2015

Annual Results

Presentation

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2

Disclaimer

Presentation team

3

Mr. Luo Fei Chairman & CEO

Mr. Radek SaliExecutive Director

CEO, Swisse Wellness Group

Mr. Frank Cao Chief Financial Officer

Ms. Laetitia GarnierGeneral Manager of Group Strategy

and International Business

Presenter Title

Mr. Jason Xu Assistant CFO and Head of Investor Relations

Key Financial Information

RMB million For the Year ended 31 December

2015 2014 Changes(%)

Revenue 4,818.6 4,731.6 1.8%

EBITDA 626.4 1,142.6 (45.2%)

Net profit 293.3 806.8 (63.6%)

Operating cash flow 365.7 972.2 (62.4%)

Basic EPS RMB0.41 RMB1.34 (69.4%)

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Note:

1. The financial results of Swisse Wellness Group (“Swisse”) for the fourth quarter of 2015 have been

consolidated into the Group.

2. EBITDA stands for earnings before interest (net of interest income and finance cost), taxes, depreciation and

amortization.

3. The EBITDA of 2015 included transaction cost of RMB65.0 million in relation to the acquisition of Swisse and

exchange loss of RMB88.5 million. The EBITDA of 2014 included exchange loss of RMB8.2 million.

5

2015 annual results highlights

RMB million For three months ended 31 Dec 2015

Revenue 1,119.6

EBITDA 387.6

EBITDA margin 34.6%

Note:

1. The above information is according to the management account and is about the Group’s baby nutrition

and care business in China only, excluding Swisse.

2. The EBITA of RMB387.6 million included exchange gain of RMB162.4 million.

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Biostime’s 4th quarter performance returned to normal

7

2015 revenue mix

Note:

1. Swisse contributed to 17.6% of the Group’s total revenue for 2015 in just the 4th quarter.

Revenue (RMB million)

FY2015

BNC

Q4 2015

ANCConsolidated

3,968.7 849.9 4,818.6

82.4%

17.6%

Baby nutrition and care ("BNC")

Adult nutrition and care ("ANC")

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Revenue contribution by segment

Business Review

Innovative all-round premium nutrition and care provider for

the entire family

Multi-brand, one platform strategy – leveraging on its cross-selling platform

CRMSystem

Note:

CRM = Customer relationship management

9

Wide range of products targeting different age groups

Pregnancy Infants

Biostime

ADiMIL

Biostime

ADiMIL

Adults

Healthy Times

Swisse Wellness

BM Care

ADIMAMA

Premium

Nutritional Milk

Milk Calcium

Chewable Tablet

Premium

Nutritional

Milk

Premium formula

Specialty formula Baby diapers Baby shower care Baby wipes

Baby

cereal

Teddy

puffs

Baby biscuits

Baby food

Ultivite multivitamin

Ultiboost

Superfoods

Active Skincare

Probiotic sachetsBaby food supplement

Swisse Wellness

Kids supplement1

Swisse

Pregnancy

ultivite

Baby care

Innovative all-round premium nutrition and care provider for

the entire family (cont’d)

10

12.7%

8.5%

8.2%

6.9%

6.3%

13.6% 13.1%

9.2%7.1% 6.9% 5.9% 4.9% 4.9% 3.9% 3.5%

Six largest IMF player with leadership in the super premium category

32.4%

16.0%

16.0%

7.8%

4.6%

Source: Nielsen December 2015 report

#2 in overall IMF sales in baby stores #2 in supreme tier infant formula market

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Leading premium baby nutrition and care provider in China Market leader across all major channels

Notes:

Supreme-tier segment refers to infant formulas with the price over RMB300 per can of 900g

High-tier segment refers to infant formulas with the price below RMB300 per can of 900g

High-tier63.0%

Supreme-tier37.0%

High-tier65.3%

Supreme-tier34.7%

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2015 2014

12

Biostime infant formulas revenue mix

Interactive education

Mama100 APP

Hospital face-to-face classes

Mama100 magazine

Consumer events

Call centre

Product performance

experiences

Online and offline POS

management

Points system

Training

One-to-one consumer

relationship management

TraceabilityCRM

Database marketing

Cross selling

Precision marketing

Word-of-mouth incentive

Personalised coupon

Brand communication

TV, online TV

Digital marketing

Magazine

Star collaboration events

In store display

“BIOD” Model

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Biostime’s all-round innovative marketing model

5.9%

8.5%

6.1%

1.5%

Total Baby stores Supermarkets E-commerce

Strong footprint across China

Source: Nielsen

As of 31 December 2015, we have

728 regional distributors

Over 40,684 points of sale, including 28,785 specialty

stores, 6,695 supermarkets and 5,204 VIP Pharmacies

Beijing

Shanghai

Guangzhou

Headquarter

21.8% 20.2%

48.1%68.8%

7.6%30.1%

3.4%

IMF Industry average Biostime

E-commerce VIP Pharmacies

Baby specialty stores Supermarkets

Sales by channel in 2015

#10

Biostime’s market share by channel in 2015

Diversified Sales Channels

#6#2#6

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Biostime’s extensive nationwide network

710

380277 260 187 161 156 148 144 139

#1 Australian VHMS brand2

Notes:

1. H/S/N = Hair/Skin/Nail (Use Filter)

2. Aztec Scan Data for Year 2015

Source: Aztec, Bain & Swisse

Leading market share across all key products in Australia2

#1 #1 #1 #1 #1 #2 #2 #2 #2

#1 VHMS brand on Alibaba (sales in 2015, RMB m)

75.9%81.3%

52.3%

22.2% 26.0% 28.4%

15.9%10.2%

22.8%

H/S/N Milk Thistle Valerian Multi Krill Oil Calcium+vit D Bee Products EveningPrimrose Oil

GrapeseedExtract

18.5% 17.3%

8.9%6.6% 5.4%

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Swisse Wellness – market leader in Australia

with strong brand recognition

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Swisse direct sales into China has been activatedFirst global flagship store on Tmall opened on 8 March 2016

Prospects

Note:

1. Source: National Bureau of Statistics, PRC

2. Forecast by Euromonitor

14.9%

7.9%

4.9% 4.0% 2.7% 2.7%

0.7%

Avg = 5.0%

China Vietnam India Indonesia Philippines Thailand Japan

2015 Baby food market size (USDm)

20,536 496 2297803 798 842

122,082140,321

162,802187,848

215,570

246,318

0

50,000

100,000

150,000

200,000

250,000

300,000

2015 2016 2017 2018 2019 2020

Baby food market size and 2015-2020e CAGR2

Chinese IMF sales forecast2

(RMBm)

15.215.415.615.816.016.216.416.616.817.0

2007 2008 2009 2010 2011 2012 2013 2014 2015

New-borns in China1

1309

(m)

A two-child policy will lead to a rise on

the number of new-borns per annum.

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China is the largest IMF market globally and expected to

grow at double digit

1.261.36 1.42

1.85

Year 2012 Year 2013 Year 2014 Year 2015

23M 24M 26M 28M 30M

0%

20%

40%

60%

80%

100%

2012 2015 2020 2025 2030<18 18-24 25-34 35-44 45-54 64 65+

Source: Aztec Scan Data for Year 2015, Bain report, Euromonitor, UNPD

The Australian VHMS market is a ~$1.85bn market

that has grown at 13.7% CAGR over the last 3 years

1.6%

CAGR (2012-2030)

3.1%

Australian population will grow older based on

aging of baby boomers

1.4%

1.1%

1.6%

1.1%

1.0%

(AUDbn)

12 13 14 1518 20 22 24 26 28 30

0

10

20

30

40

2009 2010 2011 2012 2013 2014 2015F 2016F 2017F 2018F 2019F

CAGR

(2009-2014)

CAGR

(2015-2019f)

13%

China’s VHMS market to grow ~13% CAGR from 2015-

2019f

0

100

200

300

400

500

2006 2009 2012 2015 2018 2021 2024 2027 2030 2033 2036 2039 2042 2045 2048

Population aged 60 years old and above in China, 2016-

2050f

11%

(M)

1.4%

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Overview of the VHMS market in Australia and China

Leverage our core competencies and network to achieve these goals

Brand building

Adhere to multi-brand strategy while emphasizing on premium image

– Allocate more spending on emerging media and maintain certain exposure in traditional media

– Continue to develop in-house Customer Relationship Management system to achieve

precision marketing and consumer education

– Refine Swisse’s 360o marketing model

Category

expansion

The Group will continue to focus on category expansion and diversifying into higher growth

products through:

– invest in in-house R&D capabilities to develop new initiatives based on existing categories

– Within the nutrition and care categories, leverage on the Swisse acquisition to expand

complementary products

Channel expansion

Focus on further developing cross-border online sales while maintaining premium brand image

Accelerate channel expansion and increase product penetration to seize business opportunities

across China

Develop global presence through business partner

Further integration of online resources for various brands

Business

integration

Utilise the existing Biostime’s nationwide distribution network for Swisse

Improve operational efficiency and reduce cost

Leverage on Biostime’s proprietary CRM system to manage Swisse’s customer data and further

improve precision marketing as well as understanding of customer needs

Integration of Swisse and Healthy Times

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Group’s synergetic development strategyMulti pronged growth strategy

Appendix

Financial Information

Gross Profit Margin by Products

2015 2014

% of total revenue Gross Profit Margin % of total revenue Gross Profit Margin

Infant Formulas 69.6% 63.3% 84.1% 62.0%

Probiotic Supplements 8.1% 66.4% 9.0% 71.4%

Dried Baby Food and Nutrition

Supplements2.4% 49.2% 3.2% 49.1%

Baby Care Products 2.3% 22.8% 3.7% 47.2%

Adult Nutrition and Care 17.6% 61.3% - -

Total 100.0% 61.9% 100.0% 61.9%

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Gross Margin Analysis

1,587.8

1,975.8

2014 2015

(RMB millions)

33.6%

41.0%

2014 2015

S&D expenses ratio of sales Selling and distribution expenses

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Selling and distribution expense

3.7%

5.8%

2014 2015

(RMB millions)

Administrative expense

ratio of salesAdministrative expenses

175.3

2014 2015

280.1

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Administrative expense

176

162

2014 2015

1

24

2014 2015

65

2014 2015

Accounts Receivables Turnover Days (1)

Inventory Turnover Days (2)

Account Payable Turnover Days (3)

Notes:

1)Turnover days of accounts receivable is derived by dividing the arithmetic mean of the opening and closing balances of trade and bills receivables for the relevant

period by turnover and multiplying by 360 days.

2)Turnover days of inventory is derived by dividing the arithmetic mean of the opening and closing balances of inventory for the relevant period by cost of sales

multiplying 360 days.

3)Turnover days of accounts payable is derived by dividing the arithmetic mean of opening and closing balances of trade payables, for the relevant period by cost of

sales and multiplying by 360 days.

90

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Working capital management

(RMB: million)(RMB: million)

4,493.3

(RMB: million)

Operating Cash Flow Inventory Balance Cash Balance

797.0

856.2

31 Dec 2014 31 Dec 2015

1,868.3

937.4

2,625.0

331.0

1,927.0

31 Dec 2014 31 Dec 2015

Pledged deposits

Time deposits

Cash and bank balances

3,195.4

972.2

365.7

2014 2015

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Cash flow

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