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DUOPHARMA BIOTECH BERHAD

INVESTOR RELATIONS BRIEFING

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Disclaimer

This presentation may contain forward-looking statements by Duopharma Biotech Berhad that reflect management’s current expectations, beliefs, intentions or strategies regarding the future and assumptions in light of currently available information. These statements are based on various assumptions and made subject to a number of risks, uncertainties and contingencies. Actual results, performance or achievements may differ materially and significantly from those discussed in the forward-looking statements. Such statements are not and should not be construed as a representation, warranty or undertaking as to the future performance or achievements of Duopharma Biotech Berhad and Duopharma Biotech Berhad assumes no

• bligation or responsibility to update any such statements.

No representation or warranty (either express or implied) is given by or on behalf of Duopharma Biotech Berhad or its related corporations (including without limitation, their respective shareholders, directors, officers, employees, agents, partners, associates and advisers) (collectively, the "Parties") as to the quality, accuracy, reliability or completeness of the information contained in this presentation (collectively, the "Information"), or that reasonable care has been taken in compiling or preparing the Information. None of the Parties shall be liable or responsible for any budget, forecast or forward-looking statements or other projections of any nature or any opinion which may have been expressed in the Information. The Information is and shall remain the exclusive property of Duopharma Biotech Berhad and nothing herein shall give, or shall be construed as giving, to any recipient(s) or party any right, title, ownership, interest, licence or any other right whatsoever in or to the Information herein. The recipient(s) acknowledges and agrees that this presentation and the Information are confidential and shall be held in complete confidence by the recipient(s). No part of this presentation is intended to or construed as an offer, recommendation or invitation to subscribe for or purchase any securities in Duopharma Biotech Berhad.

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In 2005, Chemical Company of Malaysia Berhad (“CCMB”) acquired Duopharma , a pharmaceutical company that was established since 1979. In 2006, Duopharma was rebranded to CCM Duopharma Biotech (“CCMD”). In 2007, CCMD acquired the assets and brands of Malayan Pharma. In 2015, CCMB underwent a corporate restructuring. All of its pharmaceutical subsidiaries were placed under CCMD. On 28 December 2017, CCM Duopharma de-merged from CCMB. Therefore, CCMD became an independent public listed company. On 25 February 2019, CCMD has changed its name to Duopharma Biotech Berhad (“Duopharma Biotech”).

Jo Journey of f Duopharma Biotech Berhad

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Im Implications of f the De-merger

We are UNABLE to carry CCM brand / name We are REQUIRED to change the company name and its subsidiaries We are REQUIRED to have our own corporate identity We are REQUIRED to establish our own vision and mission

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Logo Description

Shape ▪ Modern ▪ Symbolises innovation across every aspect of the business ▪ Six sides represent the company’s six core values Letter ‘D’ and ‘B’ inside the hexagon ▪ D and B stand for ‘Duopharma’ and ‘Biotech’ Colour of the logo ▪ Logo is rendered in bold red, the colour of passion Name of Duopharma at the bottom ▪ Expressed in a font that perfectly balances rounded shapes ▪ “Duo” represents the company’s two main businesses – prescribed medicine and consumer healthcare product

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New Vision, Mission and Tagline

Providing smarter solutions for a healthier life A leading Healthcare Group providing quality and innovative solutions

New VISION New MISSION New TAGLINE

Smarter Solutions. Healthier Life.

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Change of f Name of Company

Old Company Name New Company Name Status CCM Pharmaceuticals

• Sdn. Bhd.

Duopharma Marketing

• Sdn. Bhd.

Effective from 26 December 2018 Upha Pharmaceutical Manufacturing (M)

• Sdn. Bhd.

Duopharma Manufacturing (Bangi) Sdn. Bhd. Effective from 26 December 2018 Innovax Sdn. Bhd. Duopharma Innovation

• Sdn. Bhd.

Effective from 26 December 2018 CCM Biopharma Sdn. Bhd. Duopharma HAPI Sdn. Bhd. Effective from 26 December 2018 CCM Pharma Sdn. Bhd. Duopharma Manufacturing (Glenmarie) Sdn. Bhd. Effective from 26 December 2018

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Old Company Name New Company Name Status Duopharma (M) Sendirian Berhad Duopharma (M) Sendirian Berhad No change to company name Sentosa Pharmacy Sdn. Bhd. Sentosa Pharmacy Sdn. Bhd. No change to company name Unique Pharmacy (Penang)

• Sdn. Bhd.

Unique Pharmacy (Penang)

• Sdn. Bhd.

No change to company name Negeri Pharmacy Sdn. Bhd. Negeri Pharmacy Sdn. Bhd. No change to company name Unique Pharmacy (Ipoh)

• Sdn. Bhd.

Unique Pharmacy (Ipoh)

• Sdn. Bhd.

No change to company name

Change of f Name of Company

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Old Company Name New Company Name Status CCM Pharmaceuticals (S)

• Pte. Ltd.

Duopharma (Singapore)

• Pte. Ltd.

Effective from 4 January 2019 CCM International (Philippines), Inc. DB (Philippines), Inc. Effective from 15 February 2019 CCM Duopharma Biotech Berhad Duopharma Biotech Berhad Effective from 25 February 2019

Change of f Name of Company

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Corporate Structure

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Shareholding Stru ructure

PNB, 46.7% Amanahraya Trustees Berhad,ASB, 4.2% EPF, 7.8% Others, 41.3%

Note: Shareholding as at 31 January 2019

DPHARMA (Stock Code – 7148) Market capitalization on 30.04.2019 = RM 933 mil Share price = RM 1.41

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Board of f Directors

Non-Independent & Non- Executive Chairman Tan Sri Datin Paduka Siti Sa'diah Binti Sh Bakir Independent Non- Executive Director Encik Razalee bin Amin Independent and Non- Executive Director Dato' Eisah Binti A. Rahman Executive Director Group Managing Director Encik Leonard Ariff bin Abdul Shatar Independent Non- Executive Director Datuk Seri Rohani Parkash binti Abdullah Independent Non- Executive Director Datuk Nik Moustpha bin Hj Nik Hassan Senior Independent Non- Executive Director Dato' Mohamad Kamarudin bin Hassan Independent Non- Executive Director Puan Zaiton binti Jamaluddin Non-Independent and Non-Executive Datuk Mohd Radzif Bin Mohd Yunus

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Board of f Directors

STRUCTURE

Board of Directors

Nomination and Remuneration Committee

Chairman: Dato’ Mohamad Kamarudin bin Hassan

Audit and Integrity Committee

Chairman: Encik Razalee bin Amin

Risk Management and Sustainability Committee

Chairman: Datuk Mohd Radzif bin Mohd Yunus

Halal Committee

Chairman: Datuk Nik Moustpha bin Hj Nik Hassan

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Group Management Committee

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Financial Highlights

(in RM'million) 2016 2017 2018 Non-current assets 295.3 348.6 469.0 Current assets 366.2 356.6 367.3 Equities 454.5 479.9 481.0 Liabilities 206.9 225.4 355.3 Gearing 0.25x 0.27x 0.51x Return on Equity 5.9% 8.8% 9.9% Internal Restructuring completed on 24 May 2018 enables the Group to be more nimble in securing potential business opportunities and more tax efficient.

2016 2017 2018 PBT 31.5 51.8 59.7 PAT 26.8 42.5 47.6 Revenue 312.9 468.0 498.7 100 200 300 400 500 600 10 20 30 40 50 60 70

RM’million RM’ million

PBT PAT Revenue 15

FY 2016 Revenue : RM 312.94 mil

Export 12%

Export 8% Local (Private) 54%

Note: Duopharma Biotech’s top export markets in FY2018 (% based on export revenue): 1.Singapore – 22.6% (RM9.3mil) 2.Philippines – 21.1% (RM8.7mil) 3.Middle East – 18.4% (RM7.6mil)

Local (Government) 34% Local (Government) 49% 43% Local

(Private)

54% 39%

Fin inancial Hig ighlights – Segmental Sale les

Export 8% Local (Private) 42% Local (Government) 50% FY 2017 Revenue : RM 467.99 mil FY 2018 Revenue : RM 498.72 mil

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Key Highlights

KEY HIGHLIGHTS

• No. 1 local pharma company in terms of volume and No.2 in terms of sales and market share (Source: IQVIA Report,

December 2018). Continuous collaboration and partnering with key pharma players i.e. Biocon, PanGen Biotech, Natco & Becton Dickinson. Successfully launched a pre-filled format for an insulin glargine, Basalog One. Expanded our Hepatitis C portfolio with products from Natco. Flavettes regained its leadership as the No.1 supplement in the Adults Vitamin C market in Malaysia with the Effervescent range overtaking all other brands in terms of market share. Penetrated four new international markets and achieve all-time high sales. Completed and commissioned Malaysia’s first Highly Potent Active Pharmaceutical Ingredients (HPAPI) manufacturing facility. Completed EPO Phase III clinical trials in April 2017. Completed Malaysia’s first biological pre-filled syringe line to manufacture the biosimilar. Obtained Registration approval for the product called Erysaa from the National Pharmacy Regulatory Agency (NPRA) on 31 January 2019. Won a contract from the government to supply Daclatasvir.

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Completed Corporate Exercises

Internal Restructuring was completed on 24 May 2018

(i) the acquisition by Duopharma Biotech of the entire equity interest in Duopharma HAPI Sdn Bhd (formerly known as CCM Biopharma Sdn Bhd) and Negeri Pharmacy Sdn Bhd for RM 2.5 million and RM 1 respectively from Duopharma Marketing Sdn Bhd (formerly known as CCM Pharmaceuticals Sdn Bhd) (ii) the acquisition by Duopharma Biotech of the entire equity interest in Duopharma Manufacuturing (Bangi) Sdn Bhd (formerly known as Upha Pharmaceuticals Manufacturing (M) Sdn Bhd) for RM 78.37 million from Duopharma (M) Sdn Bhd. (iii) the increase of the paid up share capital of Duopharma Manufacuturing (Bangi) Sdn Bhd (formerly known as Upha Pharmaceuticals Manufacturing (M) Sdn Bhd) by way of conversion

• f a portion of inter-company loan owing by Duopharma

Manufacuturing (Bangi) Sdn Bhd to Duopharma Biotech amounting to RM 90mil.

Purchase of Trade Marks from CCMB was completed on 24 May 2018 Establishment of first Dividend Reinvestment Plan was approved by shareholders during Extraordinary General Meeting on 31 May 2018 Bonus Issues of 4 Bonus Shares for Every 3 Existing Shares was completed on 20 June 2018

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Acquisition of 806,450 share representing approximately 8.39% stake in PanGen from Chemical Company of Malaysia Berhad for RM 59.16 million ( KRW 16.35 billion ) was completed on 29 June 2018 Acquisition of 164,016 common shares and 109,344 redeemable convertible preference shares representing approximately 5.8% stake in SCM Lifescience, a Korean stem cell firm for RM 20.24 million (KRW 5.5 billion) on 23 November 2018.

Completed Corporate Exercises

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In Investments in Korea

Acquisition of 8.39% stake in PanGen Bioetch Inc, a Korean Biopharmaceutical company, from Chemical Company of Malaysia Berhad for RM 59.16 million ( KRW 16.35 billion )

• n 29 June 2018.

Acquisition of 5.8% stake in SCM Lifescience, a Korean stem cell firm for RM 20.24 million (KRW 5.5 billion) on 23 November 2018.

WHY Korea?

• In line with our strategy to diversify into biotherapeutics and high-

value niche products.

• Their technology is applicable in Malaysia.
• Opportunity to have an early stage entry, before it becomes costly

later on.

• Regulation on stem cell in Malaysia to start in 2021; timely to acquire

SCM.

• As Korea recognises biotech technologies, Duopharma Biotech may

be able to monetise the technologies.

• Investee company has proof of concept product.

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Bangi Plant

Established Workforce Types of Products

• 1976
• 769 people (including Sales & Marketing team)
• Ethical and CHC Products – mainly in oral solid dosages, soft gels, liquids

and cream forms

Klang Plant

Established Workforce Types of Products

• 1979
• 484 people
• Oral solids dosages, Haemodialysis & SVI Products, LVI – Irrigation solution

products, dental cartridge and sterile cephalosporin

Glenmarie Plant

Established Workforce Types of Products

• 2008
• 55 people
• HAPI plant for Oncology
• Duopharma Innovation Sdn Bhd, the division’s R&D centre is located in this

plant

Kenanga Office (HQ)

Established Workforce

• 2018
• 26 people

Facilities Snapshot

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Research & Development (R (R&D)

Duopharma Innovation Sdn Bhd (“DISB”) is the Division’s dedicated in-house pharmaceutical R&D facility, centred independently at Glenmarie, Selangor. DISB is a state-of-the-art R&D centre accredited with the MS ISO/IEC 17025 standard. The centre also houses lab scale equipment for formulation trials, designed towards GMP requirements. DISB provides scientific and technical knowledge and skill in the development of high quality, safe and efficacious pharmaceutical products.

Duopharma Innovation Sdn Bhd

Formulation Analytical Regulatory Affairs Outsource Services

DISB has a pilot batch facility, which is essential during a product’s development and optimisation phase.

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Market Presence

Duopharma Biotech is ranked 2nd in terms of market share Duopharma Biotech is the

• No. 1 company by Sales

volume Duopharma Biotech is ranked 2nd in terms of sales value and has the fastest growth trend

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Market Presence (I (International)

Year / RM’mil ASEAN Asia Pacific Rest of World FY 2016 27.0 3.0 6.1 FY 2017 26.6 4.4 6.4 FY 2018 26.1 4.5 7.9

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Four-Pronged Strategy

Diversify onto high-value biologicals and niche products Expand our range of Ethical and Consumer Healthcare (CHC) product portfolios Enhance our presence in the ASEAN region Upgrade of manufacturing facilities into world-class assets

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Challenges and Opportunities

• Commercialization of high value product in niche therapeutic areas such as oncology and bio-therapeutics
• Registration of Erysaa, an erythropoietin (EPO) biosimilar, has been approved by National Pharmacy

Regulatory Agency (NPRA) on 31 January 2019. Able to bid for government tender worth RM 10 – 15 million

• Registration of Trastuzumab, an oncology product has been approved
• Oncology facility to commence in Q3 2019
• Implementation of National B40 Protection Scheme
• Growing International Business segment

OPPORTUNITIES

• Insulin tender ( 3 + 2 ) ending in 2019. Engage with Ministry of Health to opt for 2 years extension
• APPL expiring by 31 December 2019
• Reduction in consumption
• Increasing cGMP requirements
• Short term revolving credit from OCBC
• Differences in regional regulations impacting growth of international businesses
• Expanding product portfolios (prohibitive BE and clinical costs)
• Strengthening USD resulting in higher cost of imported raw materials

CHALLENGES

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New Products Pipeline

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Oncology Franchise Letrozole CHC New Products Champs Effervescent CHC New Products Flavettes Effervescent Renal Franchise Insulin Injection Renal Franchise Erythropoietin (EPO) Renal Franchise Heparin

Project Updates – HAPI Plant

Pilot batch for Letrozole 2.5mg tab (1st product)

• Successfully conducted Comparative Dissolution Profile “CDP” (against

Natco’s batch) with good result.

• Passed all acceptance criteria for 1st month stability study.
• Target to conduct Process Validation (PV) batches in Q2 2019.

Other progress

• NPRA inspection target by end April 2019.
• Collaboration with UTM in waste water deactivation management.

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API dispensing Compression process

Project Updates – HAPI Plant

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Project Updates – HAPI Plant

Granulation process Testing done in containment

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Project Updates – K6 K6

• 94.5% completed.
• Remaining works :

➢ Main bridge construction ➢ Road widening works

• CCC application in Q2 2019.

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Project Updates – K6 K6

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Project Updates – K6 K6

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Project Updates – K6 K6

Pick and Pack Area with Safety Barriers Installed

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Project Updates – K3 & K5 Substructure Works

K3

• Piling works completed.
• Basement level pile cap works will start once

cofferdam installed.

• Cofferdam sheet piles currently being installed.
• Project timeline to be extended until June 2019.

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Project Updates – K3 & K5 Substructure Works

Ongoing Pile Cap Construction – Concreting work

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Project Updates – K3 & K5 Substructure Works

Anti-Termite work on Pile Cap Backfilling work

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Project Updates – 33kV SSU Update

33KV SSU

• 33 KV SSU 90% completed.
• Transformers and Switch Gears installed.
• TNB owned rooms to be handed over after

inspection.

• K4 Guardhouse construction next.

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Project Updates – 33kV SSU Update

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Project Updates – 33kV SSU Update

33kV and 11kV Switchgears delivered

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Awards and Recognitions 2018

The recipient of the 2018 Frost & Sullivan award for the Malaysian “Pharmaceutical Company of the Year” and “Halal Pharmaceutical Company of the Year”. The recipient of the 2018 HR Asian Award for “Best Companies To Work For” in 2018, 3rd consecutive year.

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Watsons Health, Wellness and Beauty Awards 2018

1)CHAMPS – Best Exclusive Campaign

i) Extensiveness of the overall campaign – 360 on ground activation, e-commerce, social media, etc. ii) Active participations in Watsons initiated campaign

2)NATURALLE – Most Wanted Garlic Supplement

i) Highest sell-out for the particular sub-segment from April 2017 to March 2018

Awards and Recognitions 2018

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Accreditations & Past Awards

GMP clearance by TGA (Australia) Certificate of GMP by Kingdom of Saudi Arabia FDA GMP – Manufacturing license by the National Pharmaceuticals Control Bureau (NPCB) Malaysia Indonesian HALAL certification from Majelis Ulama Indonesia Malaysian HALAL certification from JAKIM based on the world’s first Halal Pharmaceutical Standards (MS2424:2012) MSWG ASEAN Corporate Governance Recognition 2017 - Excellence Award for Overall CG & Performance 2017 (Market Cap between RM300 Million to RM1 Billion) HR Asia Awards 2016 & 2017 – Best Companies to Work for in Asia

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