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Unaudited Financial Results for the six-month period ended 31 March 2014
ADCOCK INGRAM HOLDINGS LIMITED
Incorporated in the Republic of South Africa
Registration number 2007/016236/06
Income tax number 9528/919/15/3
Share code: AIP ISIN: ZAE000123436
("Adcock Ingram" or "the Company" or "the Group")
UNAUDITED FINANCIAL RESULTS
for the six-month period ended 31 March 2014
Adding value to life
Consolidated statements of comprehensive income
Unaudited Restated* Restated*
six months six months year
ended ended ended
31 March 31 March 30 September
2014 2013 2013
Note R'000 R'000 R'000
REVENUE 2 2 432 942 2 357 414 5 229 308
TURNOVER 2 2 420 476 2 341 813 5 195 185
Cost of sales (1 574 555) (1 359 100) (3 091 486)
Gross profit 845 921 982 713 2 103 699
Selling and distribution expenses (372 220) (287 129) (666 026)
Marketing expenses (103 588) (97 289) (211 930)
Research and development expenses (49 199) (52 051) (104 941)
Fixed and administrative expenses (205 219) (148 903) (311 831)
Trading profit 115 695 397 341 808 971
Non-trading (expenses)/income 3 (113 819) 28 099 (25 689)
Operating profit 1 876 425 440 783 282
Finance income 2 5 960 7 807 21 510
Finance costs (57 001) (24 026) (80 018)
Dividend income 2 6 506 7 794 12 613
Equity accounted profit attributable to joint ventures 23 769 33 342 72 193
(Loss)/Profit before taxation (18 890) 450 357 809 580
Taxation (19 011) (126 971) (213 127)
(Loss)/Profit for the period (37 901) 323 386 596 453
Other comprehensive income 66 947 56 765 370
Exchange differences on translation
of foreign operations 68 680 56 232 (772)
Net (loss)/profit on available-for-sale asset,
net of tax – (80) 247
Movement in cash flow hedge accounting reserve,
net of tax (1 733) 613 895
Total comprehensive income for the period,
net of tax 29 046 380 151 596 823
(Loss)/Profit attributable to:
Owners of the parent (41 861) 317 192 587 844
Non-controlling interests 3 960 6 194 8 609
(37 901) 323 386 596 453
Total comprehensive income attributable to:
Owners of the parent 28 100 372 310 587 203
Non-controlling interests 946 7 841 9 620
29 046 380 151 596 823
Basic (loss)/earnings per ordinary share (cents) (24,8) 188,0 348,6
Diluted basic (loss)/earnings per ordinary share (cents) (24,8) 187,8 348,3
Headline (loss)/earnings per ordinary share (cents) (23,0) 188,1 350,4
Diluted (loss)/headline earnings per ordinary share (cents) (23,0) 187,9 350,2
* Please refer to note 1.2
Consolidated statement of changes in equity
Attributable to owners of the parent
Total
attribut-
Non- able to
Issued distri- ordinary Non-
share Share Retained butable share- controlling
capital premium income reserves holders interests Total
R'000 R'000 R'000 R'000 R'000 R'000 R'000
Balance at 30 September 2012
(restated*) 16 872 547 400 2 502 510 356 229 3 423 011 125 500 3 548 511
Share issue 33 3 562 3 595 3 595
Movement in treasury shares (47) (27 265) (27 312) (27 312)
Share-based payment expense 8 669 8 669 8 669
Acquisition of non-controlling
interests in Ayrton Drug
Manufacturing Limited (92) (92) (161) (253)
Total comprehensive income 317 192 55 118 372 310 7 841 380 151
Profit for the period 317 192 317 192 6 194 323 386
Other comprehensive income 55 118 55 118 1 647 56 765
Dividends (195 128) (195 128) (1 236) (196 364)
Balance at 31 March 2013
(restated*) 16 858 523 697 2 624 482 420 016 3 585 053 131 944 3 716 997
Share issue 6 1 498 1 504 1 504
Movement in treasury shares (32) (21 131) (21 163) (21 163)
Share-based payment expense 4 408 4 408 4 408
Acquisition of non-controlling
interests in Ayrton Drug
Manufacturing Limited (27) (27) (62) (89)
Total comprehensive income 270 652 (55 759) 214 893 1 779 216 672
Profit for the period 270 652 270 652 2 415 273 067
Other comprehensive income (55 759) (55 759) (636) (56 395)
Share issue expenses incurred
by subsidiary (3 669) (3 669) (3 669)
Dividends (145 010) (145 010) (5 744) (150 754)
Balance at 30 September 2013
(restated*) 16 832 504 064 2 750 097 364 996 3 635 989 127 917 3 763 906
Share issue 46 6 857 6 903 6 903
Share-based payment expense 13 252 13 252 13 252
Acquisition of non-controlling
interests in Ayrton Drug
Manufacturing Limited (64) (64) (150) (214)
Total comprehensive income (41 861) 69 961 28 100 946 29 046
Loss for the period (41 861) (41 861) 3 960 (37 901)
Other comprehensive income 69 961 69 961 (3 014) 66 947
Dividends – – (1 391) (1 391)
Balance at 31 March 2014
(unaudited) 16 878 510 921 2 708 172 448 209 3 684 180 127 322 3 811 502
*Please refer to note 1.2
Consolidated statements of financial position
Unaudited Restated* Restated*
31 March 31 March 30 September
2014 2013 2013
R'000 R'000 R'000
ASSETS
Property, plant and equipment 1 637 077 1 540 260 1 648 709
Intangible assets 1 457 593 1 513 099 1 435 716
Other financial assets 136 695 139 653 139 646
Other non-financial asset 39 972 – 36 987
Loans receivable – 7 250 –
Investment in joint ventures 197 321 149 111 174 237
Deferred tax 8 513 338 7 829
Non-current assets 3 477 171 3 349 711 3 443 124
Inventories 1 471 878 1 278 985 1 523 076
Trade and other receivables 1 394 501 1 440 667 1 548 059
Cash and cash equivalents 149 041 42 865 97 592
Taxation receivable 104 362 45 515 86 368
Current assets 3 119 782 2 808 032 3 255 095
Total assets 6 596 953 6 157 743 6 698 219
EQUITY AND LIABILITIES
Capital and reserves
Issued share capital 16 878 16 858 16 832
Share premium 510 921 523 697 504 064
Non-distributable reserves 448 209 420 016 364 996
Retained income 2 708 172 2 624 482 2 750 097
Total shareholders' funds 3 684 180 3 585 053 3 635 989
Non-controlling interests 127 322 131 944 127 917
Total equity 3 811 502 3 716 997 3 763 906
Long-term borrowings 1 005 227 3 720 2 253
Post-retirement medical liability 16 038 15 941 15 108
Deferred tax 120 079 91 364 121 564
Non-current liabilities 1 141 344 111 025 138 925
Trade and other payables 1 116 433 1 015 360 1 295 168
Bank overdraft 456 739 939 919 1 307 993
Short-term borrowings 5 874 304 365 103 071
Cash-settled options 23 201 34 373 39 150
Provisions 41 860 35 704 50 006
Current liabilities 1 644 107 2 329 721 2 795 388
Total equity and liabilities 6 596 953 6 157 743 6 698 219
* Please refer to note 1.2
Consolidated statements of cash flows
Unaudited Restated* Restated*
six months six months year
ended ended ended
31 March 31 March 30 September
2014 2013 2013
R'000 R'000 R'000
Cash flows from operating activities
Operating profit before working capital changes 149 757 526 686 1 074 282
Working capital changes (35 753) (405 360) (576 688)
Cash generated from operations 114 004 121 326 497 594
Finance income, excluding receivable 4 895 10 394 18 699
Finance costs, excluding accrual (52 736) (19 153) (71 230)
Dividend income 16 506 21 502 34 990
Dividends paid (1 391) (196 364) (347 118)
Taxation paid (38 914) (84 684) (189 861)
Net cash inflow/(outflow) from operating activities 42 364 (146 979) (56 926)
Cash flows from investing activities
Decrease in other financial assets – – 409
Acquisition of Cosme business, net of cash – (821 593) (821 593)
Purchase of property, plant and equipment (62 167) (149 143) (319 577)
Decrease in loans receivable – 2 922 –
Proceeds on disposal of property, plant and equipment 5 – 377
Net cash outflow from investing activities (62 162) (967 814) (1 140 384)
Cash flows from financing activities
Acquisition of non-controlling interests in
Ayrton Drug Manufacturing Limited (214) (253) (342)
Proceeds from issue of share capital 6 903 3 595 5 099
Purchase of treasury shares – (27 312) (48 475)
Share issue expenses incurred by subsidiary – – (3 669)
Increase in borrowings 1 005 402 3 608 3 924
Repayment of borrowings (100 000) (200 000) (402 980)
Net cash inflow/(outflow) from financing activities 912 091 (220 362) (446 443)
Net increase/(decrease) in cash and cash equivalents 892 293 (1 335 155) (1 643 753)
Net foreign exchange difference on cash and cash equivalents 10 410 4 014 (735)
Cash and cash equivalents at beginning of period (1 210 401) 434 087 434 087
Cash and cash equivalents at end of period (307 698) (897 054) (1 210 401)
* Please refer to note 1.2
Notes to the consolidated financial statements
1 BASIS OF PREPARATION
1.1 Introduction
The abridged unaudited interim results have been prepared in compliance with the Listings Requirements of the JSE Limited,
International Financial Reporting Standards (IFRS), the requirements of the International Accounting Standards (IAS) 34: Interim
Financial Reporting, SAICA Financial Reporting Guidelines as issued by the Accounting Practices Committee and Financial
Pronouncements as issued by the Financial Reporting Standards Council and the Companies Act, No. 71 of 2008.
Mr Andy Hall, Deputy Chief Executive and Financial Director, is responsible for this set of financial results and has supervised the
preparation thereof in conjunction with the Finance Executive, Ms Dorette Neethling.
1.2 Changes in accounting policies
The accounting policies adopted are consistent with those of the previous financial year except for the adoption of the following
amended IFRS standards and interpretations during the year:
a)The adoption of the following standards and interpretations did not have any effect on the financial performance or position of
the Group:
* IFRS 10: Consolidated Financial Statements;
* IAS 27: Consolidated and Separate Financial Statements;
* IFRS 12: Disclosure on Interest in Other Entities;
* IFRS 13: Fair Value Measurement; and
* IAS 19: Employee Benefits.
b)The adoption of the following standards impacts the disclosure of the financial position of the Group, but does not impact the
performance of the Group:
* IAS 28: Investments in Associates and Joint Ventures; and
* IFRS 11: Joint Arrangements.
The application of IAS 28 and IFRS 11 impacted the Group's recording of its interest in the joint ventures: Adcock Ingram Limited
(India) and National Renal Care (Pty) Limited. Prior to the transition, the Group's share of the assets, liabilities, revenue, income and
expenses of these joint ventures was proportionately consolidated. Upon adoption of IAS 28 and IFRS 11, the Group is required to
account for its share in these entities using the equity method. This was applied retrospectively and the comparative information
for the reporting periods in 2013 are restated. The detailed disclosures on the impact of the restatement of the September 2013
figures can be found in Annexure I to the Annual Financial Statements for the year ended 30 September 2013. The only change to
the revised figures reflected in that Annexure is an allocation of R33,5 million between Fixed and administrative expenses and Selling
and distribution expenses.
Unaudited Restated* Restated*
six months six months year
ended ended ended
31 March 31 March 30 September
2014 2013 2013
R'000 R'000 R'000
2 REVENUE
Turnover 2 420 476 2 341 813 5 195 185
Finance income 5 960 7 807 21 510
Dividend income 6 506 7 794 12 613
2 432 942 2 357 414 5 229 308
Unaudited Restated* Restated*
six months six months year
ended ended ended
31 March 31 March 30 September
2014 2013 2013
R'000 R'000 R'000
3. NON-TRADING (EXPENSES)/INCOME
Transaction costs (91 003) – (34 630)
Impairment of intangible asset (3 008) – –
Impairment of long-term receivable (2 951) – –
Share-based payment expenses (16 857) (14 320) (33 478)
Foreign exchange gain on Cosme acquisition – 42 419 42 419
(113 819) 28 099 (25 689)
4. SEGMENT REPORTING
Turnover
Southern Africa 2 190 708 2 227 939 4 809 518
OTC 734 119 906 058 2 002 279
Prescription 975 032 856 707 1 852 759
Hospital 481 557 465 174 954 480
Rest of Africa 135 725 80 585 220 635
India 106 114 39 718 178 041
2 432 547 2 348 242 5 208 194
Less: Intercompany sales (12 071) (6 429) (13 009)
2 420 476 2 341 813 5 195 185
Contribution after marketing expenses (CAM)
and operating profit
Southern Africa 343 509 570 590 1 137 098
OTC 150 553 322 121 707 403
Prescription 148 765 178 204 321 704
Hospital 44 191 70 265 107 991
Rest of Africa 21 743 17 531 48 253
India 10 459 14 925 49 586
375 711 603 046 1 234 937
Less: Intercompany (5 598) (4 751) (9 194)
CAM 370 113 598 295 1 225 743
Less: Other operating expenses(1) (368 237) (172 855) (442 461)
Research and development (49 199) (52 051) (104 941)
Fixed and administrative (319 038) (120 804) (337 520)
Operating profit 1 876 425 440 783 282
(1)Other operating expenses are managed on a central basis
and are not allocated to operating segments.
Total assets
Southern Africa 5 164 501 4 924 576 5 285 204
Pharmaceuticals 4 452 677 4 305 599 4 585 199
Hospital 711 824 618 977 700 005
Rest of Africa 277 116 85 748 286 104
India 1 155 336 1 147 419 1 126 911
Total assets 6 596 953 6 157 743 6 698 219
Unaudited Restated* Restated*
six months six months year
ended ended ended
31 March 31 March 30 September
2014 2013 2013
R'000 R'000 R'000
5 INVENTORY
The amount of inventories written down recognised
as an expense in profit or loss 25 594 17 029 38 283
6 CAPITAL COMMITMENTS
– contracted 33 452 235 873 34 737
– approved, but not contracted 73 406 54 024 117 342
106 858 289 897 152 079
7 HEADLINE (LOSS)/EARNINGS
Earnings per share is derived by dividing earnings attributable
to owners of Adcock Ingram for the period, by the weighted
average number of shares in issue.
Headline (loss)/earnings is determined as follows:
(Loss)/Earnings attributable to owners of Adcock Ingram (41 861) 317 192 587 844
Adjusted for:
Impairment of intangible asset 3 008 – –
Loss on disposal of property, plant and equipment, net of tax 24 167 3 065
Headline (loss)/earnings (38 829) 317 359 590 909
8 SHARE CAPITAL Number Number Number
o f shares of shares of shares
'000 ‘000 ‘000
Number of ordinary shares in issue 201 589 201 066 201 128
Number of A and B shares held by the BEE participants (25 944) (25 944) (25 944)
Number of ordinary shares held by the BEE participants (2 571) (2 255) (2 571)
Number of ordinary shares held by Group company (4 285) (4 285) (4 285)
Net shares in issue 168 789 168 582 168 328
Headline earnings and basic earnings per share are based on:
Weighted average number of shares 168 622 168 696 168 618
Diluted weighted average number of shares 168 697 168 868 168 753
INTRODUCTION
Adcock Ingram is a leading South African manufacturer, marketer and distributor of a wide range of healthcare products.
The Group enjoys a sizeable share of the private pharmaceutical market with a strong presence in over the counter (OTC) brands.
The Group is South Africa's largest supplier of hospital and critical care products and its footprint extends to other territories in
sub-Saharan Africa and India. The Group's extensive product portfolio includes branded and generic prescription medicines,
OTC/fast moving consumer goods (FMCG) brands, intravenous solutions, blood collection products and renal dialysis systems.
OPERATIONAL PERFORMANCE
The poor operational performance for the reporting period under review is regrettable and unfortunate. There are a number
of sector specific reasons for the Group's under-performance, not least, the generally negative market conditions during the
period under review, margin pressures through an under recovery of increasing input and overhead costs, these substantially
arising through unfavourable currency conversion rates, compounded by inflation of certain key overheads and an unusually
prolonged adverse product sales mix.
The Group was also the target in a protracted contest for shareholder control and not unexpectedly, the drawn out and exacting
corporate and regulatory processes preoccupied certain key management and they, together with the Board of directors
(Board), became embroiled by the demands of these events and actions. It was inevitable that there would be economic
consequences under such circumstances and apart from significant but identifiable legal and professional costs, the negative
commercial effects of this prolonged distraction, though specifically unquantifiable, must to a lesser or greater extent, be
revealed in the disappointing results set out above. Shareholder control issues were finally resolved towards the end of February
2014, when a consortium led by the Bidvest Group acquired a material interest in the Company, forcing the termination of the
proposed offer and scheme of arrangement between the Company and CFR Pharmaceuticals (Chile).
FINANCIAL REVIEW
Turnover
Sales were negatively impacted by a sharp slow-down in the over the counter (OTC) and prescription generics portfolios in
Southern Africa. Nevertheless, total Group turnover, which included the turnover of Datlabs (Zimbabwe) and Cosme (India) for
the six-month period increased by 3,4% to R2,421 million (2013: R2,342 million).
Profits
Gross profit for the six-month period decreased by 13,9% to R846 million (2013: R983 million).
Gross profit as a percentage of sales was under extreme pressure as a result of an unfavourable product sales mix and Rand
depreciation. The adverse currency exchange rates impacted negatively on the cost of imported active ingredients and other
materials, compounded by cost input inflation and the under recovery of fixed costs with certain facilities running below
capacity, particularly the oral liquids facility in Clayville.
Comparable operating overhead costs increased by 24,7% to R730 million (2013: R585 million). The significant increase relates
substantially to the inclusion of costs incurred at Datlabs and Cosme for the first time amounting to R84 million. Non-trading
expenses of R114 million include R91 million relating to the failed CFR bid process.
Net finance costs were R51 million, compared to R16 million in the comparative period as the average borrowings increased
following the acquisition of Cosme.
After net finance costs, dividends received and equity accounted profits from joint ventures, a loss before tax of R19 million
(2013: R450 million profit) was recorded. A tax liability of R19 million has been provided for, as expenditure relating to the
CFR corporate actions are not deductible for tax purposes. This results in a loss after tax of R38 million, compared to a profit of
R323 million recorded in 2013.
Headline loss
A headline loss of R39 million was recorded for the six months ended 31 March 2014, compared to 2013 headline earnings
of R317 million. This translates into a loss per share of 24,8 cents (2013: earnings of 188,0 cents) and a headline loss per share
of 23,0 cents (2013: earnings of 188,1 cents) in the current period. Absent the costs of the CFR corporate actions, headline
earnings per share on this basis would have been 29,1 cents compared to the headline loss of 23,0 cents reflected above.
Cash flows
Cash generated from operations was R114 million (2013: R121 million) after working capital increased by R36 million.
Trade accounts and other receivables decreased by R154 million and remain well controlled. Inventory decreased by R24 million
despite the overall exchange rate impact.
Total capital expenditure for the six months amounted to R62 million (2013: R149 million) which included the completion of
the tableting facility at Wadeville.
Subsequent to September 2013, the final instalment of R100 million was repaid on the capex loan facility. A secured term loan
of R1 billion was concluded with Nedbank, replacing a portion of the bank overdraft. The secured loan incurs interest payable
quarterly in arrears and the capital is due for repayment in December 2018.
BUSINESS OVERVIEW
Southern Africa
This segment encompasses all of the businesses in the Southern African region namely OTC, Prescription and Hospital. Overall,
the region posted a sales decrease of 1,7%.
OTC turnover reduced by 19% to R734 million (2013: R906 million), driven by a decline in the independent wholesale channel,
strong competition and through consumers continuing to buy down due to economic pressure.
Turnover in the Prescription business increased by 13,8% to R975 million (2013: R857 million). This was impacted by the
introduction of new products and success in being awarded certain ARV and other oral dosage tenders. The branded portfolio
performed well but sales in the generics portfolio were disappointing.
Hospital turnover increased by 3,5% over the comparable period to R482 million (2013: R465 million). The renal portfolio
continues its growth trend, but blood products and medicine delivery sales were marginally lower.
Rest of Africa and India
Revenue in the Rest of Africa, with the inclusion of Datlabs in Zimbabwe, increased 68% over the comparative period.
In Ghana sales increased by 10,3% to R60 million (2013: R55 million). Certain Adcock Ingram products in Ghana were negatively
impacted due to registration issues. The Ghanaian government also introduced a new 17,5% Value Added Tax (VAT) rate
replacing a zero VAT rating previously applicable to locally manufactured pharmaceuticals. This has generally dampened activity
in the market place and could impact negatively on sales in the short to medium term.
In East Africa, sales increased to R21 million (2013: R14 million), driven by expansion into Uganda and Rwanda and further
product registrations in Tanzania.
In Zimbabwe sales were negatively impacted by the overall cash crisis experienced in the market due to low national
government spending and delayed settlement of invoices from the local government.
Although the periods of operations are not fairly comparable, sales of R106 million were recorded in India during the period
under review compared to R40 million in 2013. The performance to date has not been optimal for various reasons but
management now have a sound understanding of the immediate market, the staffing and regulatory environment. Following
the material investment of R782 million in January 2013, management remains optimistic about the future prospects of the
Cosme business as the Indian team has developed a solid platform from which to grow the business.
REGULATORY ENVIRONMENT
The Department of Health (DOH) announced a Single Exit Price (SEP) increase of 5,8%, implemented in March 2014 for the
Prescription and OTC businesses and in April 2014 for Hospital products.
The Company is supportive of the introduction of regulations controlling complementary and alternative medicines (CAMS),
in order to maintain quality, safety and efficacy of this category of medicines. Adcock Ingram, through its membership of an
industry association, continues to engage with the Medicines Control Council (MCC) to gain clarification on their objectives.
At this stage, pending finality on the definition of a complementary medicine and any regulatory final implementation plan,
it is not possible to quantify whether there will be any material impact on the CAMS business.
PROSPECTS
Adcock Ingram, operating primarily in the South African market, remains concerned that the DOH approved SEP increase of
5,8% is insufficient to offset the impact of the weak Rand on active ingredient prices, and local wage and utilities inflation.
Sales recovery and margin pressure therefore remains of concern in the short term.
The Company is currently implementing substantive changes to its internal structures and processes in order to create more
defined but decentralised business units. The changes will inter alia create autonomous operating divisions with separate
focused strategies to best manage the challenges and opportunities in each of the Adcock Ingram businesses, while at the
same time, facilitating full accountability in each case.
These changes, in the process of implementation, are expected to be completed by 1 July 2014, hopefully triggering a
renewed focus of the Group's business operations, so as to restore the Company's profitability at the earliest possible time.
The full financial outcome of these systems and structural changes is yet to be finalised and the impact could result in further
consequential expenditure and impairments which will affect the Group's audited results for the period ending 30 June 2014.
While the road ahead is likely to be challenging, the Board remains optimistic that management will respond to the task of
successfully building on the proud history of the Company over the short to medium term.
CHANGES TO THE BOARD
Professor Matthias Haus was appointed as a member of the Audit Committee with effect from 3 December 2013.
Mr Leon Schönknecht retired as a non-executive director and Mr Andrew Thompson was not re-elected at the annual general
meeting of Adcock Ingram on Friday, 31 January 2014.
Dr Khotso Mokhele tendered his resignation as non-executive Chairman of the Board, effective 19 February 2014.
With effect from 24 February 2014, Mr Brian Joffe was appointed as non-executive Chairman of the Board. On 25 February 2014
Mr Michael (Motty) Sacks was appointed as an independent non-executive director and Chairman of the Audit Committee and
Mr Clifford Raphiri, an independent non-executive director of Adcock Ingram, was appointed as the lead independent director.
Following the resignation of Dr Jonathan Louw on 1 April 2014, Mr Kevin Wakeford was appointed as the Chief Executive Officer
of Adcock Ingram on 3 April 2014.
On 10 April 2014, Mr Lindsay Ralphs, Dr Anna Mokgokong and Mr Roshan Morar were appointed as non-executive directors
of the Company. Messrs Morar, Ralphs and Sacks have been appointed as members of the Human Resources, Remuneration
and Nominations Committee; Dr Mokgokong and Mr Wakeford have been appointed as members of the Social, Ethics and
Transformation Committee; Mr Morar has been appointed as a member of the Audit Committee; and Mr Sacks has been
appointed as a member of the Risk and Sustainability Committee.
The Board of the Company as at today is constituted as follows:
Mr B Joffe (Non-Executive Chairman)
Mr K Wakeford (Chief Executive Officer)
Mr A Hall (Deputy Chief Executive and Financial Director)
Prof M Haus (Independent Non-Executive Director)
Dr T Lesoli (Independent Non-Executive Director)
Mr M Makwana (Independent Non-Executive Director)
Dr A Mokgokong (Non-Executive Director)
Mr R Morar (Non-Executive Director)
Mr L Ralphs (Non-Executive Director)
Mr C Raphiri (Lead Independent Non-Executive Director)
Mr M Sacks (Independent Non-Executive Director)
Dr R Stewart (Independent Non-Executive Director)
CHANGE IN FINANCIAL YEAR
Shareholders are advised that for better performance management and other goal directed operational practicalities, the
Company's financial year end has been changed from September to June. Accordingly, the next formal results communication
will be the audited financial results for the nine months ending 30 June 2014.
DIVIDEND
The Board has resolved that no dividend will be considered prior to the interim results for the six-month period ending
31 December 2014.
By order of the Board
B Joffe K Wakeford AG Hall
Chairman Chief Executive Officer Deputy Chief Executive and Financial Director
Johannesburg
27 May 2014
Corporate information
ADCOCK INGRAM HOLDINGS LIMITED
Incorporated in the Republic of South Africa
Registration number 2007/016236/06
Income tax number 9528/919/15/3
Share code: AIP ISIN: ZAE000123436
("Adcock Ingram" or "the Company" or "the Group")
Directors:
Mr B Joffe (Non-Executive Chairman)
Mr K Wakeford (Chief Executive Officer)
Mr A Hall (Deputy Chief Executive and Financial Director)
Prof M Haus (Independent Non-Executive Director)
Dr T Lesoli (Independent Non-Executive Director)
Mr M Makwana (Independent Non-Executive Director)
Dr A Mokgokong (Non-Executive Director)
Mr R Morar (Non-Executive Director)
Mr L Ralphs (Non-Executive Director)
Mr C Raphiri (Lead Independent Non-Executive Director)
Mr M Sacks (Independent Non-Executive Director)
Dr R Stewart (Independent Non-Executive Director)
Company secretary:
NE Simelane
Registered office:
1 New Road, Midrand, 1682
Postal address:
Private Bag X69, Bryanston, 2021
Transfer secretaries:
Computershare Investor Services (Pty) Limited
70 Marshall Street, Johannesburg, 2001
PO Box 61051, Marshalltown, 2107
Auditors:
Ernst & Young Inc.
Wanderers Office Park, 52 Corlett Drive, Illovo, 2196
Sponsor:
Deutsche Securities (SA) (Pty) Limited
3 Exchange Square, 87 Maude Street, Sandton, 2146
Bankers:
Nedbank Limited, 135 Rivonia Road, Sandown, Sandton, 2146
Rand Merchant Bank, 1 Merchant Place, corner Fredman Drive and Rivonia Road, Sandton, 2196
Attorneys:
Read Hope Phillips, 30 Melrose Boulevard, Melrose Arch, 2196
Forward-looking statements:
Adcock Ingram may, in this document, make certain statements that are not historical facts and relate to analyses and other
information which are based on forecasts of future results and estimates of amounts not yet determinable. These statements
may also relate to our future prospects, developments and business strategies. Examples of such forward-looking statements
include, but are not limited to, statements regarding exchange rate fluctuations, volume growth, increases in market share,
total shareholder return and cost reductions. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could",
"may", "endeavour" and "project" and similar expressions are intended to identify such forward-looking statements, but are not
the exclusive means of identifying such statements. By their very nature, forward-looking statements involve inherent risks and
uncertainties, both general and specific, and there are risks that the predictions, forecasts, projections and other forward-looking
statements will not be achieved. If one or more of these risks materialise, or should underlying assumptions prove incorrect, our
actual results may differ materially from those anticipated. Forward-looking statements apply only as of the date on which they
are made, and we do not undertake any obligation to update or revise any of them, whether as a result of new information,
future events or otherwise.
Date: 27/05/2014 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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