ASPEN PHARMACARE HOLDINGS LIMITED - Trading Statement

Trading Statement

Aspen Pharmacare Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1985/002935/06)
Share code: APN & ISIN: ZAE000066692
("Aspen")


Trading Statement
Aspen shareholders are hereby advised and reminded that the reported results for
the 12 month trading period to 30 June 2016 are influenced by the factors set out
below which significantly affect comparability with the results of the prior period:

   1. The completion on 31 August 2015 of the divestment of the Generics
      business conducted in Australia as well as certain branded products
      distributed in Australia to Strides group companies, the related termination of
      license arrangements in Australia and the completion on 1 October 2015 of
      the divestment of a portfolio of products distributed in South Africa to Litha
      Pharma (collectively “the Divestments”). The contribution to the Aspen results
      by the Divestments is consequently substantially reduced in the current
      period. In the period from 1 July 2015 until effective date of divestment,
      revenue from the Divestments was R211 million whereas revenue from the
      Divestments for the 12 months ended 30 June 2015 was R1 836 million.

   2. The economic situation in Venezuela has deteriorated over the 12 months to
      30 June 2016 and the Venezuelan authorities have increasingly limited
      authorisations to pay for pharmaceutical imports using the official DIPRO rate
      (previously the CENCOEX rate) ranging during this period from Venezuelan
      Bolivars (“VEF”) 6.30 to 10.0 per USD. As a consequence of the limited
      payment approvals and the uncertain economic and political situation in
      Venezuela, the Group concluded that it would be more appropriate to apply
      the DICOM rate of VEF 628 per USD (which replaced the SIMADI exchange
      rate of VEF 200 per USD in March 2016) to report the Venezuelan business
      financial position, results of its operations and cash flows for the 12 months
      ended 30 June 2016. This has resulted in a once-off currency devaluation
      loss on foreign denominated liabilities of R870 million.

The currency devaluation loss is excluded from normalised headline earnings per
share (“NHEPS”). In order to provide Aspen shareholders with clear comparability of
the financial performance of the ongoing underlying business, a measure described
as comparable NHEPS, has been determined by excluding the contribution from the
Divestments and includes the results of Aspen’s Venezuelan business translated at
the DICOM rate of VEF 628 per USD for the prior reporting period.

Comparable NHEPS for the 12 months ended 30 June 2016 is expected to be
between 1184.0 cents and 1237.4 cents, an increase of between 11% and 16%
over the comparative period (1066.7 cents).
Comparable NHEPS, NHEPS, headline earnings per share and earnings per share
for the 12 months ended 30 June 2016 are expected to vary from those reported in
the comparative period, ended 30 June 2015, within the following ranges:


                                                               Cents per share
                                                               in the
Measure                 Range            Cents per share       comparative       Notes
                                                               period -
                                                               30 June 2015
 
Comparable NHEPS         11% to 16%      1184.0 to 1237.4      1066.7

NHEPS                    7% to 12%       1 226.1 to 1 283.3    1 145.8           1,2

Headline earnings
per share               -26% to -21%     851.0 to 908.4        1 149.9           3

Earnings per share      -20% to -15%     911.8 to 968.8        1 139.8           4


Notes:

1. NHEPS comprises headline earnings per share adjusted for specific non-trading
   items. NHEPS is the primary measure used by Aspen to assess its underlying
   financial performance. NHEPS excludes, inter alia, the effects arising from the
   devaluation of Aspen’s Venezuelan business.

2. NHEPS for the comparative period 30 June 2015 has been restated from the
   previously reported value of 1219.1 cents to 1145.8 cents, in terms of a change in
   accounting policy, to exclude net monetary adjustments and currency
   devaluations relating to hyperinflationary economies.

3. The decline in headline earnings per share is mainly as a result of the negative
   effect arising from the devaluation of Aspen’s Venezuelan business.

4. The decline in earnings per share is mainly as a result of the negative effect
   arising from the devaluation of Aspen’s Venezuelan business and intangible
   asset impairments reduced by the positive effect of the capital profits realised on
   the Divestments during the 12 months ended 30 June 2016.

The financial results on which this trading announcement is based have not been
reviewed or reported on by Aspen`s external auditors.

Aspen`s results for the 12 months ended 30 June 2016 are scheduled to be
published on SENS on 14 September 2016.

Durban
7 September 2016

Sponsor: Investec Bank Limited

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