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Investor Relations
Q3 2017
Key Highlights
3
In Q3‘17, Consolidated sales revenue of KRW 85.9B, operating profit of KRW 18.4B,
and net income of KRW 15.0B(60%, 101.4% and 131.8% Y/Y respectively)
In Q3‘17, Separated sales revenue of KRW 5.8B, operating profit of KRW 1.9B, net profit of KRW
1.5B → Achieved an Op. margin of 33%
Signed a MOU for the export of KRW 100B Hutox with global pharmaceutical companies in
Europe, Russia and Brazil(Aug, 2017)
Botulinum Toxin(‘Hutox’) : Approved for export license, Domestic clinical
trial in phase 3
Dermal Filler(‘Elravie’): Various product lines based on high purity
HA(hyaluronic acid)
Eye Drops(‘Kynex’, ‘Clacier’): Nano Combination(Clinical Phase 2 Completed), TB4 (Planning the US clinical trial), Diquas(Santen) Mono-dose type CMO biz
Osteoarthritis Injection(‘HUMIA’,‘Highhyal Plus’, etc..): One-shot Osteoarthritis Injection, Domestic
clinical trials phase 3 in progress
Medical Devices(‘Derma Shine’ , ‘DermaAkne’, ‘Cryo elsa’): Expansion of market through new product
launches such as acne treatment and fat reduction equipment
State-of-the-art cGMP Level Factory:Expansion of CMO Business based on superior quality
Health Functional Foods: Launch individual certified products using fermentation technology(Honeybush)
InvestmentPoints
Company historyVisionGroup OverviewIdentity
Business- Transition to holdings/Business model - Business Performance- Investment PointsⅠ. Botulinum ToxinⅡ. Dermal FillerⅢ. One-shot Osteoarthritis InjectionⅣ. Eye DropsⅤ. Medical DevicesⅥ. Health Functional FoodsⅦ. State-of-the-art cGMP Level Factory
Subsidiaries - Huons- Humedix- Hubena- Huons Medicare
5
’65.07 Kwang MyungPharmestablished
‘87.07 Converted intoKwang Myung Corporation
‘98.12 Development Korea’s first plastic container Inj.
‘99.01 changed the name to Kwang Myung Pharmaceutical Corp.
‘00.08 Selected as Venture company
‘03.06 Changed the name of Huons Co., Ltd.
‘03.08 Obtained ISO 9001:2000
‘04.11 Awarded ‘5 Million USD Export Tower’
‘05.09 Obtained INNO-BIZ
’06.10 Awarded ‘National Productivity Prime Minister Award’
‘06.12 Listed shares on theKOSDAQ
‘07.12 Awarded ‘CSR’
‘08.01 Arranged a strategicpartnership with Alcon
‘08.12 Hubena incorporated subsidiary
‘09.03 USFDA Approval(510K) with Sodium Chloride Inj.
‘09.10 Obtained New Plant KGMP(Jecheon)
‘10.01 Humedix incorporated subsidiary (Acquisition)
‘10.07 Huniz incorporated subsidiary(Acquisition)
‘11.12 Awarded ’10 Million USD Export Tower’
‘14.06 Selected as ‘World Class 300’
‘14.07 Huonland(JV in China) established the plant
‘14.11 Innovative pharmaceutical company Certification
‘14.12 Humedix Listed shares on the KOSDAQ
‘15.11 Awarded ‘EY Best Entrepreneur’
‘16.05 Huons Natural incorporated subsidiary(Acquisition)
‘16.09 Biotopia incorporated subsidiary (Acquisition)
‘16.09 Panace incorporatedsubsidiary(Acquisition)
‘16.10 Permission to export 100units of Hutox
‘16.12 Awarded ’30 Million USD Export Tower’
beginning ( 1965 ~ )
preparatory ( 2000
~ )
spring ( 2006 ~ )
growing ( 2010 ~ ) Transition to a
holding company
‘16.05 Equity Spin-off‘16.06 Change listed
& re-listed on KODAQ
‘16.08 Finished Transition to Hodings companysystem
Key Achievementssince 1965
GlobalTotal Health Care
SpecializedCompany
Company history
6
Diversification of Business Portfolio
Expanding global business
Operating global standard
management system
Business expansion in light of synergy
Developing Chinese market in cooperation
with affiliates
Promoting new business for future growth
engine
Targeting emerging markets by operating overseas corporation
Enhancing business structure by adjusting
portfolios
Expanding to overseas market with global business alliance
Biomedicine products expansion
Establishing corporate culture of fostering core
leaders
Innovation-Driven Mutual Trust
Developing 6 Innovative New Medicines
Securing 9 Hidden Champions
“Total Healthcare Group Which Purposes Medical Solution For Human Being’s Health”
Vision
Mission
StrategicDirections
Core Values
Year 2025 VISION 3 ∙ 6 ∙ 9
Establishing 3 Global Production Bases
Customer-Oriented SPEED
Managing R&D network in concurrence with industry,
academy and research
Operating integrated management system with
the holding company
Establishing global-level system with management
policy innovation
Procuring research/manufacturing/quality
capability at global level
Innovative tech development & Pipeline
Expansion
VISION
7
Group Overview
CEO : Kim, Wan Seop
Ph.D of Biology, Korea University
GSK Senior Researcher
BMS Senior Researcher
CEO : Yoon, Sung Tae
M.A Project-Management
at Hanyang University Huons Global(Holding Company)
Date of establishment: Kwang Myung Pharm on July 1965 Capital Stock : KRW 4.96B Number of Employees : 82 (as of Sep 2017) Number of Total Issued Stock : 9,911,705
Panace51%
39%
40% 41% 68%41%
<Medical Device>
<Holding company>
Huonland<Eye Drop JV in China>
<Applied Biopolymer>
Humedix
<Medical Container>
Hubena
<Disinfectant>
Huons medicare
<Health Functional Food>
Huons Natural
Huons
<Pharmaceutical>
<Green Bio>
Biotopia
58%
59%
Maximize Transparency of Corporate Governance and Business Stability
Business – Transition to holdings / Business model
Business Structure
8
Goal of transition to holdings
Management of
Subsidiaries
→ Utilize efficient resources
to create synergies
→ Obtain responsible
management system
Establishing a foothold
in a new business
→ Invest and manage the
new business
→ Stabilize the new
business
→ Found lucrative business
structure
Discover a new future
Growth Engine
→ Found a business to create
synergies with the current
business (Health care,
esthetic, etc)
→ Actively discover diverse
business opportunities
1.HoldingsDivision
2.SalesDivision
• Brand Fees
• Export agency Business
• Business agency (Management-related)
• Income from Dividend
• Income from Leasing
• Botulinum Toxin R&D
/ Manufacturing
Establishment of Huons Group New Building' in Pangyo 2nd District
- Plan to move into Affiliated companies and research institutes
→ Collaboration and synergy effect among all affiliates
- Construction will start at the end of 2017 and be completed in
2H 2020
9
Idendity
HA /PDRN /PCL
Elravie
Ellena
Revolline
Global CMO
Osteoarthritis
Category
Business
Product
GrowthChannel
Filler
Domestic Export(Partnership)
Pharmaceutical Beauty·Healthcare
Botulinum Toxin
Medical Device
CosmeticsPharma
HUTOXDermaShine
Derma ShineAcne
CryoElsa
InsulinPatch Pump
HA / PDRN
DermaElravie
HU:ON
HA / PDRN
Humia
HY(HA)
High HyalPlus
ETC
Local anesthetic(lidocaine)
Various injections
Eye Drops
Nano Combinati-
on
Thymosinβ4
Eye drops
Registered about 300
items
Kynex,Clacier
Health functional
food
Fermenta-tion
Honeybush
Red Ginseng
Pharma
Well-being
Obesity/Diet
ImmunityImproved
Nutrition Injection
Disinfectant
VerticalIntegrated Production and sales of medical containers
Disinfecta-nt
Scotelin
Hemoclean
Animal feed
additive
Company historyVisionGroup OverviewIdentity
Business- Business Performance- Investment PointsⅠ. Botulinum ToxinⅡ. Dermal FillerⅢ. One-shot Osteoarthritis InjectionⅣ. Eye DropsⅤ. Medical DevicesⅥ. Health Functional FoodsⅦ. State-of-the-art cGMP Level Factory
Subsidiaries - Huons- Humedix- Hubena- Huons Medicare
11
Business – Financial Performance Ⅰ
“Higher continuous growth rate of sales”
+150% Growth(‘15 ~ ‘16)
※ Since August 2016, earnings of HUONS Co., Ltd. are included in consolidated financial results
Sales (consolidated F/S, Unit : KRW Billion, %)
(consolidated F/S, Unit : KRW Billion, %)
+60% Growth(Y/Y)+4.7% Growth(Q/Q)
65.4
163.7
241.3
2015 2016 Q3'17(YTD)
14.9
21.8
53.6
73.4 73.4
8285.9
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17
12
Business – Financial Performance Ⅱ
※ The financial statements have been rewritten as a result of the split in 2016, and net income from discontinued
operations for the year ended December 31, 2016 is KRW 506.4B which were operating profit of KRW 14.5B and operating profit of discontinued operations of KRW 491.8B were recognized as fair value.
Profits (Consolidated F/S, Unit : KRW Billion, %)
Op. Margin(%)
Np. Margin(%)
12.1 28.9
45.4 40.5
526.2
34.7
2015 2016 Q3'17(YTD)
Operating Income
Net Income
18.4%17.7%
61.9%
321.4%
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17
3.7 4.291
13.2
500.9
6.5
24.9%19.2% 17.0%
88.5%
2,300%
12.1%
11.95.7
16.2%
7.7%
11.48.2
15.5%
11.2%
15.611.5
19.1%
14.0%
18.415.0
21.4%
17.5%
18.8%
14.4%
13
Unit : KRW Million Q1‘17 Q2‘17 Q3‘17
Operating Revenue 6,864 5,880 5,777
Service 2,377 2,054 1,982
Brand Royalty 1,357 1,502 1,590
Dividend 1,778 - 2
Product(Hutox) 1,143 2,113 1,991
Others 209 211 212
Operating Expenses 3,845 2,629 3,847
Operating Income 3,019 3,251 1,929
Net Income 2,904 2,053 1,467
1.5% ~ 3.0% brand royalty rate for each
subsidiary
Increased sales due to Hotox exports
Achieved an Op. margin of 33%
Business – Financial Performance Ⅲ
Performance (Separate F/S, Unit : KRW Million)
14
Manufacturer
R&D
Pre clinical
HUTOX
Clinical
Specifications
- Product Name: Hutox
- Advantage : High purity (>99%)
- Efficacy: Glabella wrinkle improvement
- API: Botulinum toxin type A
- Strain history : ATCC3502
Marketing Authorization Holder
Facilities- Established: June 2014- Capacity : 1 million Vials/Annually- New facility under construction
: 5 million Vials/Annually
- Domestic Clinical trial Phase 2 completed, Phase 3 in proceeding
- 150kDa against antibody formation & tolerance in researching
Sales
- Received approval for export license(100units) from KFDA in
Oct 2016
- Awaiting export license
(50units, 200units)
Business – Investment Point Ⅰ (Botulinum toxin Ⅰ)
15
Hutox Business model
Huons global Huons
Sales Revenue(50:50)
50% 100%(in accounting)
Production Marketing
Preclinical trial Clinical trial
synergy Gaining competitive edge by selling bundles of Hutox
and Elravie(filler)
Marketing strategy
Expandingindications
Aesthetic -> Therapeutic
-Expanding Various treatment indications such as cerebral palsy,
strabismus, muscle rigidity
-Various strengths(50 / 100 / 200 units )
-price competitiveness
-Marketing promotion
(Offering package solutions for obesity, wellness, and medical
devices)
Competitivenessedge
Business – Investment Point Ⅰ (Botulinum toxin Ⅱ)
16
Business – Investment Point Ⅱ (Dermal Filler Ⅰ)
<Light> Fine wrinkles, Crow's feet, Lips
<Deep Line> Cheek furrow,Nose, Forehead
<Ultra Volume> Chin,Cheekbone, Facial contour
<Balance> Water light(moisture supply)
[Source : GAI-Global Aesthetic Index]
0
0.5
1
1.5
2
2.5
3
8 weeks 16 weeks 24 weeks
GA
I Sco
re
Elavie Deep Line RestylaneD사Elravie Deep Line
Launched new product ‘Elravie Premier' (Dec, 2016) → Increased stability
HDRM Technology Applied [Patent : KR10-2014-0118582] → Good elasticity and viscosity compared to
competing products, also excellent durability and resistance to enzymes.
‘Elravie’ Filler
Basic type Including lidocaine(Reduced pain)
Comparison of dermal filler properties
Comparison of clinical test (6 months)
100
81
67
90
Humedix
C brand
B brand
A brand
100
71
91
37
Humedix
C brand
B brand
A brand
[Source: Humedix * Comparison of major filler products,
with Humedix's fixed at 100 for reference ]
17
‘HUMIA 14002’ One-shot osteoarthritis injection
Business – Investment Point Ⅲ(Osteoarthritis Ⅰ)
Patient-friendly with the reduction of injection frequency, production
approval and expansion of technology export
Decreases the chances of inflammation and infections by reducing injection
frequency from 3 to 1.
Similar viscosity and elasticity with normal synovial fluids
Excellent biocompatibility from the use of 2.5 million Daltons of cross-linked
hyaluronic acid
Technology export and strategic alliance (HAIBIN, China)
1’st Generation 2’nd Generation 3’rd Generation
(Injected weekly, for 5 weeks) (Injected weekly, for 3 weeks) (Once a week)
Most similar to non-patient joint fluids
(Biocompatible)
Prevention of inflammation
Induction of endogenous HA
formation
Pain relief
Increased convenience of surgical
procedures
Characteristics
Q3 2013 Q3 2015 Q1 2018 Q3 2018
ProductLaunch
ProductionApproval
3rd ClinicalPhase
Research Commencement
Non-clinicalResearch
Completed
Q2 2018
Duration : ≥ 6
months
18
HA Artificial tears
2’nd
IMD/Nano
Nano
Combination
Thymosin β4
3’rd
3.5’th
Cyclosporine
1’st
Generation of dry eye therapies
4’th
Clinical trial Phase III (2017.10~)
Supported by: Korea Ministry of Trade, Industry and
Energy
Total R&D Amount: KRW 3.3B (4 years, 2015.06 ~)
`Developing
Launched Items
Non-clinical Stage, US Pre-IND meeting completed
Entering phase II US clinical trial in 1H 2018
Supported by: Small and Medium Business
Administration ‘World Class 300 Project’
Total R&D Amount: KRW 7.6B (4 years, 2015.08 ~)
Business – Investment Point Ⅳ(Eye Drops Ⅰ)
19
Dual effects of ‘Goblet cell proliferation’ and ‘Anti-inflammation’→ “Thymosin β4
Thymosin β4 derivative effects
Targets MOA(Mode of Action)
Promote cell migration Move the promotion of corneal epithelial cells wound healing
Promote cell survival Promote Goblet cell multiplication stabilization of tear film
Anti-inflammatory Reducing inflammatory of cornea and lacrimal gland
Artificial Tears: Minor dry eye
Cyclosporine : Required long-term medication
Diquafosol : No Goblet cell proliferation
Limitation of other products currently on the market
- Amino acid number: 43, Molecular weight: 4,921 Da
- Proteins found in platelets and wound areas
- Actin binding → angiogenesis, anti-inflammation,
wound healing, cytoprotective effect
Production technology of Recombinant Protein Thymosin β4 derivative using E. coli fermentation
→ Low production cost compared to synthetic peptides
[Expression vector production] [E. coli transformation] [E. coli fermentation] [Enzyme treatment and purification]
GST Tβ4
Cutting Trypsin
Ion exchange resin
Business – Investment Point Ⅳ(Eye Drops II)
20
Expected Total investment amount: About RMB 110M(KRW 20B)
Shareholders: Huons(39%), Northland(51%),
Korea Investment Partners(7%), etc(3%).
Approved product registration(Brimonidine tartrate)
for glaucoma treatment(July 2016) & GMP(Nov 2016)
Multi-dose CMO business plan
Expected to approve artificial tears(HA) in 1H 2018
R&D production Sales / Marketing
Product For useSubmitted the
application Item
approval date
Brimonidine tartrate Glaucoma 2015.09 2016.07(Completed)
Levofloxacin keratitis 2015.12 2018.1H
HA 3 Items Artificial tears 2015.12 2018.1H
Olopatadine Allergic conjunctivitis 2018.1H(E) 2019(E)
Moxifloxacin Antibiotic, keratitis 2018.1H(E) 2019(E)
Ophthalmic perfusatePerfusate(cataract, etc.) during
ophthalmic surgery2017.4Q(E) 2018.4Q(E)
Huonland(JV) established for China eye drops market (KRW 1.4 trillion)
Business – Investment Point Ⅳ(Huonland)
Product Description
DigitalInjectionSystem/ Panace-DS-30
- Auto-sensing injection system
- Forward speed and distance adjustment of the piston
holder according to the operating modes
- Available in 1ml, 3ml and 5ml syringes
Derma Shine Series
Digital Injection System and Multi Needle → Maximizing synergies with dermal filler ‘Elravie’ series
9Pin, 5Pin Multi
Needle(Disposable)
Interface improvements for usability
Intense pulsed light + Radio frequency for acne treatment device
Clinical trials of moderate acne in the dermatology clinic of Chung-AngUniversity
Derma Shine Ⅲ
Cryo elsa
DermaAkne
Device which maintains the low temperature to relax the pain/edema in the affected area and reduce the noninvasive subcutaneous fat
Business – Investment Point Ⅴ(Medical Devices )
EOPatch
“Improving the quality of life of pediatric diabetics with the first patch-type insulin pump in Korea”
- Electro osmosis pump technology Less
noise, Less vibration and precise dose injection
- Easy to carry by reducing size and weight by 20% or more compared to existing products
20
R & D / Production / Sales / Supply of raw materialsMaximize group synergy
22
"Entering Health Functional Food Business"
Huons
R&D
Huons Natural
Manufacturing&Marketing
Biotopia
Ingredients
name effect Intro. of techLaunching
date(E)status
Merit C antioxidant - 2012.12 On sale
zeromateDietary
supplements- 2017.05 On sale
DaeryongHan Sam
Immunity enhancement
On sale
honeybushwrinkle
improvement
KOREA INSTITUTE OF ORIENTAL
MEDICINE2017.07
On saleApproved as
a health functional food by KFDA
HU028 Rhinitis preventionKOREA FOOD
RESEARCH INSTITUTE2019.12
Human applicable test in Progress
HU029 Atopy treatmentKOREA FOOD
RESEARCH INSTITUTE2018.12
Human applicable test in Progress
HU038 climactericKOREA FOOD
RESEARCH INSTITUTE2019.06
Human applicable test in Progress
HU033 prostateChoongnamuniversity
2019.12 Discovery
HUG179 Reduce body fat - - Discovery
GOSImmunity
enhancementCatholicuniversity
- Discovery
Health functional food R&D status
Business – Investment Point Ⅵ(Health Functional Foods Ⅰ)
23
Huons Natural(production & marketing)
Differentiation points
Presenting a new trend of health functional food market using approved raw materials
Cooperation with sub-companies
well-built sales network
Products launched in 2017
Honeybush skin solution Honeybush kalamansi Fermented redginseng honeybush
Business – Investment Point Ⅵ(Health Functional Foods Ⅱ)
24
The new growth engines, “CMO business" and "exports"
Huons Global Botulinum Toxin Plant (Jecheon)
Huons Pharma Plant (Jecheon)Huons Natural Health functional foods plant (Jincheon)
Humedix 1’st Factory (Jecheon) Humedix 2’nd Factory (Jecheon) Hubena Glass Container Factory (Nonsan)
State-of-the-art automation facilities in USA, Germany and Japan
Business – Investment Point Ⅶ(State-of-the-art cGMP level factory)
Company historyVisionGroup OverviewIdentity
Business- Business Performance- Investment PointsⅠ. Botulinum ToxinⅡ. Dermal FillerⅢ. One-shot Osteoarthritis InjectionⅣ. Eye DropsⅤ. Medical DevicesⅥ. Health Functional FoodsⅦ. State-of-the-art cGMP Level Factory
Subsidiaries - Huons- Humedix- Hubena- Huons Medicare(Huniz)
26
27.7 38.6
48.1
63.3 74.4
80.9
95.2 106.6
122.1 131.0
156.5
215.1
244.8
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
SalesCAGR 20%
(2004~2016)
Global total healthcare company providing life innovative solution
Establishing(~2008) Growing(2009~2013) Expanding(2014~)
- Secured growth through local anesthetics / injections business
- Strong growth of pharmaceutical business mainly driven by well-being products
- Listed in the KOSDAQ in 2006
- Eye drops(Kynex) Strategic alliance with Alcon
- Construction of new factory → Growth Platform
- JV established in China for the local eye drops market
- Expansion of high value-added products (Aesthetic, Hutox, Filler etc)
- Expanded the field of health functional food business (Honeybush was approved as functional ingredients by KFDA)
(Unit : Based on Separate financial statements, KRW Billion)
Subsidiaries – HuonsⅠ
27
51.8 60.9
10.2
11.5
Q3'16 Q3'17
62.0
72.4
140.6
178.8
206.7
177.4
15.9
36.3
38.1
30.1
'14 '15 '16 Q3'17(YTD)
Export
Domestic
156.5
215.1
90%
244.8
59.3 60.9
11.6 11.5
Q2'17 Q3'17
70.9 72.4
16%
84%
FYGrowth Rate
+14% Y/Y Growth+16.8%
15%
85%
Q/Q Growth+2.2%
207.5
10%
83%
17%
16%
85%
15%
16%
84%
15%
85%
84%
Portion
Sales
“Sustaining Solid double digit Sales growth”
<Assuming that Huons has not split, 2016 Pharmaceutical business separate F/S>
(Unit : Based on Separate financial statements, KRW Billion)
Subsidiaries – Huons Ⅱ
28
'14 '15 '16 Q3'17(YTD)
Operating income
Net income
21.1
34.3
17.5
27.1
Q2'17 Q3'17
13.5%
15.9%
11.2%12.6%
Q3'16 Q3'17
10.3
8.6
37.0
30.1
15.1%
12.3%
9.5
7.9
16.6% 16.9%
13.9% 14.1%
29.828.9
14.3%
13.9%
12.2
10.2
12.2
10.2
13.3%16.9%
11.2%14.1%
Profits
“Continuous & stable profit”
<Assuming that Huons has not split, 2016 Pharmaceutical business separate F/S>
Op. Margin(%)
Ni. Margin(%)
(Unit : Based on Separate financial statements, KRW Billion)
Subsidiaries – Huons Ⅲ
29
R&D investment
IBD(Inflammatory Bowel)
Target anti-cancer drug
Atopy
Autoimmune disease
Nano combinationeye drops
Dry Eye Syndrome Fatty LiverGlabellar wrinkle(Botulinum toxin)
Discovery Preclinical Phase I Phase II Phase III
Botanical
IMD
Biologics
NCEs
R&DPipeline
(Unit: KRW Billion, %)
Sales
R&D expense
R&D %
8.8 9.813.4
19.7
131.0156.5
215.1
244.8
6.6% 6.3% 6.2%
8.1%
'13 '14 '15 '16
15.5 14.6
180.5
207.5
8.6%7.0%
Q3'16(YTD) Q3'17(YTD)
Subsidiaries – Huons IV
30
Main Products
Possessing world’s best biopolymer original technology
Increase of future value on account of continuous growth
Filler
• Wrinkle improvement → Aesthetic / Healthcare
• Highly purified HA(Hyaluronic Acid)
• HDRM Technology → Excellent elasticity /viscosity
/durability
• China CFDA registration (Mar.2015)
Osteoarthritis
• Hyaluronic acid is a component of joint synovia → improve
joint movements and reduce pain
• 5 Dose Type (High Hyal)/ 3 Dose Type (High Hyal+)
• 1 Dose Type (Humia) Licensing out(China) : Human
synovial similar properties (Clinical Trial Phase III)
Cosmetics
• Change to ‘Cosmeceutical’ Company in 2017
• Activation of ‘Elravie’, ‘HU:ON’ Cosmetics brand
• Launching HA functional cosmetics
• Expansion product lineup and diversification sales channels
ETC
• Pharma : Establish product portfolio focusing on ETC
- Anemia, Endocrine, and Digestive system etc.
• Ophthalmic Drugs: Strengthen distribution channels for eye
drops
• DermaShine : Digital Injection System(Panace) '14 '15 '16 Q3'17(YTD)
Filler
Osteoarthritis
Cosmetics
Pharma
Ophthalmic
ETC
25%
1%
15%
13%
17%
35%
2%
13%
9%
15%
36%
3%
19%
11%
21%
15%
10%
23%
29.2
37.4
26%
29%
27%
23%
45.1
42.1
3%
6%
Subsidiaries – Humedix I
Sales (Unit : Based on Separate financial statements, KRW Billion)
31
First factory Second factory
Reinforcement of prefilled Inj(Joint Inj) facility
Installation of vial freeze drying Inj facility
Installation of ampoule Inj facility
Installation of asepsis cosmetics facility
New Factory Production & Facilities Current Status
+
Subsidiaries – Humedix Ⅱ
1’st factory 2’nd factory Capacity
PFS#1 - 3,500ea/hrs
- PFS#2 8,000ea/hrs
- PFS#3~#4 Future Line
-Vial-FreezeDryer(Vial)
12,000Vial/hrs
- Ampules#1 30,000ea/hrs
- Ampules#2 Future Line
Line of Second Factory
“New growth momentum with new factory”
-Capacity : 4 times bigger than first factory, scheduled to start operation in Dec 2017
Location : Chungcheongbuk-do Je-Cheon
Beginning Date of Construction : March 2016
Completed Date : April 2017
Investment Amount : More than KRW 48B
◆ Biopolymer Application DDS
/Protein New Material
- Leuproreline depot
- ~ Q3 2019
Discovery Preclinical Phase I Phase II Phase III
R&DPipeline
One-Shot
osteoarthritis
(Humia 14002)
- HA based, Natural
Biopolymer
- ~ Q1 2018
Volumizing Filler
- HA based, Natural
Biopolymer
- ~ Q2 2018
1. HA material integration(Manufactory Constructed) → Fermentation technology and HA raw
material production (to be completed : 2017 ~ 2020)
2. Functional Vitamins(Vitamin D conjugates) → Synthesized macromolecules applied,
functional cosmetic certification Dual Function, stability
"Expanding product portfolio and leading the market"
◆ Tissue regenerator
- high purity nucleic
acids from salmon’
sperm
- ~Q2 2018(Launching)
32
Subsidiaries – Humedix Ⅲ
Urology Filler
- HA based
- Improved safety
(versus PLA filler)
- ~ Q3 2018
◆ New material HA derivative
- Enzymatic deacetylation
Changed HA material
- API Conjugate uses
◆ PN Filler
- Tissue regeneration
- HA, PN(Polynucleotide)
- ~Q3 2018
◆ Biphasic Filler
- HA Biphasic filler line
up
- ~Q1 2019
33
Company overview
Strategy
CEO Park, Byung moo
The date of establishment
1996. 10. 29.
Main Products Ampoule, Vial, etc
Ownership 41%
Subsidiaries – HubenaⅠ
Production and sale of specialized medical glass containers (Ampoule, Vial, Cartridge)
Fulfilled with high quality of production and cost competitiveness by installing French automated building system (BMS) → Synergistic effect with safe subsidiary material delivery
New factory, built on April 2013, expanded production (invested KRW 8B).
Expand business field from the scope of current ampoule and vial-related production
into the sales of various pharmaceutical-related raw and subsidiary materials.
(Prefilled syringe, PVC Hole, Rubber closures, Imported caps, etc).
[unit: KRW Million]
12,599
15,037 16,568
12,277
14,562
801 2,199 2,525
1,874 1,431
2014 2015 2016 Q3'16(YTD) Q3'17(YTD)
Sales
Operating Income
CAGR
+15%
Ampoule Production line 10 lines
Vial Production line 10 lines
Vial Printing 1 line
Automatic packing machine(Large) 1 unit
Shrink wrapping machine(Mobile) 3 units15,000
6,700 4,200
180,000
80,400
50,400
Ampoule Vial Cartridge
Monthly
Yearly
Production Capability (Unit : K)
ItemRaw Materials Standard: 9.75Φ , Production Standard: 1.0cc ~ 30.0cc
Type Vertical production method
Spec
Type: Pattern B, C, D(ISO 9187-1) Cutting: One point cutting(OPC ISO 9187-2),
Collar breaking, Scoring cutting Code ring: 1~3 ring Print: Silkscreen Printing
StandardAccording to the specification of the order, Customizing a product
Raw material
German Schott, Europe glass tube
ItemRaw Materials Standard: 8.0Φ ~ 50Φ , Production Standard: 1.0cc ~ 100.0cc
Type Horizontal / Vertical Production Method
Spec Type: Injection(ISO 8362-1), Screw(ISO 11418-7),
Blowback, Freeze-dried Print: Silkscreen Printing
StandardAccording to the specification of the order, Customizing a product
Raw material
For Injection : German Schott, Europe glass tube For Food & Cosmetics: German Schott, Europe
glass tube, China glass tube
Production Facility
Ampoule Vial
Major Products
34
Subsidiaries – HubenaⅡ
35
Company overview
Main products
CEO Lee, Sang man
The date of establishment
1999. 09. 16.
Main Products Disinfectants
Ownership 68%
z
Subsidiaries – Huons MedicareⅠ
Sale and exportation of prescription drugs and disinfectant for medical devices
Operation of specialized medicines business (echo-friendly antiseptic solution, prescription drugs)
Acquired disinfectant business for medical devices from Mtechnology → Expanded business scope from existing
disinfectant medicines to medical devices
Disinfectant for medical devices
- Hemoclean (Sterilizes hemodialysis equipment
→ Approval of US FDA/EUROPE CE)
- Scotelin (Sterilizes endoscope equipment )
Eye Drop
- Rebliss Eye Drop (Sodium Hyaluronate 1mg/mL)
- Riflu Eye Drop (Fluorometholone 1mg/mL)
- Ridifen Eye Drop (Ketotifen 0.5mg/mL)
Oral administration
- Alniz (peptic ulcer)
- L-Stine Soft Cap.(phlegm removal)
- Huniz Levocetrizine HCI Tab.(Antihistamines)
[unit: KRW Million]
5,987
7,823
11,390
7,739
12,448
527 1,495
2,277 2,233 1,755
2014 2015 2016 Q3'16(YTD) Q3'17(YTD)
Sales
Operating Income
CAGR
+38%
36
Products
Outline
- Fast and excellent sterilization effect of medical device
- Extensive coverage
→ Expanding to various medical devices
- Products
• PAA type: Scotelin PLUS
• Aldehyde type : Ophiclean
Specifications
- Formulation: Disinfectant(OTC)
- Disinfection of medical devices(Endoscope and others)
Status
- Scotelin PLUS
• Development of formulation completed (Jan 2017)
• Validation and approval of KFDA in progress
- Ophiclean : Released May 2017
PAA Type
• Hemoclean
• Scotelin RP
• Scotelin
AldehydeType
• Terraclean
Development status of sterilization disinfectant
New Products
Sterilizationdisinfectant
• Scotelin PLUS
• Ophiclean
Developed products that meet the standards of the US Centers for Disease Control and Prevention
Subsidiaries – Huons Medicare Ⅱ
37
Summary of Consolidated Financial Statement
Summary of separatedFinancial Statement
Summary of Financial Statement(Huons Global)
(unit : KRW)
Q3 2017 2016
I. Assets
Current Assets 226,377,312,960 218,792,413,910
Non-Current Assets 366,927,734,925 338,268,578,846
Total Assets 593,305,047,885 557,060,992,756
II. Liabilities
Current liabilities 92,924,833,269 89,603,121,629
Non-current liabilities 21,414,944,414 13,559,623,659
Total Liabilities 114,339,777,683 103,162,745,288
III. Equity
Attribute to: Owner of the company
334,884,514,899 319,799,725,080
Issued capital 4,955,852,500 4,859,236,000
Capital surplus 245,820,354,586 244,416,224,908
Capital adjustments (12,308,950,740) (555,243,129,232)
Accumulated other Comprehensive income
48,884,927 (298,753,675)
Retained earnings 96,368,373,626 626,066,147,079
Non-controlling Interests 144,080,755,303 134,098,522,388
Total Equity 478,965,270,202 453,898,247,468
Total equity and liabilities 593,305,047,885 557,060,992,756
I. Sales Revenue 241,306,999,150 163,712,232,478
II. Cost of Revenue 195,914,442,599 134,815,804,155
III. Operating Income 45,392,556,551 28,896,428,323
IV. Equity method Income (538,098,729) (339,703,419)
V. Other gains 3,758,072,553 813,842,674
VI. Other losses 1,001,422,887 2,663,149,297
VII. Finance income 1,342,484,351 2,532,905,555
VIII. Financial cost 1,344,101,492 2,899,487,769
IX. Profit before tax 47,609,490,347 26,340,836,067
X. Income tax expense 12,897,916,030 6,489,078,889
XI. Net income from continuing operations
34,711,574,317 19,851,757,178
XII. Net income from discontinued operations
- 506,355,524,146
XIII. Net Income 34,711,574,317 526,207,281,324
(unit : KRW)
Q3 2017 2016
I. Assets
Current Assets 11,358,652,962 17,395,778,462
Non-Current Assets 302,145,171,185 287,799,326,859
Total Assets 313,503,824,147 305,195,105,321
II. Liabilities
Current liabilities 7,865,363,792 2,341,397,455
Non-current liabilities 299,130,000 299,130,000
Total Liabilities 8,164,493,792 2,640,527,455
III. Equity
Issued capital 4,955,852,500 4,859,236,000
Capital surplus 242,472,286,564 242,472,286,564
Capital adjustments (5,208,272,686) (548,875,226,098)
Accumulated other Comprehensive income
(512,543,951) (809,237,219)
Retained earnings 63,632,007,928 604,907,518,619
Total Equity 305,339,330,355 302,554,577,866
Total equity and liabilities 313,503,824,147 305,195,105,321
I. Sales Revenue 18,520,475,504 10,740,869,908
II. Cost of Revenue 10,321,712,362 10,711,508,859
III. Operating Income 8,198,763,142 29,361,049
IV. Other gains 13,552,298 17,118,075
V. Other losses 69,358,175 133,366,265
VI. Finance income 116,225,745 855,398,540
VII. Financial cost 141,532,842 253,479,786
VIII. Profit before tax 8,117,650,168 515,031,613
IX. Income tax expense 1,693,233,462 (176,777,030)
X. Net income from continuing operations
6,424,416,706 691,808,643
XI. Net income from discontinued operations
- 505,375,006,113
XII. Net Income 6,424,416,706 506,066,814,756