Page 26 - investor presentation

Our Investment

Imexpharm, Pharmacity 8 Vietnam Healthcare

Deal Making (’19 ~ ’21) Value Up (’21 ~ )

Identified Vietnam as the next geographic expansion target in SE Asia for SK’s global Bio · CMO Target to become Vietnam’s No. 1 integrated healthcare group
investments since 2017 (‘19) by 2025 through bolt-on acquisitions and value-up activities
• Given SK’s Bio·CMO footprints in Korea, US and Europe, Vietnam could be Asia’s most competitive manufacturing
location next to China
Target Wholesale Acquisition of the largest wholesale company
with nationwide distribution and public hospital
Sector Leveraged local investment network, confirmed the growth potential of Vietnam healthcare market network (e.g., Vinapharm, Hapharco)
Bolt-on
• Strong government support to strengthen healthcare infrastructure in Vietnam, including local bio/pharmaceutical Acquisitions Acquisition of private hospital with nationwide
companies and drug/API manufacturing Hospital locations, as core infra for remote diagnosis and
• Regulation to prohibit foreign investors in Vietnam local healthcare sector was abolished to promote inbound FDI drug sales (e.g., Tam Tri)
potential for early entrants to take advantages of dominating the market and build up entry barriers
SK Biopharm and SK Chemical (drug development),
Imexpharm SK Plasma (blood products co-development)
Portfolio
Based on Bio · CMO investment experiences and track records, developed Vietnam healthcare Value Up
investment strategy to identify potential targets and value chain integration opportunities Retailing EU-GMP certified high-grade drugs
Pharmacity
• Value chain integration approach across drug manufacturing, distribution, sales, hospitals/clinic, and remote diagnosis (Antibiotic launching in ‘22)
Drug Remote Hospital
Manufacturing Wholesale Retail Diagnosis & Clinic
Deal
Sourcing Growth High-grade pharma Drug distribution Pharmacy chain Digital platform Private hospital SK SEAI
Area (20% CAGR) (20% CAGR ) (40% CAGR) (early stage) (30% CAGR)
Vietnam Investment $900m
• Imexpharm • Hapharco • Pharmacity • Doctor • Tam Tri Healthcare Group Valuation (’25) $3.5 bn
Target • Mekophar • Vinapharm Anywhere MOIC 3.9x
Co.
• MyDoc

Production Wholesale Retail Hospital Platform
Private
Invested in Imexpharm, Vietnam’s leading pharmaceutical company in May ‘20 Imexpharm Distributor Pharmacity Hospital Medical
Largest
Data
Deal • Impexpharm operates Vietnam’s best quality manufacturing plant certified by EU-GMP, potential for the most qualified
partner for SK’s bio/pharma manufacturing in Vietnam
“No. 1
Review “EU-GMP wholesaler “No.1 “Best-in- “Digital
& Invested in Pharmacity, Vietnam’s biggest pharmacy chain operator, to create synergy across the certified with pharmacy Class platform
pharma
Execution pharmaceuticals and wholesale sector in May ‘21 company” nationwide franchise” hospital/clinic” for remote
diagnosis”
network”
• Pharmacity operates 508 pharmacies nationwide as the dominant market leader
(2.5x more pharmacies than its follower)
Bolt-on Acquisition Targets
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