WuXi AppTec : Investor Day - Financial Performance

WuXi AppTec - Track Record of Success

Ellis Chu

Chief Financial Officer

"Forward-Looking Statements

This presentation may contain certain "forward-looking statements" which are not historical facts, but instead are predictions about future events based on our beliefs as well as assumptions made by and information currently available to our management. Although we believe that our predictions are reasonable, future events are inherently uncertain and our forward-looking statements may turn out to be incorrect. Our forward-looking statements are subject to risks relating to, among other things, the ability of our service offerings to compete effectively, our ability to meet timelines for the expansion of our service offerings, our ability to protect our clients' intellectual property, unforeseeable international tension, competition, the impact of emergencies and other force majeure. Our forward-looking statements in this presentation speak only as of the date on which they are made, and we assume no obligation to update any forward-looking statements except as required by applicable law or listing rules. Accordingly, you are strongly cautioned that reliance on any forward-looking statements involves known and unknown risks and uncertainties. All forward-looking statements contained herein are qualified by reference to the cautionary statements set forth in this section. All information provided in this presentation is as of the date of this presentation and are based on assumptions that we believe to be reasonable as of this date, and we do not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Unaudited Non-IFRS Financial Measures

We provide Non-IFRS gross profit and Non-IFRS net profit attributable to owners of the Company, which exclude share-based compensation expenses, listing expenses and issuance expenses of convertible bonds, fair value gain or loss from derivative component of convertible bonds, foreign exchange-related gains or losses and amortization of intangible assets acquired in business combinations and goodwill impairment. We also provide adjusted Non-IFRS net profit attributable to owners of the Company and earnings per share, which further exclude realized and unrealized gains or losses from our venture investments and joint ventures. We further provide EBITDA and adjusted EBITDA. Neither of above is required by, or presented in accordance with IFRS. Meanwhile, to better reflect the operation results and key performance, the Company has adjusted the scope of the foreign exchange-related gains or losses by excluding only the gains or losses that we believe irrelevant to the core business. The comparative financial figures for the comparable periods have been adjusted to reflect the change of the scope.

We believe that the adjusted financial measures used in this presentation are useful for understanding and assessing our core business performance and operating trends, and we believe that management and investors may benefit from referring to these adjusted financial measures in assessing our financial performance by eliminating the impact of certain unusual, non-recurring,non-cash and non-operating items that we do not consider indicative of the performance of our core business. Such Non-IFRS financial measures, the management of the Company believes, is widely accepted and adopted in the industry the Company is operating in. However, the presentation of these adjusted Non-IFRS financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with IFRS. You should not view adjusted results on a stand-alone basis or as a substitute for results under IFRS, or as being comparable to results reported or forecasted by other companies.

Validation of Our Business Model and Strategies

Follow the Molecule - Follow the Customer - Follow the Science / Technology

Est.

RMB bn

16.4

12.9

9.5

7.8

6.2

4.9

	3.0	3.4	3.8
2.6

2011	2012	2013	2014	2015	2016	2017			2018	2019	2020	2021E
				WX Chemistry			WX Testing		WX Biology		ATU			DDSU

3	Note: Core WuXi AppTec segments only. Does not include other revenues/eliminations and revenues from discontinued segments
FX : RMB/USD = 6.76 (2011), 6.30 (2012), 6.15 (2013), 6.17 (2014)

Stable Margins Amidst Fast Growth

GPM

41%

42%

40%

41%

40%

Stable

RMB bn

Est.

6.6

5.3

3.9

3.3

2.5

GP

2016

2017

2018

2019

2020

2021E

4	Note: Adjusted Non-IFRS Gross Profit and Margins

Leveraging Economies of Scale for Profit Growth

RMB bn

3.6

2.4

1.7

1.4

1.0

2016

2017

2018

2019

2020

5	Note: Adjusted Non-IFRS Net Profit Attributable to Owners of the Company