3sbio, Inc. · HKEX:1530
3sbio — H1 2015 Earnings Presentation
29 slides from 3sbio's earnings presentation, August 2015
Slide 1: 2015 Interim Results Presentation
2015 Interim Results Presentation August 2015
Slide 2: Disclaimer
Disclaimer Thisdocumenthasbeenpreparedby3SBioInc.(the"Company")solelyforselectedrecipientsforinformationpurposesonly. Youmustreadtheterms,conditions,limitations,notifications,restrictions,acknowledgmentsandrepresentationsinthefollowing(collectively,the“Terms”)befor
Slide 3: Table of Contents
TableofContents Section 1 Company Overview Section 2 2015 Interim Results Highlights Section 3 Business Review Section 4 Financial Review Section 5 Growth Strategies 2
Slide 4: Company Overview
Section 1 Company Overview SSBIO INC. d S28ls
Slide 5: A Pioneer and Undisputed Market Leader in the PRC Biotechnology Industry
APioneerandUndisputedMarketLeaderinthe PRC BiotechnologyIndustry A Pioneer in the PRC Biopharmaceutical Industry Leading Core Products Leading biopharmaceutical company in China Self developed and the only commercialized rhTPO product in the world Diversified product portfolio increase
Slide 6: History and Key Milestones
HistoryandKeyMilestones Interfen Inleusin EPIAO TPIAO IV Sucrose Gan Xin SEPO (rhEPO) Qiming Keli (interferon (interleukin 2) (rhEPO) (rhTPO) (iron sucrose (metadoxine) Sparin (LMWH-Ca) Di Su (BCG alpha-2a) injection) Polysaccharide and Nucleic Acid), etc 1993 1995 1996 1998 2005 2006 2007 2012 2
Slide 7: Established Global Operation Presence
EstablishedGlobalOperationPresence Benxi Facility Shenyang Facility Sirton (Italy) Shenyang Benxi Hangzhou Zhejiang Wansheng Italy Sciprogen Shenzhen 6
Slide 8: 2015 Interim Results Highlights
Section 2 2015 Interim Results Highlights
Slide 9: 1H2015 Results Overview
1H2015ResultsOverview Key Highlights of 1H2015 Results • Achieved strong revenue and profit growth of 41.9% and 40.3% respectively in a difficult operating environment 1H2015 1H2014 Change (RMB) (RMB) • Core products maintained market leadership and growth momentum – TPIAO: achieved 37.8% revenue
Slide 10: Business Review
Section 3 | a Business Review So d) S281
Slide 11: Market-Leading Products with Strong Growth Momentum and Significant Growth Potential
Market-LeadingProductswithStrongGrowth MomentumandSignificantGrowthPotential TPIAO: Blockbuster in Early Growth Stage EPIAO and SEPO: Market Leader in rhEPO Market • Self‐developed, the only commercialized rhTPO product in the • Market leader in rhEPO market with a market share more than w
Slide 12: Recent Acquisition – Zhejiang Wansheng
RecentAcquisition– ZhejiangWansheng We acquired the entire equity interest in Zhejiang Wansheng for an aggregate consideration of RMB 528 mm in July 2015 Zhejiang Wansheng Overview • 55 product approvals addressing four therapeutic areas, namely dermatology, diabetes complication, Chemically onco
Slide 13: Main Products of Zhejiang Wansheng
MainProductsofZhejiangWansheng Broad products portfolio addressing dermatology, diabetes complication, oncology, and metabolic diseases areas Generic Insurance Product Indication Highlights Name Coverage Qiming Keli N/A • Diabetes retinopathy • Certain provincial • First CFDA approved TCM for di
Slide 14: Robust and Innovative Product Pipeline
RobustandInnovativeProductPipelineSupportedbyIntegratedR&D platformandcollaborationwithindustryleadersandinternationalpartners Therapeutic Area Product Candidate Intended Indication Development Status Target Launch Date Cinacalcet hydrochloride Hyperparathyroidism IND 2017 Sevelamer
Slide 15: Strong In-House Sales Capability
StrongIn-HouseSalesCapabilityEnablingUstoEffectively PromoteandSellInnovativePharmaceuticals Emphasis on Academic Marketing PRC Sales and Distribution Model • Established and maintained strong relationships with leading hospitals and medical professionals • Promoted and strengthened our
Slide 16: Financial Review
Section 4 Financial Review SSBIO INC. d S28ls
Slide 17: Robust Revenue and Profit Growth
RobustRevenueandProfitGrowth Revenue Gross Profit (RMB MM) (RMB MM) 1,500 1,500 1,130.9 1,043.4 1,000 875.4 1,000 790.3 792.2 656.1 690.3 557.1 585.6 512.8 500 500 90.5% 92.3% 92.1% 89.3% 87.3% 0 0 2012 2013 2014 1H2014 1H2015 2012 2013 2014 1H2014 1H2015 Gross Margin Normalized EBITDA(1) Normal
Slide 18: Product Mix and Contribution
ProductMixandContribution Sales of Goods Contribution (1) (%) 100% 5.5% 3.2% 7.8% 9.7% 5.7% 5.2% 5.1% 4.8% 2.1% 80% 31.4% 35.4% 39.0% 37.1% 60% 40% 55.7% 53.9% 52.1% 46.3% 20% 0% 2012 2013 2014 1H2015 EPIAO TPIAO SEPO IV Iron Sucrose Others Note: 1 Sales of EPIAO, TPIAO and IV Iron Sucrose shown
Slide 19: Healthy Working Capital Ratios and Strong Operating Cash Flow
HealthyWorkingCapitalRatiosandStrong OperatingCashFlow Finished Goods Turnover Days Trade Receivables Turnover Days (Days) (Days) 80 80 71(1) 65 60 60 54 60 55 50 45 40 30 40 20 20 0 0 2012 2013 2014 1H2015 2012 2013 2014 1H2015 Trade Payables Turnover Days Net Cash Flows From Operating Acti
Slide 20: Operating Efficiency Maintains Profitability
OperatingEfficiencyMaintainsProfitability Cost of Sales Selling and Distribution Expenses (RMB MM) (RMB MM) 120 500 431.4 100.1 83.2 87.5 400 340.6 90 304.4 70.5 276.0 300 60 44.3 203.5 200 30 12.7% 46.4% 10.7% 9.5% 100 38.9% 38.2% 7.7% 7.9% 36.5% 34.9% 0 0 2012 2013 2014 1H2014 1H2015 2012 2013
Slide 21: Growth Strategies
Section 5 aS Par , Growth Stategies eo d) S281
Slide 22: Outlook and Future Strategies
OutlookandFutureStrategies • Continue to be excited about the growth prospects of TPIAO - Under-penetrated market only 10% penetration of CIT and ITP indication and majority of sales generated from ~10% of existing covered hospitals TPIAO - Strong government support and expanding insurance covera
Slide 23: Appendix
Appendix
Slide 24: Biopharmaceutical Industry Overview
BiopharmaceuticalIndustryOverview Global Biopharmaceutical Market Growth Driven by Innovation Biopharmaceuticals have Larger and More Complex Molecular Introduction of Biopharmaceuticals Structures than Chemical Medicines • Biopharmaceuticals are therapeutic proteins produced Chemical Medicine Bio
Slide 25: Biopharmaceutical Industry Overview (Continued)
BiopharmaceuticalIndustryOverview(Continued) Fast‐growing PRC Biopharmaceutical Market with Large Growth Potential China Biopharmaceutical Market Significantly Outperformed China Pharmaceutical Market in Recent Years and is Projected to Maintain Strong Growth Momentum (RMB Bn) 70 62 60 50 PRC Bio
Slide 26: Corporate Structure
CorporateStructure 100% 3SBIO, LLC US Assets 3SBio Inc. （三生制药） Series (US) 100% 40% 100% Ascentage Pharma (HK) Collected Mind (BVI) CICC Bio Investments (HK) 100% 100% Sirton (Italy) Hongkong Sansheng (HK) 100% 2.04% Offshore Onshore Ascentage Jiangsu (PRC) 100% 2.76% Shenyang Sunshine (PRC) CP Guo
Slide 27: Our Broad Product Portfolio
OurBroadProductPortfolio Generic Insurance Product Indication Highlights Name Coverage Injectable • Treatment of anemia associated with CKD • NMIC Category B drug • Only product approved for all three EPIAO Recombinant Human • Reduction of allogeneic blood transfusion in • 3 provincial medical in
Slide 28: Strategic Collaborations
StrategicCollaborations Partner Agreement Exclusive license to develop, market and sell Leukotuximab in China and 13 foreign countries Exclusive import, manufacturing and distribution rights to all transplant and autoimmune-related indications of voclosporin in China, excluding ophthalmic indicatio
Slide 29: Experienced and Visionary Management Team Leading the Growth
ExperiencedandVisionaryManagementTeam LeadingtheGrowth Dr. Lou Jing Extensive Experience Co‐founder, Chairman, Executive Director and Chief Executive Officer • Joined Shenyang Sunshine as director of research and development in 1995 Senior management team on average has > 15 years of • Led th