2

4

Pyeongtaek Plant – Bio Plant ∙ Cepha Plant • Production of IND(Investigational new biologics) and Cepha FPP

• The 2nd Bio Plant under construction for global clinical trials and

commercialization of LAPSCOVERY based new biologics

• Certified by PIC/S

Hanmi Fine Chem – API Business • 30% M/S of European cephalosporin antibiotics API market

• FDA(US), BSG(GER), TGA(AUS), PMDA(JPN), EDQM(EU),

MHRA(GB) GMP received

Paltan Plant – FPP Manufacturing Sites • ODM Partnership with global partners : MSD, Sanofi, etc

• The New Global Smart Plant completed and received operation

approval in Dec 2016

• Annual capsule production capacity : 2B → max. 10B

5

Strong cash flow from

traditional pharma

business through in-

house FCD/IMD

products & generics

Heavy investment in

innovative R&D from

early 2000s

Robust pipeline from

in-house, as well as

external R&D

Maintain leadership in

core businesses in

Korea & China

Investment in areas of

high-growth potential

Become a global R&D

powerhouse through

continuous new drug

discovery &

development in core

therapeutic areas

To achieve significant

growth through

innovative new drugs

6

PAST PRESENT FUTURE

674.0 730.1 761.3

1,317.5

882.7

91.0 115.6

152.5 187.1

162.6

-

200

400

600

-

500

1,000

1,500

2012 2013 2014 2015 2016

Sales R&D

20.0%

14.2%

8

13.5% 15.8%

18.4%

9

10

Therapeutic Agent : Natural/Unnatural peptide

Flexible Linker :Reduce Immunogenicity Minimized

loss of activity

No loss of FcRn binding

Aglycosylated Fc : Increase solubility

AG

LY

CO

SY

LA

TE

D F

C

AG

LY

CO

SY

LA

TE

D F

C

11

Key Features

Redirect immune cells to tumor cells

Natural IgG-like bi-specific antibody format

Good stability and high production efficiency

Seeking collaboration opportunities

(PENTAMBODY + Novel target)

Next-generation bi-specific antibody platform technology

Discovery by Beijing Hanmi with dual immunotherapy & targeted therapy

Tumor cell

Immune cell

P

E

N

T

A M

B

O D

Y

12

Pentambody applied PD-1/HER2 BsAb

Cell-to-cell association (%) using SK-BR-3 and CHO-PD1 cells by FACS1

1HER2 positive SK-BR-3 stained with CFSE, CHO-PD1 stained with PKH26, Test article 100nM, 30min; 2E (activated hPBMC) : T (HCC827) = 20 : 1, 72hr

Redirect immune cells to tumor cells

Better anti-tumor activity compared to combination

Pentambody applied PD-1/PD-L1 BsAb

Cell cytotoxicity assay using PD-L1 expressed NSCLC cell2

Anti-PD-L1 mAb: IC50 >2,000 pM

Anti-PD-1 mAb: IC50 440 pM

Combination: IC50 50 pM

PD-1/PD-L1 BsAb (BH2941): IC50 10 pM

13

LAPSInsulin Combo HM14220

Diabetes

SANOFI

GMB Stem Cell Therapy HM21001

Glioblastoma

AJOU Univ

LAPSTriple Agonist HM15211

Obesity, NASH

LAPSGlucagon Analog HM15136

Congenital Hyperinsulinism

LAPSASB HM15450

Mucopoysaccharidosis

FLT3 Inhibitor HM43239

AML

PD-1/HER-2 BH2950

Breast, Gastric cancer

B

PD-1/PD-L1 BH2941

Cancer

B LAPSGLP-2 Analog

HM15910

Short Bowel Syndrome

Pre-Clinical Phase 2 Phase 3 Phase 1

LAPSGLP/GCG HM12525A

Diabetes/Obesity

JANSSEN

LAPSInsulin HM12470

Diabetes

Pan-RAF Inhibitor HM95573

Solid tumor

GENENTECH

Oratecan™ Irinotecan+HM30181A

Solid tumor

ATHENEX

Src/Tubulin KX2-391

Solid tumor

ATHENEX

PD-1/EGFR BH2922

NSCLC, Colorectal cancer

B

LAPSExd4 Analog Efpeglenatide

Diabetes/Obesity

SANOFI

LAPShGH Efpegsomatropin

GH deficiency

Olita® * Olmutinib

NSCLC

ZAI LAB

Luminate®

Integrin inhibitor

DME

ALLEGRO

BTK Inhibitor HM71224

Autoimmune diseases

ELI LILLY

Pan-HER Inhibitor Poziotinib

Solid tumor

SPECTRUM/LUYE

Rolontis™ Eflapegrastim Neutropenia

SPECTRUM

Oraxol™** Paclitaxel+HM30181A

Breast cancer

ATHENEX

Diabetes/Obesity

Rare Diseases

Cancer

Autoimmune Diseases

Others

B Beijing Hanmi

14

Launching 2~3 products annually in the domestic market

Seeking partners for emerging market business

‘Rosuzet® ’ Collaboration with MSD for 23 countries

*Incrementally Modified Drug **Fixed Dose Combination

Plan to launch in 2017

Strong focus

on R&D

Partnership

& Alliance

China

Market

+500 R&D experts : Ph.D 64, MS. 305

+800 mil USD invested in the past decade

29 Programs in Pre-clinical & Clinical Development

Broadening global & regional partnership

Open innovation strategy

Synergy between Beijing Hanmi & Hanmi Korea

Competitive R&D supported by global talents

Profitable growth through business diversification

16

Sales force 1,000+

About 70% : Doctors and Pharmacists

Directly covering 9,000 hospitals and over

150,000 doctors, keeping the No.1 position

in pediatric drug market.

Sales & Marketing Manufacturing Beijing R&D center

New Biologics BIO Production NCE

- Auto-immune - Diabetes

- Obesity

- LAPScovery

products

PhD.11, MS. 81

Est. Oct 2008

Animal facility for rodents, beagles,

and primates

High-tech enterprise certification

Focus areas

R&D staffs 150+ GMP sites

To provide FPP to

Chinese market

Est. 1996 Full Value Chain : R&D to commercialization

17

Strong focus

on R&D

Partnership

& Alliance

China

Market

+500 R&D experts : Ph.D 64, MS. 305

+800 mil USD invested in the past decade

29 Programs in Pre-clinical & Clinical Development

Broadening global & regional partnership

Open innovation strategy

Synergy between Beijing Hanmi & Hanmi Korea

Competitive R&D supported by global talents

Profitable growth through business diversification

19

Strong focus

on R&D

Partnership

& Alliance

China

Market

+500 R&D experts : Ph.D 64, MS. 305

+800 mil USD invested in the past decade

29 Programs in Pre-clinical & Clinical Development

Broadening global & regional partnership

Open innovation strategy

Synergy between Beijing Hanmi & Hanmi Korea

Competitive R&D supported by global talents

Profitable growth through business diversification

21

22

23

24

25

26

27

28

-7.3%

2.1%

-2.7%

-3.2%

1.0%

11.5%

5.7%

5.8%

29

0%

%) TTB

%) TTB

%) TTB

30

-21.1% 31.4%

0.9% 25.3%

-19.1% 107.8%

-1.9% 25.0%

-25.6% -28.0%

35.9% 39.5%

-18.8% 8.3%

-15.0% 0%

31

32

33

34