FIRST QUARTER 2020 RESULTS

Investor Presentation

1795.TT

MAY 2020

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.

Safe Harbor Statement

Today’s Agenda

1

2

Financial Review Q1’20

Business Update

3 Key Initiatives in FY2020

FINANCIAL REVIEWQ1’20

Q1’20 KICKING OFF A SOLID START TO THE YEAR Serving Strong Confidence to Achieve Growth Target for FY2020 in Both Top Line & Bottom Line

BUSINESS GROWTH

CREATE LONG TERM VALUE

OPERATIONAL IMPROVEMENT

✓ Solid performance delivered despite global COVID-19 headwinds by:

▪ Asian business, both Korea and Taiwan, grew by >5% excluding FX impacts

▪ Strong market uptake of Qsymia

▪ Export business showed impressive progress

▪ Oncology products delivered 112.6% growth

▪ Market share of gSuboxone has doubled within the quarter and currently is 33%

✓ EPS generating from recurring business grew by 16.1% QoQ

✓ Continuous focus on improvement in processes

▪ Operating margin of 14.9% in Q1’20, up from 8.0% in Q4’19

▪ EBITDA margin of 23.3% in Q1’20, up from 21.4% in Q4’19

▪ COGS of gSuboxone reduced, effective Q1’20

✓ Solidified capital structure to sustain future growth

▪ Strong net cash flow generated from operations effectively lowered net debt/EBITDA ratio

▪ Significant credit facility secured independently with ample liquidity

5

6

DIVERSIFICATION ACROSS THERAPIES AND MARKETS

With Diversified Portfolio

Q1’20 Revenue Breakdown by TA

Q1’20 Revenue Breakdown by Market

Q1'20

Asian Business Export Business NCS

Q1’20 Revenue= NT$1,963mn

~20%

~80%

Export Business

• gSuboxonecontributed ~16%

• Sustainable supply revenue from export of oncology started kicking in

Asian Business

• Overall performance maintained stable

• KR~70%• TW~10%

22%

14%

14%9%

21%

6%

14%

Central Nervous SystemOncologyAnti-obesity & lifestyle productsWomen healthcareCardiovascularNephrology

SALES BRIDGE OF Q1’20 YOYAsian Business Progressed Steadily while Export of Oncology Showed an Impressive Growth

7

NT$1,963mn

NT$2,183mn

Asian Business +6.8%+14.3%+112.6%

Export Business -37.1%Asian Business -0.5%As per reported

FIRST QUARTER 2020Maintaining Business Stability Despite the Challenging Market Conditions due to COVID-19

8

FINANCIAL HIGHLIGHTS

Major changes in Net Sales: 1. Timing of gSuboxone inventory

building pattern in the US• Q1’19 launch orders• Q4’19 inventory pull-in in

anticipation of market share gain 2. Channel mix of market share captured

Non-OPEX items: 1. Non-recurring expenses of NT$38mn re:

refinancing of bank loans in Korea, which represents NT$0.11 in EPS

Key Finanicals

(in NTD millions, except for EPS) Q1'20 Q1'19YoY

%Q4'19

QoQ

%

Net Sales 1,963 2,183 -10% 3,130 -37%

Cost of Goods (1,062) (1,104) (1,956)

Gross Profits 901 1,079 -17% 1,174 -23%

% 46% 49% 38%

R&D (91) (86) 5% (207) -56%

SG&A (518) (547) -5% (717) -28%

Operating Expenses (609) (633) -4% (925) -34%

Operating Income 292 446 -34% 249 17%

% 15% 20% 8%

Non-OPEX

Finance costs (100) (67) (96)

Net of other gain/loss (34) 10 39

Earnings Before Tax 159 389 192

Net Income 132 287 -54% 139 -5%

EPS (NTD) 0.54 1.16 -53% 0.56 -3%

3.65

2.91

-

1.0

2.0

3.0

4.0

5.0

Q1'19 Q1'20

9

LEVERAGE RATIO CONTINUED TO IMPROVE AS A RESULT OF SOLID OPERATIONS

LTM EBITDA (NT$mn)

*EBITDA =EBIT + Depreciation + Amortization + Non-cash provisions

NET DEBT/LTM EBITDA (X)

<3.5x as

committed

1,477

1,948

-

500

1,000

1,500

2,000

2,500

Q1'19 Q1'20

BUSINESS UPDATE

OPERATIONAL DELIVERABLES ON TRACK

11

COMMERCIAL▪ Market share of gSuboxone in the US has more

than doubled since Q4’19 with continued trending into Q2 – current market share at 33% as of May 1st

▪ 11 new strategic licensing deals signed to boost further growth from Export Business

▪ Strengthening leadership position in compelling therapeutic areas in Korea

▪ Strong uptake of Qsymia with leading market share among 2nd generation anti-obesity drugs

▪ Marketing and distribution rights for Seroquel obtained from Luye, after a 5-year exclusive marketing right since 2015, to sustain expertise in CNS

▪ Mercilon, the most preferred OTC oral contraceptive brand in Korea, has ranked 1st for 9 consecutive years among oral contraceptive products

▪ 19 new B2B agreements signed with partners to increase market accessibility in KR

OPERATIONAL EFFICIENCY

R&D / REGULATORY▪ 45 MA submissions made – 7 in APAC + 38 in 29

counties in the rest of the world

▪ Pazopanib 200mg filing in EU

▪ Vinorelbine filing in TW

▪ 15 approvals granted – 4 in APAC + 11 by partners in multiple counties

▪ 2 oncology products in Indonesia

▪ Vinorelbine in Italy

▪ Biosimilar portfolio enrichment:

▪ Teriparatide filed in TW & TH

▪ Trastuzumab filed in KR

▪ Bevacizumab and Adalimumab to come

▪ PMDA GMP certificate received in Mar

▪ Site master plan carried out on track – 1) new warehouse to be ready by year end, 2) modification of oncology area to be ready in Jun

10%

15%

20%

25%

Feb'19 Jan'20 Feb'20 Mar'20 Apr'20 May'20

0

100

200

300

400

500

1st W 2ndW

3rd W 4th W 5th W 6th W 7th W 8th W 9thW 10thW

11thW

12thW

13thW

14thW

15thW

16thW

BELVIQ SAXENDA CONTRAVE QSYMIA

12

STRONG MARKET SHARE GAIN PURSUANT TO SUCCESSFUL LAUNCHES

Buprenorphine/Naloxone Market Share Qsymia Launching Progress

• Qsymia has taken leadership position in prescription number within 6th weeks after launch

• The leading gap is further expanded against other major competitors

Source: UBIST

Weekly UBIST data, within new generation products

• Bup/Nal market share has ramped up better-than-expected

Source: IQVIA; Company data

//

• Avg. Weekly EUTRx unit of whole market is also increasing

//

+28%Unit: mn

~33%

4.76.0

Feb'19 Jan'20 Feb'20 Mar'20 Apr'20 May'20

13

MARKET EXPANSION THROUGH INCREASING PARTNERSHIP WITH INDUSTRY LEADERS GLOBALLY

Note: black – direct market; grey & blue – b2b parterships

NA+ LATAM

120+ licensing deals are signed to cover more than 130 markets – all Lotus self-developed products

Global Partnership

# of Submissions

# of Approvals

# of Launches

# of Deals Signed*

38

11

3

11

* As of April’20

41

38 EU

30 MENA

7 AFRICA

6 ASIA

4 OCEANIA

R&D PIPELINE EXECUTION Continuously Investment in Building up Differentiated Portfolio

14

› During Q1’20 –

STRATEGIC FOCUS # OF PROJECTS DEVELOPMENT

Oncology 10+ Lenalidomide, Enzalutamide, etc.

Complex 3+ Women healthcare, OAB

505(b)2 3+ Smoking Cessation, diabetes

ONGOING PROJECTS

MAJOR PROGRESS OF KEY PROJECTS

Generic Name Indication IQVIA market size ‘19 (US$mn) Formulation BE & CT Submission Approval

1 Lenalidomide Multiple Myeloma血癌

Global: 10,000

2 Enzalutamidesoftgel

Castration-resistant prostate cancer

去勢抗性的轉移性前列腺癌Global: 2,144

3 Pazopanib(LP173)

Late stage hepatocellular carcinoma, renal cell

carcinoma, thyroid carcinoma晚期肝細胞癌、

晚期腎癌、分化型甲狀腺癌（皆非一線）

Global: 673

Settled in US and launched in selected marketsOut-licensing scope continues to expand

GDUFATAD = Jul’20

Tentative Approval in TW

200mg dossier filed in EU

4 approvals received+ 1 tentative approval

7 submissions filed

KEY INITIATIVES IN FY2020

KEY HIGHLIGHTS TO WATCH FOR 2020 Getting Access to Higher Growth Markets with Competitive Portfolio

▪ Maintaining leading position among the generics of gSuboxone at market share of 33%

▪ Continued market share penetration of Qsymia to lead KR anti-obesity area

▪ Development of ASEAN markets

▪ Market extension into China via partnership

▪ Further strengthening CNS franchise with Orion portfolio in Asian markets

▪ Continuous focus on improvement in processes

▪ 2nd source projects carry-out to mitigate supply risk with more cost efficient solutions

▪ Streamline of internal procedures

▪ Manufacturing facilities upgrade to ensure competitive cost structure

▪ Portfolio diversification through internal R&D and BD; in-licensing of complex generics,

proprietary products, and brand acquisitions

▪ 10+ submissions planned + 10+ approvals expected + proactive product acquisition selection

▪ Continued execution of Site Master Plan as scheduled to ensure sustainable growth with

high quality maintained

BUSINESS GROWTH

CREATE LONG TERM VALUE

OPERATIONAL IMPROVEMENT

16

APPENDIX

18

Q1’20 I/S

Unit: NT$'000 Q1'20 % Q1'19 % YoY Q1'20 % Q4'19 % QoQ

Revenue 1,962,532 100% 2,182,671 100% -10.1% 1,962,532 100% 3,129,619 100% -37.3%

COGS -1,061,837 -1,103,580 -3.8% -1,061,837 -1,955,505

Gross Profits 900,695 45.9% 1,079,091 49.4% -16.5% 900,695 46% 1,174,114 38% -23.3%

OPEX

Total OPEX -608,551 31% -633,250 29% -3.9% -608,551 31% -924,840 30% -34.2%

Income from Operations 292,144 14.9% 445,841 20.4% -34.5% 292,144 15% 249,274 8.0% 17.2%

Non-OP Income (Exp)

Others -33,611 10,464 -33,611 38,597

Finance Costs -99,852 -67,307 -99,852 -96,024

Total Non-OP, net -133,463 -56,843 134.8% -133,463 -57,427 132.4%

Income Before Tax 158,681 8% 388,998 18% -59.2% 158,681 8% 191,847 6% -17.3%

Income Tax Expenses -26,990 -101,967 -26,990 -52,602

Net Income (Loss) 131,691 7% 287,031 13% -54.1% 131,691 7% 139,245 4% -5.4%

EPS (NT$) 0.54 1.16 -53.3% 0.54 0.56

19

B/S AS OF MAR 31 2020

Unit: NT$'000 Q1'20 % Q4'19 %

Current Assets

Cash & Equivalents 2,108,607 11% 1,124,719 6%

A/R 1,125,247 6% 993,539 6%

A/R - Related Party 1,041,741 6% 1,207,223 7%

Other Receivables 7,808 0% 43,922 0%

Other Receivables - RP 48,233 0% 104,701 1%

Inventory 1,302,698 7% 1,323,621 7%

Others 346,622 2% 672,441 4%

Current Assets 5,980,956 32% 5,470,166 31%

Non-Current Assets

Investment 421,426 2% 458,058 3%

PP&E 1,888,575 10% 1,872,776 10%

Goodwill 5,756,199 31% 5,910,026 33%

Other Intangible Assets 3,268,677 18% 2,897,150 16%

Others 1,315,396 7% 1,309,751 7%

Total Assets 18,631,229 100% 17,917,927 100%

Unit: NT$'000 Q1'20 % Q4'19 %

Current Liability

ST Debts 410,000 2% 460,000 3%

A/P 572,188 3% 651,059 4%

A/P - RP 338,722 2% 239,883 1%

Other Payables 382,846 2% 471,605 3%

Other Payables - RP 158,777 1% 210,140 1%

Current portion of LT Debts 1,342,480 7% 579,075 3%

Others 564,817 3% 347,351 2%

Current Liability 3,769,830 20% 2,959,113 17%

Non-Current Liability

LT Debts 3,446,009 18% 3,723,633 21%

LT Debts - RP 2,570,617 14% 2,253,450 13%

Others 1,242,013 7% 1,237,902 7%

Total Liability 11,028,469 59% 10,174,098 57%

Equity

Stock 2,431,140 13% 2,431,140 14%

Paid-in Capital 6,588,034 35% 6,588,034 37%

Treasury Shares 0 0% 0

Accumulated Deficits -521,901 -3% -652,936 -4%

Others -896,379 -5% -624,223 -3%

Shareholders' Equity to Parent 7,600,894 41% 7,742,015 43%

Minority 1,866 0% 1,814 0%

Total Shareholders' Equities 7,602,760 41% 7,743,829 43%

Tatal Liabilities & Equities 18,631,229 100% 17,917,927 100%