Page 21 - investor presentation

BMS Ireland, AMPAC, Yposkesi 3 Contract Manufacturing Organization (CMO)

Deal Making and Value Up to Consolidate Global CMO Business in Phases

Expanding Global Investments in CMO based on Internal API Manufacturing Capabilities Establish integrated entity for global expansion

Based on SK’s 20+ years of API manufacturing track records, identified adjacent Bio · CMO Launched integrated global CMO – SK pharmteco in ’19
business as high growth areas to expand • US-headquartered entity with 7 manufacturing plants in Korea, US and
Target • SK Biotek started API manufacturing business in 1999, and developed the world’s first innovative Europe and 4 R&D centers
Sector manufacturing process (Continuous Manufacturing; “CM”) out of chemical catalyst project at SK’s
New-Jersey based R&D center in the U.S.
• To leverage SK Biotek‘s API manufacturing technologies and capabilities, identified CMO business
as adjacent growth areas for potential investment opportunities AMPAC,
AMPAC, Virginia
CA (188m 3 ) BMS, Ireland (96m 3 )
(319m 3 )
Leveraged SK Biotek’s supply chain network and identified that BMS, SK Biotek‘s long term
Yposkesi
customer, was contemplating to put its Ireland plant up for sale on a proprietary basis in ‘17 (10,000 M 2 by ‘23) Daejeon (158m 3 )
Sejong (160m 3 )
• Based on long term relationship and trust with BMS, SK identified BMS’s intent to sell Ireland plant in early AMPAC,
Texas
stage, and made quick investment decision out of its deep understanding about the asset quality and potential (91m 3 )
($150m)
• At the time of acquisition, BMS Ireland plant was operating at below 50% utilization due to 5-years of tolling
Deal agreements with BMS and AstraZeneca SK convinced BMS to accept lower valuation to compensate for the
Sourcing, thin margin
Review & • Developed Value Up Strategy upfront for quick execution : Post-acquisition, expanded capacity for European Identified high-value added bio-CMO market and invested Yposkesi
(France) and CBM (US) in ‘21
Execution customers and adopted SK Biotek’s CM process to improve productivity
• Both specialized in Cell & Gene Therapy (CGT) technologies, expected to grow
Post acquisition of BMS Ireland, identified US-based AMPAC Fine Chemical as next investment at 25%+ CAGR
target given the escalating local production requirements by Trump administration in ‘18
• AMPAC is a leading CDMO company with 20+ years of long term customer relationship and three high-grade
manufacturing plants in Texas and Virginia, as well as one R&D center in the U.S. Sales up by 7.5x and consistent EBITDA margin of 20% since 2017
• Equipped with the top quality manufacturing plants used for FDA’s testing & training center and API technologies

Sales (U$m) 170
Supported AMPAC’s value up activities by giving high level of mgmt. discretion for US operation EBITDA (U$m) 144
• Fully delegated to US-based local management team and compensated based on pre-defined KPIs & earn-out
mechanism 65
Value Up • Helped local manufacturing plant adopt SK Biotek’s CM process to improve yield and minimize toxic waste and 35 40 846
hazard 1 713
558
In result, AMPAC’s Virginia plant was selected by the U.S. Government to manufacture 296
medicines at risk of shortage due to COVID-19 Pandemic in Jul ‘20 30 112
(to secure ~U$100m revenue per year)
~’10 ’17 ’18 ’19 ’20 ’21

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