3sbio, Inc. · HKEX:1530
3sbio — H1 2016 Earnings Presentation
33 slides from 3sbio's earnings presentation, August 2016
Slide 1: 2016 Interim Results Presentation
2016 Interim Results Presentation August 2016
Slide 2: Disclaimer
Disclaimer This document has been prepared by 3SBio Inc. (the "Company") solely for selected recipients for information purposes only. You must read the terms, conditions, limitations, notifications, restrictions, acknowledgments and representations in the following (collectively, the "Terms") befor
Slide 3: Table of Contents
Table of Contents Section 1 Company Overview Section 2 2016 Interim Results Highlights Section 3 Business Review Section 4 Financial Review Section 5 Growth Strategies Section 6 Investment Highlights 2
Slide 4: Company Overview
Section ] Company Overview d =28ls SSBIOINC.
Slide 5: A Pioneer and Undisputed Market Leader in the PRC Biotechnology Industry
A Pioneer and Undisputed Market Leader in the PRC Biotechnology Industry A Pioneer in the PRC Biopharmaceutical Industry Leading Core Products A pre-eminent player with 7 approved biological products in China’s Self developed and the only commercialized rhTPO fast growing biopharmaceutical indus
Slide 6: History and Key Milestones
History and Key Milestones Interfen Inleusin EPIAO TPIAO IV Sucrose SEPO (rhEPO) Wansheng Product Yisaipu (interferon (interleukin 2) (rhEPO) (rhTPO) (iron sucrose Sparin (LMWH-Ca) Portfolio alpha-2a) injection) 1993 1995 1996 1998 2005 2006 2007 2013 2014 2015 2016 Established Listed on Privatized
Slide 7: Established Global Operation Presence
Established Global Operation Presence Shenyang Facility Guojian Sirton (Italy) Shenyang Shanghai Hangzhou Zhejiang Wansheng Italy Shenzhen Sciprogen 6
Slide 8: 2016 Interim Results Highlights
Section 2 2016 Interim Results Highlights
Slide 9: 2016 Interim Results Overview
2016 Interim Results Overview Key Highlights of 1H2016 Results • Achieved strong revenue and normalized EBITDA YoY growth of 65.1% and 48.8% 1H2016(3) 1H2015 Change respectively in a challenging operating environment (RMB) (RMB) • Core products maintained market leadership and growth momentum – TPIA
Slide 10: Business Review
Section 3 Business Review d =28ls SSBIOINC.
Slide 11: Market-Leading Products with Strong Growth Momentum and Significant Growth Potential
Market-Leading Products with Strong Growth Momentum and Significant Growth Potential EPIAO and SEPO: Market Leader in rhEPO TPIAO: Blockbuster in Early Growth Stage Yisaipu: First-to-market mAb Drug Market • Self-developed, the only commercialized rhTPO • A TNF α inhibitor product launched by Guojia
Slide 12: Successful Acquisitions Followed by Continued Integration Efforts
Successful Acquisitions Followed by Continued Integration Efforts SEPO experienced significant growth while EPIAO faced pressure in certain provincial tendering process Expects further penetration in lower tier cities through Sciprogen’s distribution network – SEPO entered into 390 new hospitals
Slide 13: Robust and Innovative Product Pipeline
Robust and Innovative Product Pipeline Supported by Integrated R&D Platform and Collaboration with Industry Leaders and International Partners Therapeutic Area Product Candidate Intended Indication Development Status Classification SSS21 Hyperphosphatemia, Hypercholesteremia IND Class III Chemical D
Slide 14: Our Manufacturing Capabilities
Our Manufacturing Capabilities EPIAO and TPIAO SEPO and Sparin mAb Small Molecule CMO Shenyang Facility Shenzhen Facility Currently operates five Integrated platform for Located in Como, Italy Capable of bulk Used for manufacturing antibody production R&D, production and Authorized to pr
Slide 15: Strong In-House Sales Capability
Strong In-House Sales Capability Enabling Us to Effectively Promote and Sell Innovative Pharmaceuticals Emphasis on Academic Marketing Effective Marketing Strategies • Established and maintained strong relationships with leading hospitals • Marketed and promoted TPIAO, Yisaipu, EPIAO and IV Iron Suc
Slide 16: Rapid Expansion Bolstered by Strong Organic Growth and Successful Acquisitions
Rapid Expansion Bolstered by Strong Organic Growth and Successful Acquisitions 2014 Now 2015 sales: RMB1.67Bn 2014 sales: RMB1.13Bn 2015 normalized net profit: RMB599.7 MM Revenue 2014 normalized net profit: RMB411 MM 1H2016 sales: RMB1.30Bn 1H2016 normalized net profit: RMB354.8 MM 2
Slide 17: Financial Review
Section 4 Financial Review d =28ls SSBIOINC.
Slide 18: Robust Revenue and Profit Growth
Robust Revenue and Profit Growth Revenue Gross Profit (RMB MM) (RMB MM) 2,500 2,000 2,000 1,673.1 1,431.2 1,500 1,304.9 1,043.4 1,133.2 1,500 1,130.9 875.4 1,000 792.2 690.3 1,000 790.3 500 90.5% 92.3% 500 85.5% 87.3% 86.8% 0 0 2013 2014 2015 1H2015 1H2016 2013 2014 2015 1H2015 1H2016 Gross Margin N
Slide 19: Product Mix and Contribution
Product Mix and Contribution Sales of Goods Contribution (1) (2) (%) 100% 3.2% 5.5% 5.9% 5.7% 9.9% 5.2% 7.0% 6.1% 3.0% 4.8% 3.2% 80% 2.6% 35.4% 39.0% 23.4% 60% 36.0% 40% 30.9% 53.9% 52.1% 20% 40.6% 26.5% 0% 2013 2014 2015 1H2016 EPIAO TPIAO Yisaipu SEPO IV Iron Sucrose Wansheng Others Note: 1 Sales
Slide 20: Healthy Working Capital Ratios and Strong Operating Cash Flow
Healthy Working Capital Ratios and Strong Operating Cash Flow Finished Goods Turnover Days Trade Receivables Turnover Days (Days) (Days) 80 100 (2) 82 (1) 54 80 71 60 50 60 41 55 60 40 31 40 20 20 0 0 2013 2014 2015 1H2016 2013 2014 2015 1H2016 Trade Payables Turnover Days Net Cash Flows From Operat
Slide 21: Growth Strategies
Section 5 - Growth Strategies = d =28ls SSBIOINC.
Slide 22: Outlook and Future Strategies
Outlook and Future Strategies • Building world-class marketing and sales platform with target RMB7-8 billion sales within 3-5 years (CAGR over 25%) • Further expand TPIAO, YISAIPU, and EPIAO/SEPO franchise Marketing/ • Expand our BROAD market network to penetrate wider market Sales • Add additional
Slide 23: Investment Highlights
Section 6 Investment Highlights
Slide 24: Investment Highlights
Investment Highlights Leader in the Highly Attractive PRC Biotechnology Industry with 7 Approved 1 Biological Products Market-Leading Products with Significant Growth Potential in Oncology, 2 Rheumatology and Nephrology Therapeutic Areas 3 Leading Commercial Platform with around 1,800 Sales People 4
Slide 25: Appendix
Appendix z pigs ag LE d =28ls SSBIOINC.
Slide 26: Biopharmaceutical Industry Overview
Biopharmaceutical Industry Overview 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 27: Biopharmaceutical Industry Overview (Continued)
Biopharmaceutical Industry Overview (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 28: Our Broad Product Portfolio
Our Broad Product Portfolio Generic Insurance Product Indication Highlights Name Coverage • Treatment of anemia associated with • NMIC1 Category B drug Injectable Recombinant CKD • Only product approved for all three EPIAO • 3 provincial medical Human Erythropoietin • Reduction of allogeneic blood i
Slide 29: Pipeline Product – SSS06 NuPIAO
Pipeline Product – SSS06 NuPIAO® (Recombinant Erythropoiesis Stimulating Protein) Proprietary IP The second generation long-lasting EPO analogue: Higher glycosylation and longer half-life in vivo. The molecular structure of SSS06 The efficacy of SSS06 qw (4 weeks) is comparable to the rhEPO tiw.
Slide 30: Pipeline Product – SSS07 Anti-TNFα Monoclonal Antibody
Pipeline Product – SSS07 Anti-TNFɑ Monoclonal Antibody Class I new drug fully humanized mAb from rabbit counterpart Global Proprietary IP High specificity－only recognizes human TNFɑ High affinity－the highest potency in its class Unique epitope SSS07 can only bind and block human TNFɑ, does
Slide 31: Pipeline Product – SSS11 Pegsiticase
Pipeline Product – SSS11 Pegsiticase®(Pegylated Recombinant Candida Utilis Uricase) Global IP, indication: refractory gout and hyperuricemia High potency－the highest activity of catalyze uric acid at human physiology pH Efficacy in humans have been established in US phase I clinical trials－hig
Slide 32: Pipeline Product – SSS22 PEG-Irinotecan
Pipeline Product – SSS22 PEG-Irinotecan (Pegylated Irinotecan) Class I new drug Proprietary IP Indications: refractory cancers, including colorectal cancer, metastatic breast cancer, and platinum-resistant ovarian cancer Passively targeting tumor tissues selectively due to their leaky vascul
Slide 33: Experienced and Visionary Management Team Leading the Growth
Experienced and Visionary Management Team Leading the Growth 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 the