CCM DUOPHARMA BIOTECH BERHAD

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CCM DUOPHARMA BIOTECH BERHAD

INVESTOR RELATIONS

28 March 2018

Disclaimer

This presentation may contain forward-looking statements by CCM Duopharma Biotech Berhad that reflect management’s current expectations, beliefs, intentionsor strategies regarding the future and assumptions in light of currently available information. These statements are based on various assumptions and madesubject to a number of risks, uncertainties and contingencies. Actual results, performance or achievements may differ materially and significantly from thosediscussed in the forward-looking statements. Such statements are not and should not be construed as a representation, warranty or undertaking as to the futureperformance or achievements of CCM Duopharma Biotech Berhad and CCM Duopharma Biotech Berhad assumes no obligation or responsibility to update anysuchstatements.

No representation or warranty (either express or implied) is given by or on behalf of CCM Duopharma Biotech Berhad or its related corporations (includingwithout limitation, their respective shareholders, directors, officers, employees, agents, partners, associates and advisers) (collectively, the "Parties") as to thequality, accuracy, reliability or completeness of the information contained in this presentation (collectively, the "Information"), or that reasonable care has beentaken in compiling or preparing the Information.

None of the Parties shall be liable or responsible for any budget, forecast or forward-looking statements orother projections of any nature or any opinion which may have been expressed in the Information.

The Information is and shall remain the exclusive property of CCM 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) acknowledgesand 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 subscribefor or purchase any securities in CCM Duopharma Biotech Berhad.

Table of Content

CCM Duopharma Biotech Berhad in a glance

Corporate Structure

Board of Directors

Senior Management Team

Facilities Snapshot

Research & Development (R&D)

Market Presence

Accreditations & Awards

1

3

4

5

6

7

8

9

Financial Highlights2

CCM Duopharma Biotech Berhad at a glance

MALAYSIA

• No. 1 Local Generic Pharmaceuticals manufacturing company(Source: IMS, in terms of volume)

Facilities

• Three manufacturing sites in Malaysia (Klang, Bangi & Glenmarie)

• R&D centre in Glenmarie, Shah Alam

• Oncology facility in Shah Alam

Product Portfolio

• Portfolio of more than 500 SKUs across all key therapeutic areas

Workforce

• 1139 employees in Malaysia

• 58 employees regionally

Focus Segments

• Specialty products – Biotherapeutics, Oncology, Diabetes Care, Renal & Cardiovascular

Financial Details

(in RM'million) 2015 20162017

(unaudited)

Non-current assets

279.1 295.3 348.5

Current assets 354.3 366.2 376.0

Equities 449.7 454.5 478.9

Liabilities 183.7 206.9 245.6

Gearing 0.27x 0.25x 0.27x

Return on Equity 8.1% 5.9% 8.8%

KEY HIGHLIGHTS

No. 1 local pharma company in terms of volume and No.3 in terms of sales andmarket share (Source: IMS Flash Report 2017).

Continuous collaboration and partnering with key pharma players i.e. Biocon,PanGen Biotech, Natco & Mylan.

Continue to champion Halal Pharma products. CCMD was awarded the 2015Islamic Economic Awards under Food and Health Category the Global IslamicEconomy Summit 2015 and Frost & Sullivan Malaysia 2017 Halal PharmaceuticalCompany of the Year – Prescription Medicines

Continue with brand visibility of OTC products focusing on 4 major brands i.e.Proviton, Uphamol, Flavettes & Champs.

Launch Cancer Care Franchise & won tenders for Oncology product (Letrozole)

Completed EPO Phase III clinical trials in April 2017. Expected EPO product (Erysaa)launch in Q3 2018

Commenced supply of Human Insulin to MOH worth RM 100 mil per year for 3years

Current Corporate Structure

Permodalan Nasional Berhad (PNB)

CCM Duopharma Biotech Berhad

CCM Pharmaceuticals

Sdn Bhd

CCM Biopharma Sdn Bhd

Negeri Pharmacy Sdn Bhd

Innovax

Sdn. Bhd

Duopharma (M) Sdn Bhd

Upha Pharmaceuticals

Manufacturing (M) Sdn Bhd

CCM Pharma Sdn Bhd

CCM International (Philippines) Inc

CCM Pharmaceuticals (S)

Pte Ltd

CCM Duopharma Biotech BerhadMarket capitalization @ 27.3.2018 = RM 798 milShare price = RM 2.86

Shareholding Structure

Note: Shareholding as at 28 February 2018

Board of Directors

STRUCTUREBoard of Directors

Nomination and Remuneration Committee

Chairman: Dato' Mohamad Kamarudin bin Hassan

Audit and Integrity CommitteeChairman: Encik Razalee bin

Amin

Risk Management Committee Chairman: Datuk Nik Moustpha

bin Hj Nik Hassan

•Board of Directors

Non-Independent Non-Executive Chairman

Tan Sri Datin Paduka Siti Sa’diahbinti Sh. Bakir

Executive Director

Group Managing Director

Encik Leonard Ariff bin Abdul Shatar

Senior Independent Non-Executive Director

Dato’ Mohamad Kamarudin bin Hassan

Independent Non-Executive

Director Datuk Nik Moustpha bin Hj Nik Hassan

Independent Non-Executive DirectorEncik Razalee bin Amin

Independent Non-Executive DirectorPuan Sri Datuk Rohani Parkash bintiAbdullah

Independent Non-Executive DirectorPuan Zaiton binti Jamaluddin

Independent Non-Executive DirectorDato’ Eisah Binti A. Rahman

Non-Independent Non-Executive Director Datuk Mohd Radzif Bin Mohd Yunus

Senior Management Team

Group Managing DirectorLeonard Ariff bin Abdul

Shatar

Chief Strategy Officer

Wan Amir-Jeffery bin Wan

Abdul Majid

Chief Commercial

OfficerBilly Urudra

Chief Financial Officer

Chek Wu Kong

Chief Technical Officer

Ng Su Yee

Chief Manufacturing

OfficerKrisnakumara-

Reddi

Chief Legal Officer

Ibrahim HussinSalleh

Facilities Snapshot

FacilitiesBangi Plant Established

WorkforceTypes of Products

• 1976• 651 people (including CCMD Sales & Marketing team)• Ethical and OTC Products – mainly in oral solid

dosages, soft gels, liquids and cream forms

Klang Plant EstablishedWorkforceTypes of Products

• 1979• 488 people• Oral solids dosages, Haemodialysis & SVI Products,

LVI – Irrigation solution products, dental cartridge and sterile cephalosporin

Glenmarie Plant EstablishedWorkforceTypes of Products

• 2008• 36 people• HAPI plant for Oncology• Innovax Sdn Bhd, the division’s R&D centre is located

in this plant

Research & Development (R&D)

Innovax Sdn Bhd is the Division’s dedicated in-house pharmaceutical R&D

facility, centred independently at Glenmarie, Selangor.

Innovax Sdn Bhd

Formulation Analytical Regulatory Affairs Outsource

ServicesInnovax is a state-of-the-art R&D centre accredited with the MS ISO/IEC 17025

standard.

The centre also houses lab scale equipment for formulation trials, designed

towards GMP requirements.

Innovax provides scientific and technical knowledge and skill in the development of

high quality, safe and efficacious pharmaceutical products.

MITI Industry Excellence Award 2004 for Best Innovative Product

(Omesec)

•Market Presence

CCM is ranked 3rd in terms of market share

Note: Market share includes both private and governmentSource: IMS Flash Report May 2017

CCM is the No. 1 company by Sales volume

CCM is ranked 3rd in terms of sales value and has the fastest growth

trend

Market Presence (Regional)

CCM Presence in the ASEAN Region

SINGAPORECCM Pharmaceuticals (S) Pte. Ltd. Established 2005Headcount : 9 people

Revenue :2014 – RM 8.6 million2015 – RM 10.5 million2016 – RM 13.5 million2017 –RM 11.5 million

INDONESIA CCM Pharmaceutical Representative Office Established 2011Headcount : 6 people

Revenue :2014 – RM 1.3 million2015 – RM 0.5 million2016 – RM 1.5 million2017 –RM 1.64 million

PHILIPPINESCCM International (Philippines) Inc. Established 2007Headcount : 43 people

Revenue :2014 – RM 7.5 million2015 – RM 7.6 million2016 – RM 7.6 million2017 –RM 8.18 million

Market Presence (International)

RM 9.0 mil (2014), RM 8.8 mil (2015), RM 6.1 mil (2016) RM 6.4 mil (2017)Nigeria, Uganda, Ghana, Africa, Pakistan,Sri Lanka, Iraq, Yemen & Kazakhstan

Revenue : RM 1.8 mil (2014),RM 1.2 mil (2015), RM 3 mil (2016) RM 4.4 mil (2017)Hong Kong, Macau, Taiwan, New Zealand,Fiji, Papua New Guinea & Sri Lanka

Revenue : RM 24.9 mil (2014),RM 23.1 mil (2015) RM 27 mil (2016) RM 26.6 mil (2017)Singapore, Indonesia, Philippines Cambodia,Myanmar, Thailand, Vietnam & Brunei

ASEAN

Asia Pacific

ROW

Accreditations & Awards

Frost & Sullivan Malaysia 2017

Halal Pharmaceutical Company of the Year –Prescription Medicines

GMP clearance by TGA (Australia)

Certificate of GMP by Kingdom of Saudi Arabia FDA

GMP – Manufacturing license by the National Pharmaceuticals Control Bureau (NPCB) Malaysia

Indonesian HALAL certification from Majelis Ulama Indonesia

Malaysian HALAL certification from JAKIM based on the world’s first Halal Pharmaceutical Standards (MS2424:2012)

MSWG ASEAN Corporate Governance Recognition 2017 - Excellence Award for Overall CG & Performance 2017 (Market Cap between RM300 Million to RM1 Billion)

HR Asia Awards 2016 & 2017 – Best Companies to Work for in Asia

Financial Highlights – Key Challenges

Key Challenges

Funding Currency

Regulatory

TradingPolicy

Compliance

Fluctuation of currency may impact cost of

imported raw materials

Differences in regional regulations impacting

growth of international businesses

Cost of increased cGMP compliance

Cost of manufacturing optimization & new ventures (financing

facilities from AmBank RM 280 mil)

Rationalization of Malaysia’s healthcare

spending

Reduced consumption in the Government sector

Latest Corporate Development

Implementation of Manufacturing Optimization Strategy which is the

rationalization and upgrading of manufacturing assets into state of

the art facilities with enhanced cGMP, purpose-designed centralized

warehouse & distribution hub, is well underway.

Specialty Care / BiotherapeuticsManufacturing

Facility

Enhanced cGMP OSD

Manufacturing Facility

State-of-the-art Warehouse

Facility

HAPI Plant (Oncology)

Optimization of Bangi facilities

Latest Corporate Development

Biotherapeutics (EPO) Oncology Franchise OTC New Products

Diabetes Care Renal Care Franchise

➢ New product pipeline

Latest Corporate Development

• Investing to comply to cGMP standards• Collaboration as a key to growth • Rationalize and streamline the business structure

(product portfolio)

MITIGATIONS

OPPORTUNITIES

• Increasing cGMP requirements• Expanding product portfolios (prohibitive BE and clinical

costs)• Championing specialty care segment• Weaker Ringgit Malaysia resulting in higher cost of

imported raw materials

CHALLENGES➢Overcoming challenges

Key Strengths

Halal as a key differentiator

Established business relationships with pharmaceutical giants

Brands are present in various OTC segments

Clinical trials capability through international collaboration and network

Latest Corporate Proposals

The Board of Directors of the Company has approved the following proposals on 27 February 2018:

1. Proposed Internal Restructuring exercise:(i) the acquisition by CCMD of the entire equity interest in CCM Biopharma Sdn Bhd

(“CCMBSB”) (a wholly-owned subsidiary of CCMD) and Negeri Pharmacy SdnBhd (“NPSB”) (a wholly-owned subsidiary of CCMD) from CCMP (a wholly-owned subsidiary of CCMD) (“Proposed Shares Acquisition I”);

(ii) the acquisition by CCMD of the entire equity interest in Upha Pharmaceuticals Manufacturing (M) Sdn Bhd (“UPMSB”) (a wholly subsidiary of CCMD) from DMSB (a wholly-owned subsidiary of CCMD) (“Proposed Shares Acquisition II”); and

(iii) the increase of the paid up share capital of UPMSB by way of conversion of a portion of inter-company loan owing by UPMSB to CCMD (“Proposed Conversion”).

Latest Corporate Proposals

2. Proposed bonus issue of up to 371,945,333 new ordinary shares in CCMD (“CCMD Shares”) (“Bonus Shares”) to be credited as fully paid-up on the basis of 4 Bonus Shares for every 3 existing CCMD Shares held by the shareholders of CCMD at an entitlement date to be determined and announced later (“Proposed Bonus Issue”);

3. Proposed dividend reinvestment plan which will provide the Shareholders with an option to elect to reinvest their cash dividend declared by CCMD which includes any interim, final, special or any other cash dividend in CCMD Shares (“Proposed DRP”).

Note: Refer to Bursa Announcements dated 27 February 2018

Thank you