AGENDA Vision GUS ATTRIDGE Financial results GUS ATTRIDGE Aspens - PowerPoint PPT Presentation

AGENDA Vision GUS ATTRIDGE Financial results GUS ATTRIDGE Aspen’s global strategy STEPHEN SAAD Business performance STEPHEN SAAD Outlook STEPHEN SAAD 2

Vision Aspen vision “To deliver value to all our stakeholders as a responsible corporate citizen that provides quality affordable medicines globally.” 3

Vision Delivering value to all our stakeholders ► Growth >20% in revenue, profit, HEPS ► Distribution +50% ► Rising share price ► Exponential returns for BEE shareholders ► Investing in skills of our employees ► A product pipeline which creates improved access to quality medicines ► Benefitting suppliers and partners 4

Vision Responsible corporate citizens ► Investing in the future: products, manufacturing, people ► Supporting the communities where we operate ► Delivering on BBBEE: Level 3 value adding entity ► Leading supplier of ARVs in South Africa ► Environmentally aware ► Integrity is a core value 5

Vision Providing quality, affordable medicines globally ► Supplying medicines to more than 150 countries ► Expanding territorial coverage ► Increasing product ranges ► Leading supplier of medicines in South Africa, Sub Saharan Africa and Australia ► Raising production standards 6

Financial results Financial Performance Highlights Revenue +23% R15.3 billion from continuing operations Normalised headline earnings +22% R2.9 billion from continuing operations Normalised diluted headline earnings per share +22% 636 cents from continuing operations Capital distribution to shareholders +50% 157 cents 7

Financial results Abridged Income Statement Year ended Year ended 30 June 2012 30 June 2011 % change R'million R'million CONTINUING OPERATIONS Revenue 15 256 12 383 +23% Gross profit 7 276 5 614 +30% Net operating expenses -3 123 -2 321 EBITA 4 153 3 293 +26% Amortisation -212 -144 Operating profit 3 941 3 149 +25% Net funding costs -501 -412 Profit before tax 3 440 2 737 +26% Tax -772 -582 2 668 2 155 +24% Profit after tax from continuing operations Basic Earnings per share (EPS) 609.3 cents 495.2 cents +23% Headline earnings per share (HEPS) 649.7 cents 510.9 cents +27% 636.2 cents 523.3 cents Normalised diluted HEPS +22% 8

Financial results Reconciliation of 2012 Earnings Earnings Per share R'million Cents 2 818 645.8 Earnings attributable to equity holders Discontinued operations -159 -36.5 Earnings from continuing operations 2 659 609.3 Impairments 176 40.4 Headline earnings 2 835 649.7 Restructuring costs 52 11.9 Transaction costs 25 5.7 Foreign exchange gain on transaction funding -35 -7.9 2 877 659.4 Normalised headline earnings 9

Financial results Comparative reconciliation of EPS Year ended Year ended % 30 June 2012 30 June 2011 change Cents Cents Basic earnings per share (EPS) 645.8 595.5 +8% Discontinued operations -36.5 -100.3 Basic EPS from continuing operations 609.3 495.2 +23% Impairments 40.4 21.1 Other - -5.4 Headline EPS from continuing operations 649.7 510.9 +27% Restructuring costs 11.9 5.3 Transaction costs 5.7 28.1 Foreign exchange gain on transaction funding -7.9 - Normalined HEPS from continuing operations 659.4 544.3 +21% Dilution -23.2 -21.0 Normalised diluted HEPS from continuing operations 636.2 523.3 +22% 10

Financial results Segmental contribution Gross Revenue 2012 Gross Revenue 2011 South Africa International 48% 19% International South Africa 15% 38% Asia Pacific 23% Asia Pacific Sub-Saharan 37% Sub-Saharan Africa Africa 10% 10% Normalised EBITA 2011 Normalised EBITA 2012 International International 21% 21% South Africa 40% Asia Pacific 19% South Africa 55% Asia Pacific Sub-Saharan 33% Sub-Saharan Africa Africa 5% 6% 11

Financial results Gross Revenue from Continuing Operations 7 000 +97% 6 000 0% 5 000 R'million 4 000 3 000 -11% +27% 2 000 -11% +11% 1 000 - SA Pharma SA Consumer Sub-Saharan Asia Pacific Latin America Rest of the Africa World 2011 2012 ACCORDING TO CUSTOMER GEOGRAPHY 12

Financial results Group Operating Margin 18 000 35.0% 16 356 16 000 13 214 30.0% 14 000 27.2% 27.1% 27.0% 26.9% 12 000 10 088 25.0% Margin % R'million 26.4% 10 000 8 442 8 000 20.0% 6 000 4 683 4 000 15.0% 2 000 - 10.0% 2008 2009 2010 2011 2012 Gross revenue Group margin Based on Gross revenue and Normalised EBITA 13

Financial results South African business review 7 500 50% 6 000 40% 4 500 30% Margin % R'million 3 000 20% 1 500 10% - 0% 2009 2010 2011 2012 Normalised EBITA 1 102 1 639 1 934 1 768 Revenue 4 309 5 576 6 296 6 160 Operating margin 26% 29% 31% 29% ► ► Business performance Outlook   Difficult H1 due to once-off items Return to growth   Good performance by pharmaceutical Pharma division well set business in H2  Strong product pipeline  ARV tenders recover in H2  Legislative uncertainty  Consumer division disappointing  Awarded largest portion of oral solid  Manufacturing efficiencies help offset tender inflationary pressures  Nutritionals innovation 14

Financial results Asia Pacific business review 7 500 50% 6 000 40% 4 500 30% Margin % R'million 3 000 20% 1 500 10% - 0% 2009 2010 2011 2012 Normalised EBITA 114 176 642 1 460 Revenue 915 1 278 3 004 6 021 Operating margin 12% 14% 21% 24% ► Business performance ► Outlook   Revenue growth of both original Aspen Set to be the biggest contributor to and former Sigma business revenue   Synergies from single business platform Further price disclosure cuts   Further gains from procurement network Significant procurement savings and  improved margins Rationalisation of manufacturing  facilities progressing Impact of price disclosure cuts  Opportunities from unique positioning  Aspen Philippines commenced trade  South East Asia expansion 15

Financial results International business review 3 000 60% 2 500 50% 2 000 40% Margin % R'million 1 500 30% 1 000 20% 500 10% - 0% 2009 2010 2011 2012 Normalised EBITA 901 847 735 939 Revenue 2 286 2 325 2 614 2 523 Operating margin 39% 36% 28% 37% ► ► Business performance Outlook   Continued growth in LATAM Expansion of portfolio   Elimination of low margin business Expanded territorial presence   Global brands drive improved margins Ongoing COGS reduction projects 16

Financial results Sub-Saharan Africa business review 2 000 30% 1 500 20% Margin % R'million 1 000 10% 500 - 0% 2009 2010 2011 2012 Normalised EBITA 178 72 177 248 Gross Revenue 931 910 1 301 1 652 Operating margin 19% 8% 14% 15% ► ► Business performance Outlook   Good performance by all underlying business New product launches segments  Growth strategies  Growth in GSK Aspen Collaboration  Political uncertainty  Improved business efficiency at Shelys 17

Financial results Abridged Statement of Financial Position As at As at 30 June 30 June R'million R'million ASSETS Non-current assets 21 287 17 423 Fixed assets 3 807 3 652 Intangible assets 11 870 8 917 Goodwill 5 344 4 627 Other non-current assets 266 227 Current assets 7 118 6 335 Cash 3 314 3 039 Total assets 31 719 26 797 EQUITY AND LIABILITIES Share capital and reserves 17 398 13 287 Non-current liabilities 7 000 5 302 Preference shares liability - 381 Long term interest-bearing liabilities 6 254 4 249 Other non-current liabilities 746 672 Short term interest-bearing liabilities 4 127 5 138 Other current liabilities 3 194 3 070 Total equity and liabilities 31 719 26 797 18

Financial results Operating Cash Flows Year ended Year ended 30 June 2012 30 June 2011 % change R'million R'million Cash operating profit 4 746 3 845 +23% Changes in working capital -870 -463 Cash generated from operations 3 876 3 382 +15% Net finance costs paid -514 -401 Tax paid -454 -535 Cash generated from operations 2 908 2 446 +19% Discontinued operations -2 -44 Normalisation adjustments 18 113 Normalised cash generated from continuing operations 2 924 2 515 +16% Normalised operating cash flow per share from 670.2 cents 580.9 cents +15% continuing operations Operating profit to cash flow conversion rate 102% 107% Working capital as a % of Revenue 27.2% 22.5% 19

Financial results Investment in Property, Plant & Equipment 700 651 636 630 600 470 500 382 R'million 400 289 253 300 215 168 200 119 75 60 100 - 2007 2008 2009 2010 2011 2012 Capital Expenditure Depreciation MORE THAN R3 BILLION SPENT ON CAPEX OVER 6 YEARS 20

Financial results Debt and Liquidity trends Capital composition Operating net cash flows vs net debt 100% 8 000 7 068 90% 6 729 24% 7 000 29% 29% 34% 80% 40% 6 000 52% 70% 5 000 4 432 60% Percentage R'million 50% 4 000 3 428 2 910 40% 76% 3 000 2 446 71% 71% 66% 2 011 2 033 30% 60% 2 000 48% 1 292 977 20% 652 1 000 10% 709 - 0% 2007 2008 2009 2010 2011 2012 2007 2008 2009 2010 2011 2012 Net cash flow from operating activities Net debt Equity Debt 21