Duopharma BiotechBerhad

Investor Relations Briefing

16 March 2020

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 variousassumptions and made subject to a number of risks, uncertainties and contingencies. Actual results, performance or achievements may differ materiallyand 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 noobligation 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 (includingwithout limitation, their respective shareholders, directors, officers, employees, agents, partners, associates and advisers) (collectively, the "Parties") asto the quality, accuracy, reliability or completeness of the information contained in this presentation (collectively, the "Information"), or that reasonablecare 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 opinionwhich 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, toany 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 inDuopharma Biotech Berhad.

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Corporate Structure

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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

Board of Directors

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Board of Directors

STRUCTURE Board of Directors

Nomination and Remuneration

Committee

Chairman: Dato’ Mohamad Kamarudin bin

Hassan

Audit and Integrity Committee

Chairman: Encik Razaleebin Amin

Risk Management and Sustainability

Committee

Chairman: Datuk MohdRadzif bin Mohd Yunus

Halal Committee

Chairman: Datuk Nik Moustpha bin Hj Nik

Hassan

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Group Management Committee

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

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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%

Financial Highlights – Segmental Sales

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 Highlights

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No.1 Local Pharmaceutical Company by Volume

Source : iQVIA Report, December 2019

Key Highlights

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Source : iQVIA Report, December 2019

Key Highlights

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Continuous Collaboration with Key Partners

Key Highlights

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Key Highlights

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Flavettes maintained its leadership as the No.1supplement in the Adults Vitamin C market inMalaysia with the Effervescent range overtakingall other brands in terms of market share.

Champs maintained its leadership as the No.1supplement in the Children Vitamin C market inMalaysia with the Champs Vitamin C rangeovertaking all other brands in terms of marketshare.

Key Highlights

Officially the first HAPI Plant in Malaysia, receiving theCertificate 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 DuopharmaBiotech 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 DuopharmaBiotech 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.

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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Plants

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Research and Development

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Duopharma Innovation Sdn Bhd

Formulation Analytical Regulatory Affairs Outsource

Services

Duopharma Innovation

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Regional Operations

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Market Presence (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

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

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

Project Updates – HAPI Plant

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Plant status1. 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 tablet1. 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 certification1. Preparing plant for EU certification, tentatively in 2021.2. Appointment of consultants by Q1 2020 and to commence gap analysis, thereafter.

Project Updates – HAPI Plant

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Duopharma HAPI Sdn BhdNPRA inspection on 16th -17th July 2019

Project Updates – K6

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• Obtained CCC on 31 December 2019.

• In full operations.

Project Updates – K6

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Motorcycle parking Meeting rooms; Unihepa and Prelica

Project Updates – K6

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Pallets unloaded onto laydown area

Project Updates – K3 & K5 Main Building Works

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

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K3 K5

Project Updates – K3 & K5 Main Building Works

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First Floor Concrete Casting

Project Updates – 33kV SSU Update

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33KV SSU• Building Physical Works 100% completed.• Remaining works

o Execution of Horizontal Direct Drilling (HDD) from GM Klang to site (50% completed).

o Laying of power cables by TNB (to be completed by 4th week of April).

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

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

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.

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.

Project Updates – HDD conduit laying

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Accreditations

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Halal 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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