where
strong growing economies, fast aging populations, high cultural
and other entry barriers for multinational firms
• Strong market leadership in Korea and Taiwan
• #1 in Korea in terms of sales from anti-obesity drug
• Solid track record in Taiwan for oncology and CNS generics
Strong Presence in Korea and Taiwan
• Well-planned strategies for access to Japan and China
– 8 products and CMO projects for Japan in pipeline
– 8 products filed and 1 product approved in China
• Leveraging existing production capabilities and commercial
network through Alvogen’s platforms to further penetrate fast
growing markets in South East Asia
• Aiming to tap into complementary markets in terms of product
portfolio where mostly self-pay to fuel future growth
Well-positioned to tap into other Asian markets
Source: BMI Research
0.8
1.6
2.0
2.2
3.3
3.8
4.5
5.5
5.9
15.8
16.7
98.8
107.0
Singapore
Hong Kong
Bangladesh
Malaysia
Vietnam
Philippines
Thailand
Taiwan
Indonesia
Korea
India
China
Japan
Page I 16
• Well recognized by clinics, hospitals and pharmacies / drugstores
• Effectively market and sell existing products and new products
• Foundation for cross-selling products targeting fast-growing / core therapeutic areas
INVESTMENT HIGHLIGHTS
… As Well As US with Strong Sales Forces and Distribution Channels
Solid Market
Position
Strong Brand
Recognition
Taiwan
South
Korea
UK
Shanghai
Indian
US
- Direct access with strong pipeline leveraging
US FDA approved manufacturing facility
- 2 products in market and 10 products in
pipeline/ filed ANDA in the US
- Product launch through Alvogen’s existing
sales forces or partnership
• Covering a network of ~10,000 clinics, hospitals and pharmacies / drugstores with internal sales force in key markets
• Experienced sales force with product expertise
• Strong management team with executives and regional managers who have years of experience in the pharmaceutical industry
Presence Access
Headquarter Branch Offices
Partnership
Page I 16
Page I 17
INVESTMENT HIGHLIGHTS
High Growth via Organic Growth and Strategic M&As
• Robust portfolio of existing products with additional
potentials from board pipeline to gain further market share
in existing and new markets
• Aggressive product launches across the APAC region – 26
products selected and roll out started into Korea and
other Asian markets
Organic Growth
• Supports from Alvogen to capture opportunities ahead of
industry consolidation in the region
• Strengthen product portfolio in focused therapeutic area
• Complementary/minimal overlap with existing product
portfolio or pipeline
M&A Strategies
Existing
products
Pipeline
potentials
Existing
products
Existing
products
Pipeline
potentials
M&As
Page I 17
Page I 18
INVESTMENT HIGHLIGHTS
• In-house R&D capabilities
• Collaboration with industry leading
companies and research institutions
• Systematically acquires and integrates
targets with solid development and
commercialization track record
Strong Development Capability
• Integrated capabilities spanning a wide-
range of therapeutic areas:
– Strategically focus on oral oncology,
high potency, and soft gel drugs
• Solid contract research organization in
India:
– Facilitates oncology studies
– Quick patient enrollment
Integrated R&D Platform
Integrated R&D
Capabilities with a
proven track record
of successful
innovations
• US FDA, EU EMA and Japan PMDA
approved production facilities focusing
on high potency and cytotoxic products
• Provides oncology contract manufacturing
organization services to Japanese
pharmaceutical companies
• Analytic process development for quality
control and assurance
Multiple Manufacturing Platforms
Strong R&D and Solid Manufacturing Capabilities Delivering Top
Quality Drugs…
Page I 18
Page I 19
INVESTMENT HIGHLIGHTS
… And Robust Product Portfolio
Page I 19
Robust Product Portfolio
CategoryProduct Offering
Growth Key Product Updates Taiwan Korea
Anti-obesity V V
• Phentermine IR/ER
• Phendimetrazine
• Orlistat
Nephrology V• Calcium Polystyrene Sulfonate
• Epoeitin
Oncology V • Temozolomide
CNS V V
• Trazodone
• Buprenorphine/Naloxone
• Seroquel (Quetiapine)
CV V V• Sarpogrelate
• Losartan/Amlodipine
Export Business V
• Mefenamic Acid
• Generic to TS-1
• Levonorgestrel
Page I 20
INVESTMENT HIGHLIGHTS
Broad Pipeline that Delivers Sustainable Growth
Data as of October 2015
Note: Target market numbers are FY2014 market sales from IMS data
Page I 20
For US market
Generic Name Indication
Target
Market
(US$mn)
For-
mulation
Clinical/
BE Study
Sub-
mission Approval Launch Remarks
Paricalcitol Nephrology 60Tentative approval received in Jul 2015 with final approval
expected in Q1'16
Budesonide
ER
Gastro
intestinal 500
PIV; filing acceptance received Jan 2015; sued on only 3 out of
the 6 patents listed in Orange Book
Calcium
acetate Nephrology 200
PIV; sued while the case has dismissed and settled on
confidential terms
Not Disclosed CNS 700 PIV
Not Disclosed CNS 550PIV; 500mg approved while other strength waiting for approval
with no outstanding regulatory issues
Buprenorphine/
NaloxoneAddiction 1,600 PIV; filing acceptance received Apr 2015; sued
Not Disclosed Brain cancer 260 No patent in Orange Book
Not Disclosed Cancer 600 Few expected competition
Not Disclosed Autoimmune 340 No patent in Orange Book
Not Disclosed Cancer 700 No patent in Orange Book
Page I 21
Generic Name Indication
Target
Market
(US$mn)
For-
mulation
Clinical/
BE Study
Sub-
mission Approval Launch Remarks
Not Disclosed Allergy 370
Not Disclosed Brain cancer 90
Not Disclosed Steroid 130
GefitinibNon-small-cell
lung cancer150
Capecitabine Colon cancer 100
Nalfurafine Pruritus 135
Not Disclosed Hormone 90
INVESTMENT HIGHLIGHTS
Broad Pipeline that Delivers Sustainable Growth (cont’d)
Page I 21
For Japan market
• For Japan market, we strategically work on CMO projects for partners to further penetrate into the local market
Data as of October 2015
Note: Target market numbers are FY2014 market sales from IMS data
Page I 22
Generic Name Indication
Target
Market
(US$mn)
For-
mulation
Clinical/
BE Study
Sub-
mission Approval Launch Remarks
Rosuvastatin/
EzetimibeDyslipidemia 53 Korea IMD
Rosuvastatin/
Candesartan
Dyslipidemia &
Hypertension56 Korea IMD
DP-R212
CV
(Dyslipidemia
& Hypertension)
117 Korea IMD
DP-F020 Osteoporosis 13 Korea IMD
INVESTMENT HIGHLIGHTS
Broad Pipeline that Delivers Sustainable Growth (cont’d)
Page I 22
For Korea market
• Korea IMD (“Incrementally Modified Drug”) procedure is similar to US 505(b)2, which requires phase I and phase III study while
enjoying a 15% premium on NHI price; it usually takes 6 to 12 months for regulatory approval
Data as of October 2015
Note: Target market numbers are FY2014 market sales from IMS data
Page I 23
Generic Name Indication Scope
Target
Market
(US$mn)
For-
mulation
Clinical/
BE Study
Sub-
mission Approval Launch Remarks
Temozolomide Brain cancerEU
APAC450 Already launched in Taiwan; approved in EU
Gimeracil/
Oteracil/
Tegafur (TS-1)
Colon cancer APAC 280 Already launched in Japan; filed in Taiwan/Korea
Vinorelbine Breast cancerEU
APAC160 Less than 3 producers as of now
Gefitinib Lung cancer EU
APAC380
5 ALA Cancer EU
APAC- No BE
Difficult API required
Complimentary to other oncology portfolio
INVESTMENT HIGHLIGHTS
Broad Pipeline that Delivers Sustainable Growth (cont’d)
Page I 23
For other markets
• More projects under evaluation and discussion – we are always assessing the market potentials of launching our existing
products/projects to different markets in the world and will decide on a most competitive strategy to maximize the value of pipeline
Data as of October 2015
Note: Target market numbers are FY2014 market sales from IMS data
Page I 24
Generic Name Indication
Target
Market
(US$mn)
CTP1 sub-
mission
Clinical/
BE Study
IDL2 sub-
mission Launch Remarks
Levonorgestrel Contraception 50 CTP submitted in Q2’10
Divalproex sodium Anti-epilepsy 100 CTP submitted in Q4’08
Lidocaine Local analgesic 30 CTP submitted in Q1’10
Glucosamine sulfate
+ Sodium chlorideOsteo-arthritis 150 CTP submitted in Q3’11
Acarbose Antidiabetic 380 CTP submitted in Q4’11
Levetiracetam Anti-epilepsy 40 CTP submitted in Q4’12
Temozolomide Brain cancer 90 CTP submitted in Q1’13
Memantine Anti-dementia 15 CTP submitted in Q2’13
INVESTMENT HIGHLIGHTS
Broad Pipeline that Delivers Sustainable Growth (cont’d)
Page I 24
For China market
• All the filings in China are the approved products in Taiwan, so no duplicate formulation is required
• For all the imported products, there are two applications needed – Clinical Trial Permit (“CTP”) submission goes first and then Imported
Drug License (“IDL”) submission is required once clinical/BE study is done
Data as of October 2015
Note: Target market numbers are FY2014 market sales from IMS data
Page I 25
INVESTMENT HIGHLIGHTS
Broad Pipeline that Delivers Sustainable Growth (cont’d)
Page I 25
Biosimilars
• Alvogen/Alvotech aims to create a leading presence in
biosimilars
• US$500 million is being invested in a new state-of-the-
art biotech plant and pipeline
• Lotus and Alvogen/Alvotech signed distribution
agreements for two key biosimilars currently under
development by Alvotech
• Lotus will market and distribute these biosimilars in the
following APAC markets: Taiwan, China, Vietnam, South
Korea, Thailand, Hong Kong, Philippines, Malaysia,
Indonesia, Singapore and Myanmar
Molecule Indication Target
Market (US$)
Expected
launch timing
Not Disclosed Oncology 154mn 2020
Not Disclosed Rheumatoid
arthritis;
Psoriasis
90mn 2020
Data as of October 2015
Note: Target market numbers are FY2014 market sales from IMS data
Page I 26
INVESTMENT HIGHLIGHTS
Solid Integration Capabilities and Management Team that Extract Synergies and Generate Value…
Extensive Experience
Senior management team has comprehensive
experience up to 20 years in the pharmaceutical
industries
In-depth Knowledge
Many have worked with leading global
pharmaceutical companies. They bring extensive
M&A and industry experience and in-depth
knowledge
Diversified Exptertise
Experience and expertise range from research
and development to manufacturing, sales,
marketing and distribution
Regional Supports –
David Young, Regional CFO
Dr. Jon Valgeirsson, Regional R&D VP
Mike Stradling, Regional Supply Chain VP
Dr. Chung R. Kim, Regional Quality Director
Jade Lee, Regional HR Director
Dr. Saral Thangam, CEO Norwich Clinical Services (CRO India)
Siegfried Gschliesser, VP of M&A and Integration – Global
Renaat JanssenCEO Lotus
Previously Executive Director at PPD with more than 20 years experience in pharma industry
Page I 26
Lotus Leadership Team in Taiwan –
Allen Hong, VP of Operations
Ben Chung, CFO
Kevin Huang, VP of Sales and Marketing
Vicky Lee, VP of Regulatory Affairs
Page I 27
INVESTMENT HIGHLIGHTS
… With Strong Support from Board of Directors
Page I 27
Charles Lin Chairman of BOD
• Founder of Lotus and has more than 30 years in pharmaceutical industry
• Leads Lotus as a R&D-based Taiwanese company with manufacturing facilities approved by global FDAs
Robert Wessman Director
• Chairman and CEO of Alvogen Group• Has grown Alvogen from a small US
business into an international pharma with commercial operations in 34 countries and with 2,000 employees within 5 years
Independent Directors
Benjamin Ku Partner at Cheng & Ku Law firm
Hjorleifur Palsson Previous EVP and CFO at Ossur hf., a listed company at NASDAQ OMX Copenhagen
Directors
Arni Hardarson Chief Legal Counsel, Alvogen
Kevin Bain CFO, Alvogen
Thor Kristjansson EVP M&A, Alvogen
Le Hong VP, Lotus
• Combined efforts from Lotus founding team as well as strong commitment from Alvogen Group with
seamless cooperation
• Eight distinguished members with an exceptional knowledge and experience in the related fields to
guide the Company in all aspects
Page I 29
FINANCIAL HIGHLIGHTS
Robust Growth Momentum for Monthly Sales 2015 YTD
Unit: NT$mn
+3.3%• Robust Q1 sales as the merger between Lotus and Alvogen’s key operations
in Asia has been completed in 2014 with closing of Kunwha’s acquisition of
Dream Pharma in December
• In addition to continuous growth from subsidiaries, Q2 sales of Lotus itself
also increased by 9% quarter-over-quarter.
• Contributed by further sales increase from Alvogen Korea’s newly-launched
product and export sales to the US market, Q3 sales delivered a consecutive
growth of 6.0% over Q2.
Key highlights
Note: Monthly sales are management accounts
+6.0%
Page I 29
435 432 429 448 430 444
531
437 460 453
Jan Feb Mar Apr May Jun Jul Aug Sep Oct
1,294 1,337
1,417
Q1 Q2 Q3
Page I 30
(318)
70 91
162
Q4'14 Q1'15 Q2'15 Q3'15
43.4%
57.5% 56.8%61.6%
Q4'14 Q1'15 Q2'15 Q3'15
FINANCIAL HIGHLIGHTS
Improving Profitability Quarter over Quarter...
Page I 30
+18% from Q4’14
Unit: % Unit: NT$mn Unit: NT$mn
Turned positive in Q1 and
further improved throughout Q3
Gross Magin Operating Income Net Income
Significantly increased in Q2 and
maintained profitable in Q3
(257)
(21)
125
17
Q4'14 Q1'15 Q2'15 Q3'15
Page I 31
1,096 1,138
1,296
- - - -
1,445
102 19
28 37 2 -
105
17 2 -
102
61 226
-
274
-
- - -
Q4'14Cash
Balance
Generatedfrom
Operations
Generatedfrom
Investment
Used inFinancing
FX Impact Q1'15Cash
Balance
Generatedfrom
Operations
Used inInvestment
Used inFinancing
FX Impact Q2'15Cash
Balance
Generatedfrom
Operations
Used inInvestment
Used inFinancing
FX Impact Q3'15Cash
Balance
FINANCIAL HIGHLIGHTS
… and Increasingly Generating Cash Inflow to Fuel the Further Growth
- NT$274 million generated from operations in Q3
Page I 31
Continuously improved cash-generating capability
from daily operations
Unit: NT$mn
++
+
-
+
-
- - -
-
- -
Page I 32
FINANCIAL HIGHLIGHTS
EPS v.s. Cash EPS
Page I 32
EPS (NT$) Cash EPS (NT$)
Q4’14Q4’14
• EPS = Net Income / # of Outstanding Shares • Cash EPS = Cash flows from operating activities / # of
Outstanding Shares
• Better indicator as it represents real cash earned from
daily operations
• More cash EPS also illustrates a better financial shape
for further expansion
(0.13)
0.37
0.06
Q4'14 Q1'15 Q2'15 Q3'15
0.43
0.95
1.15
Q4'14 Q1'15 Q2'15 Q3'15