2016 ANNUAL RESULTS ANALYST BRIEFING

Transcription

1 2016 ANNUAL RESULTS ANALYST BRIEFING

2 Today s Agenda: Results Highlights Business Overview & Update Market Opportunity Strategy Q&A

3 Solid Performance for FY16 RMB Change yoy Revenue 844, , % Gross Profit 592, , % Gross Margin % 70.2% 74.9% (4.7% pts) Distribution Costs 128, , % Margin % 15.2% 16.5% (1.3% pts) Administrative Expenses 175, , % Margin % 20.8% 21.8% (1.0% pt) EBITDA 363, , % EBITDA Margin % 43.0% 44.7% (1.7% pts) Reported Net Profit 228, , % Net Margin % 27.0% 29.3% (2.3% pts) EPS (Basic) % Dividend Per Share %

4 RMB mil RMB mil Solid Performance for FY16 RMB 000 HA Raw Materials 2016 HA End Products Trading Business Revenue 458, ,786 91,587 % of revenue 89.2% 10.8% Gross profit 571,089 21,340 Gross margin 75.9% 23.3% RMB 000 HA Raw Materials 2015 HA End Products Trading Business Revenue 396, ,360 10,576 % of revenue 98.4% 1.6% Gross profit 484,997 2,242 Gross margin 75.7% 21.2% Revenue of Raw Material 458, , Revenue of End Products 294, ,

5 Balance Sheet and Liquidity RMB Cash & cash equivalents (including restricted cash) 876, ,050 Bank loans 348, ,873 Convertible bonds 360, ,938 Net debt to equity Net cash Net cash Trade receivables (excluding bills receivable) 230, ,180 Turnover days Trade payables 30,528 35,091 Turnover days 56 58

6 RMB mil Free Cash Flow Generation Operating cash flow Capex Free cash flow Operating cash flow continued to improve, positive free cash flow of RMB149.5mil was generated in FY16 Capex is expected to be sustainable at current level

7 Today s Agenda: Results Highlights Business Overview & Update Market Opportunity Strategy Q&A

8 A Vertically-integrated Medical Aesthetic Solutions Provider with Comprehensive Product Offering SKIN MANAGEMENT PRODUCTS HA INJECTABLE & SURGICAL PRODUCTS HA RAW MATERIALS HA+ medical skincare Skin rejuvenation Hair and scalp care Body restructuring Aesthetic devices Dermal fillers Gynecologic fillers Orthopedic injectables Ophthalmic viscoelastic device Medical-grade Cosmetic-grade Food-grade Derivatives of HA

9 New Product Launches Leveraging on Continued Technological Innovation and M&A Hymagic -AcHA Derivative of HA, nonsticky texture, provides superb moisturizing effect and improve skin elasticity. Used in anti-aging, repairing and moisturizing cosmetic products Hyafactor -PGA A sticky anionic amino acids polymer, effectively captures and retains moisture, enhances skin elasticity, a good natural moisturizing ingredient for personal care products Dermal Filler Raw Material Surgical Product Dermallure Bio-balanced biphasic cross-linked soft tissue fillers with anesthetic ingredient Lidocaine, improving the comfort of customers during and after injection. Mainly used for facial contouring. STYLAGE 3 rd generation monophasic HA multicross-linked with antioxidant Mannitol with the patented IPN-Like technology, optimized elasticity for easy modelling and reshaping, good smoothing effect and easy to inject. (Currently available in HK, Taiwan, Singapore, Thailand, Japan and Korea) HyaBricant Surgical lubricant based on HA, mainly used in hospitals surgical procedures

10 Acquisition of REVITACARE Enriched Our Technological Know-hows and Product Offering Award-winning French laboratory founded in 2003 Specialized in research, design and manufacture of medical aesthetic products based on non cross-linked HA, used in the prevention and correction of skin aging and hair problems REVITACARE is the first laboratory obtained CE mark Medical Device Class III for product based on HA and multivitamins for aesthetic indication Premium skin management product line from head to toe Bio-Revitalization Anti-aging treatment for mature skin. Lights up the skin and hydrate epidermis CYTOCARE Fills fine lines, provides lightening effect, hydrates the skin and protects against oxidizing agents HAIRCARE Treatment of symptoms of various scalp and hair problems. CELLUCARE Treatment of cellulite and orange peal. Decreases cellulite & fat storage STRETCHCARE Treat firming and lifting tissues. Strengthening of the skin natural defenses European markets represent the largest share of sales Middle East, Asia and others 30% Europe 70% Covers over 40 countries, with plan to expand into Latin Americas and more Asian markets

11 Strong Product Pipeline for Domestic and Global Rollout Ensuing Sustainable Growth Revenue from sales of end products and trading business (RMB 000) 9,719 88,546 HA dermal filler BioHyalux 161, ,936 OVD HYMOIS Intra-articular injectable Hyprojoint 386, HA+ medical skincare BioHyalux Aqua shining Bio-MESO STYLAGE Dermallure Aesthetic Devices 2017 Skin rejuvenation CYTOCARE Hair growth HAIRCARE Gynecologic filler Desirial In the pipeline Toxin product Neuronox HA fillers x Medy-tox HA fillers with target indications: - Fine lines - Wrinkles - Contouring Non-crosslinked HA - Anti-aging

12 Unrivalled Channels Coverage within the Medical Aesthetic Society Urumqi Lanzhou Beijing Shijiazhuang Tianjin Xi an Zhengzhou Shanghai Chengdu Wuhan Chongqing Hangzhou Guangzhou Shenzhen Shenyang Dalian Harbin Changsha Suzhou Fuzhou No. of clients covered 25% to >1,000 institutional clients mostly in 1 st tier cities Next Expand into 2 nd and 3 rd tier cities

13 RMB mil World s Leading Player in HA Raw Materials Continues Stable Growth and Geographical Diversification Revenue from sales of raw material Overseas sales accounted for 39%, up from 32% in FY2015 Successfully passed quality inspections by more pharmaceutical MNCs Well-recognized by global markets Overseas Domestic Certifications obtained: Medical: CEP Russia CFDA US-DMF Japan-MF Korea-DMF Canada-DMF Cosmetic/Food: ECOCERT Kosher HALAL

14 Anchored in China, Focused Internationally Presence in over 70 markets around the world through direct sales team and exclusive local distributors. Headquarter or regional offices Production plants Developed markets To-be-developed markets

15 Today s Agenda: Results Highlights Business Overview & Update Market Opportunity Strategy Q&A

16 Capitalizing on Our World-Recognized Raw Materials Production Facilities to Expand Global Sales RMB bil Global HA Raw Materials Addressable Market Value E Injectable Eye drop Cosmetics Food 100% 80% 60% 40% 20% 0% Global Medical-grade HA Raw Materials Market Share Others Seikagaku Novozymes HTL Kewpie CPN Bloomage Shiseido Eye drop Others Lifecore Seikagaku, Novozymes HTL Kewpie CPN Bloomage Shiseido Injectable Bloomage is the only scalable Chinese player meeting global standards for its medical-grade HA raw materials Good value for money versus the European and Japanese players Strive to expand market share in the high-margin medical-grade business segment Introduce more innovative cosmetic/food-grade HA to maintain our leading position and hold up our price premium over other local suppliers Source: Lit. search; Analyst reports

17 mil Well-positioned in One of the World s Largest Medical Aesthetic Markets - China No. of procedures per 1,000 population No. of female aged China market is still at early stage of growth US Brazil Korea Italy China but China has the largest market potential! Korea Italy US Taiwan Japan Brazil China Total number of global medical aesthetic procedures in 2015 Surgical procedures 44% 21.7mil Non-surgical procedures 56% HA Injections 24% Others 38% Toxin and HA injections are the most popular non-surgical aesthetic procedures around the world! Toxin Injections 38% Source: ISAPS; CIA World Factbook; Analyst reports

18 Well-positioned in One of the World s Largest Medical Aesthetic Markets - China Increasing disposal income, the popularity of social media and Korean pop culture, encourage minimally-invasive aesthetic procedures in China HA filler penetration per 1,000 adults (%) Dosage per customer per year (cc) ~ ~ ~ Source: Bain Analysis ~ ~ E 2014 < China > Korea China 2020E China 2014 USA 2014 Korea

19 Minimallyinvasive medical aesthetic procedure is becoming the new make-up!

20 Today s Agenda: Results Highlights Business Overview & Update Market Opportunity Strategy Q&A

21 BACT Product-Combo Strategy Satisfies Customers All-rounded Aesthetic Needs Epidermis HAIR & SCALP Dermis UPPER FACE Epidermis MID FACE PERIOCULAR AREAS Epidermis Muscles Dermis LIPS NECK & BODY

22 BACT Product-Combo Strategy Reaps Optimal Sales Potential from Existing Customers HA+ Skin Care Bio-MESO Laser Treatment Toxin Injection HA Fillers Injection Avg. Consumption Cycle (months)

23 79% possessing master or doctorate degrees Practice support for practitioners Industryleading R&D team Bloomage Academy Products trainings and seminars Worldlargest HA production facilities Key Advantages Sustain Our Leadership Unrivalled customer service Integrated medical aesthetic solutions Strong support to sales team In-house sales team committed to react swiftly to customer request Multi-products, multibrands product portfolio Trending monitoring, market analysis, back-end sales support

24 To be a Leading Integrated Medical Aesthetics Solutions Provider INJECTABLES ANTI-AGING SKIN MANAGEMENT Bio-MESO HA Surgical Products HA Fillers High-end: Stylage Mid-end: Dermallure BioHyalux Medy-tox Toxin In cooperation with Medy-tox High-end: CYTOCARE Mid-end: BioHyalux Aesthetic Devices Syneron HA+ Skincare High-end: Stylage Mid-end: BioHyalux End Products Medical-grade Cosmetics and Food-grade HA Raw Martials Supported by over 20 years of R&D/manufacturing capabilities

25 Q&A

26 Disclaimer The information provided to you in this presentation does not constitute or form part of any offer for subscription or sale of, or solicitation of any offer to subscribe for or sale of any securities of Bloomage BioTechnology Corporation Limited (the "Company") nor shall it form the basis of, nor can it be relied on in connection with, any contract or commitment whatsoever. Confidentiality The information provided to you in this presentation is given on a confidential basis and must not be passed to, or their contents disclosed to, any other person and no copy shall be taken thereof. For Investor Relations Contact: Ms. Shirley Kwok Tel: shirley.kwok@biobloomage.com Website: /