Contents

Vietnam Pharmaceutical Industry

Imexpharm Overview

Imexpharm’s Competitive Edges

2015 Business Strategy

Vietnam Pharmaceutical Sector
 Vietnam Pharmaceutical Sector

Pharmaceutical sector sales estimated to reach US$3.9bn in 2014

(2010-14 CARG of 17%) as drug consumption per capital at
US$42 (CAGR of 16%)
4.5 45.0
Pharmaceutical sales (US$bn)
4.0 40.0
Drug consumption per capital (US$)
3.5 35.0

3.0 30.0

2.5 25.0

2.0 20.0

1.5 15.0

1.0 10.0

0.5 5.0

- -
2010 2011 2012 2013 2014E
Source: BMI 2014
 Vietnam Pharmaceutical Sector

Market sales size expected to be more than doubled in 2018, at

CAGR of 16.6% p.a.
Generic market
US$3.9bn

Generic market
US$2.0bn

46%
2018
US$7.1bn 55%

48% 2014 52%

US$3.9bn

Generic drugs Patented drugs

Source: BMI 2014

 Vietnam Pharmaceutical Sector

Opportunities

Growing population with rising household income, and increasing health
awareness

More-polluted living environment resulting diseases

Challenges

Circular 01 limiting locally-produced pharmaceutical products to enter
hospital system

Harsh competition in OTC

Imexpharm Overview
 Company profile

Market price: VND45,500/share

Market capitalization: US$61.3mn

Current foreign ownership: 44.7% (over the cap of 49%)

2015 EPS: VND3,400/share (+15% vs. 2014)

Shareholder registrar:

VN Pharm
Others Corp.
37% 24%
Phano
9%

JP Morgan Templeton
4% VCHF 8%
Balestrand KWE
4% 6% 8%
 Historical business performance

IMP achieved 5-year CAGR of 5% in revenue and 6% in NPAT

Production revenue is the main contributor, usually at 75-80% of total

revenue

1,000.0 Revenue (VNDbn) 90.0 NPAT (VNDbn) 85.5

900.0 Production revenue 80.5
80.0 77.6 77.6
800.0 Other revenue
70.0 65.7
700.0 60.6
60.0
600.0
50.0
500.0
40.0
400.0
300.0 30.0

200.0 20.0
100.0 10.0
- -
2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014
 Revenue by segments

OTC:ETC balance significantly changed from 42%:58% to

80%:20% while Mekong Delta and HCMC are still key markets of
IMP
OTC vs. ETC Revenue by geographical market

OTC ETC Hanoi

100% 100%
90% 90%
Central
80% 80%
70% 70% East
60% 60%
50% 50% HCMC
40% 40% Mekong
30% 30% Delta
20% 20%
10% 10%
0% 0%
2009 2010 2011 2012 2013 2014 2012 2013 2014
 No. 4 in pharmaceutical sales

Although revenue’s 5-year CAGR of IMP was modest, the company’s

net margin is the second highest vs. listed peers

4,500 Revenue and CAGR benchmark 20.0% 25% Net margin benchmark

4,000 17% 17% 18.0%

DHG DMC
3,500 16.0% 20%
2009 2010 2011 TRA IMP
14.0%
3,000
2012 2013 2014
12.0% 15%
2,500 CAGR
10.0%
2,000
8.0% 10%
6%
1,500
5% 6.0%
1,000 4.0% 5%
500 2.0%
- 0.0% 0%
DHG DMC TRA IMP 2009 2010 2011 2012 2013 2014
Imexpharm’s Competitive Edges
 Production Capability

Production plants qualified WHO standards in GMP, GLP and GSP

Production facilities are regularly audited by global pharmaceutical

partners to ensure continuous compliance

- Cephalosporin Plant
(Binh Duong): 800mn units
p.a., both injections and
other forms like capsule,
tablets, etc.
- Peniciline Plant (Binh
Duong): 4mn units of
injection p.a.

- Non-betalactam (Dong
Thap): 1,200mn units p.a.,
incl. capsule, tablets,
softcaps, etc.
- Peniciline Plant (Dong
Thap): 500mn units, incl.
capsule, tablets, softcaps,
etc.
 Pioneer in Franchise Production

Initiate franchising production with global pharmaceutical groups like

Sandoz (Switzerland), Sanofi-Aventis and DB Pharma (France),
Robinson Pharmaceutical (US), etc.
 Reinforce brand value via JV production

Produce high-quality products under JV brand name with Pharma

Science (Canada) and ACS Dobfar (Italy)
 Key Product Portfolio

Claminat Probio
28% of production revenue 9% of production revenue
3-year CAGR of 27% 3-year CAGR of 23%

Bio-equivalent with GSK’s

Opxil, Pharmox, Zanimex, and Imeclor

18% of production revenue
 Nationwide Distribution Network

Distribution with 18 GDP-qualified

branches

Sales team includes 220 well-

trained sales representatives

Over 10,000 customers, which are

pharmacies
 SAP-ERP Application

Launch SAP-ERP since Jan-13

Strictly manage all business

functions, from purchasing,
production, sales, to financing,
accounting

Allow effective management of

production costs, quality of
inventory, age of trade receivables,
etc.
2015 Business Strategy
 Capital expenditure

Cephalosporin and Penicillin plant will be upgraded from GMP-WHO

to EU-GMP, certified in 2016

Total investment: VND50bn, financed by equity

Purpose: enhance penetration into ETC, export to Europe markets,

and upgrade high-quality brand awareness
 Product and distribution development

Develop and differentiate product portfolio with new brands in high-

quality prescription and OTC drugs

Develop sales branches in Binh Duong, Binh Dinh and Nghe An

 Synergy from pharmacy-owned investor

Phano becomes IMP’s strategic

shareholder since Jan-15 with
9.09% holding

Phano has nearly 40 GPP-

qualified pharmacies in HCMC,
Can Tho, Binh Duong and Da
Nang

IMP’s products will be more

marketable via Phano’s
pharmacies
 Business target

Production revenue is set to robustly grow over 35% to be

VND900bn, or 86% of total revenue

2015 EPS is expected at VND3,400/share, so PER is at 13.6x

(market price of VND46,100/share)

Business Plan (VNDbn)

1,200
Growth 15.7%
1,000

800 2014
2015 Target
600

400
Growth 14.3%
200
908 1,050 123 140
-
Revenue Profit before tax and science fund
 No. 04, 30th April st., Cao Lanh city, Dong Thap province.

℡ 0673 851 941 - Fax: 0673 853 106

 imp@imexpharm.com Web www.imexpharm.com