OSSTEM IMPLANT Good Friend

Osstem Investor Relations

2

Disclaimer

This presentation contains forward-looking statements .Forward-looking statements may be identified by the use of forward-looking terms such as “may,” “will,”

“expects,” “believes,” “anticipates,” “plans,” “estimates,” “projects,” “assumes,” “guides,” “targets,” “forecasts,” “sees” and “seeks” or the negative of such terms or

other variations on such terms or comparable terminology. All statements other than statements of historical or current fact are, or may be deemed to be, forward-

looking statements.

Such statements are based upon the current beliefs and expectations of management and are subject to significant risks and uncertainties that could cause actual

outcomes and results to differ materially. These risks and uncertainties include, but are not limited to: the possibility that the anticipated synergies and other benefits

from mergers and acquisitions will not be realized, or will not be realized within the expected time periods; the risks and uncertainties related to our ability to

successfully integrate the operations, products, employees and distributors of acquired companies; the effect of the potential disruption of management’s attention

from ongoing business operations due to integration matters related to mergers and acquisitions; the effect of mergers and acquisitions on our relationships with

customers, vendors and lenders and on our operating results and businesses generally; the outcome of government investigations; price and product competition;

the success of our quality and operational excellence initiatives; changes in customer demand for our products and services caused by demographic changes or

other factors; dependence on new product development, technological advances and innovation; shifts in the product category or regional sales mix of our products

and services; supply and prices of raw materials and products; control of costs and expenses; the ability to obtain and maintain adequate intellectual property

protection; the ability to form and implement alliances; challenges relating to changes in and compliance with governmental laws and regulations, including

regulations of the Korea, China, U.S. Food and Drug Administration (the “KFDA”, "CFDA", "FDA") and other foreign government regulators, such as more stringent

requirements for regulatory clearance of products; the ability to remediate matters identified in any inspectional observations or warning letters issued by the KFDA,

CFDA and FDA, while continuing to satisfy the demand for our products; changes in tax obligations arising from tax reform measures or examinations by tax

authorities; product liability and intellectual property litigation losses; the ability to retain the independent agents and distributors who market our products;

dependence on a limited number of suppliers for key raw materials and outsourced activities; changes in general industry and market conditions, including domestic

and international growth rates and general domestic and international economic conditions, including interest rate and currency exchange rate fluctuations; the ability

to collect accounts receivable in emerging markets such as China, Asia and South America.

For a further list and description of such risks and uncertainties, see our reports filed with the Korea Financial Supervisory Service. Copies of these filings, as well

as subsequent filings, are available online at dat.fss.or.kr, www.osstem.com or on request from us. We disclaim any intention or obligation to update or revise any

forward-looking statements, whether as a result of new information, future events or otherwise, except as may be set forth in our periodic reports.

Readers of this presentation are cautioned not to place undue reliance on these forward-looking statements, since, while management believes the assumptions on

which the forward-looking statements are based are reasonable, there can be no assurance that these forward-looking statements will prove to be accurate. This

cautionary statement is applicable to all forward-looking statements contained in this presentation..

Contents

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I. Introduction

II. Business Overview

III. Growth Strategy

IV. Earnings & Outlook

V. Financial Statements

01

Company Introduction I. Introduction

5

1. General Status

Established in 1997, Osstem has 23 years of business history

OSSTEM IMPLANT Co., Ltd. ( CEO EOM, Tae Kwan )

460.1 Billion KRW(Consolidated, 2018)

World Meridian 2nd Bldg, 123, Gasan Digital 2-Ro, Geumcheon-Gu, Seoul

7.1 Billion KRW Paid in Capital

Corp. Name

Revenue

Location

08th Jan 1997 Foundation

Medical Equipment, Software and Services Business Purpose

6

2. Top Management / Shareholders

Chairman is founder and former dentist,

CEO was former CTO of Osstem

[ March. 2019 ]

[Chairman] CHOI, Kyoo-Ok

• Former CEO

• Founder of OSSTEM IMPLANT

• Dentist, Seoul Dental Clinic

• Ph.D, Korea University

• Graduated School of Dentistry, Seoul National University

[CEO] EOM, Tae-Kwan

• Former CTO

• Daewoo Automotive Lab

• Ph.D, Medical engineering,

Busan National University

• Graduated Mechanical engineering, Yonsei Univ.

Top management Shareholders

Foreigners,47.3%

Korea Institutions,

14.0%

Largest Shareholder,

21.3%

Others,17.4%

7

3. Business History

Pioneer in Korean implant industry, Continuous growth by global expansion

• Implant developed and marketed

• Hanaro(dental clinic Mgmt. S/W)

• Dubeone(reimbursement S/W)

1997~2000

• Digital Dentistry(OneGuide) launched

• Overseas subsidiaries in 25 countries

• Recognized as the Most Excellent Implant R&D Center by Government

2011~2018

2001~2010

• Listed in KOSDAQ(2007)

• Overseas subsidiaries in 12 countries

• AIC Training center established

• Implant laboratory established

• U.S. Market entered by HiOssen

8

Global M/S Korea & China M/S

4. Global Positioning

No.5 player in Global, No.1 in Korea and China

Straumann 22.5%

Danaher (Nobel) 20.0%

Zimmer Biomet 14.1%

Dentsply Sirona 11.1%

OSSTEM 7.5%

Henry Schein 7.0%

Others 17.8% OSSTEM

50%

Dentium

[백분율]

Neo

[백분율]

Dio

[백분율]

Megagen

[백분율]

Misc.

[백분율]

[Korea]

[자료 : MRG, OSSTEM] [자료 : MRG, OSSTEM]

[China]

OSSTEM 33.0%

Dentium 25.0%

Straumann 22.0%

Danaher 9.0%

Dentsply Sirona 7.0%

Others 4.0%

9

5. Vision & Mission

To achieve Global No.1 Implant Company in 2023

We contribute to the promotion of human health,

By creating highest customer values based on talent and technology

Vision

Management Phiosophy

Mission

Core Value

Leading company

in global dental industry

No.1 Implant Company in 2023 (2021 sales over 1 tril. KRW)

Best in

industry Customer

centric Trustability

Global

Talent

II. Business Overview

11

1. Business Domain

Comprehensive offering of products, solution and services for dentists

Global top-tier in

Surface and Design

Implant Materials & Drugs Training (AIC) Dental IT

Efficient production and

Quality management

Global Sales capability

Dental Chair, CT, Panorama

Medical Equipment

GBR , Impression, Whitening

Dental Materials

Dental drugs

Global implat training

for dentists

Implant Symposium

Osstem Meeting/Osstem World Meeting

Reimbursements,

Dental clinic managements S/W

S/W for

Digital Diagnosis

12

Core products internalized: R&D and made by Osstem

2. Product Mix

Portfolio of products & merchandise, total offering for dentists

Intra-oral scanner Medical drugs Dental engine

Implants Medical devices Materials Dental IT

Products

Merchandise Total Offering, partnership for Time-to-Market

13

3. Sales Focus

Direct sales network, AIC training makes virtuous cycle for continuous growth

Dentists participating implant training

More dentists placing implant

Expanding potential market

Relationship with dentists

Higher usability by training

Direct Sales

Direct contact to dental clinic

Also utilizing dealership sales

AIC Training

14

4. Power of Direct Sales

Direct sales network, the solid base for continuing growth

Direct Sales network needs long term investment Core asset of Osstem

(Hard to imitate for competitors in short term)

Direct Sales for No.1 M/S and major markets (Emerging Market, USA)

Patient is our clients (Not dealers’)

Invite dentists for AIC

Ongoing communication(Sales, AS, CS)

New product expansion easily

Long-term purchase contract

Feedback on our product/service

15

5. OSSTEM’s AIC

AIC is Osstem’s unique implant training system for dentists : Outstanding faculties, comprehensive curriculum, academic and practice focused

Dentists incapable of placing

implant

Dentists capable of Implant

Sales Target

AIC Training

AIC Training center (62)

70,000

Global Trainee total

’00 ’01 ’02 ’03 ’04 ’15 ’16 ’17 ’05

…….

’18 ’19E

16

qh

Subsidiaries Dealerships European Dealer (Germany)

KOREA

U.S.A

CANADA

GERMANY

MEXICO

JAPAN

CHINA

HONGKONG

RUSSIA

TAIWAN

BANGLADESH

THAILAND

VIETNAM

MALAYSIA

SINGAPORE

INDIA

INDONESIA

NEW ZEALAND

UZBEKISTAN

UKRAINE

PHILIPPINE

AUSTRALIA

KAZAKHSTAN

TURKEY

CHILE

MONGOLIA

NORWAY

FINLAND

ENGLAND

SOUTH AFRICA

BOSNIA

JORDAN

PORTUGAL

SPAIN

ALBANIA

ITALY

EGYPT

KOSOVO

HUNGARY

SLOVENIA

ARMENIA

BULGARIA

TUNISIA

LITHUANIA

LATVIA

CZECH

CROATIA

KUWAIT

GREECE

POLAND

SLOVAKIA

SWITZERLAND

UAE

PAKISTAN

AZERBAIJAN

CAMBODIA

PERU

IRAN

MYANMAR

SRI LANKA

PNG

SAUDI ARABIA

FRANCE

LEBANON

RUMANIA

MACEDONIA

OSSTEM IMPLANT THAT EXTENDS TO

THE WORLD!

IRAQ

BAHRAIN

TAJIKISTAN

OMAN

PALESTINE

COSTA RICA

6. Global Network

Manufacturing plants in Korea/USA, Subsidiaries and Dealers over 70 countries

: Dual brand strategy, customized packages for each market

KOREA – BUSAN & SEOUL

U.S.A. - PHILADELPHIA

Manufacturing plants

17

7. R&D Investment 1)

10 R&D centers developing core technologies of dental implant and digital dentistry

R&D Centers Bone

Medical Equipment

IT System

Dental Drug

Stent Interior

Implant

Oral Care

10 Centers

400 Research staffs

R&D expenses up to 7% of revenue.

Highest level in Korea

18

7. R&D Investment 2)

Focus on global No.1 implant technologies and future growth engine

FIXTURE Top tier surface and design capability

Mature clinical records over 20 years

TS

HA CA BA SOI

Top tier osseointergration technology

Advanced technologies over SLA

Digital Dentistry

SS US MS

SA

Digital Implant Cutting edge

Medical Equipment

New Materials Dental IT S/W

Growth Engine

SURFACE

III. Growth Strategy

20

1. Digital Dentistry 1)

Conventional dental practice heavily depends on dentist’s knowledge/knowhow/skill

Inaccurate and long time of training required

Dentist depedent (knowlege/knowhow/skill) (error 1~2mm diameter)

Procedure Implant

procedure

Prosthetics

Panorama/CT (Knowhow/Skill)

Diag & plan

Prosthesis

Made in dental lab

Patient engage

Dentist dependent (inaccurate)

Impression

Manual tray

Conventional way

21

Making Data Acquistion Design(Plan) Procedure/Cure

1. Digital Dentistry 2)

Digital Dentistry is way of precise and handy treatment

Accurate and shorter time of training required

Digital Dentistry

All digitalized, precise and handy treatment, independent of dentist’s knowledge/knowhow/skill

Chair-side manufacturing, shorter time and lower cost for patients

One platform for multi use : implant, prosthetics, orthodontics, etc.

3D Scanner, CBCT

Analysis

Digital S/W (AI) Dental CAD (AI) Dental CAM Digital Guide

22

2. Osstem’s Digital Dentistry Roadmap

Core products/serviced launching in 2019

Launched Scheduled

Reimbursement / Dental EMR, Patient Care S/W

Dental CT

Milling

3D Printer

P2 (Standard Dental X-rays)

OneScan O1 (Intra-oral Scanner)

T1 (CBCT)

OneVision 2D (2D Imaging S/W)

OneVision 3D (3D Imaging S/W)

V-Ceph (2D Ceph Analysis S/W)

OneGuide S/W (Implant Surgical Guide)

OneCAD Pros. (Prosthetics CAD)

OneCAD Ortho. (Orthodontic CAD)

OneMill 4X (Milling Machine)

OneJet (3D Printer)

Dubeone (Reimbursement S/W)

HanaroOK (Dental Hospital Solution)

MAGIC Line (Clear Aligners & Ortho. Guide)

OneScan M1 (Model Scanner)

Dental Hospital SW Diagnosis Manufacturing Data Acquisition Design(Planning)

OneClick (Dental Hospital Solution)

Implant Guide

ABT & Crown

Clear Aligner

2D Imaging & Diag. S/W

3D Imaging & Diag. S/W

Intraoral & Model Scanner

23

3. Digital Dentistry Market

Digital Dentistry’s total addressable market is 18Bil. USD in 2023

0

5

10

15

20

17 18 19E 20E 21E 22E 23E

Digital Imaging

CAD/CAM

S/W

Prosthetics

Implant

(1Bil. $)

[MRG, OSSTEM]

24

4. Digital Dentistry Application

From Implants to Prosthetics, Orthodontics and other areas

Digital Dentistry

Digital Implant ('16)

Orthodontics ('18) Prosthetics ('18)

Double Jaw ('19) Digital Denture ('18)

25

5. OSSTEM’s Perspective

Digital Platform enables global total offering, sales and training

Integration of Products and IT S/W

Integrated

Sales and Training

Globalization

Integration of software, implant and materials

digtal platform for effective and quicker dental cure

Digital Dentistry products, S/W linked in Platform

online order, direct sales and customer loyalty

Customized training for dentists, Online & Offline integrated

Time-to-Market concentration

Accelerated global launch of digital platform

1

2

3

IV. Earnings and Outlook

27

1. Global Market Growth

Emerging market drives global implant market growth

[MRG]

28

2. Sales Forecasts

2018 Sales 460 Bil. KRW, 2019F 15~20% Growth

398

(1Bil. KRW)

’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17

150

170

201 216

217

278

345

CAGR

15% Growth

(`10 ~ `18)

’18

460

’19F

15~20% Growth

29

3. Korea Market

2018 Domestic Revenue 226 Bil. KRW, '19 9~10% Growth

106

128

148

179 193

226

250

13 14 15 16 17 18 19E

‘13~’18

CAGR 13.0%

Implant (60%)

Material

(28%)

Devices (12%)

(1Bil. KRW)

30

3. Korea Implant Reimbursement

Reimbursements up to 70% from July, 2018 (50% 70%)

Population Forecast

[KOSTAT]

[Mil. People, Accumulated]

Policy Effect

[MHW, OSSTEM]

2 implants per patient

Date Age Population

2014. 7. 1 Over 75 80,000

2015. 7. 1 Over 70 100,000

2016. 7. 1 Over 65 150,000

2018. 7. 1 Over 65 160,000

▪ Market Size Forecast ( Average cost 180,000 per unit )

‘14.7.1 80,000 X 180,000 KRW(1~2) = 14.4~28.8 Bil. KRW

‘15.7.1 100,000 X 180,000 KRW(1~2) = 18.0~36.0 Bil. KRW

‘16.7.1 150,000 X 180,000 KRW(1~2) = 27.0~54.0 Bil. KRW

‘18.7.1 160,000 X 180,000 KRW(1~2) = 28.0~55.0 Bil. KRW

▪ For 5years CAGR 10%~15% Market Growth(E)

▪ Total cost = USD 1,100 ~ 1,300 /implant X 70%

31

4. China Market 1)

2019F, China Revenue 110 Bil. KRW

192 240

290

350

600

17 18 19E 20E 23E

74

89

110

135

245

17 18 19E 20E 23E

[Unit : USD M]

[자료 : MRG, OSSTEM] [자료 : OSSTEM]

‘17 ~ ’23

CAGR 20%

‘17 ~ ’23

CAGR 22.2%

[Unit : USD M]

Market Size Sales Forecast

32

4. China Market 2)

Sales follows increase in AIC trainee and sales network expansion

AIC trainee Sales Network

Accumulated 18,946

[OSSTEM] [OSSTEM]

39 46 53 57 66 76

260 277

326

383

456 475

13 14 15 16 17 18

Branch Staff

1,565 1,780

2,133

2,466

2,849 3,024

13 14 15 16 17 18

33

5. North America Market 1)

2019F, North America sales 77 Bil. KRW

Market Size Sales Forecast

[MRG, OSSTEM]

[Unit: 1Bil. KRW] [Unit : USD M]

[OSSTEM]

‘17 ~ ’23

CAGR 8.5%

‘17 ~ ’23

CAGR 14.9%

1,412 1,600

1,720 1,900

2,500

17 18 19E 20E 23E

59 68

77

86

130

17 18 19E 20E 23E

34

5. North America Market 2)

AIC trainee Sales Network

Accumulated 14,249

[OSSTEM] [OSSTEM]

Sales follows increase in AIC trainee and sales network expansion

1,270

1,922 1,992

1,657

2,354

2,854

13 14 15 16 17 18

30 37 48 52 61 66

185 170

205

242

282 304

13 14 15 16 17 18

Branch Staff

35

6. Global Market at a glance

Continuing high growth in China, U.S., and Russia

Country ’12 ’13 ’14 ‘15 ‘16 ‘17 '18

China (Beijing)

272 346 341 410 241 528 632

Guang Dong 49 52 73 302 153 184

Hong Kong 34 36 10 31 40 46 49

US 291 350 298 349 471 528 635

Canada 7 24 31 37 46 57 67

Russia 15 26 45 73 116 170 203

Germany 83 73 95 85 96 112 114

India 33 42 53 60 85 108 82

Others 289 278 270 320 411 517 543

Sum 923 1,150 1,135 1,350 1,717 2,113 2,509

(Unit: 100Mil. KRW)

306

431 403

514

583

727

890

291

350

298

349

471

528

635

0

100

200

300

400

500

600

700

800

900

’12 ’13 ’14 ‘15 ‘16 ‘17 '18

China CAGR 19%

USA CAGR 14%

Russia CAGR 54%

36

Key Takeaways in 2019

7. 2019 Key Takeaways

‘19 Revenue 15~20% Growth

Operating Margin 8~9%

Reduced deficit in subsidiaries

R&D & new product launch for continuing growth

Global management system for further growth

V. Financial Statements

38

Financial Statements

2018 2017 2016

Current Asset 362,680 318,270 277,673

Non-current Asset 275,246 237,429 197,584

Total Asset 637,926 555,699 475,257

Current Liability 479,643 352,274 324,868

Non-current Liability

44,287 83,028 38,657

Total Liability 523,930 435,302 363,525

Capital 7,143 7,143 7,143

Capital excess of par value

54,047 54,057 54,057

Other Capital -36,728 -33,154 -31,424

Profit Surplus 84,151 84,938 74,587

Non-controlling interests

5,374 7,413 7,368

Total Capital 113,995 120,397 111,731

(1Mil. KRW) [Income Statement] (1Mil. KRW) [Balance Sheet]

2018 2017 2016

Sales 460,147 397,791 344,582

Cost of Sales 201,600 165,703 141,139

Gross Profit 258,547 232,087 203,443

SG&A 227,571 210,385 169,194

Operating profit 30,975 21,702 34,250

Net Income before Tax

18,023 19,430 32,483

Income Tax 11,768 13,770 12,150

Net Income (Loss) 6,255 5,660 20,333

Thank you