Berhad Investor Relations Briefing 16 March 2020 Disclaimer This - - PowerPoint PPT Presentation

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Berhad Investor Relations Briefing 16 March 2020 Disclaimer This - - PowerPoint PPT Presentation

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Duopharma Biotech Berhad Investor Relations Briefing 16 March 2020 Disclaimer This presentation may contain forward-looking statements by Duopharma Biotech Berhad that reflect managements current expectations, beliefs, intentions or

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Duopharma Biotech Berhad

Investor Relations Briefing 16 March 2020

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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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Corporate Stru ructure

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Duopharma Biotech’s Equity Structure

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DPHARMA (Stock Code – 7148) Market capitalization on 12.03.2020 = RM 1.02 bil Share price = RM 1.49

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Board of f Dir irectors

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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

2016 2017 2018 2019 PBT 31.5 51.8 59.7 70.8 PAT 26.8 42.5 47.6 55.3 Revenue 312.9 468.0 498.7 576.5 100 200 300 400 500 600 700 10 20 30 40 50 60 70 80 RM’million RM’ million PBT PAT Revenue

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Financial Highlights

(in RM'million) 2016 2017 2018 2019 Non-current assets 295.3 348.6 469.0 502.6 Current assets 366.2 356.6 367.3 417.2 Equities 454.5 479.9 481.0 529.8 Liabilities 206.9 225.4 355.3 390.1 Gearing 0.25x 0.27x 0.51x 0.50x Return on Equity 5.9% 8.8% 9.9% 10.4%

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FY 2019 Revenue : RM 576.46 mil

Export 8%

Local (Private) 43%

Note: Duopharma Biotech’s top export markets for FY2019(% based on export revenue): 1.Singapore – 27.5% (RM12.6mil) 2.Philippines – 18.7% (RM8.6mil) 3.Middle East – 16.6% (RM7.6mil)

Local (Government) 49%

Fin inancial Hig ighlights – Segmental Sale les

Export 8% Local (Government) 49% 43% Local

(Private)

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

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Key Hig ighlights

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No.1 Local Pharmaceutical Company by Volu lume

Source : iQVIA Report, December 2019

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Key Hig ighlights

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Source : iQVIA Report, December 2019

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Key Hig ighlights

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Continuous Collaboration wit ith Key Part rtners

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Key Hig ighlights

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Key Highlights

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Flavettes maintained 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. Champs maintained its leadership as the No.1 supplement in the Children Vitamin C market in Malaysia with the Champs Vitamin C range

  • vertaking all other brands in terms of market

share.

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Key Highlights

Officially the first HAPI Plant in Malaysia, receiving the Certificate of GMP Compliance on 21st August 2019.

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Key Highlights

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Completion of the issuance of 18,225,450 new Duopharma Biotech Shares at RM 1.20 per share on 29 July 2019 pursuant to the Dividend Reinvestment Plan which was applied to the Final Single Tier Dividend of 4 sen per ordinary share for the financial year ended 31 December 2018.

Dividend Reinvestment Plan

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Completion of the issuance of 4,276,658 new Duopharma Biotech Shares at RM 1.25 per share on 15 November 2019 pursuant to the Dividend Reinvestment Plan which was applied to the Interim Single Tier Dividend of 1 sen per ordinary share for the financial year ended 31 December 2019.

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In Investments in Korea

Acquisition of 8.39% stake in PanGen Biotech Inc, a Korean Biopharmaceutical company, from Chemical Company of Malaysia Berhad for RM 59.16 million ( KRW 16.35 billion ) via Share Sale Agreement dated 13 April 2018. Acquisition of 5.8% stake in SCM Lifescience, a Korean stem cell firm for RM 20.24 million (KRW 5.5 billion) via Share Subscription Agreement dated 25 October 2018.

WHY Korea?

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

products.

  • Technology is applicable in Malaysia.
  • Opportunity to have an early stage entry, before it becomes costly later on.
  • As Korea recognises biotech technologies, Duopharma Biotech may be able to

monetise the technologies.

  • Investee company has proof of concept product.
  • Regulation on stem cell in Malaysia to start in 2021; timely to acquire stake in SCM.
  • SCM has successfully passed technical evaluation by two Korean technical

evaluation agencies with rating of A and BBB.

  • SCM will be listed on KOSDAQ in Korea in April 2020.

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Pla lants

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Research and Development

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Duopharma Innovation Sdn Bhd

Formulation Analytical Regulatory Affairs Outsource Services

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Duopharma In Innovation

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Regional Operations

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Market Presence (I (International)

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Year / RM’mil ASEAN Asia Pacific Rest of World Total FY 2016 27.0 3.0 6.1 36.1 FY 2017 26.6 4.4 6.4 37.4 FY 2018 28.6 4.5 7.9 41.0 FY 2019 33.5 4.0 8.4 45.9

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Manufacturing Strategy 2016 and beyond

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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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Opportunities and Challenges

  • Increase in allocation for healthcare sector in budget 2020.
  • Extension of Contract Period of the Supply Agreements for the supply of pharmaceutical and/or non-pharmaceutical

products to hospitals, clinics and others under the Government of Malaysia for twenty five (25) months, until 31 December 2021.

  • Extension of supply of human insulin formulations for one (1) year, until 31 December 2020.
  • 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 Pharmaceutical

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

  • Registration of Trastuzumab (Zuhera), an oncology product has been approved.
  • Oncology facility to commence in Q1 2020.
  • Growing International Business segment.

OPPORTUNITIES

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  • Recent outbreak of Covid-19, reduction in consumption, global recession.
  • 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 Zuhera CHC New Products Champs Effervescent CHC New Products Flavettes Effervescent Diabetes Franchise Insulin Injection Renal Franchise Erythropoietin (EPO) Diabetes Franchise Insulin Glargine Injection

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Project Updates – HAPI Plant

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Plant status

  • 1. Started operation since GMP licence granted in Aug 2019.
  • 2. Currently running on single shift.
  • 3. Technology transfer for 2nd HAPI product- to commence in May 2020.

Letrozole 2.5mg tablet

  • 1. Won Letrozole 2.5mg tender for 2 years.
  • 2. Change of site evaluation approved on 14th Feb 2020.
  • 3. Final approval will be given after tabulation in NPRA meeting in March 2020.

EU certification

  • 1. Preparing plant for EU certification, tentatively in 2021.
  • 2. Appointment of consultants by Q1 2020 and to commence gap analysis, thereafter.
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Project Updates – HAPI Plant

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Duopharma HAPI Sdn Bhd NPRA inspection on 16th -17th July 2019

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Project Updates – K6 K6

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  • Obtained CCC on 31 December 2019.
  • In full operations.
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Project Updates – K6 K6

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Motorcycle parking Meeting rooms; Unihepa and Prelica

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Project Updates – K6 K6

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Pallets unloaded onto laydown area

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Project Updates – K3 & K5 Main in Buil ilding Work rks

  • Substructure works completed.
  • Site handover to Main Contractor on 1 Feb 2020.
  • K3 & K5 Construction in progress.

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K3 K5

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Project Updates – K3 & K5 Main in Buil ilding Work rks

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First Floor Concrete Casting

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Project Updates – 33kV SSU Update

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33KV SSU

  • Building Physical Works 100% completed.
  • Remaining works
  • Execution of Horizontal Direct Drilling (HDD) from

GM Klang to site (50% completed).

  • Laying of power cables by TNB (to be completed by

4th week of April).

  • Construction of Duopharma HT Infra (May 2020).
  • TNB Energization for overall Lot 2599 i.e. K1-K5

(June 2020 and cease both 11 KV SSU supply).

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Project Updates – 33kV SSU Update

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  • HDD machinery and process.
  • Total distance of 2.8 KM from GM Klang to 33KV SSU.
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Project Updates – 33kV SSU Update

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  • Man hole 24 cable capacity lifted into positioned.
  • Conduit laid from manhole to 33 KV cable cellar.
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Project Updates – HDD conduit laying

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Accreditations

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Hala lal Certifications

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Awards

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Awards

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Awards

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Awards

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