1

Investor Relations 2019

Kolmar Korea

2

Disclaimer

As a note, it is suggested to use this material only as a reference. The informationhas been prepared in advance, prior to being audited by outside auditors, solely forthe convenience of investors of Kolmar Korea Co., Ltd. (the “Company”), and issubject to change in the process of final reviewing by external auditors.

It contains information and data that are subject to change without prior notice dueto uncertainties, changes in the organizational structure, redefinition of accountingpolicies, etc., and may cause the actual results to differ from those stated or impliedin this material.

The information contained herein should not be utilized for any legal purposes inregards to investors’ investment results. The Company hereby expressly disclaimsany and all liability for any loss or damage resulting from the investors’ reliance onthe information contained herein.

3

- Overview

- Business

- Appendix

Contents

4

Overview | Star Business

Clothing

Food Housing

Pharmaceuticals

Health Supplements

Cosmetics

5

1996.10

2004.1

2007.6

2015.1

2014.6

2012.4

2002.3

2012.6

Chosen as Innovative Pharmaceutical Company by Ministry of Health&Welfare

Launched the Consolidated Research Lab

Listed on KOSDAQ (Listed on KRX in 2002)

Overview | History

Established Kolmar Korea (with Kolmar Japan)

Established SunBioTech, JV with KAERI (Currently, Kolmar B&H)

Established Kolmar Beijing (100% Kolmar Korea’s subsidiary)

Built the pharmaceutical factory (foray into pharma biz)

Built Asia-biggest Cosmetics-manufacturing plant

1990.5

Established kolmar Wuxi(100% Kolmar Korea’s subsidiary)

Acquisition of Process Technologies&Packaging, ODM company in USA

2016.10

2016.8

Selected as one of World Class 300 by Ministry of Knowledge Economy

Acquisition of CSR Cosmetic Solutions, ODM company in Canada

2017.1

Acquisition of CJhealthcare

2018.4

6

Overview | Business Model

Customers

Forecasting Trends & New Product Development

Select & Order

Production & Supply

R&D

Purchase

Production &Quality Control

Sales∙Distribution & Marketing

Kolmar Korea

Total ODM / CMO System from suggesting New Concepts to Completing Products

Kolmar offers total solutions

even customer’s marketing

points, consumer trends,

and selling strategies

7

667.5821.6

2015 2016 2017 2018

535.8

Overview | Growth

63

37

Sales Mix & Share

Cosmetics

Pharmaceuticals

(seperated basis / %)

(consolidated basis / billion KRW)

1,357.8

Global ODM No.1

1,357.8 billion KRW sales(2018)

36% sales growth(15-18 CAGR)

About 1,000 clients(2018)

Sales Trend

8

13.1 12.5

10 9.6

15 16 17 18

Stable Profitability

& Financial Soundness

(%)

(%)EBITDA/Sales

Overview | Profitability

56 71

101

170

15 16 17 18

Debt ratio

9

697 780

860

75

90

140

56

65

73

33

36

42

194

202

230 335

540

720

2018 2019 E 2020 E

CJhealthcare

Pharmaceuticals

Cosmetics(CSR)

Cosmetics(PTP)

Cosmetics(China)

Cosmetics(Domestic)

Overview | Growth Forecast & Capex Plan

Sales Forecast (billion KRW)

- 2018 CJhealthcare : From 1 May, 2018

22% expected sales growth(18E-20E)

50 billion KRW 2019 CAPEX (Estimate)

- Maintenance cost

1,357.8

10

Overview | Growth Strategy

R&D-oriented company

- Over 5% R&D investment of total sales

- Over 30% R&D researchers of total staffs

- Launched the Consolidated R&D Lab in January 2015

Profitability-based sustainable growth

- Sales mix mainly with mid to high-price products

- Steady growth and stable margin with securing diversified clients and distribution channels

Foray into Global Market

- Cosmetics: Business expansion with global top-tier brands/ Expansion of Chinese business/

Acquisition of US ODM company

- Pharmaceuticals: Aiming for obtaining EU-GMP/ Going into global CMO market

11

Business

- Cosmetics (Domestic)

- Cosmetics (China)

- Cosmetics (USA)

- Cosmetics (Canada)

- Pharmaceuticals

- CJhealthcare

- Overview of subsidiaries

12

Cosmetics(Domestic) | Overview

매출 추이

23% steady sales growth(15-18 CAGR)

Biggest capacity in Korea (2017)

200

600

Color

(Bucheon)

Skin Care

(Sejong)

Capacity (2018 / billion KRW)

(Cosmetics/ separate basis / billion KRW)

80

20

Sales Mix & Share

Functional&Skincare

Color

(2018 / %)

Sales trend

375.0 454.2 489.5

697.3

2015 2016 2017 2018

13

Cosmetics | Core Competence

Strength in Basic∙Functional Skincare Products

- Long product life cycle + Higher margins - Highly advanced R&D capability- High customer loyalty

World-class R&D and Quality Control

- Korea’s first US FDA approval in sun care product (2013)

Synergy with Pharmaceuticals sector R&D

- DDS(Drug Delivery System) applied to cosmetics

- Pharmaceuticals’ K-GMP equivalent standard applied to cosmetics manufacturing process

14

China | Beijing Kolmar & Wuxi Kolmar

75 90

140

2018 2019 E 2020 E

Sales Forecast(China)

Kolmar Beijing 100% subsidiary of Kolmar Korea

- 29% Sales growth rate(14-17 CAGR)

- 150 billion KRWCompletion of capacity ramp-up(2017)

Kolmar Wuxi Wuxi, Jiangsu

- 350 billion KRW capacity(2018. 10)

- 2018. Q4 starting operation

(billion KRW)

Beijing

Wuxi

15

Two-track strategy : Premium & Masstige

- Beijing Kolmar: Mid to high-price products

- Wuxi Kolmar: Large volume orders of main local Chinese brands

Made in Kolmar

- Trust in top-class R&D and production abilities of Kolmar Korea

- Pursuit of localizing by operating local R&D lab and hiring local employees

China | Core Competence

16

China | Main Clients

17

USA | Process Technologies & Packaging

Acquisition in Oct. 2016- Pennsylvania state in USA

- ODM company specialized in color cosmetics

- Supplying color cosmetics to global brands

Acquisition with the largest cosmetics sourcing

company in North America- Kolmar Korea 51%, Wormser corporation 49%

- Expecting a great synergy effect

(Kolmar’s skincare + PTP’s color + Wormser’s marketing)

18

Canada | CSR Cosmetic Solutions

Established in 1953- Formerly Kolmar Canada, a subsidiary of Kolmar US

- ODM company specialized in skincare and personal care products

(Incl. Solid perfume)

- Strong Partnership with global brands

Acquisition in Jan. 2017- Kolmar Korea 85%

- Expecting a great synergy effect

19

Pharmaceuticals | Overview

14% steady sales growth(15~18 CAGR)

CMO No.1 in Korea(as of 2018)

Every formulation available

150

400

2016 2017

Capacity expansion (billion KRW)

6521

13 1

Sales Mix & Share

ETC

OTC

Quasi-drug

etc

(2018/ %)

131.5 165.4

192.1 194.4

2015 2016 2017 2018

Sales Trend (billion KRW)

20

Pharmaceuticals | Core Competence

Specialized in CMO

- Production infra which can produce all kind of medicine

- The largest number of KFDA-approved generic items (435 approved items as of 2016)

- 20~30 items approval by KFDA every year

Strong in ointment

- Best-selling ointment ‘Lidomex’ for atopy treatment

- Cosmetic emulsification technology is applied

Global CMO

- Capacity expansion completed in 2017 (150 400 billion won)

- Aiming for obtaining EU-GMP and c-GMP on newly added capacity to go into global CMO market

21

CJhealthcare

April. 2018 Acquire 50.7%

No. 4 Domestic ETC pharma as of 2017

OPM 16% the highest level in pharma market(2018)

(Excluding one-off M&A cost of 2018)

463.1

510.9 520.5

490.7

2015 2016 2017 2018

Sales trend (billion KRW)

22

Profitability Sales its self-development mainly

2019, launching K-CAB Korea’s 30th novel drug that won the license in July, 2018

Average 9% R&D / Sales (2017)

70

125

13

Sales Mix & Share

ETC

H&B

Export

Others

CJhealthcare | Overview

(2017/ %)

23

B2B + B2C

- B2B(Kolmar Korea) + B2C(CJhealthcare)Biggest pharma of Korea

R&D synergy

- CMO R&D capability(Kolmar Korea) + New drug capability(CJhealthcare)

- Kolmar Korea: Ointment, Solid formulation / OTC

- CJhealthcare: Injection, Intravenous / ETC

Business synergy

- Transfer existing outsourcing CMO of Cjhealthcare to Kolmar Korea

- Item of Kolmar Korea Added on sales portfolio of Cjhealthcare

CJhealthcare | Synergy

24

PharmascienceKorea Kracie

Overview | Holding structure

Kolmar Korea Holdings

: Cosmetics : Pharmaceuticals : Health supplements

Kolmar Pharma

Brand Factories

Kolmar BNH

HnGKolmar Beijing

Kolmar Wuxi

PTP

Kolmar Korea Kolmask

CJhealthcareCSR

25

Kolmar BNH | Overview

12% sales growth (15-18 CAGR)

16% stable operating profit margin (2018)

16% debt ratio (2018)

236.2 256.0

298.9336.1

2015 2016 2017 2018

Sales Trend

40

40

20

Sales Mix & Share

Cosmetics

Health

Supplements(ODM)Health

Supplements(Hemohim)

(%)

(billion KRW)

26

Kolmar BNH | Core Competence

The first joint venture with government Kolmar Korea & KAERI co-founded in 2004

Natural formula based new materials R&D companyWon IR52 Jang yeoung-sil Award for the first time in cometics industry

Kolmar Network Maximizing synergy between cosmetics and pharmaceuticals R&D know-how

27

Kolmar Korea Holdings | Other Subsidiaries

Kolmar Pharma

- Acquired BRN Science in Feb 2012- Manufacturing and selling medicine• Up-to-date automated factory

(100 billion won capacity)• Aiming for obtaining global GMP approval

(EU, USA)

• Different licenses and formulas from Kolmar Korea’s

• Starting global pharma. Business in 2017

Sales Trend (billion KRW)

Pharmascience Korea

- Joint venture with Canada Pharmascience Inc.- Introducing and selling high-quality generics- Aiming entry into developed markets(USA, EU, etc.)- Establishing the hub for foray into Asian or pharmerging markets

Kracie Korea

- Joint venture with Kracie Pharma Ltd.(Japan)- Manufacturing and selling oriental medicine- Preoccupying oriental medicine market- Expecting high growth with future expansion of insurance benefit coverage on oriental medicine

49.058.2

70.378.4

2015 2016 2017 2018

28

Appendix | Financial Summaries(Kolmar Korea)

Financial summary (Consolidated) Financial summary (Separate)

(100 million KRW)(100 million KRW)

구 분 2015 2016 2017 2018Current Assets 1,856 2,641 3,659 5,552

Noncurrent Assets 1,587 2,299 3,026 16,312

Total Assets 3,443 4,939 6,685 21,864CurrentLiabilites 1,146 1,960 2,120 5,173

NoncurrentLiabilities 90 91 1,239 8,593

TotalLiabilities 1,236 2,051 3,359 13,766

Equity 2,207 2,888 3,326 8,098

Sales 5,358 6,675 8,216 13579

OP 607 735 670 900NP 455 531 486 368

Debt ratio 56.01% 71.02% 101.0 169.9

구 분 2015 2016 2017 2018Current Assets 1,740 1,960 3,003 2,558

Noncurrent Assets 1,446 1,969 2,421 6,259

Total Assets 3,186 3,929 5,424 8,817CurrentLiabilites 996 1,287 1,408 2,475

NoncurrentLiabilities 51 44 1,044 1,929

TotalLiabilities 1,047 1,330 2,452 4,404

Equity 2,140 2,599 2,971 4,413

Sales 5,066 6,196 6,816 8,917

OP 549 700 613 710

NP 428 514 442 521

Debt ratio 48.91% 51.19% 82.4 99.8

* Financial summary of 2016 can be changed through the audit.

29

Appendix | Kolmar Korea Fact Sheet

Revenue(100 million KRW)

Profit(100 million KRW)

17. 03 17. 06 17. 09 17. 12 17 A 18. 03 18. 06 18. 09 18 .12 18 A 19. 03 19. 06 19 A 19A y_y 2Q y_y 2Q q_q Cosmetics 1,230 1,220 1,141 1,304 4,895 1,564 1,930 1,774 1,705 6,973 1,747 1,921 3,667 5.0% -0.5% 10.0% Pharmaceuticals 465 491 484 481 1,921 520 529 446 449 1,944 462 475 937 -10.7% -10.2% 2.7%Revenue(Separate) 1,695 1,711 1,625 1,785 6,816 2,084 2,459 2,220 2,154 8,917 2,209 2,395 4,604 1.3% -2.6% 8.4% China 107 143 114 212 576 158 217 184 191 750 177 212 389 3.5% -2.4% 19.8% North America 232 247 230 239 948 222 216 213 231 882 225 267 492 12.4% 23.8% 18.7% CKM(CJ Healthcare) - - - - - 800 1,240 1,310 3,350 1,262 1,271 2,533 216.6% 58.9% 0.7% Consolidated adj. 20- 30- 27- 47- 124- 39- 92- 103- 87- 321- 68- 47- 114- -13.0% 49.5% 31.4%Revenue(Consolidated) 2,014 2,071 1,942 2,189 8,216 2,425 3,600 3,754 3,799 13,578 3,806 4,098 7,904 31.2% 13.8% 7.7%

17. 03 17. 06 17. 09 17. 12 17 A 18. 03 18. 06 18. 09 18. 12 18 A 19. 03 19. 06 19 A 19A y_y 2Q y_y 2Q q_qOP(Separate) 177 151 137 148 613 171 223 116 200 710 183 215 398 1.0% -3.8% 17.1%OP%(Separate) 10.4% 8.8% 8.4% 8.3% 9.0% 8.2% 9.1% 5.2% 9.3% 8.0% 8.3% 9.0% 8.6% - -0.8% 8.4%EBITDA(Separate) - - - - 714 - - - - 908 - - - - - - EBITDA/Sales(Separate) - - - - 10.5% - - - - 10.2% - - - - - - OP(Consolidated) 206 170 154 140 670 180 245 78 397 900 317 380 697 64.0% 55.1% 20.0%OP%(Consolidated) 10.2% 8.2% 7.9% 6.4% 8.2% 7.4% 6.8% 2.1% 10.5% 6.6% 8.3% 9.3% 8.8% - 36.7% 12.0%EBITDA(Consolidated) - - - - 838 - - - - 1,308 - - - - - - EBITDA/Sales(Consolidated) - - - - 10.2% - - - - 9.6% - - - - - -

30

Thank you

* A journey of a thousand miles with a single step

이종목의더많은 IR정보 확인하기

주주와 기업을 연결하고 응원합니다.