Healthcare. We Care . Introduction to Aspen
About Aspen 2 • Leading specialty and branded multinational pharmaceutical company with a 20-year history • Well positioned in both emerging and developed markets • Markets and distributes products renowned for quality, efficacy and affordability • Core therapeutic categories include Regional Brands, Anaesthetics, Thrombosis and High Potency & Cytotoxics • Manufacturing capability covering a wide range of product types including injectables, oral solid dose, liquids, semi-solids, steriles, biologicals and active pharmaceutical ingredients • World class facilities with international approvals from global regulatory agencies 25 manufacturing Over 150 countries R42,6 billion More than More than 24 billion tablets 10 000 employees facilities revenue generated have access to in FY2018 manufactured annually in 52 countries on 17 sites our products
Vision & Values 3 Teamwork We optimize our performance by pulling together. Our combined capabilities exceed the sum of each individual Our vision: Innovation Integrity We constantly search “To deliver value to all our stakeholders Our integrity is for better ways of doing as a responsible corporate citizen that not negotiable. things and are solution orientated provides high quality, affordable medicines and products globally” Excellence Commitment We strive to be the We go the extra mile, best we can be seeking to exceed and to deliver to the expectations highest standards
Milestones 4 1997 Began trading 1998 Sp Specialty Focus Phase 2015 Listed on the JSE Synergy realisation plans established 2015 2015 to o 2017 2017 1999 Fo Foundation Phase following 2013 & 2014 acquisitions Acquired South African Druggists 1997 1997 to o 2007 2007 2016 2003 Restructured business to align with Launched Aspen Stavudine; the first generic ARV therapeutic focus areas developed and manufactured in Africa Acquired the AZ & GSK anaesthetics 2005 portfolios Unit 1 facility in Port Elizabeth became world's first Exercised option to acquire Fraxiparine & site to receive tentative US FDA approval for the Arixtra from GSK for commercialisation in production of certain generic ARVs China 2017 Acquired remaining rights to IP & manufacturing know-how related to AZ’s anaesthetics portfolio Future Fu Commercial focus on Emerging Markets 2008 Increase in complex Entered Latam market manufacturing capacities Acquired IP rights to GSK global brands 2009 Leverage of geographic footprint Concluded a series of strategic transactions with GSK: (1) acquired distribution rights to GSK products in South Portfolio management through Africa; development, acquisition & disposal (2) formed The GSK Aspen Healthcare for Africa Collaboration; (3) acquired eight specialist brands; and Glob obal Expansion on Phase (4) acquired the Bad Oldesloe site in Germany. 2008 to 2008 o 2014 2014 2011 Acquired Australian-based Sigma Pharmaceuticals Limited 2013 and 2014 Acquired API business & products from MSD; an Anticoagulant portfolio & a specialized Sterile production site from GSK Concluded transactions with Nestlé for infant milks in Australia, South Africa & Latam
Business model 5 GLOBALLY INTEGRATED VALUE CHAIN Investment in a product portfolio Efficiencies achieved through Generation of organic revenue of niche, specialty medicines and end-to-end global supply chain and profit growth through strong domestic brands that management performed by a focused promotion present opportunities for highly experienced team sustainable revenue Product pipeline Manufacturing and supply Commercialisation development chain operations Patient/consumer needs Procurement Marketing and sales API manufacturing Product development, Healthcare professional engagement FDF manufacturing acquisition and registration and support Distribution Patient/consumer use • Targeted acquisitions • Reliable supply • Extensive sales representation in more than 50 countries • Internal product development • Operational costs optimisation • Line extensions of existing IP • Maximisation of vertical integration synergies
Manufacturing sites (25 facilities on 17 sites) 6 Key sites Regional sites Finished Dose • Vitoria, Brazil • Port Elizabeth, South Africa • Vallejo, Mexico (Nutritionals) Sterile manufacturing, solids, • Nairobi, Kenya high-potency, hormonal • Johannesburg, South Africa • Notre Dame de Bondeville, (Nutritionals) France • East London, South Africa Sterile manufacturing, solids, • Dar es Salaam, Tanzania semi-solids • Accra, Ghana • Bad Oldesloe, Germany • Melbourne, Australia Solids & semi-solids, liquids, • Auckland, New Zealand blow-fill seals (Nutritionals) API • Oss, the Netherlands (De Geer, Product development site Moleneind and Boxtel) • Hyderabad, India Biochemical API, hormonal API, Chemical API • Notre Dame de Bondeville, France Biochemical API, Chemical API • FCC Cape Town, South Africa Specialised API • Sioux City, USA Biochemical API
Global presence 7 1% 29% 7% 6% Contribution to revenue Contribution to revenue Contribution to revenue Contribution to revenue USA & Canada Developed Europe Developing Europe & CIS China R0,6 billion R12,3 billion R2,5 billion R2,8 billion 10% 5% ASIA Contribution to revenue Latin America Contribution to revenue NORTH EUROPE R4,2 billion Japan AMERICA R1,9 billion Key Group headquarters 3% Combined sales, marketing, distribution & manufacturing centres Sales, marketing & distribution centres Marketing centres AFRICA Contribution to revenue Branch representative offices Other Asia Manufacturing site R1,4 billion Sales, marketing, distribution & support centres Support centre 23% New product development sites SOUTH AMERICA 70 established 2% 23% 14% AUSTRALIA Contribution to revenue business operations Contribution to revenue Contribution to revenue Sub-Saharan Africa MENA Australia R0,9 billion R10,0 billion R6,0 billion Note: Revenue referred to is applicable to the 2018 financial year
5 Year Financial Review 8 Revenue (R’bn) Normalised EBITDA (R’bn) CAGR +10% CAGR +10% 42,6 41,2 12,0 11,4 36,1 35,6 10,1 9,7 29,5 8,2 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Operating cashflow per share (cents) Normalised HEPS (cents) CAGR +16% CAGR +11% 1 605 1 537 1 463 1 422 1 264 1 146 1 060 1 064 841 707 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018
FY 2018 Revenue contribution by category 9 High Potency & Regional Brands Anaesthetics Thrombosis Manufacturing Cytotoxics 34% 19% 15% 10% 22% R14,3 billion R8,3 billion R6,4 billion R4,2 billion R9,4 billion Key Brands Key Brands Key Brands Key Brands Circadin Diprivan Arixtra Alkeran Foxair EMLA Fraxiparine Eltroxin Mybulen Naropin Fraxodi Imuran Tribuss Ultiva Mono-embolex Ovestin Zyloric Xylocaine Orgaran Purinethol
Investment case 10 01 02 03 04 Global footprint Strong Operating Responsible Unique Business Model & infrastructure Cash Flows corporate citizen Broader opportunities Focus on technically complex Financial flexibility to take advantage Established foundation of strong products in specialist areas of profitable opportunities corporate governance Established platform to further enhance therapeutically focused Record of performance with post- Strong correlation of earnings to Active participant in the United areas patent molecules cash flow Nations Global Compact initiative Weighting towards Emerging World class production A constituent of the FTSE/JSE Markets concentrated in steriles and other Responsible Investment Index complex manufacture
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