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ASPEN PHARMACARE HOLDINGS LIMITED - Reviewed provisional Group financial results for the year ended 30 June 2015 & withdrawal of cautionary announcement

Release Date: 09/09/2015 12:30
Code(s): APN     PDF:  
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Reviewed provisional Group financial results for the year ended 30 June 2015 & withdrawal of cautionary announcement

Aspen Pharmacare Holdings Limited (“Aspen Holdings” or “The Company”) 
(Registration number 1985/002935/06) 
Share code: APN / ISIN: ZAE000066692 and its subsidiaries (collectively “Aspen” or “the Group”)
Reviewed provisional Group financial results for the year ended 30 June 2015 and withdrawal of cautionary announcement


COMMENTARY
GROUP PERFORMANCE
Aspen raised revenue 22% to R36,1 billion and grew operating profit 14% to R8,4 billion in the year ended 30 June 2015.
The results benefited from the contribution of acquisitions concluded during the prior year. Normalised headline
earnings, being headline earnings adjusted for specific non-trading items, and normalised headline earnings per share, were
both 15% higher at R5,6 billion and 1 219 cents respectively. This positive outcome was achieved despite an unfavourable
exchange rate environment in which the US Dollar was particularly strong, devaluing revenue flows and increasing cost of
goods in the Group’s principal trading currencies.

INTERNATIONAL BUSINESS
In the International business, revenue climbed 46% to R18,6 billion and operating profit before amortisation, adjusted
for specific non-trading items (“EBITA”), advanced 42% to R5,2 billion. The International business performance was
assisted by the inclusion of the significant transactions completed during the prior year and contributed more than half of
Group EBITA. The disposal of the rights to commercialise the fondaparinux products (being Arixtra and the authorised
generic thereof) in the United States to Mylan for a consideration of USD300 million became effective during the first half
of the 2015 financial year with the consequential loss of contribution.

Revenue from customers in Europe and the Commonwealth of Independent States (“Europe CIS”) increased 45% to R10,5 billion. 
Finished dose form pharmaceutical sales to healthcare providers comprised R6,9 billion of the total sales. The
acquisition in the second half of the year of Mono-Embolex, an anti-coagulant with almost all of its sales in Germany,
further strengthened Aspen’s offering in this therapeutic area. The largest part of the balance of the sales in the region
was from active pharmaceutical ingredient (“API”) sales. Relative weakness of the Europe CIS currencies to the Rand
reduced reported revenue from this region.

Sales to customers in Latin America (excluding Venezuela) grew 44% to R3,4 billion, supported by the infant
nutritionals acquisition in the prior year. Performance was constrained due to poor supply by contract manufacturers of certain
key pharmaceutical products. In Venezuela, sales to customers were up 143% to R2,7 billion. The results in Venezuela have
been influenced by the application of hyperinflationary accounting principles and a change in the rate of exchange
applied in the translation of local currency results from the prior year. The net effect of these entries on EBITA is not
significant.

Sales to customers in the Rest of the World were down 10% to R1,6 billion, influenced by the disposal of the
fondaparinux products for the United States to Mylan. 

Capital expenditure projects remain underway at Aspen Oss and Aspen Notre Dame de Bondeville (“Aspen NDB”). At Aspen
Oss, the projects are focused on the repurposing of facilities and at Aspen NDB, the addition of a new pre-filled
syringe filling line is well advanced.

SOUTH AFRICAN BUSINESS
Revenue in the South African business increased by 16% to R8,6 billion. Private sector pharmaceutical sales improved
12% through a combination of organic growth and new product launches. In the public sector sales grew 14% led by demand
under the antiretroviral (“ARV”) tender. The consumer division raised revenue by 23% due to a strong performance from
infant nutritionals, with Infacare making impressive gains in its share of this category. Revenue from manufacturing for
third parties also showed a good increase.
 
The increase in the ARV tender revenue coupled with the ongoing weakening of the Rand relative to the US Dollar as
well as high wage and energy cost inflation has placed pressure on EBITA margins. 

Expansion projects continued at the Port Elizabeth finished dosage form manufacturing site and at the API
manufacturing site in Cape Town (“Fine Chemicals”). In Port Elizabeth, the building of the high containment facility is nearing
completion and manufacturing trials in the hormonal suite have commenced. The packing facility upgrade is complete.
Construction of the additional specialist sterile manufacturing facility has commenced. At Fine Chemicals, production is
underway in certain of the newly constructed suites, while other parts of this expansion and upgrade project remain in
progress.

ASIA PACIFIC BUSINESS
Revenue in the Asia Pacific region was 5% lower at R8,1 billion and EBITA declined by 10% to R1,7 billion. In
Australasia sales to customers were 8% lower at R7,2 billion. The key focus areas of branded pharmaceuticals and infant
nutritionals both showed positive growth. This was, however, reversed by the effect of disposals as well as the termination of
licences and contract manufacturing arrangements in the second half of the prior financial year. These were undertaken in
accordance with the strategy to achieve greater focus in this business. Cost of goods in Australia increased due to the
weakening of the Australian Dollar against the US Dollar in which many input costs are denominated. 

Sales to customers in Asia accelerated by 39% to R1,3 billion through a combination of organic growth and recent
acquisitions, led by strong advances in Japan.

SUB-SAHARAN BUSINESS
In Sub-Saharan Africa, revenue was 1% higher at R2,8 billion. A disappointing performance from the GSK Aspen
Healthcare for Africa Collaboration, which was hampered by supply problems, limited performance in the region. Weakening
in-market currencies contributed to narrowing margins and a reduction of 6% in EBITA to R313 million.

FUNDING
Borrowings, net of cash, increased R0,2 billion over the year to R30,0 billion. R2,5 billion of this arose from
unfavourable relative foreign exchange rate movements. Group operating cash flows remained strong and cash generated from
operating activities increased by 26% to R4,8 billion. Gearing declined to 47% at the end of the financial year while net
interest paid was covered six times by operating profit before amortisation.

Net foreign exchange losses of R479 million were incurred, largely as a result of the strengthening of the US Dollar
against Aspen’s primary trading currencies, namely the Euro, the Rand and the Australian Dollar, over the course of the
year. This was partially offset by favourable hyperinflationary adjustments of R335 million arising in Venezuela. 

PROSPECTS
Strategically, the Group is aiming for sharper focus in key therapeutic areas with the objective of delivering
improved return on investment. Consequently, a broad range of non-core products distributed in Australia and in South Africa
have been divested in transactions which close in the first quarter of the new financial year. The revenue from these
divested products in 2015 was R1,7 billion.

The global pharmaceutical industry continues to adjust to changing demands in patient needs, heightened regulation and
evolving economic circumstances. This has been marked by significant merger and acquisition activity as companies seek
to strengthen and refocus their strategic positions. Aspen remains alert to the potential for value-creating
opportunities aligned to the Group’s development plans. The Group has a proven capability to successfully execute complex
multi-territory transactions which makes it a strong candidate for such opportunities. The Group has been seeking opportunities
to expand its infant nutritionals business and has recently been engaged in negotiations to explore such an opportunity.
Although these negotiations have not progressed to a satisfactory conclusion, Aspen will continue to investigate
prospects to build its infant nutritionals franchise. 

Currency volatility has weighed on the results of the past year. The Group remains exposed to the strength of the US
Dollar against its primary trading currencies. Indications are that this will again be an influential factor in the
overall results achieved in the year ahead. Developments in Venezuela will be carefully monitored due to the risks presented
by the economic conditions in that country. 

Considerable activity has been undertaken during the past year in the continuation of activities to harness synergies
arising from recently completed transactions. Due to the highly regulated nature of the pharmaceutical industry, the
execution of these plans has long lead times. Meaningful progress has been achieved in this regard during the year. Areas
of focus include lowering the cost of goods for the anti-coagulant portfolio, improving margins in the infant
nutritionals business, bringing new manufacturing capacity and technologies on-line, building the third party API business and
leveraging acquired intellectual property. It is expected that Aspen will experience the initial commercial benefits from
these synergies towards the end of the 2016 financial year. The value created by these initiatives is expected to grow
progressively thereafter and Aspen is targeting an additional R2.5 billion in EBITA from these synergies by the 2019
financial year.*

CAPITAL DISTRIBUTION
Taking into account the earnings and cash flow performance for the year ended 30 June 2015, existing debt service
commitments, future proposed investments and funding options, notice is hereby given that the Board has declared a capital
distribution] of 216 cents per ordinary share as a return of contributed tax capital to shareholders recorded in the
share register of the Company at the close of business on 9 October 2015 (2014: capital distribution of 188 cents per share). 

Shareholders should seek their own tax advice on the consequences associated with the distribution.

The directors are of the opinion that the Company will satisfy the solvency and liquidity requirements of Sections 4
and 46 of the Companies Act, 2008. 

Future distributions will be decided on a year-to-year basis.

In compliance with IAS 10: Events After Balance Sheet Date, the capital distribution will only be accounted for in
the financial statements in the year ending 30 June 2016.

Last day to trade cum capital distribution                 Friday, 2 October 2015
Shares commence trading ex capital distribution            Monday, 5 October 2015
Record date                                                Friday, 9 October 2015
Payment date                                              Monday, 12 October 2015

Share certificates may not be dematerialised or rematerialised between Monday, 5 October 2015 and Friday, 9 October 2015.

WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT
Shareholders are referred to the cautionary announcement dated 14 May 2015 (as renewed on 25 June and 5 August 2015)
and are advised that, as negotiations have not progressed to a satisfactory conclusion, caution is no longer required to
be exercised by shareholders when dealing in their securities.

By order of the Board

NJ Dlamini                                                            SB Saad
(Chairman)                                                            (Group Chief Executive)

Woodmead
9 September 2015

These results have been prepared under the supervision of the Deputy Group Chief Executive, MG Attridge, CA(SA) and
approved by the Board of Directors.

* This sentence has not been reviewed or reported on by Aspen’s external auditors.


GROUP STATEMENT OF FINANCIAL POSITION                                                        
                                                                   Reviewed        Audited   
                                                                       2015           2014   
At 30 June 2015                                                   R’million      R’million   
ASSETS                                                                                       
Non-current assets                                                                           
Property, plant and equipment                                       7 916,5        7 150,8   
Goodwill                                                            5 026,0        6 641,8   
Intangible assets                                                  40 522,1       35 698,9   
Other non-current assets                                              407,5          298,9   
Contingent environmental indemnification assets                       676,9          727,1   
Deferred tax assets                                                 1 131,2          817,1   
Total non-current assets                                           55 680,2       51 334,6   
Current assets                                                                               
Inventories                                                        10 791,5       10 275,2   
Receivables and other current assets                               10 390,2        9 661,2   
Cash and cash equivalents                                           8 665,6        8 225,6   
Total operating current assets                                     29 847,3       28 162,0   
Assets classified as held-for-sale                                  2 889,8        3 050,8   
Total operating current assets                                     32 737,1       31 212,8   
Total assets                                                       88 417,3       82 547,4   
SHAREHOLDERS’ EQUITY                                                                         
Share capital (including treasury shares)                           3 006,8        3 867,9   
Reserves                                                           31 131,9       25 006,3   
Ordinary shareholders’ equity                                      34 138,7       28 874,2   
Non-controlling interests                                              22,8            1,9   
Total shareholders’ equity                                         34 161,5       28 876,1   
LIABILITIES                                                                                  
Non-current liabilities                                                                      
Borrowings                                                         25 491,6       29 915,5   
Deferred tax liabilities                                            1 669,3        1 351,1   
Retirement and other employee benefits                                470,8          497,6   
Contingent environmental liabilities                                  676,9          727,1   
Unfavourable and onerous contracts                                  2 112,3        2 638,7   
Other non-current liabilities                                       2 056,4        2 499,3   
Total non-current liabilities                                      32 477,3       37 629,3   
Current liabilities                                                                          
Trade and other payables                                            6 785,2        6 884,0   
Borrowings*                                                        13 222,2        8 075,3   
Other current liabilities                                           1 455,6          747,4   
Unfavourable and onerous contracts                                    315,5          335,3   
Total current liabilities                                          21 778,5       16 042,0   
Total liabilities                                                  54 255,8       53 671,3   
Total equity and liabilities                                       88 417,3       82 547,4   
Number of shares in issue (net of treasury shares) (’000)           456 055        455 914   
Net asset value per share (cents)                                   7 485,7        6 333,3   
* Includes bank overdrafts.                                                                   


GROUP STATEMENT OF COMPREHENSIVE INCOME                                                                                    
                                                                                        Reviewed        Audited   
                                                                                            2015           2014   
For the year ended 30 June 2015                                  Notes     Change      R’million      R’million   
Revenue                                                                       22%       36 126,6       29 515,1   
Cost of sales                                                                          (18 872,4)     (15 793,2)   
Gross profit                                                                  26%       17 254,2       13 721,9   
Selling and distribution expenses                                                       (5 614,4)      (4 401,3)   
Administrative expenses                                                                 (2 817,5)      (1 652,5)   
Other operating income                                                                     542,8          692,4   
Other operating expenses                                                                  (915,2)        (935,7)   
Operating profit                                                    B#        14%        8 449,9        7 424,8   
Investment income                                                   C#                     382,7          278,1   
Financing costs                                                     D#                  (2 294,6)      (1 346,4)   
Profit before tax                                                              3%        6 538,0        6 356,5   
Tax                                                                                     (1 338,6)      (1 351,0)   
Profit for the year                                                            4%        5 199,4        5 005,5   
OTHER COMPREHENSIVE INCOME, NET OF TAX*                                                                           
Net investment hedge profit in Aspen Asia Pacific                                              -           23,9   
Net gains from cash flow hedging in respect of 
business acquisitions                                                                          -           75,1   
Currency translation gains                                          E#                     916,0        1 829,3   
Cash flow hedges recognised                                                                 22,2            3,0   
Remeasurement of retirement and other employee benefits                                     (5,5)         (25,3)   
Total comprehensive income                                                               6 132,1        6 911,5   
Profit for the year attributable to                                                                               
Equity holders of the parent                                                             5 201,4        5 007,6   
Non-controlling interests                                                                   (2,0)          (2,1)   
                                                                                         5 199,4        5 005,5   
Total comprehensive income attributable to                                                                        
Equity holders of the parent                                                             6 134,1        6 915,4   
Non-controlling interests                                                                   (2,0)          (3,9)   
                                                                                         6 132,1        6 911,5   
Weighted average number of shares in issue (’000)                                        456 347        456 116   
Diluted weighted average number of shares in issue (’000)                                456 453        456 219   
EARNINGS PER SHARE                                                                                                
Basic earnings per share (cents)                                               4%        1 139,8        1 097,9   
Diluted earnings per share (cents)                                             4%        1 139,5        1 097,6   
DISTRIBUTION TO SHAREHOLDERS                                                                                      
Capital distribution per share (cents)                                                     188,0           26,0   
Cash dividends per share (cents)                                                               -          131,0   
                                                                                           188,0          157,0   
The capital distribution to shareholders of 188,0 cents relates to the distribution declared on 10 September 2014 and paid on 
13 October 2014. (2014 distribution: the total distribution of 157,0 cents relates to the distribution declared on 11 September 2013 
and paid on 14 October 2013).                                                        
                                                                                                                             
# See notes on Supplementary information.                                                                              
* Remeasurement of retirement and other employee benefits will not be reclassified to profit and loss. All other items in other 
  comprehensive income may be reclassified to profit and loss.                                                        


GROUP STATEMENT OF HEADLINE EARNINGS                                                                                          
                                                                                                    Reviewed        Audited   
                                                                                                        2015           2014   
For the year ended 30 June 2015                                                         Change     R’million      R’million   
HEADLINE EARNINGS                                                                                                             
Reconciliation of headline earnings                                                                                           
Profit attributable to equity holders of the parent                                         4%       5 201,4        5 007,6   
Adjusted for:                                                                                                                 
- Profit on the sale of intangible assets (net of tax)                                                 (58,4)        (479,8)   
- Net impairment/(reversal of impairment) of property, plant and equipment                               7,8           (5,8)   
  (net of tax)                                                                                                                  
- Net impairment of intangible assets (net of tax)                                                     162,3          112,6   
- (Profit)/loss on the sale of property, plant and equipment (net of tax)                              (65,4)           1,1   
                                                                                           13%       5 247,7        4 635,7   
HEADLINE EARNINGS PER SHARE                                                                                                   
Headline earnings per share (cents)                                                        13%       1 149,9        1 016,3   
Diluted headline earnings per share (cents)                                                13%       1 149,7        1 016,1   
NORMALISED HEADLINE EARNINGS                                                                                                  
Reconciliation of normalised headline earnings                                                                                
Headline earnings                                                                          13%       5 247,7        4 635,7   
Adjusted for:                                                                                                                 
- Restructuring costs (net of tax)                                                                      98,6           29,4   
- Transaction costs (net of tax)                                                                       217,2          435,9   
- Net foreign exchange gains from hedging of business acquisitions (net of tax)                            -            1,7   
- Foreign exchange gain on settlement of transaction funding liability (net of tax)                        -         (248,9)   
                                                                                           15%       5 563,5        4 853,8   
NORMALISED HEADLINE EARNINGS PER SHARE                                                                                        
Normalised headline earnings per share (cents)                                             15%       1 219,1        1 064,2   
Normalised diluted headline earnings per share (cents)                                     15%       1 218,9        1 063,9   


GROUP STATEMENT OF CHANGES IN EQUITY                                                                                                    
For the year ended 30 June 2015                     Share capital                             Total   
                                                       (including                   attributable to      
                                                         treasury                    equity holders     Non-controlling                     
                                                           shares)     Reserves       of the parent           interests         Total                                  
                                                        R’million     R’million           R’million           R’million     R’million                                  
BALANCE AT 1 JULY 2013                                    3 989,2      18 804,6            22 793,8                 5,1      22 798,9   
Total comprehensive income                                      -       6 915,4             6 915,4                (3,9)      6 911,5   
 Profit for the year                                            -       5 007,6             5 007,6                (2,1)      5 005,5   
 Other comprehensive income                                     -       1 907,8             1 907,8                (1,8)      1 906,0   
Capital distribution and dividends paid                    (118,6)       (597,4)             (716,0)               (0,2)       (716,2)   
Issue of ordinary share capital - share schemes               2,7             -                 2,7                   -           2,7   
Treasury shares purchased                                   (22,3)            -               (22,3)                  -         (22,3)   
Deferred incentive bonus shares exercised                    16,9         (16,9)                  -                   -             -   
Share-based payment expenses                                    -          21,8                21,8                   -          21,8   
Equity portion of tax claims in respect of 
share schemes                                                   -          10,8                10,8                   -          10,8   
Hyperinflation adjustment - Venezuela                           -        (132,0)             (132,0)                0,9        (131,1)   
BALANCE AT 30 JUNE 2014                                   3 867,9      25 006,3            28 874,2                 1,9      28 876,1   
Total comprehensive income                                      -       6 134,1             6 134,1                (2,0)      6 132,1   
 Profit for the year                                            -       5 201,4             5 201,4                (2,0)      5 199,4   
 Other comprehensive income                                     -         932,7               932,7                   -         932,7   
Capital distribution and dividends paid                    (857,4)            -              (857,4)               (0,3)       (857,7)   
Issue of ordinary share capital - share schemes               0,2             -                 0,2                   -           0,2   
Treasury shares purchased                                   (22,7)            -               (22,7)                  -         (22,7)   
Deferred incentive bonus shares exercised                    18,8         (18,8)                  -                   -             -   
Share-based payment expenses                                    -          24,8                24,8                   -          24,8   
Equity portion of tax claims in respect of 
share schemes                                                   -          (0,7)               (0,7)                  -          (0,7)   
Contribution by non-controlling shareholders                    -             -                   -                 4,7           4,7   
Acquisition of subsidiary                                       -             -                   -                16,4          16,4   
Acquisition of non-controlling interests                        -         (13,8)              (13,8)                2,1         (11,7)   
BALANCE AT 30 JUNE 2015                                   3 006,8      31 131,9            34 138,7                22,8      34 161,5   


GROUP STATEMENT OF CASH FLOWS                                                                                          
                                                                                             Reviewed        Audited   
                                                                                                 2015           2014   
For the year ended 30 June 2015                                                   Notes     R’million      R’million   
CASH FLOWS FROM OPERATING ACTIVITIES                                                                                   
Cash operating profit                                                                         9 506,8        7 911,2   
Changes in working capital                                                                   (1 466,9)      (2 187,5)   
Cash generated from operations                                                                8 039,9        5 723,7   
Net financing costs paid                                                                     (2 007,4)        (709,1)   
Tax paid                                                                                     (1 193,7)      (1 178,3)   
Cash generated from operating activities                                                      4 838,8        3 836,3   
CASH FLOWS FROM INVESTING ACTIVITIES                                                                                   
Capital expenditure - property, plant and equipment                                  A#      (1 592,8)      (1 328,9)   
Proceeds on the sale of property, plant and equipment                                           184,6          106,3   
Capital expenditure - intangible assets                                              A#        (824,6)        (700,4)   
Proceeds on the sale of intangible assets                                                       412,2          898,8   
Acquisition of subsidiaries and businesses                                           H#      (2 156,5)     (19 764,2)   
Acquisition of non-controlling interests                                                        (11,7)             -   
Acquisition of joint venture                                                                    (61,5)             -   
Increase in other non-current assets                                                            (65,8)             -   
Payment of deferred consideration relating to prior year 
business acquisitions                                                                          (495,7)         (85,9)   
Proceeds on the disposal of assets classified as held-for-sale                                3 050,8              -   
Net investment hedge profit in Aspen Asia Pacific                                                   -           23,9   
Cash used in investing activities                                                            (1 561,0)     (20 850,4)   
CASH FLOWS FROM FINANCING ACTIVITIES                                                                                   
Net (repayments)/proceeds from borrowings                                                    (1 366,2)      20 183,3   
Capital distribution and dividends paid                                                        (857,7)        (716,2)   
Proceeds from issue of ordinary share capital                                                     0,2            2,7   
Contribution by non-controlling shareholders                                                      4,7              -   
Treasury shares purchased                                                                       (22,7)         (22,3)   
Cash (used in)/generated from financing activities                                           (2 241,7)      19 447,5   
Movement in cash and cash equivalents before effects of exchange rate changes                 1 036,1        2 433,4   
Effects of exchange rate changes                                                               (338,9)         312,2   
Movement in cash and cash equivalents                                                           697,2        2 745,6   
Cash and cash equivalents at the beginning of the year                                        6 161,8        3 416,2   
Cash and cash equivalents at the end of the year                                              6 859,0        6 161,8   
                                                                                                                       
Operating cash flow per share (cents)                                                         1 060,3          841,1   
                                                                                                                       
RECONCILIATION OF CASH AND CASH EQUIVALENTS                                                                            
Cash and cash equivalents per the statement of financial position                             8 665,6        8 225,6   
Less: bank overdrafts                                                                        (1 806,6)      (2 063,8)   
                                                                                              6 859,0        6 161,8   
For the purposes of the statement of cash flows, cash and cash equivalents comprise cash-on-hand, deposits held on call 
with banks less bank overdrafts.                                          
                                                                                                                        
# See notes on Supplementary information.                                                                               
                                                                                                                  

GROUP SEGMENTAL ANALYSIS                                                                                                      
                                                                                                Restated                             
                                                                        2015                       2014                               
For the year ended 30 June 2015                               R’million    % of total     R’million     % of total    Change   
REVENUE                                                                                                                        
International@                                                 18 567,4            49      12 724,8             40        46%   
South Africa^                                                   8 602,6            23       7 446,3             24        16%   
Asia Pacific                                                    8 107,3            21       8 517,2             27        (5%)  
Sub-Saharan Africa                                              2 768,6             7       2 744,3              9         1%   
Total gross revenue                                            38 045,9           100      31 432,6            100        21%   
Adjustment*                                                    (1 919,3)                   (1 917,5)                            
Total revenue                                                  36 126,6                    29 515,1                       22%   
OPERATING PROFIT BEFORE AMORTISATION                                                                                           
Adjusted for specific non-trading items (“EBITA”)                                                                              
International                                                   5 159,8            56       3 636,1             47        42%   
Operating profit#                                               4 610,7                     3 633,1                       27%   
Amortisation of intangible assets                                 249,9                       180,4                            
Transaction costs                                                  75,9                       255,0                            
Restructuring costs                                               130,3                           -                            
Profit on the sale of assets                                     (60,7)                      (522,0)                            
Impairment of assets                                              153,7                        89,6                            
South Africa                                                    1 950,2            21       1 816,5             24         7%   
Operating profit#                                               1 826,5                     1 652,7                       11%   
Amortisation of intangible assets                                  93,1                        65,1                            
Transaction costs                                                   9,6                        77,4                            
Profit on the sale of assets                                      (19,6)                          -                            
Net impairment of assets                                           40,6                        21,3                            
Asia Pacific                                                    1 748,4            19       1 944,6             25       (10%)  
Operating profit#                                               1 705,8                     1 811,6                       (6%)  
Amortisation of intangible assets                                 137,7                       138,2                            
Transaction costs                                                     -                         7,0                            
Restructuring costs                                                 1,5                        42,1                            
Reversal of impairment of assets                                      -                        (5,8)                            
Profit on the sale of assets                                      (96,6)                      (48,5)                            
Sub-Saharan Africa                                                312,7             4         333,6              4        (6%)  
Operating profit#                                                 306,9                       327,4                       (6%)  
Amortisation of intangible assets                                   6,3                         6,2                            
Profit on the sale of assets                                       (0,5)                          -                                                                                                                                                         
Total EBITA                                                     9 171,1           100       7 730,8            100        19%   
ENTITY-WIDE DISCLOSURE - REVENUE                                                                                               
Analysis of revenue in accordance with customer geography                                                                      
Europe CIS                                                     10 456,3            28       7 200,1             23        45%   
South Africa                                                    8 608,1            23       7 451,4             24        16%   
Asia Pacific                                                    8 504,1            22       8 798,7             28        (3%)  
Latin America (excluding hyperinflationary economy)             3 424,3             9       2 371,7              8        44%   
Sub-Saharan Africa                                              2 776,8             7       2 752,6              9         1%   
Hyperinflationary economy                                       2 703,9             7       1 112,9              3       143%   
Rest of the world                                               1 572,4             4       1 745,2              5       (10%)  
Total gross revenue                                            38 045,9           100      31 432,6            100        21%   
Adjustment*                                                    (1 919,3)                   (1 917,5)                            
Total revenue                                                  36 126,6                    29 515,1                       22%   
@ Excludes intersegment revenue of R1 806,5 million (2014: R1 691,8 million).                                                                   
^ Excludes intersegment revenue of R107,3 million (2014: R91,5 million).                                                                   
* The profit share from the GSK Aspen Healthcare for Africa Collaboration has been disclosed as revenue in the statement of 
  comprehensive income. For segmental purposes the total revenue for the GSK Aspen Healthcare for Africa Collaboration has been 
  included to provide enhanced revenue visibility in this territory.                                                                      
# The aggregate segmental operating profit is R8 449,9 million (2014: R7 424,8 million).                                                                     


GROUP SUPPLEMENTARY INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                       
For the year ended 30 June 2015                                                                        Reviewed        Audited                                                                                                                                                     2015           2014   
                                                                                           Notes      R’million      R’million   
A.     CAPITAL EXPENDITURE                                                                                                       
       Incurred                                                                                         2 417,4        2 029,3   
       - Property, plant and equipment                                                                  1 592,8        1 328,9   
       - Intangible assets                                                                                824,6          700,4   
       Contracted                                                                                         683,4          477,2   
       - Property, plant and equipment                                                                    600,8          425,7   
       - Intangible assets                                                                                 82,6           51,5   
       Authorised but not contracted for                                                                2 625,8        2 967,1   
       - Property, plant and equipment                                                                  2 405,4        2 652,9   
       - Intangible assets                                                                                220,4          314,2   
                                                                                                                                 
B.     OPERATING PROFIT HAS BEEN ARRIVED AT AFTER CHARGING/(CREDITING):                                                          
       Depreciation of property, plant and equipment                                                      552,3          433,9   
       Amortisation of intangible assets                                                                  487,0          389,9   
       Net impairment/(reversal of impairment) of property, plant and equipment                            11,0          (8,2)   
       Net impairment of intangible assets                                                                183,3          113,3   
       Share-based payment expenses - employees                                                            50,8           47,5   
       Transaction costs                                                                                   85,5          339,4   
       Restructuring costs                                                                                131,8           42,1   
       Hyperinflationary reduction in operating profit                                                     19,4           80,9
   
C.     INVESTMENT INCOME                                                                                                         
       Interest received                                                                                  382,7          278,1
   
D.     FINANCING COSTS                                                                                                           
       Interest paid                                                                                   (1 832,2)      (1 295,9)   
       Debt raising fees on acquisitions                                                                 (142,0)        (154,7)   
       Net foreign exchange (losses)/gains                                                               (479,4)          80,7   
       Foreign exchange gain on settlement of transaction funding liability                                   -          248,9   
       Fair value losses on financial instruments                                                          (0,9)         (86,0)   
       Notional interest on financial instruments                                                        (174,6)        (131,4)   
       Net hyperinflationary gains/(losses)                                                    I#         334,5           (8,0)   
                                                                                                       (2 294,6)      (1 346,4) 
 
E.     CURRENCY TRANSLATION GAINS                                                                                                                                     
       Currency translation movements on the translation of the offshore businesses 
       are as a result of the difference between the weighted average exchange rate 
       used for trading results and the opening and closing exchange rates applied in the 
       statement of financial position. For the period the weaker closing Rand translation 
       rate increased the Group net asset value.  
  
F.     CONTINGENT LIABILITIES                                                                                                                                                        
       There are contingent liabilities in respect of:                                                                           
       Contingent consideration for acquired products                                                      72,9              -   
       Contingency relating to product litigation                                                          31,6           27,6   
       Customs guarantee                                                                                   13,8           14,8   
       Indirect tax contingent liabilities                                                                 19,9           36,1   
       Contingencies arising from labour cases                                                              5,1            2,8   
       Other contingent liabilities                                                                         3,3            5,7   
                                                                                                          146,6           87,0   

G.     GUARANTEES TO FINANCIAL INSTITUTIONS                                                                                                                              
       Material guarantees given by Group companies for indebtedness of subsidiaries to 
       financial institutions                                                                          13 412,7       12 888,7   

H.     ACQUISITION OF SUBSIDIARIES AND BUSINESSES                                                                             
       2015                                                                                                          
                                                                                                                     R’million   
       Cash outflow relating to current year business combinations                                                     2 160,8   
       Cash inflow relating to a working capital purchase price adjustment                                                (4,3)   
                                                                                                                       2 156,5   
       Set out below is the provisional accounting for the following June 2015 business combinations:                                                                              
       Kama Industries Limited                                                                                        
       On 1 May 2015, the Company acquired 65% of the issued share capital of Kama Industries Limited, a privately owned company 
       incorporated in Ghana for a purchase consideration of USD4,5 million. 
  
       Mono-Embolex business                                                                                          
       Aspen Global Incorporated, a wholly owned subsidiary of the Company, acquired the rights to Mono-Embolex, an injectable 
       anti-coagulant, from Novartis AG for a consideration of USD142 million effective 20 February 2015.   
 
       Florinef and Omcilon business                                                                                  
       Aspen Global Incorporated entered into an agreement with Bristol Myers Squibb Company for the acquisition of the rights 
       to two corticosteroids. Florinef, in certain countries (primarily Japan, the UK and Brazil) and Omcilon in Brazil, for a 
       consideration of USD41 million. Additional consideration of up to USD6 million is payable in the event of certain regulatory 
       approvals being obtained but it is not possible to ascertain the likelihood of these occurring at this time. The transaction 
       became effective on 1 November 2014.                                                                              
                                                                                                                  
                                                                            Florinef      
                                                                   Kama          and         Mono-     
                                                             Industries      Omcilon      Embolex     
                                                                Limited     business     business        Total             
                                                              R’million    R’million    R’million    R’million                                         
       Fair value of assets and liabilities acquired                                                                         
       Property, plant and equipment                               38,9            -            -         38,9   
       Intangible assets                                           12,2        446,5      1 660,0      2 118,7   
       Inventories                                                  3,8            -            -          3,8   
       Trade and other receivables                                  3,0            -            -          3,0   
       Cash and cash equivalents                                    0,1            -            -          0,1   
       Deferred tax liabilities                                    (9,4)       (13,4)       (49,8)       (72,6)   
       Trade and other payables                                    (1,7)           -            -         (1,7)   
       Fair value of net assets acquired                           46,9        433,1      1 610,2      2 090,2   
       Non-controlling interests                                  (16,4)           -            -        (16,4)   
       Goodwill acquired                                           23,9         13,4         49,8         87,1   
       Purchase consideration paid                                 54,4        446,5      1 660,0      2 160,9   
       Cash and cash equivalents in acquired companies             (0,1)           -            -         (0,1)   
       Cash outflow on acquisition                                 54,3        446,5      1 660,0      2 160,8   
       The initial accounting for these acquisitions, which have been classified as business combinations, has been reported on a 
       provisional basis and will only be finalised in the year ending 30 June 2016. 
  
       Post-acquisition revenue included in the statement of comprehensive income was R465 million made up as follows:                                                                              
       Kama Industries Limited                R2 million                                                                
       Florinef and Omcilon business        R155 million                                                              
       Mono-Embolex business                R308 million   
   
       The estimation of post-acquisition operating profits is impracticable and not reasonably determinable due to the immediate 
       integration of the businesses into the existing operations of the Group. 
       
       All transaction costs relating to the acquisition of these businesses have been expensed in other operating expenses in the 
       statement of comprehensive income and adjusted for in normalised headline earnings.                                                                              
                                                                                                                                                                                                                                                             
       Goodwill                                                                                                                                         
       (1)   The goodwill arising on the acquisition of Kama Industries Limited recognises:                                                        
             - the benefit to the business of Aspen’s knowledge and expertise; and                                                                 
             - the synergies from the use of Kama as a platform to launch Aspen’s existing intellectual property in Ghana.  

       (2)   The goodwill arising on the acquisition of the Florinef and Omcilon business recognises:                                              
             - the benefit to the products of Aspen’s additional promotional focus; and                                                                
             -  the synergies from the consolidation of the acquired business with Aspen’s existing business, particularly in Brazil and Japan.
 
       (3)   The goodwill arising on the acquisition of the Mono-Embolex business recognises:                                                      
             - the benefit to the products of Aspen’s additional promotional focus;                                                                
             -  the synergies from the consolidation of the acquired business with Aspen’s existing anti-coagulant business in Germany; and        
             - the synergies from the vertical integration with Aspen’s existing heparin production capabilities.  

             The total amount of goodwill recognised is not tax deductible.                                                                        

       2014                                                                                                                                                             
       API business                                                                                                                                                          
       On 1 October 2013, the Company acquired 100% of the issued share capital in an API manufacturing business from MSD which manufactures 
       for MSD and the market generally and which is located in the Netherlands with a satellite production facility and sales office in the 
       US for a purchase consideration of EUR31 million (net of cash acquired).          
       
       The initial accounting for this business combination was reported on a provisional basis in June 2014 and was finalised in the year 
       ended 30 June 2015.
       
       MSD business                                                                                                                                                         
       Aspen Global Incorporated exercised an option to acquire a portfolio of 11 branded finished dose form molecules from MSD for a  
       consideration of USD600 million effective on 31 December 2013. USD533 million of the consideration was paid on 2 January 2014, and 
       the balance of this consideration will be paid in five equal annual instalments commencing at the end of the first year after the 
       acquisition date.    
       
       The initial accounting for this business combination was reported on a provisional basis in June 2014 and was finalised in the year  
       ended 30 June 2015.     
       
       GSK thrombosis business                                                                                                                                              
       The two components of the acquisition set out below are linked and have been classified as one cash generating unit for purchase price 
       allocation purposes.   
       
       Arixtra and Fraxiparine brands                                                                                                                                   
       On 31 December 2013 Aspen Global Incorporated acquired the Arixtra and Fraxiparine brands and related business worldwide from GSK,  
       except in China, Pakistan and India for a purchase consideration of GBP505 million.  
       
       Aspen NDB                                                                                                                                                       
       On 30 April 2014, the Company acquired a specialised sterile production site in France which manufactures the Arixtra and Fraxiparine 
       products and the related inventory for a purchase consideration of GBP194 million.    
       
       The initial accounting for this business combination was reported on a provisional basis in June 2014 and was finalised in the year  
       ended 30 June 2015. 
       
       Latin American infant nutritional business                                                                                                                                
       On 28 October 2013 Aspen Group companies concluded agreements with Nestlé in respect of the acquisition of certain licence rights to 
       intellectual property, net assets (including an infant nutritional production facility located in Vallejo, Mexico) and 100% of the 
       issued share capital in the infant nutritional businesses presently conducted by Nestlé and Pfizer in Latin America, predominantly 
       in Mexico, Venezuela, Colombia, Ecuador, Chile, Peru, Central America and the Caribbean for a purchase consideration of USD180 million.
       
       The initial accounting for this business combination was reported on a provisional basis in June 2014 and was finalised in the year 
       ended 30 June 2015.   
       
       South African infant nutritional business                                                                                                                       
       The Company concluded agreements with Nestlé in the 2013 financial year in respect of the acquisition of certain rights to 
       intellectual property licences and net assets in the infant nutritionals business previously conducted by Pfizer which distributed a 
       portfolio of infant nutritional products to certain southern African territories (South Africa, Botswana, Namibia, Lesotho, Swaziland 
       and Zambia). The acquisition of the South African infant milk business from Nestlé was approved by the Competition Tribunal in 
       December 2013. The effective date upon which Aspen assumed control of the business was 27 January 2014.     
       
       The initial accounting for this business combination was reported on a provisional basis in June 2014 and was finalised in the year 
       ended 30 June 2015.                                                                                                                                                                                                             
       Set out below is the final accounting for the following June 2014 business acquisitions:                                                                                                      
                                                                                            Latin         South      
                                                                                         American       African    Australian       
                                                                                GSK        infant        infant        infant       
                                                       API         MSD   thrombosis   nutritional   nutritional   nutritional                 
                                                  business    business     business      business      business      business*       Total             
                                                 R’million   R’million    R’million     R’million     R’million     R’million    R’million                                       
       Fair value of assets and 
       liabilities acquired                                                                                          
       Property, plant and equipment                 589,1           -        561,3         620,0             -             -      1 770,4   
       Intangible assets                             506,3     6 250,3     10 533,5         749,8         253,4             -     18 293,3   
       Contingent environmental 
       indemnification assets                        680,1           -            -             -             -             -        680,1   
       Non-current financial receivables                 -           -        267,1             -             -             -        267,1   
       Deferred tax assets                            48,1           -        440,1             -             -          19,5        507,7   
       Current tax assets                                -           -            -           3,0             -             -          3,0   
       Inventories                                 3 142,1           -      1 688,3         520,6          57,3          (2,3)     5 406,0   
       Trade and other receivables                   507,9           -        309,8         465,1          62,3         (21,3)     1 323,8   
       Cash and cash equivalents                   1 272,5           -            -             -             -             -      1 272,5   
       Contingent environmental 
       liabilities                                  (680,1)          -            -             -             -             -       (680,1)   
       Environmental liabilities                     (74,5)          -            -             -             -             -        (74,5)   
       Unfavourable and onerous contracts         (2 756,3)          -       (215,9)            -             -             -     (2 972,2)   
       Retirement and other employee benefits            -           -       (298,6)        (37,2)            -             -       (335,8)   
       Deferred tax liabilities                          -      (187,5)      (310,1)         (2,7)        (73,8)            -       (574,1)   
       Trade and other payables                     (370,2)          -       (376,0)       (609,2)        (57,0)          1,7     (1 410,7)   
       Non-current and current 
       financial liabilities                      (1 152,3)          -       (718,7)            -             -             -     (1 871,0)   
       Fair value of net assets acquired           1 712,7     6 062,8     11 880,8       1 709,4         242,2          (2,4)    21 605,5   
       Goodwill acquired                                 -       187,5        164,3          56,1         172,7         (13,5)       567,1   
       Deferred consideration                            -      (650,2)           -             -         (20,8)            -       (671,0)   
       Prepayment set off against the   
       fair value of the assets acquired                 -           -            -             -        (394,1)            -       (394,1)   
       Purchase consideration paid                 1 712,7     5 600,1     12 045,1       1 765,5             -         (15,9)    21 107,5   
       Net gains from cash flow hedging in  
       respect of business acquisitions                  -           -        (75,1)            -             -             -        (75,1)   
       Working capital purchase 
       price adjustment                                  -           -            -           4,3             -             -          4,3   
       Cash and cash equivalents in  
       acquired companies                         (1 272,5)          -            -             -             -             -     (1 272,5)   
       Cash outflow on acquisition                   440,2     5 600,1     11 970,0       1 769,8             -         (15,9)    19 764,2   
       * The initial accounting for this business combination was reported on a provisional basis in 2013 and was finalised in the year ended 
         30 June 2014. As a result of working capital adjustments, the purchase consideration decreased by R15,9 million to R1 562,7 million.                                                                                                            
I.     HYPERINFLATIONARY ECONOMY                                                                                                                                         
       The Venezuelan economy is regarded as a hyperinflationary economy in terms of International Financial Reporting Standards.                                                                                                                                                                                                                          
       There are three regulated exchange rates which are applicable in Venezuela:                                                                                        
       - Official CENCOEX rate of VEF6.30 per USD for the importation of essential goods including infant nutritionals and pharmaceutical 
         medicines which was reconfirmed in terms of an announcement made by government in February 2015;                                                                     
       - SICAD 1 introduced in March 2013 at an initial rate of VEF12 per USD and currently trading at VEF13.50 per USD; and                                             
       - SIMADI introduced in February 2015 at an initial rate of VEF170 per USD and currently trading at VEF198.0 per USD. 
       
       During the 12 months to 30 June 2015 the Group received approximately USD18 million from Venezuela for transactions that were settled 
       at the official CENCOEX rate of 6.30 VEF per USD and has approximately USD47 million of intergroup liabilities pending approval for 
       future settlement at the official CENCOEX rate. At 30 June 2015 the Group had USD70 million (USD equivalent at the 6.30 official 
       CENCOEX rate) of net monetary assets in its Venezuelan entities, of which the large majority was cash.    
       
       The Group has not used the SICAD 1 or SIMADI mechanisms to settle any transactions and does not anticipate using either the SICAD 1 
       or SIMADI mechanisms to settle any transactions. Accordingly, the Group has concluded it is appropriate to apply the official 
       CENCOEX rate of 6.30 VEF per USD to report the Venezuelan business financial position, results of operations and cash flows for the 
       year ended 30 June 2015, since the nature of the operations in Venezuela (the importation and distribution of pharmaceutical and 
       infant nutritional products) qualifies for the most preferential rates permitted by law. For the year ended 30 June 2014 the Group 
       applied a rate of 8.50 VEF per USD which was higher than the official CENCOEX rate. The higher rate was used as there was considerable 
       uncertainty, at the time, regarding the risk of a potential devaluation of the official CENCOEX rate. The announcement by the 
       Venezuelan government in February 2015 which confirmed no change to the official CENCOEX rate eliminated this uncertainty. 
       If circumstances change such that the Group concludes it would no longer be appropriate to use the official rate, or if a devaluation 
       of the official CENCOEX rate occurs, it could result in a significant charge to the Group’s results.    


Basis of accounting
The reviewed provisional Group financial results have been prepared in accordance with International Financial
Reporting Standards, IFRIC interpretations, the Listings Requirements of the JSE Limited, South African Companies Act, 2008 and
the presentation and disclosure requirements of IAS 34: Interim Reporting. 

The accounting policies used in the preparation of these provisional Group financial results are consistent with those
used in the annual financial statements for the year ended 30 June 2014.

The entity wide analysis included in the segmental analysis for the year ended 30 June 2014 was restated to separately
disclose the hyperinflationary economy. 

Audit review
These results have been reviewed by Aspen’s auditors, PricewaterhouseCoopers Inc. Their unqualified review report is
available for inspection at the Company’s registered office. Any reference to future financial performance included in
this announcement, has not been reviewed or reported on by the Company’s auditors.

Subsequent events
Divestment of generics business and certain branded products to Strides entities
On 20 May 2015 certain of Aspen’s wholly owned Australian subsidiaries (collectively “Aspen Australia”) entered into
an agreement with Strides (Australia) Pharma Pty Limited in terms of which Aspen Australia divested a portfolio of
approximately 130 products for a consideration of approximately AUD217 million.

The portfolio of products in this transaction comprised a generic pharmaceutical business together with certain
branded pharmaceutical assets.

In a separate transaction, Aspen Global Incorporated (“AGI”) entered into an agreement with Strides Pharma Global Pte
Limited in terms of which AGI divested a portfolio of six branded prescription products for a consideration of
approximately USD79 million.

Both of the above transactions were completed on 31 August 2015.

Divestment of a portfolio of products in South African to Litha
On 11 May 2015, Pharmacare Limited (“Pharmacare”), a wholly owned subsidiary of the Company and the Group’s primary
South African trading company, concluded a set of agreements with Litha Pharma (Pty) Limited (“Litha”) (a wholly owned
South African subsidiary of Endo International Plc) in terms of which Pharmacare divested a portfolio of products from its
pharmaceutical division for a consideration of approximately R1,6 billion. The portfolio of products comprises
injectables and established brands. 

The approval of this transaction by the South African Competition Authorities was obtained on 4 August 2015 but the
completion remains subject to certain conditions. This transaction is expected to complete on 30 September 2015.

Acquisition of Norgine (Proprietary) Limited
On 21 May 2015, Pharmacare concluded an agreement with Norgine B.V. and Norgine (Proprietary) Limited (“Norgine”) to 
acquire the entire issued share capital of Norgine in South Africa for a consideration of EUR29 million. Norgine
commercialises a portfolio of branded gastro-intestinal products in South Africa and surrounding territories. 

The approval of this transaction by the South African Competition Authorities was obtained on 25 August 2015 but the
completion remains subject to certain conditions. This transaction is expected to complete on 30 September 2015.

Changes in directorate
Abbas Hussain resigned and David Redfern was appointed as a non-executive director on 1 February 2015. Rafique Bagus
resigned as an independent non-executive director on 31 March 2015.


Directors
N J Dlamini (Chairman)*, R C Andersen*, M G Attridge, J F Buchanan*, K D Dlamini*, M M Manyama*, C N Mortimer*, D S Redfern*, 
S B Saad, S V Zilwa* 
*Non-executive director

Company Secretary
R Verster

Registered office
Building Number 8, Healthcare Park, Woodlands Drive, Woodmead
PO Box 1587, Gallo Manor, 2052
Telephone 011 239 6100
Telefax 011 239 6144

Sponsor
Investec Bank Limited

Transfer secretary
Computershare Investor Services Proprietary Limited
(Registration number 2004/003647/07),
70 Marshall Street, Johannesburg, 2001.
(PO Box 61051, Marshalltown, 2107)

www.aspenpharma.com


Disclaimer
We may make statements that are not historical facts and relate to analyses and other information based on forecasts
of future results and estimates of amounts not yet determinable. These are forward looking statements as defined in the
U.S. Private Securities Litigation Reform Act of 1995. Words such as “prospects”, “believe”, “anticipate”, “expect”,
“intend”, “seek”, “will”, “plan”, “indicate”, “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 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, actual results may be very different
from those anticipated. The factors that could cause our actual results to differ materially from the plans, objectives,
expectations, estimates and intentions expressed in such forward looking statements are discussed in each year’s annual
report. Forward looking statements apply only as of the date on which they are made, and we do not undertake other than
in terms of the Listings Requirements of the JSE Limited, any obligation to update or revise any of them, whether as a
result of new information, future events or otherwise. All profit forecasts published in this report are unaudited.
Date: 09/09/2015 12:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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