Creating Miracles in Life

November 2020

China Biologic Products Holdings, Inc. (NASDAQ: CBPO)

CBPO 3Q20 Financial Highlights

01

  • Revenue: $138.5 mm, up 0.8% in RMB terms(1) or 1.8% in USD terms y-o-y
  • Gross Profit: $92.5 mm, up 4.4% y-o-y; Gross Margin: 66.8%
  • Income from Operations: $52.0 mm, down 1.9% y-o-y; Operating Margin: 37.5%
  • Non-GAAPAdjusted Income from Operations(2): $69.4 mm, up 11.7% in RMB terms(1) or 12.8% in USD terms y-o-y
  • Net Income: $39.5 mm, down 16.0% y-o-y
  • Non-GAAPAdjusted Net Income(2): $55.1 mm, up 0.2% in RMB terms(1) or 1.3% in USD terms y-o-y
  • Fully diluted EPS: $0.99; Non-GAAP EPS(2): $1.39
  1. We believe providing local currency information on certain key items of our financial results enhances the understanding of our financial results and evaluation of performance in comparison to prior periods. We calculate changes in local currency percentages by comparing financial results denominated in RMB from period to period.
  2. Refer to Appendix for reconciliation of Non-GAAP income from operations, Non-GAAP net income attributable to equity holders and Non-GAAP EPS.

CBPO 9M20 Financial Highlights

01

  • Revenue: $412.2 mm, up 4.6% in RMB terms(1) or 2.6% in USD terms y-o-y
  • Gross Profit: $269.8 mm, up 1.8% y-o-y; Gross Margin: 65.5%
  • Income from Operations: $162.7 mm, up 12.1% y-o-y; Operating Margin: 39.5%
  • Non-GAAPAdjusted Income from Operations(2): $197.7 mm, up 18.1% in RMB terms(1) or 16.0% in USD terms y-o-y
  • Net Income: $128.6 mm, up 1.7% y-o-y
  • Non-GAAPAdjusted Net Income(2): $159.9 mm, up 10.3% in RMB terms(1) or 8.3% in USD terms y-o-y
  • Fully diluted EPS: $3.24; Non-GAAP EPS(2): $4.02
  1. We believe providing local currency information on certain key items of our financial results enhances the understanding of our financial results and evaluation of performance in comparison to prior periods. We calculate changes in local currency percentages by comparing financial results denominated in RMB from period to period.
  2. Refer to Appendix for reconciliation of Non-GAAP income from operations, Non-GAAP net income attributable to equity holders and Non-GAAP EPS.

CBPO 3Q20 Business Highlights

02

  • In November 2020, the newly built collection station in Chongqing city passed official inspection with commercial operations to commence soon
  • In 3Q20, the Company further optimized commercial team structure, enhanced medical marketing support function, implemented a multidimensional evaluation system for staff performance and established better incentive and compensation structures.

CBPO 3Q20 Sales Breakup

03

Sales Breakup by Product

(

3Q20 Sales % )

Other

immunoglobulins

IVIG

17.3%

23.2%

Other plasma

products

11.5%

P. Polypeptide

Albumin

4.2%

35.2%

Dura Mater

8.3%

Others 0.3%

Year-over-year Comparison

for Sales of Products

YOY comparison

3Q20

3Q20

(in RMB)

(in USD)

Albumin

+2.8%

+3.8%

IVIG

-10.9%

-10.1%

Other Immunoglobulins

+1.8%

+3.0%

Other plasma products

+13.9%

+15.2%

Placenta Polypeptide

+28.3%

+28.9%

Total biomaterial products

+0.7%

+0.8%

Total sales

+0.8%

+1.8%

Experienced Management

04

  • CEO since August 5, 2019, acting CEO between May 2019 and August 2019, Chairman of the Board of Directors since February 2019 and member of the Board since November 2014.
  • Over 20 years of experience in corporate finance, financial advisory and management and has held senior executive or managerial positions in various public and private companies including Moelis, Goldman Sachs, China Netcom, Bombardier Capital etc.
  • Bachelor Degree of political science from Nanjing Institute of International Relations and an MBA certificate from the University of Maryland at College Park

Mr. Joseph Chow

Chairman / CEO

  • CFO since August 2012 and VP-Finance & Compliance and Treasurer between March 2012 and August 2012
  • Prior to joining CBPO, 6 years in financial management and 11 years of audit experience in accounting firms, including serving as an audit senior manager at KPMG
  • C.P.A. in China

Mr. Ming Yang,

Chief Financial Officer

Income Statement and Balance Sheet Highlights

05

$ MM

2015

2016

2017

2018

2019

9M'19

9M'20

Total sales

296.5

341.2

370.4

466.9

503.7

401.6

412.2

Cost of sales

106.5

124.0

125.5

146.8

174.6

136.5

142.4

Gross profit

190.0

217.2

244.9

320.1

329.1

265.1

269.8

Operating expenses

Selling expenses

10.0

11.7

34.8

95.6

80.3

62.1

43.2

G&A expenses

41.4

54.5

67.7

68.8

73.4

50.4

58.2

R&D expenses

6.0

7.0

6.5

9.5

11.7

7.5

5.7

Income from operations

132.6

144.0

135.9

146.2

163.6

145.1

162.7

Income before income

135.1

153.9

146.4

166.1

191.5

170.5

177.1

taxes

Net income

114.1

128.8

82.2

148.0

163.4

146.8

149.2

Net income attributable

89.0

104.8

67.9

128.1

138.8

126.4

128.6

to CBPO

Non-GAAP income from

144.7

168.3

171.6

177.7

198.3

170.4

197.7

operations(1)

Non-GAAP net income

attributable to equity

100.1

126.8

141.2

145.9

168.4

147.6

159.9

holders(1)

2015

2016

2017

2018

2019

9M'20

Total Cash(1) ($ MM)

182.9

183.8

242.2

952.4

927.3

1,103.4

Cash & Cash Equivalents

144.9

183.8

219.3

338.9

161.8

566.9

($ MM)

Time Deposits ($ MM)

38.0

-

22.9

537.5

497.7

7.1

Short term investments($

-

-

-

76.0

267.8

529.4

MM)

Short-term and Long-term

-

-

-

-

-

-

Bank Loans ($ MM)

Accounts Receivable Days

27

32

51

75

77

89

Inventory Days

390

416

508

569

513

445

1. Calculated as the sum of cash & cash equivalents, time deposits and financial instruments.

  1. Non-GAAPincome from operations and non-GAAP net income attributable to equity holders excludes non-cash employee stock compensation and some non-recurring items. Refer to Appendix I for reconciliations.
  2. 2018 includes the impact of TianXinFu.

Robust Cash Flow Generation

Operating Cash Flow

($ MM)

250

229.3

200

188.5

150

123.3

109.4

102.2

103.9

100

06

Capital Expenditures

($ MM)

60.0

52.3 51.0

50.0

40.0

38.3

36.7

30.0

24.4

50

0

20.0

10.0

0.0

14.1

2015

2016

2017

2018

2019

9M'20

2015

2016

2017

2018

2019

9M'20

Mainly for Shandong Taibang 's

new fractionation facility

Appendix: Reconciliation of Non-GAAP Income from operations

08

($ MM)

2015

2016

2017

2018

2019

9M'19

9M'20

Income from operations

132.6

143.9

135.9

146.2

163.6

145.1

162.7

Non-cash employee stock compensation

12.1

24.4

33.9

23.1

26.6

19.3

28.9

Amortization of acquired intangible assets

-

-

-

8.4

8.1

6.0

6.1

Expenses related to change of domicile and

-

-

1.9

-

-

-

-

acquisition of TianXinFu

Adjusted Income from operations-Non GAAP

144.7

168.3

171.6

177.7

198.3

170.4

197.7

Appendix: Reconciliation of Non-GAAP Net Income Attributable to Equity holders 09

(in $ MM except EPS, number of shares in MM)

2015

2016

2017

2018

2019

9M'19

9M'20

Net Income Attributable to Equity holders

89.0

104.8

67.9

128.1

138.8

126.4

128.6

Non-cash employee stock compensation

11.1

22.0

31.1

19.7

23.5

16.9

26.2

Expenses related to change of domicile and

-

-

1.9

-

-

-

-

acquisition of TianXinFu

Amortization of acquired intangible assets

-

-

-

5.6

6.1

4.3

5.1

Income tax expense due to U.S. Tax Reform

-

-

40.3

(7.5)

-

-

-

Adjusted Net Income Attributable to Equity

100.1

126.8

141.2

145.9

168.4

147.6

159.9

holders - Non GAAP

Diluted EPS - Non GAAP

3.68

4.52

4.95

4.02

4.28

3.75

4.02

Weighted average number of shares used in

26.6

27.2

27.6

35.4

38.9

38.8

39.4

computation of Non GAAP diluted EPS

Safe Harbor Statement

10

This presentation contains forward-looking statements, including statements about the business outlook, strategy and market opportunity of China Biologic Products Holdings, Inc. (the "Company" or "we"), and statements that may suggest trends for its business. Such forward-looking statements can be identified by the use of forward-looking terminology such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "potential," "should," "will," "would," and similar expressions, or the negatives thereof. These statements are individually and collectively forward- looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934.

These forward-looking statements are made only as of the date of this presentation and are based on estimates and information available to the Company at the time of this presentation. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict and may be beyond the Company's control. Therefore, the Company cautions that actual results may differ materially from those set forth in any forward-looking statements herein, and are subject to numerous assumptions, risks, uncertainties and other factors, including those discussed under "Risk Factors" in the Company's annual report on Form 20-F filed with the SEC for the year ended December 31, 2019.

In light of these risks and uncertainties, there can be no assurance that the forward-looking statements made during this presentation will in fact be realized. Any forward-looking statements and projections made by others in this presentation are not adopted by the Company and the Company is not responsible for the forward-looking statements and projections of others. Except as otherwise required by applicable securities laws, the Company disclaims any intention or obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise.

In evaluating our business, we use certain non-GAAP measures as supplemental measures to review and assess our operating performance. These non-GAAP financial measures have limitations as analytical tools and investors should not consider them in isolation, or as a substitute for income from operations, net income attributable to Company or other consolidated statement of comprehensive income data prepared in accordance with U.S. GAAP.

THANK YOU

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China Biologic Products Holdings Inc. published this content on 25 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 November 2020 08:50:08 UTC