WuXi AppTec2023 Annual Results
March 19, 2024

1603259.SH / 2359.HK

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 wellas 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 ofthe 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 andare 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.

Non-IFRS Financial Measures
We provide non-IFRS gross profit and non-IFRS net profit attributable to the owners of the Company, which exclude share-based compensation expenses, 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, non-financial assets impairment, etc. We also provide adjusted non-IFRS net profit attributable to the owners of theCompany and earnings per share, which further exclude realized and unrealized gains or losses from our venture capital investments and joint ventures. Neither of above isrequired by, or presented in accordance with IFRS.
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 theimpact 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 ofthese adjusted non-IFRS financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented inaccordance 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.

Disclaimer
All intellectual property rights and other rights pertaining to the information and materials presented in the results briefing are owned by WuXi AppTec Co., Ltd. (“WuXi
AppTec” or the “Company”). Audio recording, video recording or disclosure of such materials by any means without the prior consent of WuXi AppTec is prohibited. This
briefing does not intend to provide a complete statement of the relevant matters. For relevant information, please refer to the 2023 Annual Report published on the website ofHong Kong Stock Exchange (www.hkexnews.hk), Shanghai Stock Exchange (www.sse.com.cn) and media designated by the Company.
2

3

01

Results Overview

02

Business Highlights

03

Financial Performance

04

Business Outlook

Note: Unless otherwise stated, all financials disclosed in this presentation are prepared based on International Financial Reporting Standards (or “IFRSs”). The currency is RMB.
All net profit disclosed in this presentation represents net profit attributable to the owners of the Company.

1. Results Overview

4Revenue Surpassed RMB40 Billion in 2023; Adjusted Non-IFRS Net
Profit Exceeded 10 Billion for the First Time
Revenue
RMB billion

Adjusted Non-IFRS Net Profit+2.5% excluding COVID-19+25.6%

RMB billion+15.5%

commercial projects

39.4

40.3

2022

2023

Net Profit 1
RMB billion

2022
5

2022

2023

Net Profit After Deducting Non-Recurring Items 2
RMB billion

+9.0%
8.8

10.9

9.4

+16.8%

9.6

8.3

9.7

2023

2022

2023

Note：1. Net profit attributable to the owners of the Company in 2023 is prepared according to the Accounting Standard for Business Enterprises of PRC. Due to different accounting
treatment of long-term equity investments under IFRS, Net profit attributable to the owners of the Company in 2023 under IFRS is RMB10,690 million.
2. Net profit after deducting non-recurring items is prepared according to the relevant information disclosure rules issued by the China Securities Regulatory Commission.

2023 Business Highlights
Enable Customers to Grow Together

1,200+ new customers, 6,000+ active customers
Backlog +18%↑ YoY excluding COVID-19 commercial
projects, among which: TIDES backlog +226%↑ YoY
Excluding COVID-19 commercial projects, revenue fromTop 20 global pharma+44%↑ YoY

Small Molecule CRDMO Pipeline

3,201 molecules, 1,255 newly added,
including 61 commercial, 66 Phase III
Adding 20 commercial & Phase III projects

Build Platform & Improve Efficiency

32 global sites & branch offices
41,116 total employees, including 37,851
scientists & technicians

55,000Addingm2 of testing facilities, continued
to expand global capacity

32,000L Solid Phase Peptide Synthesizer total
reactor volume by Jan. 2024; Taixing API sitecommenced operations
Continued to improve operating efficiency, plus FX
impact, adjusted non-IFRS NPM increased to27%,+24%↑ YoY. Continued

and operating cash flow
to improve asset utilization

Excluding COVID-19 commercial projects, D&M
revenue+55%↑ YoY
Development of DDSU Pipeline
ATU CTDMO Pipeline

5 Phase III, 9 Phase II, 49 Phase I & preclinical
Adding 1 commercial project, and 1 more approved in Feb. 2024
Advancing 2 potential commercial manufacturing projects
6

3 NDA approved, 2 in NDA review, 4 Phase III，
105 Phase II & Phase I
3 new drugs approved, continued to receive royalty
income from customers for the approved new drugs

Our Platform & Business Model Continued to Perform Well
Strong, Loyal &Expanding Customer Base

Execute Long-Tail Strategy& Increase Support toLarge Pharma

Revenue breakdown

Revenue breakdown

Revenue breakdown

Existing clients

Top 20 global pharma clients

Clients using multiple services

16.11Bn,

37.47Bn,

39.63Bn,
excluding COVID-19
commercial projects+30%↑

Newly added clients

0.71Bnexcluding COVID-19
commercial projects+44%↑

Existing Clients
98%

7

excluding COVID-19
commercial projects+27%↑

Other clients

24.23Bn, +18%↑
Clients using single

New Clients2%

Increase Customer
Conversion to Sustain
GrowthTop 20 global
pharmaOther Clients
40%
60%

service7%
Clients using
multiple services
93%Diversified Revenue Streams from Customers Across Regions Ensure theStability and Resilience of the Company’s Financial Performance

Europe4.70Bn，+12%
US

China
7.37Bn，+1%
Revenue contribution: 18%

Revenue contribution: 12%

26.13Bn，
excluding COVID-19
commercial projects +42%

Revenue contribution: 65%

Japan, Korea& Others
2.14Bn，+8%
Revenue contribution: 5%8

ESG Leading Position Further Enhanced in the Global ESG Rating Systems
Committed to the Science Based Targets initiative (SBTi) in Dec. 2023

SBTi
Committed in
Dec. 2023

Consecutive “AA” ratingsin 2021-2023“Silver” medal by
EcoVadis in 2023

9

Named to S&P DJSI
consecutively in 2021-2023

Consecutive “A-” rating in CDP
Climate Change in 2022-2023,
first “A-” rating in CDP Water
Security in 2023

Awarded as Industry andRegional Top Rated company

Named to FTSE4Good
Index in 2023

2. Business Highlights

10

WuXi Chemistry: Integrated CRDMO Business Model Drives Steady Growth,with Continued Expansion in TIDES
Financial Performance⚫

Revenue grew 1.1% YoY to29.17bn, excluding COVID19 commercial projects, grewstrongly by 36.1%⚫

Adjusted non-IFRS GPM
improved 4.0pts YoY to45.1%, mainly due to FX
impact, while efficiency
continued to improve

Drug Discovery (R) Generating
Downstream Opportunities

Strong Growth of Development
and Manufacturing (D&M)⚫

⚫

D&M revenue declined 0.1% YoY to
21.62bn, excluding COVID-19
commercial projects, grew strongly
by 55.1%⚫

TIDES revenue grew strongly by
64.4% YoY to 3.41bn. By end of2023, TIDES backlog grewsignificantly by 226% YoY⚫

Total pipeline of 3,201 molecules(with 1,255 newly added in 2023),
including 61 commercial, 66 Phase
III, 326 Phase II, and 2,748
preclinical & Phase I projects; 20
commercial & Phase III projects
added in 2023⚫

TIDES D&M customers grew 36%
YoY to 140, and molecules grew
41% YoY to 267⚫

Completed capacity expansion in
Changzhou and Taixing. The
expanded workshops commenced
operations in Jan. 2024, with thetotal reactor volume of Solid Phase
Peptide Synthesizer increased to
32,000L⚫

⚫

In the past 12 months, successfully
synthesized and delivered
420,000+ new compounds (grew
6% YoY), generating opportunities
for downstream business units

With strengthened capabilities of
the integrated platform, R to D&M
conversion continued to improve
efficiency, molecules converted
from R to D&M grew rapidly
Growing demand from long-tailcustomers in discovery services ofsmall molecule & new modalities, #of new customers grew 12% YoY+1.1%

Revenue
RMB billion

28.85+36.1%
excluding COVID-19
commercial projects

29.17

⚫

Commenced operations at the new
Taixing API site in Jan. 2024,
preparing for future business growth

Adjusted Non-IFRS Gross Profit
RMB billion

41.2%

11.88

2022
11

2023

2022

Continued Expansion of
New Modalities (TIDES)+10.8%
45.1%

13.17

GPM @ CER:
42.6% 2022
42.7% 2023

2023
Adjusted Non-IFRS GPM

WuXi Chemistry: Growing CRDMO Pipeline driven by “Follow the Molecule + Win
the Molecule” Strategies

2023 Newly
Added Molecules

420,000+ Compounds“R”
1

in Total 1,255
1,225

2,748 Preclinical & Phase I
25

326 Phase II
2

66 Phase III
3

61

Commercial
12 Note: 1. 420,000+ compounds successfully synthesized in labs in the past 12 months.

20
Commercial &Phase III Projects
Added in 2023

TIDES (Oligo and Peptide): Fast Growing Pipeline and Strengthening Capabilities
Bring in the Next Wave of Accelerated Growth
Oligo and Peptide “D&M” Molecules# of molecules

Solid Phase Peptide Synthesizer Total Reactor Volume>5x 32,000

Liter

267

+41%
189
99
39
500
2020

13

2021

2022

2023

2019

2,000
2020

4,000

2021

6,000

2022

2023

WuXi Testing: Drug Safety Evaluation Service & SMO Maintain Leadership
Position and Drive Steady Growth
Financial Performance⚫

Revenue grew 14.4% YoY to
6.54bn⚫

Adjusted non-IFRS GPM
improved by 1.9pts YoY to38.6%, mainly due to FX
impact, while efficiency
continued to improve

Lab Testing Services⚫

Revenue of lab testing services grew 15.3% YoY to 4.78bn,
among which, drug safety evaluation service revenue grew
27.3% YoY, maintaining industry leading position in APAC⚫

Revenue from clinical CRO and SMO grew 11.8% YoY to
1.76bn, among which, SMO revenue grew 26.1% YoY,
maintaining an industry leading position in China⚫

55,000m2 of new facilities in Qidong and Suzhou ramped
up smoothly. In 2023, additional 20,000m2 of facilities were
GLP-qualified⚫

SMO supported 54 new drug approvals; clinical CRO
enabled customers to obtain 21 IND approvals and submit
for 5 NDA filings⚫

New modality business continued to develop, while new
vaccine capabilities continued to improve, and market
share of nucleic acids, conjugates, and mRNA further
expanded⚫

SMO business sustains rapid growth, gaining market
share in multiple therapeutic areas (lung cancer, breast
cancer, dermatology, cardiovascular disease,ophthalmology, rheumatology, nervous system,
endocrinology, medical aesthetics and vaccines etc.)+14.4%

Revenue
RMB billion

5.72

Clinical CRO & SMO

Adjusted Non-IFRS Gross Profit
6.54

RMB billion

36.7%

2.10

2022
14

2023

2022

+20.3%
38.6%

2.53
GPM @ CER:
37.4% 2022
37.7% 2023
2023
Adjusted Non-IFRS GPM

WuXi Biology: New Modalities Business Drives Growth; WuXi Biology Platform
Continues to Generate Downstream Opportunities
Financial Performance⚫

Revenue grew 3.1% YoY to
2.55bn⚫

Adjusted non-IFRS GPM
improved by 1.5pts YoY to42.4% thanks to FX impact⚫

Revenue from new modalities
grew 26% YoY, contributing
27.5% of WuXi Biology
revenue

Revenue

Discovery Biology⚫

⚫

One of the largest discovery biology enabling
platforms with ~3,000 experienced scientists
globally (across 9 sites in China, the US andGermany), covering all stages of drug
discovery and all major therapeutic areas
Focused on improving capabilities related to
new modalities. Number of customers andprojects served by our nucleic acidplatform continued to increase. Cumulatively,
we have provided services to 200+
customers, and successfully delivered 900+
projects since 2021

2.48

⚫

Early discovery screening platform integrating multi-technologies(HTS, DEL, ASMS, FBDD, CADD, etc.) and analysis capabilities ofmulti-dimensional databases, provides extensive and in-depth services
to customers⚫

Established the automated high-throughput protein production platform,
and launched DELvision, a new service that empowers customers toeffectively decipher the mechanism of protein-small moleculeinteractions. Completed the Suzhou Guoxiang research platform in Q4,
strengthening new capabilities of in vitro biology and in vivo
pharmacology⚫

In 2023, continued to generate downstream opportunities andcontributed 20%+ of the Company’s new customers

Adjusted Non-IFRS Gross Profit+3.1%

RMB billion

Comprehensive Screening Platform

2.55

RMB billion

40.9%

1.01

2022
15

2023

2022

+6.8%
42.4%

1.08

GPM @ CER:
42.0% 2022
40.9% 2023

2023
Adjusted Non-IFRS GPM

WuXi ATU: CTDMO Business Model Drives Growth
Financial Performance

Pipeline & Progress of Commercial Projects⚫

Revenue grew 0.1% YoY to
1.31bn⚫

Focused on improving the integrated CTDMO platform. By end of 2023, we provided development, testing & manufacturingservices for 64 projects, including 1 commercial, 5 Phase III (1 in BLA review stage, and 2 in BLA preparation stage), 9 Phase
II, and 49 preclinical and Phase I. In Feb. 2024, the 2nd commercial product obtained approval⚫

Adjusted non-IFRS GPM
declined 3.7pts YoY to -9.6%,
mainly due to the revenue
decline from high-margin
projects and under-utilizationof capacity⚫

Supported a client to file BLA for plasmid and LVV used in a CAR-T product and passed China’s CFDI1 LVV on-site
inspection. The product obtained approval in Nov. 2023⚫

Supported a client to complete BLA filing for the world’s first innovative TIL-based therapy, and facilities in Philadelphia(U.S.) successfully passed FDA pre-license inspection (PLI). The product obtained approval in Feb. 2024⚫

In June 2023, signed an LVV manufacturing contract used in a commercial CAR-T product. With the process performance
qualification now in progress, it is expected to start manufacturing in H1 2024⚫

Preparing for BLA filing for the manufacture of a blockbuster commercial CAR-T product, which is expected to complete
process performance qualification in H1 2024 and is expected to file pre-approval submission (PAS) to FDA in H2
2024

Revenue

Adjusted Non-IFRS Gross Profit+0.1%

RMB billion

RMB billion

1.31

2022

1.31
-0.08
-5.9%

2022
16 Note: 1. CFDI, Center for Food and Drug Inspection of NMPA.

2023

-0.13

GPM @ CER:
-5.6% 2022
-10.2% 2023

-9.6%

2023
Adjusted Non-IFRS GPM

WuXi ATU: Advancing Pipeline on Our Globally Integrated CTDMO Platform
Testing
CAR-T | TIL | MSC Cells

AAV | LVV | TESSA

US | EU | CN

49 Preclinical & Phase I

Provided integrated
CTDMO services globallyto product development

9 Phase II
5 Phase III
2nd commercial
product obtained
approval in Feb. 2024

1

Commercial

17 Note: Pipeline chart as of end of 2023. In Feb. 2024, the 2nd commercial product obtained approval.

✓ 2 projects are in BLA
preparation stage

WuXi DDSU: the First Year to Receive NDA Approval of New Drugs Developed for
Customers; Breakthrough to Receive the First Royalty Income
Financial Performance⚫

⚫

Revenue declined 25.1% YoY
to 0.73bn due to business
transitions, with breakthroughto start receiving royalty
incomeNDA Approval⚫

Adjusted non-IFRS GPM
improved 6.3pts YoY to 36.5%, ⚫
mainly due to favorable
project mix

Revenue
RMB billion

Project Pipeline

In 2023, 3 new drugs developed for our customers
obtained NMPA approvals, including 2 for COVID-19
infection treatment and 1 for tumor treatment. Continued
to receive royalty income from customers for theapproved new drugs. Moreover, 2 new drug candidates
are in NDA review stage
In Nov. 2023, for the first time, we supported acustomer to reach a licensing agreement with one of
the top 10 global pharma companies in the field of
oncology⚫

In 2023, supported customers to file INDs for 18 drugcandidates and obtained 25 Clinical Trial Approvals (CTAs)⚫

Cumulatively submitted 190 IND filings and obtained 169
CTAs, with 3 projects receiving NDA approvals, 2 project in
NDA review stage, 4 in Phase III, 32 in Phase II, and 73 inPhase I⚫

17 new modality projects covering peptide/PDC, PROTAC®
and oligo, multiple projects have completed pre-clinicaldevelopment and filed INDs, among which 5 projects haveentered clinical stage

Adjusted Non-IFRS Gross Profit-25.1%

RMB billion

0.97

30.2%

-9.5%
36.5%

0.73
0.29

2022

2023

18 Note: PROTAC® is a registered trademark of Arvinas Operations, Inc., and is used under license.

2022

0.27

2023
Adjusted Non-IFRS GPM

3. Financial Performance

19

Financial Performance
Revenue

Adjusted Non-IFRS Gross Profit

RMB MM

RMB MM

+2.5%

39.8%

+25.6%

40.0%

40.3%

38.0%

excluding COVID-19
commercial projects

39,3552018

12,872

2019

16,535

2020

2021

2022

2023

38.7%

42.0%

+11.2%

40,341

22,902

9,614

Adjusted Non-IFRS GPM

3,830

5,155

6,670

2018

2019

2020

15,22816,938

2022

2023

8,704

2021

Net Profit Attributable to the Owners of the Company 1

Adjusted Non-IFRS Net Profit Attributable to
Adjusted Non-IFRS NPM
the Owners of the Company

RMB MM

RMB MM
17.6%

18.0%

22.0%

22.4%

+9.0%
8,814

23.9%

+15.5%

9,607

9,399
2,261

1,855

2018

2019

2,960

2020

5,097

2021

2022

2023

26.9%

1,691

2,321

2018

2019

3,637

2020

10,855

5,131

2021

2022

20 Note：1. Net profit attributable to the owners of the Company in 2023 is prepared according to the Accounting Standard for Business Enterprises of PRC. Due to different accounting
treatment of long-term equity investments under IFRS, net profit attributable to the owners of the Company in 2023 under IFRS is RMB10,690 million.

2023

Segment Revenue
RMB MM

WuXi Chemistry

WuXi Testing+1.1%+14.4%+36.1%
excluding COVID-19
commercial projects

29,171

28,850

5,719

2022

2023

2022

6,540

2023

WuXi Biology

WuXi ATU

WuXi DDSU

+3.1%

+0.1%

-25.1%

2,475

2,553

1,308

2022

2023

2022

21 Note: If the sum of the data above is inconsistent with the total, it is caused by rounding.

1,310

2023

970

2022

726

2023

Segment Adjusted Non-IFRS Gross Profit
RMB MM

WuXi Chemistry

WuXi Testing+10.8%+20.3%

41.2%

45.1%

36.7%

38.6%

13,168

11,882

2,101

2022

2023

2022

WuXi Biology

2,527

2023

WuXi DDSU

WuXi ATU

+6.8%

-9.5%

40.9%

42.4%

1,013

1,082

2022

2023

30.2%

293

-77

-125
-5.9%
2022

2023

22 Note: If the sum of the data above is inconsistent with the total, it is caused by rounding.

36.5%

265

-9.6%
2022

2023
Adjusted Non-IFRS GPM

Adjusted Non-IFRS Net Profit
RMB Million

2022

2023

Net profit attributable to the owners of the Company under PRC

8,814

9,607

-

1,083

8,814

10,690GAAP difference 1
Net profit attributable to the owners of the Company under IFRSRMB MM

Add:
Share-based compensation expenses

684

622

Issuance expenses of convertible bonds

2

0.3

Fair value gains from derivative component of
convertible bonds

(509)

(40)

Foreign exchange related losses

136

294

Amortization of acquired intangible assets frommerge and acquisition

57

58

Non-financial assets impairment and disposal losses

131

129

Talent incentive and retention expenses funded by cash donation from shareholders

70

151

9,385

11,905

Non-IFRS net profit attributable to the owners of the Company+15.5%
10,855
9,399

2022

Add:
Realized and unrealized losses (gains) from venture capital
investments

21(1,083)

Realized and unrealized share of (gains) losses from joint ventures

(6)

32

Adjusted non-IFRS net profit attributable to the owners of the Company

9,399

10,85523 Note：1. Due to different accounting treatment of long-term equity investments under IFRS, GAAP difference was RMB1,083 million.
2. If the sum of the data above is inconsistent with the total, it is caused by rounding.

2023

Continued Growth of FCF Driven by Business Growth & Operating Efficiency
2023 Operating Cash Flow Up 23.6% YoY Due to FX Impact & Efficiency Improvement; Constantly Improve Asset Utilization
RMB MM

12,641

Capital Expenditure
Operating Cash Flow

9,966 10,230

6,936
5,517
3,828
2,532

2,249

2,529

4,379

3,031

1,526

2018

2019

2020

2021

2022

24 Note: Capital expenditure includes purchase of property, plant and equipment, other intangible assets, prepaid lease payments and other long-term expenses.

2023

4. Business Outlook

25

Proposed U.S. Legislation
 WuXi AppTec was named in proposed legislation (the “Draft Bill”) introduced to the U.S. House of Representatives andthe U.S. Senate in Jan 2024. The preemptive designation of WuXi AppTec as a named “biotechnology company ofconcern” may result in certain impact on the Company’s ability to work with customers that do business with the U.S.
government. The Company have been actively working together with its advisors to set the record straight and advocate
for changes to the proposed legislation.
 Multiple steps remain in the legislative process before the Draft Bill is enacted into law. The contents thereof, including thereference to the Company, therefore remain subject to further review and changes.
 The Company strongly disagrees with any preemptive and unfair designation of us as a named “biotechnology companyof concern” without due process. The Company fully complies with the laws and regulations in the countries in which we
operate, and is working diligently to engage with U.S. policymakers and demonstrate that: The Company does not have a human genomics business and does not collect human genomic data in any of ourbusinesses.
 The Company is not affiliated with any political party, government, or armed forces thereof.
 The Company has not posed, does not pose and will not pose a national security risk to any country.
 By adhering to our core value of “doing the right thing and doing it right”, the Company has served as a trusted andvalued partner in the global healthcare community, where for more than twenty years the Company has helped thousandsof global customers with discovery, development, and manufacturing efforts to deliver innovative medicines that save andimprove patients’ lives. We remain committed to serving our customers and helping patients around the world.
26

2024 Outlook

1

4

27

Despite uncertainties in the external environment, revenue expects to reach RMB 38.3-40.5
billion in 2024, and maintain positive growth of 2.7-8.6% excluding COVID-19 commercial
projects

2

Continue to improve operating efficiency. Adjusted non-IFRS NPM in 2024 expects toremain at a similar level as last year, taking into consideration of new capacity ramp-up
and FX impact

3

With improved asset utilization and operating efficiency, free cash flow expects toremain positive and reach RMB 4-5 billion in 2024, which will continuously cover the
cash dividends and investments in talents, while global capacity is expected to be
expanded as planned (with capex of RMB ~5 billion)

The Company’s Board of Directors decides to maintain 30% payout ratio, and we distribute
RMB ~9.8 cash dividend for every 10 shares (RMB 2.88 billion in total)

Disclaimer: This presentation may contain certain “forward-looking statements” which are not historical facts, but instead are predictions about future events based on our beliefs aswell 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.