Pacific Hospital Supply Co., Ltd.

Company Report

Presented by Jacky Lee

Your Health, Our Mission

2

Our Milestone

1977 PAHSCO formed with a stock Capital of NT$ 1 Million 1980 Started the production & trading of central medical gas equipments

2001 Tong Lo Factories received ISO13485 2002 Tong Lo (F1) received GMP Certification 2004 PAHSCO became a public listed company in the stock market 2005 Tong Lo (F3) formed to expand the production of sterilize medical product

2006 The automatic warehousing system was officially implemented in August

Tong Lo (F2) constructed & expanded the production of gas piping products 1987

2009 Expanded 11,997m2 of production capacity

2008

Constructed New factory (F4) on 15th January

2008

2010

Obtained 7,085 m2 of land

Issued its second series of secured domestic convertible bonds

2011 Implemented Oracle ERP systems

3

Factory

Miaoli

Taiwan

4

Certificate

224,103 245,633 256,253 270,349 284,126

0

50,000

100,000

150,000

200,000

250,000

300,000

2009 2010 2011(e) 2012(f) 2013(f)

5

Introduction to the Medical Product Industry and Future Global Market for Medical Devices and Equipments –

Steady growth year by year

Source: Espicom Business Intelligence(2011); IEK(2011/04)

Percentage of Global Market （2010）

Prediction of Global Market

Growth rate maintained between 5%-6% in recent years.

America, 44%

Asia, 19%

Western Europe,

28%

Eestern Europe,

5%

Middle East and Africa,

3%

Unit

：Million (U

SD)

6

Introduction to the Medical Product Industry and Future

Prediction of Global Medical Product Market

Source: Espicom Business Intelligence(2011); IEK(2011/04)）

Estimated percentage by category

Estimated percentage of Global Market

by country

Medical Disposal Devices

17% Diagnostic

Imaging Products

24%

Orthodontic Products

6%

Orthopodic and

Implantable Products

17%

others 36%

2012(f) USD 270.3B

United States 38%

Japan 10% Germany

8%

France 4%

Others 40%

2011(e) USD 256.3B

7

Medical Device and Equipment Industry in Mainland China

Market Proportion Analysis U

nit

：Million (U

SD)

China market has maintained 10% of the growth rate in recent years.

Resource: IEK（2011/04）

6,695 7,446

8,590 9,748

11,013

0%

5%

10%

15%

20%

0

2,000

4,000

6,000

8,000

10,000

12,000

2009 2010 2011E 2012F 2013F

市場規模 Market Proportion 年均成長率 Avg. Annual Growth Rate

8

Main Geographic Areas of Global Medical Device Market

9

Overall Index of Geographic Areas

Developed Countries with Subcontract Manufacturing Focus

Countries with Self-Branding Focus

US Japan Germany China Taiwan

Overall Index

Population (Million) 310 127 81.6 1350 23

Age (0~14:15~64:65up) 20 : 67 : 13 13 : 65 : 22 14 : 66 : 20 17.6：73.6：8.9 16 : 73 : 11

Birth Rate：Death Rate 14 : 8 9 : 9 8 : 10 12 : 7 9 : 7

Fertility Rate 2.1 1.4 1.4 1.8 0.94

GDP (Million USD) 14,582,400 5,497,812 3,309,669 5,878,629 430,096

GDP per Capita(USD) 47,084 43,161 40,542 4,393 17,660

Economic Growth Rate 2.90% 5.10% 3.60% 10.3% 4.21%

Medical Industry Index

Health Expenditure per Capita（USD） 7,410 3,321 4,629 169 1,260

Health Expenditure / GDP（%） 16.20% 8.30% 11.30% 4.6% 6.00%

Change of Health Expenditure per Capita

3~4% Steady Growth

Rate

Adjusting (Negative growth approx. in every 5

years)

Positive growth (Growth Rate not

steady)

15% and above High-speed Growth Rate

2~3% Growth Rate

Hospital Beds per 1000 persons (unit) 3.10 13.80 8.20 2.45 6.78

Source: World Bank, Espicom, IEK

10

Population Structure of Geographic Areas Low birth rate in

Taiwan, hence the Population

Structure is aging. Population of age above 65

Country Percentage of population above age 65 Period of time expected

7% 10% 14% 20% 30% 7%→14% 10%→20% 20%→30%

Taiwan 1993 2005 2017 2025 2040 24 20 15

Singapore 2000 2010 2016 2023 2034 16 13 11

South Korea 2000 2007 2017 2026 2040 17 19 14

Japan 1970 1985 1994 2005 2024 24 20 19

China 2001 2010 2026 2036 - 25 20 -

United States 1942 1972 2015 2034 - 73 62 -

Germany 1932 1952 1972 2009 2036 40 57 27

UK 1929 1946 1975 2026 - 46 80 -

Italy 1927 1966 1988 2007 2036 61 41 29

Switzerland 1887 1948 1972 2015 - 85 67 -

France 1864 1943 1979 2020 - 115 77 -

Source：1. Council for Economic Planning and Development

2.United Nations, World Population Prospects：The 2006 Revision.

11

Japan 26%

Taiwan 20% US

9%

Others 30%

China 8%

Germany 7%

Major Exporting Countries

80% 85% 90% 95% 100%

2009

2010

2011

2012Q3

87.30%

90.50%

91.03%

90.40%

5%

6.60%

5.85%

7.10%

7.70%

2.90%

3.12%

2.50%

Percentage of Product Categories

Medical Device Medical Equipment Piping System

Major Exporting Countries and Percentage of Product Categories

12

CSS, 27%

Others, 22%

Bags, 14%

Suction Catheter, 14%

Connecting Tube, 8%

Wound Drainage

System, 6%

Stomach Tube, 2%

Gynecology Irrigation and Suction Set,

2%

Respiratory, 2%

Bottles, 2%

Disposable Medical Devices

Close Suction System (CSS) Sales Revenue:332 Million % of Product TR: 27% (1st)

Suction Catheter Sales Revenue:176 Million % of Product TR: 14% (3rd)

Respiratory Sales Revenue:24 Million % of Product TR: 2%

Bags Sales Revenue:176 Million % of Product TR: 14% (2nd)

13

Financial Information

ITEM 2006 2007 2008 2009 2010 2011 2011/1-9 2012/1-9

EPS 2.03 2.45 2.73 (0.23) 5.49 5.39 4.36 3.57

ROE % 14.52 19.13 19.27 (1.4) 28.14 22.62 18.72 15.32

ROA % 10.43 14.24 12.88 (0.93) 22.20 18.93 15.69 12.98

Pay-out % 79 28.5 56.4 Nil 75 74.21 Nil -

Net Profit Margin

10.7 14.1 13.6 (1.12) 27.55 24.06 25.17 22.36

Net Cash per Share

4.9 4.2 7.2 8.0 9.84 10.44 8.31 10.86

*2010EPS 5.49 in the weighted average capital ; *2010EPS 6.37 in the year-end capital

*2010Pay-out: $3 Cash Dividend and $1.12 Stock Dividend presented at the Shareholders’ Meeting.

*2011Pay-out: $3 Cash Dividend and $1 .00Stock Dividend presented at the Shareholders’ Meeting REMARK： Some accounts are not yet audited or certified by our CPAs; therefore, the quarterly financial statements certified (reviewed) by our CPAs are final.

.

14

Financial Information

ITEM 2006 2007 2008 2009 2010 2011 2011/1-9 2012/1-9

EPS 2.03 2.45 3.53 4.24 5.44 5.39 4.36 3.57 ROE % 14.52 19.13 22.23 22.71 27.85 22.62 18.72 15.32

ROA % 10.43 14.24 14 16.15 22.02 18.93 15.69 12.98 Pay-out % 79 28.5 43.6 Nil 75.7 74.21 Nil -

Net Profit Margin

10.7 14.1 17.6 20.69 27.27 24.06 25.17 22.36

Net Cash per share

4.9 4.2 7.2 8.0 9.84 10.44 8.31 10.86

* Ignore the evaluation loss of financial liabilities

*2010EPS 5.44 in the weighted average capital , 2010EPS 6.31 in the year-end of capital

*2010Pay-out: $3 Cash Dividend and $1.12 Stock Dividend presented at the Shareholders’ Meeting.

*2011Pay-out: $3 Cash Dividend and $1.00Stock Dividend presented at the Shareholders’ Meeting.

REMARK： Some accounts are not yet audited or certified by our CPAs; therefore, the quarterly financial statements certified (reviewed) by our CPAs are final.

Medical Device Market Revenue

15

Source: Frost & Sullivan

16

Respiratory Disposable Market Size – Facts And Figures in China

Inpatients % of Respiratory System Diseases

City

Hospital

County-level

Hospital Average

2009 12.23% 16.46% 14.35%

2010 12.41% 16.43% 14.42%

17

2008 2009 2010 2011

Revenue 960,906,338 1,134,428,177 1,248,301,839 1,343,618,533

% of China 5.08% 6.45% 6.65% 8.53%

48,786,473

73,169,333 82,997,012

114,553,771

2008 2009 2010 2011

Sales Revenue in China

50%

13%

38%

Sale Revenue in China

Information about the Leading Firms

18

Revenue in Respiratory

Devices (% of TR)

400M** (2%)

752M (6%)

699M (56%)

176M** (5%)

Kimberly Clark Covidien Resmed CareFusion

Headquarter Texas

Dublin

SD,CA

SD,CA

Stock Exchange NYSE, BMV NYSE NYSE, ASX NYSE Stock Price

(Jun. 29) 83.77 53.50 31.20 25.68

Market Cap 32.85B 26.16B 4.42B 5.70B EPS(ttm) 4.31 3.82 1.49 1.65

Sales Revenue (million) 20,846 11,574 1,243 3,528

Profit Margin 29.5% 56.83% 59.61% 51.16% Net Profit Margin 7.63% 16.14% 23.90% 6.91%

Source: Yahoo Finance, FR of the companies, ＊Global Data **estimated

Mask and Tubings for NIV

Related Products for Invasive Ventilation

For Delivering Humidified or Warn Gas

Mask

＆ Tubing

Anesthetic

Oxygen Therapy

Aerosol Therapy

Sleep Therapy

Emergency Care

Airw

ay

Laryngeal Mask

Closed Suction Set

ET tube

Tracheostomy tube

Guedel Airway

Laryngoscope

Filter/ Hum

idifer

Filter

Artificial Nose

Nebulizer

Active and Passive humidifier

20

Thank you for your attention & patience!

Q&A