ASPEN PHARMACARE HOLDINGS LIMITED - Summarised Audited Group Annual Financial Statements for the year ended 30 June 2019 and Notice of AGM

Summarised Audited Group Annual Financial Statements for the year ended 30 June 2019 and Notice of AGM

ASPEN PHARMACARE HOLDINGS LIMITED
(Incorporated in the Republic of South Africa) (“Aspen Holdings” or “the Company”)
Registration number: 1985/002935/06
Share code: APN
ISIN: ZAE000066692
and its subsidiaries (collectively “Aspen” or “the Group”)

SUMMARISED AUDITED GROUP ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019
AND NOTICE OF ANNUAL GENERAL MEETING

The reviewed provisional Group financial results for the year ended 30 June 2019 which were released on
SENS on 11 September 2019 have been restated as a consequence of the recall of Zantac, a product
predominantly sold by our Australian commercial business as an over-the-counter (“OTC”) product, but
which is also available as a prescription product. The product is indicated for relief from stomach acid build-
up and used in the treatment of heartburn, gastric reflux and ulcers. The recall was effected on 1 October
2019, after our 2019 financial year-end and followed an instruction issued on 26 September 2019 by the
Australian regulatory authority (“TGA”) for the recall of all pharmaceutical products containing the active
pharmaceutical ingredient ranitidine. Ranitidine contains traces of a by-product compound called N-
nitrosodimethylamine (“NMDA”) which may pose a low carcinogenic risk from long-term exposure. The
TGA and other international regulatory agencies are in the process of investigating the issue.


As a consequence of the recall Aspen has revised the assumptions supporting the value of the Zantac
brand and raised an impairment of ZAR 719 million, on a worst-case basis, assuming that the brand will
not recover from the negative impact of the recall. Aspen is, however, actively working on plans to
relaunch the brand containing an alternative API formulation, which would comply with the new
pharmaceutical regulations. The cost related to the recall and return of stock from the market is not
material and has not been accrued as a liability in the statement of financial position. The total revenue
for Zantac in Australasia for the financial year ended 30 June 2019 was R119 million (representing 0.3% of
total Group revenue) and the impact of the loss of Zantac on future earnings is not considered material.

Accordingly, the summarised audited Group annual financial statements are presented below:

SALIENT RESULTS
Aspen reported the following salient results:
 - Revenue from continuing operations increased by 1% to R38.9 billion (Restated June 2018: R38.3
   billion);
 - Normalised EBITDA from continuing operations decreased by 2% to R10.8 billion (Restated June 2018:
   R11.0 billion);
 - Earnings per share increased by 7% to 1 415.9 cents (Restated June 2018: 1 322.5 cents);
 - Earnings per share from continuing operations decreased by 64% to 437.3 cents (Restated June 2018:
   1 231.3 cents);
 - Headline earnings per share from continuing operations decreased by 11% to 1 227.6 cents (Restated
   June 2018: 1 383.5 cents);
 - Normalised headline earnings per share from continuing operations decreased by 7% to 1 414.3 cents
   (Restated June 2018: 1 518.4 cents);
 - Net Borrowings reduced to R38,9 billion (from R53,5 billion at 31 December 2018);
 - Disposal of the Nutritionals Business was concluded effective 31 May 2019;
 - Operating cash flow conversion rate of 107% from continuing operations; and
 - No dividend has been declared for the year ended 30 June 2019 (June 2018: 315 cents).

FULL SUMMARISED AUDITED GROUP ANNUAL FINANCIAL STATEMENTS
The full summarised audited Group annual financial statements for the year ended 30 June 2019 are
contained on pages 113 to 137 of the Company’s 2019 integrated annual report available on the Company’s
website https://www.aspenpharma.com/results-and-reports/ under the FY2019 heading.

DISTRIBUTION OF AUDITED ANNUAL FINANCIAL STATEMENTS AND NOTICE OF ANNUAL GENERAL
MEETING
Shareholders are advised that the Company’s 2019 integrated annual report for the year ended 30 June
2019 has been prepared for posting and is available on the Company’s website
https://www.aspenpharma.com/results-and-reports/ under the FY2019 heading.

Notice is hereby given that the annual general meeting of the shareholders of Aspen will be held on
Thursday, 5 December 2019 at 10:00 at Aspen Place, Rydall Vale Park, Douglas Saunders Drive, La Lucia
Ridge, Durban to deal with the business as set out in the notice of annual general meeting forming part of
the integrated annual report.

Salient dates:
Record date for the purpose of determining which shareholders are entitled to receive the notice of annual
general meeting: Friday, 29 November 2019;
Distribution of integrated annual report and notice of annual general meeting: 28 October 2019; and
Last day to trade for the purposes of being entitled to attend, participate in and vote at the annual general
meeting: Tuesday, 26 November 2019.

Shareholders are requested to lodge their completed proxy forms with the transfer secretaries by 10:00 on
2 December 2019. Any form of proxy not delivered to the transfer secretaries by this time may be handed
to the chairman of the annual general meeting prior to the commencement of the annual general meeting.

Please refer to the Annual General Meeting for full details in this respect.

For and on behalf of the Board

Kuseni Dlamini                                                     Stephen Saad
Chairman                                                           Group Chief Executive

Registered office
Building 8
Healthcare Park
Woodlands Drive
Woodmead
Sandton

Woodmead
28 October 2019

Sponsor:
Investec Bank Limited

Date: 28/10/2019 05:48:00
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