Pacific Hospital Supply Co., Ltd.

Company Report

Presented by Tim Chiang

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 equipment

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

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

Implemented Oracle ERP systems 2011

Implemented BPM system

Since 2009, PAHSCO has been awarded with the Top-Ten Class A++ ranking

for information transparency and disclosure for 4 consecutive years. 2012

Tong Lo (F2) constructed & expanded the production of gas piping products

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

4～5X

5X

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.

11

Japan 28%

Taiwan 19% US

8%

Others 30%

China 9%

Germany 6%

Major Exporting Countries

80% 85% 90% 95% 100%

2009

2010

2011

2012

87.30%

90.50%

91.03%

90.50%

5%

6.60%

5.85%

6.90%

7.70%

2.90%

3.12%

2.60%

Percentage of Product Categories

Medical Device Medical Equipment Piping System

Major Exporting Countries and Percentage of Product Categories

PAHSCO 2012

12

Tubes, 28%

CSS, 27% Bags, 13%

Others, 23%

Wound Drainage

System, 5% Bottles, 2%

Respiratory, 2%

Disposable Medical Devices

Close Suction System (CSS) Sales Revenue:382 Million(NTD) % of Product TR: 27% (2nd )

Tubes Sales Revenue:400 Million(NTD) % of Product TR: 28% (1st )

Respiratory Sales Revenue:25 Million(NTD) % of Product TR: 2%

Bags Sales Revenue:185 Million(NTD) % of Product TR: 13% (3rd)

PAHSCO 2012

13

Client Types of Medical Devices & Equipment 2011

Thousand of NTD

2011/Q1-Q4

Item Hospital Distributor Manufacturer Other TOTAL

AMT % AMT % AMT % AMT % AMT %

Domestic 76,527 5.88% 109,170 8.39% 46,543 3.58% 232,240 17.84%

Export 0.00% 370,055 28.43% 682,599 52.44% 16,761 1.29% 1,069,415 82.16%

TOTAL 76,527 5.88% 479,225 36.82% 682,599 52.44% 63,304 4.86% 1,301,655 100.00%

14

Client Types of Medical Devices & Equipment 2012

Thousand of NTD

2012/Q1-Q4

Item Hospital Distributor Manufacturer Other TOTAL

AMT % AMT % AMT % AMT % AMT %

Domestic 85,407 6.10% 120,323 8.59% 26,907 1.92% 232,637 16.61%

Export 0.00% 438,911 31.33% 722,329 51.56% 7,014 0.50% 1,168,254 83.39%

TOTAL 85,407 6.10% 559,234 39.92% 722,329 51.56% 33,921 2.42% 1,400,891 100.00%

15

Sales by Quarter Thousand of NTD

YEAR 2006 2007 2008 2009 2010 2011 2012

Q1 131,736 192,669 222,680 246,505 299,794 325,890 342,607

Q2 204,176 218,285 221,649 282,752 319,461 372,298 341,626

Q3 236,581 204,471 240,016 294,085 310,737 342,243 369,016

Q4 166,433 217,421 276,562 311,086 318,310 303,188 385,459

Total 738,926 832,847 960,906 1,134,428 1,248,302 1,343,619 1,438,708

Growth 39.2% 12.7% 15.4% 18.1% 10.0% 7.64% 7.08%

Gross Margin 27.26% 28.92% 33.25% 39.37% 41.07% 38.67% 39.14%

16

Financial Information

ITEM 2006 2007 2008 2009 2010 2011 2012

EPS 2.03 2.45 2.73 (0.23) 5.49 5.39 4.75

ROE % 14.52 19.13 19.27 (1.4) 28.14 22.62 19.89

ROA % 10.43 14.24 12.88 (0.93) 22.20 18.93 16.68

Pay-out % 79 28.5 56.4 Nil 75 74.21 est. 84.21**

Net Profit Margin

10.7 14.1 13.6 (1.12) 27.55 24.06 21.79

Net Cash per Share

4.9 4.2 7.2 8.0 9.84 10.44 12.37

*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： 2012Pay-out: $4 Cash Dividend will be presented at the Shareholders’ Meeting on June 11, 2013

17

Financial Information

ITEM 2006 2007 2008 2009 2010 2011 2012

EPS 2.03 2.45 3.53 4.24 5.44 5.39 4.75 ROE % 14.52 19.13 22.23 22.71 27.85 22.62 19.89

ROA % 10.43 14.24 14 16.15 22.02 18.93 16.68 Pay-out % 79 28.5 43.6 Nil 75.7 74.21 est. 84.21** Net Profit Margin

10.7 14.1 17.6 20.69 27.27 24.06 21.79

Net Cash per share

4.9 4.2 7.2 8.0 9.84 10.44 12.37

* 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： 2012Pay-out: $4 Cash Dividend will be presented at the Shareholders’ Meeting on June 11, 2013

Medical Device Market Revenue – World

18

Source: Frost & Sullivan, 2010

Total Revenue Unit: Billion(USD)

5.94

6.53

8.9

12.47

14.25

18.4

20.48

21.07

23.45

24.34

37.1

48.08

55.8

0 10 20 30 40 50 60

Cosmetic Surgery & Lifestyle Products

Neurology & Neuromuscular Devices

Intravenous & Infusion Devices

Urology & Gynecology Devices

Ophthalmic & Optical Devices

General Surgical Therapeutic Devices

Single Use Surgical & Disposables

Minimally Invasive Surgical Devices

Wound Care and Biomaterials

Others

Orthopedic and Prosthetic Devices

Anesthetic and Respiratory Devices

Cardiology and Thoracic Surgery

Medical Device Market Revenue – China

19

6.7 7.4 8.9

10.2 11.6

13.2 14.9

02468

10121416

2009 2010 2011(e) 2012(e) 2013(f) 2014(f) 2015(f)

Total Revenue Unit: Billion(USD)

Resource: IMS Health, Espicom, 2011醫材年鑑, IEK

20

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%

21

PAHSCO 2008 2009 2010 2011 2012 Total

Revenue (NTD)

0. 96 B 1.13 B 1.25 B 1.34 B 1.44 B

% of China 5.1 % 6.5 % 6.7 % 8.5 % 9.0 %

~ 49 M

~ 73 M ~ 83 M

~ 115 M ~ 130 M

2008 2009 2010 2011 2012

Our Revenue in China (NTD)

14%

50%

13% 38%

Sale Revenue in China

Information about the Leading Firms

22

Revenue in Respiratory

Devices (% of TR)

410M* (2%)

743M (6%)

737M (54%)

295M (8%)

Kimberly Clark Covidien Resmed CareFusion

Headquarter Texas

Dublin

SD,CA

SD,CA

Stock Exchange NYSE, BMV NYSE NYSE, ASX NYSE Stock Price

(Feb. 15, 2013) 91.20 63.62 42.66 32.80 Market Cap

(USD) 35.50 B 30.03 B 6.12 B 7.30 B EPS (ttm) 4.42 3.94 1.98 1.43

Sales Revenue (USD) 21,063 M 11,852 M 1,369 M 3,598 M

Profit Margin 32.00% 57.49% 59.97% 50.25% Net Profit Margin 8.31% 16.07% 18.62% 8.14%

Source: Yahoo Finance, FR of the companies, *Estimated Data

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

idifier

Filter

Artificial Nose

Nebulizer

Active and Passive Humidifier

23

PAHSCO existing products

Respiratory Devices

24

Thank you for your attention & patience!