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1Q11 & FY10 Financial ResultsMay 11, 2011

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These presentations and discussions contain certain forward lookingstatements with respect to the results of operation, financialcondition and current expectation about future events. By theirnature, forward-looking statements involve risk anduncertainty because they relate to events and depend oncircumstances that will occur in the future.

We undertake no obligation to publicly update or revise anyforward looking statements whether as a result of newinformation, future events or otherwise. The actual result coulddiffer materially from those anticipated in these forward-looking statements.

Disclaimer

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• 2010 and 1Q11 Financial Results• Business Outlook & Expansion Strategies

– Main Projects• Project A : JAPAN – JV with WAKAMOTO• Project B : CHINA – Bio-Venture of YungRay• Project C : US – ANDAs

– Regional Actions• CHINA

– Action 1: M&A of China-based Marketing firm– Action 2: Patch Plant

• TAIWAN – Action 1: M&A of TW-based Pharmacy Chain – Action 2: Entering the Biopharmaceutical arena

• ASEAN– Action 1: Veterinary Plant

• Conclusion• Q&A

AGENDA

• YungShin Global Holding -- 1Q11 Financial Results• YungShin Pharm. -- Consolidated Income Statement• YungShin Pharm. -- Income Statement

FINANCIAL RESULTS

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YungShin Global Holding 1Q11 Financial Results

Yungshin Group’s Consolidated Revenue in 1Q11 is 1,070M, which increases by 7.3% YoY.

* Above-mentioned consolidated revenue excludes revenue of YZC and YSP SAH.

** Consolidated revenue in management reports in 1Q11 is 1,622M (W/ YZC and YSP SAH), which increases by 11.3% YoY.

NT$MN 1Q11

Investment Revenue 160

Operating Income 152

Net Income 152

EPS 0.6

(Reviewed by PwC)

YSP’s Net Profit after Tax

YSH 1Q11

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Consolidated

NT$MN FY2009 FY2010 YoY

Revenue 4,079 4,143 1.6%

Gross Profit 2,092 2,046 -2.2%

Operating Income 583 626 7.4%

Equity in earnings of equity method investees, net

90 95 5.6%

Net Income 524 635 21.2%

Basic EPS(NT$) 2.07 2.50 21.2%

Margin(%)

Gross Margin 51.3% 49.4%

Operation Margin 14.3% 15.1%

Net Margin 12.8% 15.3%

YungShin Pharm.Consolidated Income Statement

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YungShin Pharm.Income Statement

NT$MN 1Q10 1Q11 YoY

Revenue 763 874 14.5%

Gross Profit 365 420 15.0%

Operating Income 94 123 31.6%

Equity in earnings of equity method investees, net

34 41 19.8%

Pre-Tax Income(excluding Equity in earnings of equity method investees, net

124 142 14.3%

Margin(%)

Gross Margin 47.8% 48.0%

Operation Margin 12.3% 14.1%

Pre-Tax Income(excluding Equity in earnings of equity method investees, net

16.3% 16.2%

Regional Pharma Player

Vertical & Horizontal Integration

Well- Balanced Cost-

Effectiveness & Quality

Long-term Sustainable

Global Player

Repositioning

YSP YSH

YungShin Strategy

• Project A : JAPAN – JV with WAKAMOTO• Project B : CHINA – Bio-Venture of YungRay• Project C : US – ANDAs

OUR MAIN PROJECTS

Project A： JV with WAKAMOTO

JAPAN

PROJECT AJV with WAKAMOTO

WAKAMOTO Profile

• Foundation: April, 1929

• President: Nobuyuki Kamiya

• Capital: 3.395 billion yen (2010.3)

• Business Activity: Development & Sale of Branded Ethical Drugs (Eye Drops), OTC and Consumer Products

• Number of Employees: 433

• Sales: 9.776 billion yen (2010.3)

PROJECT AJV with WAKAMOTO

JV Pharma Cases in JAPAN

TEVAIsreal

KOWAJapan

ActavisIceland

ASKAJapan

TEVA-KOWAPharm.

Actavis-ASKAPharm.

+

+ =

=

Foreign Japan JV Co.

YungShinTaiwan

WAKAMOTOJapan

YungShin-WAKAMOTOPharm. + =

2008

2009

Next

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Business Model

JV Co.

Wakamoto

YSP

Wakamoto MR’s

promotionWholesalers

HP

Rx

Clinic

M&A Japan Marketing Company

Co-Branding Strategy of YungShin - Wakamoto

PROJECT AJV with WAKAMOTO

Direct sales

Export

License Owner

Service Provider

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• Set up JV company (July, 2011)• License Application (September, 2011) • Develop GE drugs• Fund raising • Plan to M&A Japan Marketing Company

Preparation JV Marketing Co.

2009-2011 2011 2012 2013 2014 2015

Stage II Stage III

Establish fully functional JV Co. in Japan

Stage I

Plan to JV with WAKAMOTOApr. 2011 signed MOUPortfolio decision

JV with WAKAMOTO

Action Plan

PROJECT AJV with WAKAMOTO

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Project B： Bio-Venture of YungRay

CHINA

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PROJECT BBio-Venture of YungRay

Versazyme®

DSTSodium Starch Glycolate (SSG)

–Innovative animal feed enzyme products–Fermentation derived–Global Market: 7,000 T/yr above–China Market: 1,000 T/yrTarget Market: South American, Southeast Asia & China

–YZC current sales: 2,000T/yr–China Market: 2,000 T/yr –Capacity in 2013: 1,000T/yr–Target Market: China

Main Products

– YungRay Capacity in 2013: 1,000 T/yr

– YungRay Capacity in 2016: 8,000 T/yr

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PROJECT BBio-Venture of YungRay

YungRay established (May, 2011)Plant construction started (July, 2011)Product line established (Dec.,2012 )

Preparation Production

2009-2010 2011 2012 2013~2014 2015 2016

Stage II Stage IVVersazyme Capacity expansion to 8,000T/yr

Stage I

JV Contract signed

Plant Construction

Action Plan

Stage III

Product Launched in 2013Versazyme Capacity in 2013: 1,000 T/yrDST Capacity in 2013: 1000 T/yr2015: plant expansion 20,000 m2

Plant Expansion

Increasing Capacity

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Project C： ANDAs Abbreviated New Drug Applications

US

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Appl. No Active ingredient Dosage form Remark

75382 ACYCLOVIR TABLET

65146 CEFACLOR CAPSULE

76126 CIPROFLOXACIN HYDROCHLORIDE

TABLET

75185 DICLOFENAC SODIUM DR TABLET API sourced internally

75805 FAMOTIDINE TABLET

76022 FLUOXETINE HYDROCHLORIDE CAPSULE

75991 LOVASTATIN TABLET API sourced internally

65152 CEPHALEXIN CAPSULE

76715 MODAFINIL TABLET Paragraph IV

65336 CEPHALEXIN ORAL SUSPENSION

77918 MELOXICAM TABLET

77990 ZOLPIDEM TABLET

77911 GLIMEPIRIDE TABLET

PROJECT CANDAs -- Currently approved

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Product code

Submission Therapeutic class Target Approval

2010 US market sales (USD)

Remark

CDTe Q4 2010 Antihypertension 2012 39,500,000 •API sourced internally

GNIe Q1 2011 Antiemetics 2013 24,450,000

FRTy Q4 2011 Calcium channel blocker

2013 120,115,000

VXTme Q4 2011 Antiinflammatory & Antirheumatic

2014 143,082,000 •API sourced internally

MMTe Q2 2012 Beta blocker 2013 1,215,477,000 •API sourced internally

KLTe Q2 2012 Lipid modifying agent

2014 315,817,000

KBTe Q3 2012 Prevent hyperphosphatemi

a

2014 156,277,000

VRPe Q4 2012 Antiinflammatory & Antirheumatic

2014 174,450,000 •API sourced internally•Niche dosage form

EVTe Q3 2013 Antivirals 2015 145,806,000 •API sourced internally

OSTe Q4 2013 Anticholinergic 2015 191,407,000 •Advanced process skills used

PROJECT CANDAs-Developing Pipeline (Niche & Vertically Integrated)

• CHINA– Action 1: M&A of China-based Marketing firm– Action 2: Patch Plant

• TAIWAN – Action 1: M&A of TW-based Pharmacy Chain – Action 2: Entering the Biopharmaceutical arena

• ASEAN– Action 1: Veterinary Plant

OUR REGIONAL ACTIONS

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YungShin’s Action 1 in China

M&A of China-based Marketing firm

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Strengthen Marketing Platform

(via M&A)

In-house Products

Other License-in Products

YungShin (TW) Products

Product Portfolio

Regional DealershipDirect Sale

Co-Marketing（Centralized BD, Promotion & Sale Policy）

YungShin’s Action 1 in ChinaM&A of China-based Marketing firm

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Action Plan

YungShin’s Action 1 in ChinaM&A of China-based Marketing firm

Marketing Alliance

•MOU signed •Regional marketing alliance

Project initiation

•M&A discussion & evaluation

Co-Marketing

2010 2011 2012 2013

• Centralize BD, promotion & sale policy•Marketing Platform established

M&A Action

• M&A

2009

25

YungShin’s Action 2 in ChinaPatch Plant

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• Aspirations– Build an world-class patch development and

production organization in China– Supply topical and systemic transdermal patch to both

US(ANDA) and China Market

• Partner with Tainan-based patch manufacturer—LiKang– Co-development of patch products (on-going)– Co- investment of new China Plant

YungShin’s Action 2 in ChinaPatch Plant Construction & Product development

2nd Product Development

• Formulation study• Submission batch production in China Plant• Stability study• BA/BE study• USFDA and China SFDA submission 27

2010 2011 2012 2013 2014 2015

Infrastructure

Establish facilityInstall equipment

1st Product (VRPe) Development In Taiwan

• Formulation study• Submission batch production• Stability study• BA/BE study• USFDA and China SFDA submission

Project initiation

•Environmental evaluation approved

•Facility Design

ValidationValidation

(VRPe) Commercial Launched

•US•China

VRPe site transfer to China plant

•Site transfer•Supplemental

ANDA filing

2nd product Launched

•US•China

YungShin’s Action 2 in ChinaPatch Plant Construction & Product development

Action Plan

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YungShin’s Action 1 in Taiwan M&A of TW-based Pharmacy Chain

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API

YungShin’s Action 1 in TaiwanM&A of TW-based Pharmacy Chain

YSPYZC

R&D Production Marketing Sales

Clinic

HP

Global Market:US/China/ASEAN/JP

Drugstore

Pharmacy Chain

Global Market

TW Market

Global market

Channel

M&A Taiwan-based Pharmacy Chain

YungShin Vertical Integration

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YungShin’s Action 1 in TaiwanM&A of TW-based Pharmacy Chain

Action Plan

Marketing Alliance

•MOU signed •Regional marketing alliance

Project initiation

•M&A discussion & evaluation

2011 2012 2013 2014

M&A Action

• M&A

2010

Owning Pharmacies

• the number of store >100

M&A process

• DD process

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YungShin’s Action 2 in Taiwan Entering the Biopharmaceutical arena

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YungShin’s Action 2 in TaiwanEntering the Biopharmaceutical arena

• Licensing-in from Multinational Biopharmaceutical Company– BS-1 (for treatment of neutropenia)– BS-2 (for treatment of Non-Hodgkin's lymphoma)– BS-3 (treatment of anemia in patients with chronic renal

failure)– BS-4 (to improve the look of moderate to severe frown

lines between the eyebrows)

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YungShin’s Action 2 in TaiwanEntering the Biopharmaceutical arena

Action Plan

Initiate•Collaboration

intend discussion

•MOU signed.

2011 2012 2013 2014

launchClinical trial

•BS-1 product

Clinical trial

•BS-2 product

Clinical trial

•BS-3 product

registration

•BS-1 product

registration

registration

•BS-2 product

•BS-3 product

•BS-1 product

launch

•BS-2 product

launch

•BS-3 product

Clinical trial

•BS-4 product

registration

•BS-4 product

launch

•BS-4 product

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YungShin’s Action in ASEAN

Veterinary Plant

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YungShin’s Action in ASEANVeterinary Plant

2008 2009~2010 2011 2012 2013 2014

Production launched SpecializedPlant Construction

-Veterinary Plant Construction in Vietnam

-RM30 million investment

-started in April, 2011-Dosages: powder, particles

& liquid-products focusing on

antibiotics, deworming agent & animal multi-vitamin

-50% for Vietnam Market; 50% for other countries in Southeast Asia

Commercial launched

-Malaysia veterinary production totally transferred to Vietnam;

-Malaysia focus on injection & eye-drops

Action Plan

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ConclusionTerritory Expansion & Vertical Integration

JAPAN

CHINA

US

ASEAN

TAIWAN

API RD Production Marketing Channel

API Sourcing Center

RD & Licensing Center

YSK

M&A Marketing Firm

JV with WAKAMOTO

YZC YSP/ATB YSP/YZC YSP

M&A Pharmacy Chain

YSPSAH YSPSAH

CTI

YungRay

Vietnam Veterinary Plant

RD & Licensing CenterYSP

FTR

CTI

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Q & A

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