Pacific Hospital Supply Co., Ltd.
Company Report
Presented by Jacky Lee
Your Health, Our Mission
2
Our Milestone
1977 PAHSCO formed with a stock Capital of NT$ 1 Million 1980 Started the production & trading of central medical gas equipments
2001 Tong Lo Factories received ISO13485 2002 Tong Lo (F1) received GMP Certification 2004 PAHSCO became a public listed company in the stock market 2005 Tong Lo (F3) formed to expand the production of sterilize medical product
2006 The automatic warehousing system was officially implemented in August
Tong Lo (F2) constructed & expanded the production of gas piping products 1987
2009 Expanded 11,997m2 of production capacity
2008
Constructed New factory (F4) on 15th January
2008
2010
Obtained 7,085 m2 of land
Issued its second series of secured domestic convertible bonds
2011 Implemented Oracle ERP systems
3
Factory
Miaoli
Taiwan
4
Certificate
224,103 245,633 256,253 270,349 284,126
0
50,000
100,000
150,000
200,000
250,000
300,000
2009 2010 2011(e) 2012(f) 2013(f)
5
Introduction to the Medical Product Industry and Future Global Market for Medical Devices and Equipments –
Steady growth year by year
Source: Espicom Business Intelligence(2011); IEK(2011/04)
Percentage of Global Market (2010)
Prediction of Global Market
Growth rate maintained between 5%-6% in recent years.
America, 44%
Asia, 19%
Western Europe,
28%
Eestern Europe,
5%
Middle East and Africa,
3%
Unit
:Million (U
SD)
6
Introduction to the Medical Product Industry and Future
Prediction of Global Medical Product Market
Source: Espicom Business Intelligence(2011); IEK(2011/04))
Estimated percentage by category
Estimated percentage of Global Market
by country
Medical Disposal Devices
17% Diagnostic
Imaging Products
24%
Orthodontic Products
6%
Orthopodic and
Implantable Products
17%
others 36%
2012(f) USD 270.3B
United States 38%
Japan 10% Germany
8%
France 4%
Others 40%
2011(e) USD 256.3B
7
Medical Device and Equipment Industry in Mainland China
Market Proportion Analysis U
nit
:Million (U
SD)
China market has maintained 10% of the growth rate in recent years.
Resource: IEK(2011/04)
6,695 7,446
8,590 9,748
11,013
0%
5%
10%
15%
20%
0
2,000
4,000
6,000
8,000
10,000
12,000
2009 2010 2011E 2012F 2013F
市場規模 Market Proportion 年均成長率 Avg. Annual Growth Rate
8
Main Geographic Areas of Global Medical Device Market
9
Overall Index of Geographic Areas
Developed Countries with Subcontract Manufacturing Focus
Countries with Self-Branding Focus
US Japan Germany China Taiwan
Overall Index
Population (Million) 310 127 81.6 1350 23
Age (0~14:15~64:65up) 20 : 67 : 13 13 : 65 : 22 14 : 66 : 20 17.6:73.6:8.9 16 : 73 : 11
Birth Rate:Death Rate 14 : 8 9 : 9 8 : 10 12 : 7 9 : 7
Fertility Rate 2.1 1.4 1.4 1.8 0.94
GDP (Million USD) 14,582,400 5,497,812 3,309,669 5,878,629 430,096
GDP per Capita(USD) 47,084 43,161 40,542 4,393 17,660
Economic Growth Rate 2.90% 5.10% 3.60% 10.3% 4.21%
Medical Industry Index
Health Expenditure per Capita(USD) 7,410 3,321 4,629 169 1,260
Health Expenditure / GDP(%) 16.20% 8.30% 11.30% 4.6% 6.00%
Change of Health Expenditure per Capita
3~4% Steady Growth
Rate
Adjusting (Negative growth approx. in every 5
years)
Positive growth (Growth Rate not
steady)
15% and above High-speed Growth Rate
2~3% Growth Rate
Hospital Beds per 1000 persons (unit) 3.10 13.80 8.20 2.45 6.78
Source: World Bank, Espicom, IEK
10
Population Structure of Geographic Areas Low birth rate in
Taiwan, hence the Population
Structure is aging. Population of age above 65
Country Percentage of population above age 65 Period of time expected
7% 10% 14% 20% 30% 7%→14% 10%→20% 20%→30%
Taiwan 1993 2005 2017 2025 2040 24 20 15
Singapore 2000 2010 2016 2023 2034 16 13 11
South Korea 2000 2007 2017 2026 2040 17 19 14
Japan 1970 1985 1994 2005 2024 24 20 19
China 2001 2010 2026 2036 - 25 20 -
United States 1942 1972 2015 2034 - 73 62 -
Germany 1932 1952 1972 2009 2036 40 57 27
UK 1929 1946 1975 2026 - 46 80 -
Italy 1927 1966 1988 2007 2036 61 41 29
Switzerland 1887 1948 1972 2015 - 85 67 -
France 1864 1943 1979 2020 - 115 77 -
Source:1. Council for Economic Planning and Development
2.United Nations, World Population Prospects:The 2006 Revision.
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Japan 26%
Taiwan 20% US
9%
Others 30%
China 8%
Germany 7%
Major Exporting Countries
80% 85% 90% 95% 100%
2009
2010
2011
2012Q3
87.30%
90.50%
91.03%
90.40%
5%
6.60%
5.85%
7.10%
7.70%
2.90%
3.12%
2.50%
Percentage of Product Categories
Medical Device Medical Equipment Piping System
Major Exporting Countries and Percentage of Product Categories
12
CSS, 27%
Others, 22%
Bags, 14%
Suction Catheter, 14%
Connecting Tube, 8%
Wound Drainage
System, 6%
Stomach Tube, 2%
Gynecology Irrigation and Suction Set,
2%
Respiratory, 2%
Bottles, 2%
Disposable Medical Devices
Close Suction System (CSS) Sales Revenue:332 Million % of Product TR: 27% (1st)
Suction Catheter Sales Revenue:176 Million % of Product TR: 14% (3rd)
Respiratory Sales Revenue:24 Million % of Product TR: 2%
Bags Sales Revenue:176 Million % of Product TR: 14% (2nd)
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Financial Information
ITEM 2006 2007 2008 2009 2010 2011 2011/1-9 2012/1-9
EPS 2.03 2.45 2.73 (0.23) 5.49 5.39 4.36 3.57
ROE % 14.52 19.13 19.27 (1.4) 28.14 22.62 18.72 15.32
ROA % 10.43 14.24 12.88 (0.93) 22.20 18.93 15.69 12.98
Pay-out % 79 28.5 56.4 Nil 75 74.21 Nil -
Net Profit Margin
10.7 14.1 13.6 (1.12) 27.55 24.06 25.17 22.36
Net Cash per Share
4.9 4.2 7.2 8.0 9.84 10.44 8.31 10.86
*2010EPS 5.49 in the weighted average capital ; *2010EPS 6.37 in the year-end capital
*2010Pay-out: $3 Cash Dividend and $1.12 Stock Dividend presented at the Shareholders’ Meeting.
*2011Pay-out: $3 Cash Dividend and $1 .00Stock Dividend presented at the Shareholders’ Meeting REMARK: Some accounts are not yet audited or certified by our CPAs; therefore, the quarterly financial statements certified (reviewed) by our CPAs are final.
.
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Financial Information
ITEM 2006 2007 2008 2009 2010 2011 2011/1-9 2012/1-9
EPS 2.03 2.45 3.53 4.24 5.44 5.39 4.36 3.57 ROE % 14.52 19.13 22.23 22.71 27.85 22.62 18.72 15.32
ROA % 10.43 14.24 14 16.15 22.02 18.93 15.69 12.98 Pay-out % 79 28.5 43.6 Nil 75.7 74.21 Nil -
Net Profit Margin
10.7 14.1 17.6 20.69 27.27 24.06 25.17 22.36
Net Cash per share
4.9 4.2 7.2 8.0 9.84 10.44 8.31 10.86
* Ignore the evaluation loss of financial liabilities
*2010EPS 5.44 in the weighted average capital , 2010EPS 6.31 in the year-end of capital
*2010Pay-out: $3 Cash Dividend and $1.12 Stock Dividend presented at the Shareholders’ Meeting.
*2011Pay-out: $3 Cash Dividend and $1.00Stock Dividend presented at the Shareholders’ Meeting.
REMARK: Some accounts are not yet audited or certified by our CPAs; therefore, the quarterly financial statements certified (reviewed) by our CPAs are final.
Medical Device Market Revenue
15
Source: Frost & Sullivan
16
Respiratory Disposable Market Size – Facts And Figures in China
Inpatients % of Respiratory System Diseases
City
Hospital
County-level
Hospital Average
2009 12.23% 16.46% 14.35%
2010 12.41% 16.43% 14.42%
17
2008 2009 2010 2011
Revenue 960,906,338 1,134,428,177 1,248,301,839 1,343,618,533
% of China 5.08% 6.45% 6.65% 8.53%
48,786,473
73,169,333 82,997,012
114,553,771
2008 2009 2010 2011
Sales Revenue in China
50%
13%
38%
Sale Revenue in China
Information about the Leading Firms
18
Revenue in Respiratory
Devices (% of TR)
400M** (2%)
752M (6%)
699M (56%)
176M** (5%)
Kimberly Clark Covidien Resmed CareFusion
Headquarter Texas
Dublin
SD,CA
SD,CA
Stock Exchange NYSE, BMV NYSE NYSE, ASX NYSE Stock Price
(Jun. 29) 83.77 53.50 31.20 25.68
Market Cap 32.85B 26.16B 4.42B 5.70B EPS(ttm) 4.31 3.82 1.49 1.65
Sales Revenue (million) 20,846 11,574 1,243 3,528
Profit Margin 29.5% 56.83% 59.61% 51.16% Net Profit Margin 7.63% 16.14% 23.90% 6.91%
Source: Yahoo Finance, FR of the companies, *Global Data **estimated
Mask and Tubings for NIV
Related Products for Invasive Ventilation
For Delivering Humidified or Warn Gas
Mask
& Tubing
Anesthetic
Oxygen Therapy
Aerosol Therapy
Sleep Therapy
Emergency Care
Airw
ay
Laryngeal Mask
Closed Suction Set
ET tube
Tracheostomy tube
Guedel Airway
Laryngoscope
Filter/ Hum
idifer
Filter
Artificial Nose
Nebulizer
Active and Passive humidifier
20
Thank you for your attention & patience!
Q&A