2019 19 Pr Prelim liminar inary y Resul sults ts April il 2020 Peter Butterfield Chief Executive Officer Andrew Franklin Chief Financial Officer
Disc sclaime aimer This presentation (“Presentation”) contains information which is not audited. This Presentation is for personal use only and is provided for information purposes and is not intended for distribution to any person or entity, or for use by any person or entity, in any jurisdiction in any Disclaimer country where such distribution or use would be contrary to any laws or regulations, or which would subject Alliance Pharma Plc or any member of the Alliance Group to any legal or regulatory registration requirement. No representation or warranty, express or implied, is or will be made in relation to the accuracy, fairness or completeness of the information or opinions made in this Presentation. All statements in this Presentation reflect the knowledge and information available to the Alliance Group at the time of its preparation. Certain statements included or incorporated by reference within this Presentation may constitute “forward - looking statements” in respect of the Group’s performance, operations, financial condition and/or prospects. By their nature, “forward - looking statements” will involve a numb er of risks, uncertainties and assumptions and therefore actual results or events may differ materially from those which are either expressed or implied by those “forward looking statements”. Accordingly, no guarantees or assurance can be given that any particular expectation will be met, and reliance cannot and should not be placed on any “forward - looking statement”. Furthermore, all “forward - looking statements” regar ding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. No responsibility is accepted, and the Alliance Group does not undertake any obligation, to update or amend any “forward - looking statement” resulting from any new information, future events or otherwise. Nothing in this Presentation should be construed as a profit forecast. This Presentation does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase any shares in Alliance Pharma Plc, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment or investment decision relating thereto, nor does it constitute a recommendation regarding the shares of Alliance Pharma Plc or any invitation or inducement to engage in investment activity under Section 21 of the Financial Services and Markets Act 2000 (as amended). Past performance cannot be relied upon as an indication of future performance. Any liability arising from anything in this Presentation shall be governed and construed in accordance with English Law, and neither Alliance Pharma Plc nor any member of the Alliance Group or its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss arising out of or in connection with this Presentation or its use or its contents. Nothing in this Presentation shall exclude any liability under applicable laws or regulations that cannot be excluded in accordance with such laws or regulations. 2019 Prelims April 2020 2
Contents ents Contents Business Overview 2019 Results Brand Performance 2019 Operational Highlights Near-term Outlook (COVID-19) & Medium-term Ambition Summary 2019 Prelims April 2020 3
Business Overview Busi siness ness Ov Overview iew 2019 Prelims April 2020 4
Allianc iance e Pharma rma A growing international healthcare business… Headquartered in the UK, with subsidiaries in Europe, the Asia Pacific region and the US We own or in-license the rights to around 90 consumer healthcare products and pharmaceuticals Wide international reach through an extensive network of distributors A select number of promoted ‘International Star Business Overview Sales in more than 100 countries brands’ Supported by a diversified portfolio of cash- 2019 Revenue by geography generative Local brands 36% (2018: 42%) 64% (2018: 58%) International UK & ROI 2019 Revenue by product type 2019 Revenue by brand 55% 46% (2018: 50%) Countries with an Alliance office (2018: 37%) Distributor relationships 45% 54% (2018: 50%) (2018: 63%) Team Countries Offices People 1 >100 10 >200 International Star brands Consumer healthcare products Local brands Prescription medicines April 2020 5 2019 Prelims
Allianc iance e Pharma rma …with a clearly defined business proposition Operating a well-established business model Business Overview Our vision With a clearly articulated Our vision is to be a leading international healthcare business, built around products vision, purpose and strategy that are clinically valuable to patients. for growth… Our purpose Our purpose is to make a difference to people’s lives through making a range of clinically valuable healthcare products available to consumers and patients around the world. 2019 Prelims April 2020 6
Allianc iance e Pharma rma Ou Our Strategy tegy Sales evolution: acquisitions vs organic growth Maximising brand potential to Acquiring new products to deliver 4-year CAGR (2015 – 2019): 31% deliver organic growth incremental growth 160.0 140.0 Achieved through: Selective approach, aimed at: 120.0 Taking advantage of operating Our Strategy Insight-led marketing activity 100.0 synergies – geographic & by to increase brand awareness £m 80.0 channel (consumer products) 60.0 Refreshing our portfolio 40.0 Extending geographical reach, 20.0 Maintaining a balanced portfolio through new distributor 0.0 partnerships Products that are clinically valuable 2015 2016 2017 2018 2019 to healthcare consumers / patients Range development and Base sales Acquisitions extension Mix of small product acquisitions & larger strategic acquisitions Kelo-cote TM Opportunity is primarily around TM (Sinc nclair air TM TM ) Current focus is on consumer Nizora zoral TM TM our consumer healthcare brands £127.5m (APAC AC) healthcare brands in international £60.3m markets Vamousse usse TM TM MacuShi hiel eld TM £9.7 – TM £10.8m 11.6m Investing in people Acting responsibly 2018 Continuing to invest in our people Maximising the value created for all and in developing Alliance’s our stakeholders, in a responsible 2017 2015 strong, collaborative culture and sustainable way 2019 Prelims April 2020 7
2019 Results 2019 Re Resu sult lts 2019 Prelims April 2020 8
2019 Fu Full Year r Re Resu sult lts See-through Revenue* (CAGR 14%) Ov Overview iew 2019 £144.3m 2018 £124.0m 2017 £101.6m Statutory Revenue ‘See -through Revenue* £135.6m £144.3m 2016 £97.5m +15% +16% 2019 Results Underlying EBITDA* (CAGR 15%) 2019 £39.4m ‘See through’ Gross Margin Rate* Gross Margin Rate 2018 £32.4m 59.7% 63.5% 2017 £27.2m (2018: 58.6%) (2018: 61.5%) 2016 £26.0m Underlying Profit Before Tax (CAGR 14%) Underlying EBITDA* Underlying Profit Before Tax £32.9m £39.4m 2019 £32.9m 2018 £28.1m +22% +17% 2017 £23.9m 2016 £22.2m * Non-IFRS alternative performance measures. See-through revenue includes sales from Nizoral in full. For statutory accounting purposes the product margin on Nizoral sales is included within Revenue, in line with IFRS 15. 2019 Prelims April 2020 9
2019 Fu Full Year r Re Resu sult lts Free Cash Flow* (CAGR 31%) Overview Ov iew 2019 £29.1m 2018 £16.1m 2017 £22.0m 2016 £13.0m Underlying Basic EPS* Free Cash flow* 5.09p £29.1m 2019 Results Underlying Basic EPS* ** (CAGR 11%) +12% (2018: £16.1m) 2019 5.09p 2018 Net bank debt* 4.54p Final dividend £59.2m Nil p 2017 4.05p 2016 3.69p (31 Dec 2018: £85.8m) (2018: 0.977p) Dividend Per Share (CAGR -24%) Leverage at 1.48x Total dividend 0.536p 2019 0.536p Adjusted net debt 2018 1.464p -63% to EBITDA ratio 2017 1.331p 2016 1.210p * Non-IFRS alternative performance measures. See-through revenue includes sales from Nizoral in full. For statutory accounting purposes the product margin on Nizoral sales is included within Revenue, in line with IFRS 15. ** The 2017 measure refers to the Underlying Adjusted Basic EPS as disclosed in the 2017 Annual Report which was adjusted to normalise the impact of significant changes in overseas tax rates 2019 Prelims April 2020 10
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