Wrap Text
Reviewed provisional Group financial results for the year ended 30 June 2016
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 2016
COMMENTARY
GROUP PERFORMANCE
As reported in the interim results, the factors set out below have significantly affected comparability with the
results of the prior year and need to be considered when assessing performance for the 2016 financial year:
1. The completion on 31 August 2015 of the divestment of the generics business conducted in Australia as well as
certain branded products distributed in Australia to Strides group companies, the related termination of
licence arrangements in Australia and the completion on 1 October 2015 of the divestment of a portfolio of
products distributed in South Africa to Litha Pharma (collectively “the Divestments”). The Divestments gave rise
to a pre-tax profit on disposal of R1,6 billion. However, as a consequence of the timing of these transactions,
the contribution to the trading results by the Divestments is substantially reduced in the 2016 financial year.
In the period from 1 July 2015 until the effective date of divestment, revenue from the Divestments was
R0,2 billion whereas revenue from the Divestments for the year ended 30 June 2015 was R1,8 billion.
2. The economic situation in Venezuela deteriorated over the year to 30 June 2016 and the Venezuelan
authorities have increasingly limited authorisations to pay for pharmaceutical imports using the official DIPRO
rate during this period of between Venezuelan Bolivar (“VEF”) 6,30 and 10,00 per US Dollar (“USD”). As a
consequence of the limited payment approvals and the uncertain economic and political situation in Venezuela,
before reporting the interim results for the six months ended 31 December 2015, the Group has concluded that it
would be more appropriate to apply the DICOM exchange rate (VEF628,34 per USD at 30 June 2016) to report the
Venezuelan business’ financial position, results of its operations and cash flows for the year ended
30 June 2016. This has resulted in a one-off currency devaluation loss on foreign denominated liabilities of
R870 million.
The profit arising from the Divestments, the currency devaluation loss and the hyperinflationary adjustments
relating to Venezuela are excluded, in addition to other specific non-trading items, in determining normalised
performance. In order to provide meaningful comparability of the financial performance of the ongoing underlying
business, a comparable measure has been determined by removing the contribution from the Divestments and including
the results of Aspen’s business in Venezuela translated at VEF628,34 per USD in the prior reporting period.
The key performance measures for the Group for the year ended 30 June 2016 and the percentage change from the
prior year are summarised as follows:
Operating
profit
before
Revenue amortisation HEPS**
R'billion % R’billion % cents
Comparable normalised*** 35,4 12 9,4* 9 1 222,0 15
Normalised 35,6 (2) 9,5* 3 1 263,7 10
Unadjusted 35,6 (2) 9,6 7 889,0 (23)
* Operating profit before amortisation, adjusted for specific non-trading items.
**Headline earnings per share.
***The comparable information has been derived from the reviewed financial information and has not been reported
on by Aspen's auditors. This information has been prepared for illustrative purposes only and is the responsibility
of the Board of Directors of Aspen.
INTERNATIONAL BUSINESS
The International Business increased comparable revenue 19% to R18,9 billion and grew comparable operating profit
before amortisation, adjusted for specific non-trading items (“EBITA”), 15% to R5,9 billion.
Commercial revenue from pharmaceutical product sales to healthcare providers in Europe and the Commonwealth of
Independent States (“Europe CIS”) improved 22% to R8,5 billion. The acquisition of Mono-Embolex, a thrombolytic
product with almost all of its sales in Germany, in the second half of the previous year further strengthened
Aspen’s portfolio in this therapeutic area.
In Latin America (excluding Venezuela), revenue to customers increased 3% to R3,5 billion. Nutritional sales was
the growth driver, increasing 18% and Infacare was successfully launched in Mexico, securing an important
government tender. Aspen has suspended trade in Venezuela pending an improvement in economic conditions.
Sales to customers in the North America and the Middle East North Africa territories increased strongly off
relatively low bases, growing by 42% and 51% respectively.
Manufacturing revenue continued to advance with particularly strong growth in active pharmaceutical ingredient
(“API”) sales of 19% to R4,0 billion.
The installation of a new high speed pre-filled syringe filling line at Aspen Notre Dame de Bondeville was
completed during the period and commercial production is underway. At Aspen Oss the capital expenditure projects
include adding new production capabilities and maintaining the sustainability of the site.
SOUTH AFRICAN BUSINESS
Comparable revenue in South Africa was down 1% at R8,1 billion. Nutritionals products maintained their growth
momentum, adding 11% to revenue and there were impressive increases in manufacturing revenue for both APIs
(+52%) and finished dose forms (+69%). The pharmaceutical business was however constrained by supply problems
which were compounded by sub-optimal prioritisation of available capacity, leading to a weak second half
performance. Private sector comparable pharmaceutical revenue was 7% lower. Margins came under pressure from a
weakening local currency which raised the cost of imports and from operating expense growing faster than sales.
This was the primary cause of the comparable EBITA for the South African business dropping 15% to R1,5 billion.
The new high volume, high potency multipurpose API facility at Fine Chemicals has commenced production. The high
containment facility in Port Elizabeth has been completed and manufacturing trials are in progress. Construction
of the additional specialist sterile manufacturing facility in Port Elizabeth is progressing and a number of
capacity enhancement projects are also underway at this site. These capital projects will provide an important
strategic advantage to the Group by enabling it to add value to its expanding portfolio of products that require
complex manufacture.
ASIA PACIFIC BUSINESS
In the Asia Pacific region, comparable revenue was up 11% to R7,4 billion and comparable EBITA was 10% higher at
R1,6 billion. In Australasia, sales of pharmaceuticals to customers increased 2% to R4,4 billion with a strong
performance from core pharmaceutical products in a challenging trading environment being offset by a reduced
contribution from licensed products in the process of being phased out. Revenue from the nutritionals range was
6% higher at R1,0 billion. Sales to customers in Asia continued to grow, climbing 29% with Japan
leading the way.
SUB-SAHARAN BUSINESS
Gross revenue in sub-Saharan Africa increased 18% to R3,3 billion. Currency weakness across the region and
unfavourable new VAT legislation in Tanzania squeezed margins, but a compensation payment in the Collaboration
assisted the region to raise EBITA 31% to R0,4 billion.
FUNDING
The Group undertook a successful restructuring of its debt arrangements during the year which became effective
from 30 June 2016. The Group’s USD term debt facilities were repaid under the restructure and replaced
by EUR term debt facilities which are better aligned with Aspen’s underlying trading cash flows. There was strong
interest from debt providers in supporting Aspen’s new debt package and the EUR facility was significantly
oversubscribed.
Borrowings, net of cash, increased by R2,7 billion to R32,7 billion as a result of unfavourable currency
translation effects together with the devaluation of the cash held in Venezuela exceeding net positive cash
generated.
Group operating cash flows were negatively affected by a R3,4 billion increase in working capital. The unfavourable
currency translation effect on foreign currency denominated working capital balances accounted for R1,4 billion of
this increase and planned stock builds relating to transition of manufacturing arrangements were the other major
contributing factor.
Gearing improved to 43% from 47% in the previous year while net interest paid was covered 6 times by operating
profit before amortisation. Net foreign exchange losses reduced from R480 million in the 2015 financial year to a
gain of R36 million in the current year.
POST YEAR END CORPORATE ACTIVITY
In August 2016, Aspen Global Incorporated (“AGI”) signed an agreement with AstraZeneca AB and AstraZeneca UK
(“AstraZeneca”) whereby AGI agreed to acquire the exclusive rights to commercialise AstraZeneca’s global
(excluding the USA) anaesthetics portfolio (“the AZ Transaction”). AstraZeneca’s anaesthetics portfolio comprises
seven established medicines, namely Diprivan (general anaesthesia), EMLA (topical anaesthetic) and five local
anaesthetics (Xylocaine/Xylocard/Xyloproct, Marcaine, Naropin, Carbocaine and Citanest) (“the AZ portfolio”). The
products in the AZ Portfolio are sold in more than 100 countries worldwide including China, Japan, Australia and
Brazil. These products generated revenue of US$592 million in the year ended 31 December 2015. In terms of the
concluded agreement, as consideration for the commercialisation rights, AGI will pay US$520 million and
double-digit percentage royalties on sales of the AZ Portfolio. Additionally, AGI will make sales related payments
of up to US$250 million based on sales in the 24 months following completion. AGI and AstraZeneca have also signed
a supply agreement whereby AstraZeneca will supply the AZ Portfolio to AGI. This supply agreement has an initial
period of 10 years. This transaction became effective on 1 September 2016. Based on the terms of the agreements
and Aspen’s current cost of funding, Aspen’s interest in the AZ Portfolio would have generated a contribution to
profit before tax of approximately US$100 million in the year ended 31 December 2015.
On 12 September 2016 Aspen announced that various Group subsidiaries had concluded three separate transactions
with GlaxoSmithkline (“GSK”) companies as follows:
* AGI signed an agreement with GSK whereby AGI will acquire a portfolio of anaesthetic products globally (with
the exception of certain territories, primarily North America) (“the Anaesthetics Transaction”). GSK’s
anaesthetics portfolio comprises five established medicines, namely Ultiva (general anaesthesia) and four
muscle relaxants (Nimbex, Mivacron, Tracrium and Anectine) (“the GSK Portfolio”). The products in the GSK
Portfolio are sold in more than 100 countries worldwide including Japan, Brazil, Korea, Germany and
Italy. In terms of the concluded agreement, as consideration for the Portfolio, AGI will pay an initial amount
of £180 million and milestone payments of up to £100 million based on the results of the Portfolio in the
36 months following completion. AGI and GSK have also signed a supply agreement whereby GSK will supply the
products to AGI for four years. The GSK Portfolio is expected to generate revenue of approximately £70 million
in the year ended 31 December 2016. The Anaesthetics Transaction is subject to customary closing conditions and
is anticipated to complete during the third quarter of Aspen’s 2017 financial year.
* As part of its acquisition of the thrombolytic products Fraxiparine and Arixtra from GSK in 2014,
AGI also acquired an option to acquire the same products in certain countries to which GSK retained the
rights, most notably China. AGI has exercised its option to acquire Fraxiparine and Arixtra in these countries
for a consideration of £45 million. Approximately £30 million of revenue is generated by the thrombolytic
products in China. The completion of the acquisition of the thrombolytic products in the relevant territories
is subject to customary closing conditions and is expected to occur during the third quarter of Aspen’s 2017
financial year.
* Pharmacare Limited (“Pharmacare”) and GSK have agreed to cancel the rights of Pharmacare to collaborate in the
sub-Saharan business of GSK (“the SSA Collaboration”). These rights were acquired as part of a basket of
transactions with GSK in 2009. GSK will pay Pharmacare £45 million as consideration for the cancellation. The
SSA Collaboration generated approximately R2,6 billion of gross revenue in the 2016 financial year. The
cancellation of the SSA Collaboration is expected to become effective in the third quarter of Aspen’s 2017
financial year.
If the GSK Portfolio was owned for the entire 2017 financial year, it would be expected to add approximately
75 cents per share to the normalised headline earnings per share (“NHEPS”) of the Group. The net impact on
NHEPS of the acquisition of the thrombolytic products and the cancellation of the SSA Collaboration should
not be material.
PROSPECTS
The transactions announced after the closing of the 2016 financial year represent further steps in Aspen’s
strategy to move towards sharpened focus on key therapy areas and to move away from areas where the Group is
less able to add value. This intent is also reflected in the Divestments completed earlier in the year. A key
element of Aspen’s inorganic expansion strategy is to acquire products within therapeutic areas that are both
niche in nature and complementary to its existing operations. Anaesthetics has been identified as a therapeutic
category which is aligned with the Group’s strategic development plans. The AZ Portfolio and the GSK Portfolio
are complementary, providing Aspen with a leading range of anaesthetic products distributed globally. As a
category of pharmaceuticals that primarily involves sterile manufacturing and that is dispensed largely in
hospitals and clinics, anaesthetics present an opportunity to leverage both Aspen’s existing hospital focused
sales force that is currently promoting thrombolytic products and, potentially in due course, sterile
manufacturing capabilities. Furthermore, the key territories in which the anaesthetics are sold represent an
excellent fit with Aspen’s existing operational geographic footprint and those territories where the Group
has ambitions to establish a presence. The transactions also have initiated the establishment of a material
business in China where the acquisition of the thrombolytic products from GSK creates synergistic
opportunities with the acquired AZ Portfolio.
Significant work has been done in effectively consolidating the major acquisitions that were concluded in
the 2015 financial year, including bringing three major manufacturing sites into the Aspen supply network and
transferring more than 2 000 new employees to Aspen. The foundation has been well set for the business units
to continue to build on the positive results delivered in the 2016 financial year. In the South African
private sector pharmaceutical division is expected to record growth in the forthcoming year, although the
first half will continue to suffer from supply issues.
Inventory carrying levels remain too high in certain business units and various projects are underway to
rectify this position. Inevitably though, working capital will need to be built to sustain the recent
acquisitions.
Aspen trades in a diversified mix of currencies which generally diminishes currency risk on a Group-wide
basis. This risk has been further mitigated by the replacement of USD debt with EUR debt, achieving better
matching between trading cash flows and borrowings.
In the 2015 final results announcement, Aspen identified a number of projects aimed at delivering synergies
from recent acquisitions, targeting an additional R2,5 billion in EBITA from these synergies by the 2019
financial year. These projects include lowering the cost of goods for the thrombolytic products 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. Particular
opportunities have been identified to build a niche business based on supply of specialised APIs and
finished dose forms to the United States. Significant progress has been made over the last year in regard
to the realisation of these synergies. Aspen is confident that this target will be achieved and exceeded.
Benefits of approximately R300 million came through during the past year. It is anticipated that between
R500 million and R1 billion in further synergies will be achieved in the 2017 financial year. The realisation
of these synergies, ongoing organic growth from the base business and the added contribution from the recently
announced anaesthesia acquisitions are expected to result in a strong increase in earnings in the 2017 financial
year.
DIVIDEND TO SHAREHOLDERS
Taking into account the earnings and cash flow performance for the year ended 30 June 2016, existing
debt service commitments, future proposed investments and funding options, notice is hereby given that
the Board has declared a gross dividend of 248 cents per ordinary share to shareholders (or 210.8 cents net
of dividend withholding tax) recorded in the share register of the Company at the close of business on
7 October 2016 (2015: capital distribution of 216 cents per share). A dividend witholding tax will be
applicable to shareholders who are not exempt. The company income tax number is 9325178714.
The issued share capital of the company is 456 351 337. The dividend is paid from income reserves.
Shareholders should seek their own advice on the tax consequences associated with the dividend.
The directors are of the opinion that the Company will, subsequent to the payment of the dividend,
satisfy the solvency and liquidity requirements in terms of sections 4 and 46 of the Companies Act,
2008.
Future distributions will continue to be decided on a year-to-year basis.
In compliance with IAS 10: Events After Balance Sheet Date, the dividend will only be accounted for
in the financial statements in the year ending 30 June 2017.
Last day to trade cum dividend Tuesday, 4 October 2016
Shares commence trading ex-dividend Wednesday, 5 October 2016
Record date Friday, 7 October 2016
Payment date Monday, 10 October 2016
Share certificates may not be dematerialised or rematerialised between Wednesday, 5 October 2016 and
Friday, 7 October 2016.
By order of the Board
K D Dlamini S B Saad
(Chairman) (Group Chief Executive)
Woodmead
14 September 2016
GROUP STATEMENT OF FINANCIAL POSITION
at 30 June 2016
Reviewed Audited
2016 2015
R’billion R’billion
ASSETS
Non-current assets
Intangible assets 49,1 40,5
Property, plant and equipment 9,7 7,9
Goodwill 6,0 5,0
Deferred tax assets 1,1 1,1
Contingent environmental indemnification assets 0,8 0,7
Other non-current assets 0,4 0,5
Total non-current assets 67,1 55,7
Current assets
Inventories 14,4 10,8
Receivables and other current assets 11,8 10,3
Cash and cash equivalents 10,9 8,7
Total operating current assets 37,1 29,8
Assets classified as held-for-sale 0,1 2,9
Total current assets 37,2 32,7
Total assets 104,3 88,4
SHAREHOLDERS’ EQUITY
Reserves 40,6 31,1
Share capital (including treasury shares) 1,9 3,0
Total shareholders’ equity 42,5 34,1
LIABILITIES
Non-current liabilities
Borrowings 32,7 25,5
Other non-current liabilities 2,5 2,1
Unfavourable and onerous contracts 2,2 2,1
Deferred tax liabilities 1,8 1,7
Contingent environmental liabilities 0,8 0,7
Retirement and other employee benefit obligations 0,7 0,4
Total non-current liabilities 40,7 32,5
Current liabilities
Borrowings* 10,9 13,2
Trade and other payables 8,3 6,8
Other current liabilities 1,5 1,5
Unfavourable and onerous contracts 0,4 0,3
Total current liabilities 21,1 21,8
Total liabilities 61,8 54,3
Total equity and liabilities 104,3 88,4
Number of shares in issue (net of treasury shares) (’million) 456,1 456,1
Net asset value per share (cents) 9 320,7 7 485,7
* Includes bank overdrafts.
GROUP STATEMENT OF COMPREHENSIVE INCOME
for the year ended 30 June 2016
Reviewed Audited
2016 2015
Notes Change R’billion R’billion
Revenue (2%) 35,6 36,1
Cost of sales (17,7) (18,8)
Gross profit 4% 17,9 17,3
Selling and distribution expenses (6,0) (5,6)
Administrative expenses (2,6) (2,9)
Other operating income 1,9 0,5
Other operating expenses (2,2) (0,9)
Operating profit B# 6% 9,0 8,4
Investment income C# 0,3 0,4
Financing costs D# (3,2) (2,3)
Profit before tax (6%) 6,1 6,5
Tax (1,8) (1,3)
Profit for the year (17%) 4,3 5,2
Other comprehensive income, net of tax*
Currency translation gains E# 5,2 0,9
Remeasurement of retirement and other
employee benefit obligations (0,1) -
Total comprehensive income+ 9,4 6,1
Weighted average number of shares
in issue (’million) 456,4 456,3
Diluted weighted average number of
shares in issue (’million) 456,5 456,5
EARNINGS PER SHARE
Basic earnings per share (cents) (17%) 945,4 1 139,8
Diluted earnings per share (cents) (17%) 945,2 1 139,5
Distribution to shareholders
Capital distribution per share (cents) 216,0 188,0
The capital distribution to shareholders of 216,0 cents relates to the distribution declared on 9 September 2015
and paid on 12 October 2015. (2015: the distribution of 188,0 cents relates to the distribution declared on
10 September 2014 and paid on 13 October 2014).
* Remeasurement of retirement and other employee benefit obligations will not be reclassified to profit and
loss. All other items in other comprehensive income may be reclassified to profit and loss.
+ Total comprehensive income is disclosed net of income from non-controlling interests which are not material.
# See notes on supplementary information.
GROUP STATEMENT OF HEADLINE EARNINGS
for the year ended 30 June 2016
Audited
Reviewed restated
2016 2015
Change R’billion R’billion
HEADLINE EARNINGS+
Reconciliation of headline earnings
Profit attributable to equity holders
of the parent (17%) 4,3 5,2
Adjusted for:
- Profit on the sale of tangible
and intangible assets (net of tax) - (0,2)
- Net impairment of intangible
assets (net of tax) 0,9 0,2
- Profit on disposal of assets
classified as held-for-sale (net of tax) (1,2) -
(23%) 4,0 5,2
HEADLINE EARNINGS PER SHARE
Headline earnings per share (cents) (23%) 889,0 1 149,9
Diluted headline earnings per
share (cents) (23%) 888,8 1 149,7
NORMALISED HEADLINE EARNINGS*
Reconciliation of normalised headline earnings
Headline earnings (23%) 4,0 5,2
Adjusted for:
- Restructuring costs (net of tax) 0,3 0,1
- Transaction costs (net of tax) 0,6 0,2
- Net monetary adjustments and
currency devaluations relating to
hyperinflationary economies
(net of tax) 0,9 (0,3)
10% 5,8 5,2
NORMALISED HEADLINE EARNINGS PER SHARE
Normalised headline earnings per
share (cents) 10% 1 263,7 1 145,8
Normalised diluted headline earnings
per share (cents) 10% 1 263,4 1 145,6
* The definition of normalised headline earnings was amended in terms of a change in accounting policy
to exclude net monetary adjustments and currency devaluations relating to hyperinflationary economies.
NHEPS for the year ended 30 June 2015 has been restated from the previously reported value of
1 219,1 cents.
# See notes on supplementary information.
+ Headline earnings is disclosed net of income from non-controlling interests which are not material.
GROUP STATEMENT OF CHANGES IN EQUITY
for the year ended 30 June 2016
Share capital
(including
treasury
shares) Reserves Total*
R’billion R'billion R'billion
BALANCE AT 1 JULY 2014 3,9 25,0 28,9
Total comprehensive income - 6,1 6,1
Profit for the year - 5,2 5,2
Other comprehensive income - 0,9 0,9
Capital distribution and dividends paid (0,9) - (0,9)
Balance at 30 June 2015 3,0 31,1 34,1
Total comprehensive income - 9,4 9,4
Profit for the year - 4,3 4,3
Other comprehensive income - 5,1 5,1
Capital distribution and dividends paid (1,0) - (1,0)
Treasury shares purchased (0,1) - (0,1)
Share-based payment expenses - 0,1 0,1
Balance at 30 June 2016 1,9 40,6 42,5
* Total shareholders’ equity is disclosed net of income from non-controlling interests which are not material.
GROUP STATEMENT OF CASH FLOWS
for the year ended 30 June 2016
Reviewed Audited
2016 2015
Notes R’billion R’billion
CASH FLOWS FROM OPERATING ACTIVITIES
Cash operating profit 9,8 9,5
Changes in working capital (3,4) (1,5)
Cash generated from operations 6,4 8,0
Net financing costs paid (1,7) (2,0)
Tax paid (1,5) (1,2)
Cash generated from operating activities 3,2 4,8
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditure - property, plant and equipment A# (1,7) (1,6)
Proceeds on the sale of property, plant and equipment - 0,2
Capital expenditure - intangible assets A# (1,1) (0,8)
Proceeds on the sale of intangible assets 0,2 0,4
Acquisition of subsidiaries and businesses J# (0,7) (2,2)
Acquisition of joint venture - (0,1)
Increase in other non-current assets - (0,1)
Payment of deferred consideration relating to prior
year business acquisitions (0,7) (0,5)
Proceeds on the disposal of assets classified as
held-for-sale 5,1 3,1
Proceeds receivable on the disposal of assets
classified as held-for-sale H# 5,2 3,1
Outstanding proceeds on the disposal of assets
classified as held-for-sale (0,1) -
Cash generated from/(used in) investing activities 1,1 (1,6)
CASH FLOWS FROM FINANCING ACTIVITIES
Net repayments of borrowings (2,0) (1,3)
Capital distribution and dividends paid (1,0) (0,9)
Treasury shares purchased (0,1) -
Cash used in financing activities (3,1) (2,2)
Movement in cash and cash equivalents before effects
of exchange rate changes 1,2 1,0
Effects of exchange rate changes (0,2) (0,3)
Movement in cash and cash equivalents 1,0 0,7
Cash and cash equivalents at the beginning of the year 6,9 6,2
Cash and cash equivalents at the end of the year 7,9 6,9
Operating cash flow per share (cents) 706,7 1 060,3
RECONCILIATION OF CASH AND CASH EQUIVALENTS
Cash and cash equivalents per the statement of
financial position 10,9 8,7
Less: Bank overdrafts (3,0) (1,8)
7,9 6,9
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
for the year ended 30 June 2016
Reviewed Audited restated
2016 2015
R’billion % of total R’billion % of total Change
REVENUE
International@ 18,9 50 18,5 49 2%
South Africa^ 8,1 21 8,6 23 (5%)
Asia Pacific 7,6 20 8,1 21 (6%)
SSA 3,3 9 2,8 7 18%
Total gross revenue 37,9 100 38,0 100 -
Adjustment* (2,3) (1,9)
Total revenue 35,6 36,1 (2%)
OPERATING PROFIT BEFORE AMORTISATION
Adjusted for specific non-trading
items ("EBITA")
International 5,9 62 5,2 56 14%
Operating profit# 4,3 4,6 (7%)
Amortisation of intangible assets 0,4 0,3
Transaction costs 0,3 0,1
Restructuring costs 0,3 0,1
Profit on the sale of assets (0,2) (0,1)
Impairment of assets 0,8 0,2
South Africa 1,5 16 2,0 21 (23%)
Operating profit# 2,8 1,8 51%
Amortisation of intangible assets - 0,1
Profit on the sale of assets (1,4) -
Net impairment of assets 0,1 0,1
Asia Pacific 1,7 18 1,7 19 (6%)
Operating profit# 1,5 1,7 (13%)
Amortisation of intangible assets 0,2 0,1
Profit on the sale of assets - (0,1)
SSA 0,4 4 0,3 4 31%
Operating profit# 0,4 0,3 31%
Total EBITA 9,5 100 9,2 100 3%
ENTITY-WIDE DISCLOSURE - REVENUE+
Commercial revenue by customer geography
Commercial - Pharmaceutical 27,9 74 28,0 74 (1%)
Europe CIS 8,5 23 7,0 18 22%
Asia Pacific 6,3 17 7,0 19 (11%)
South Africa 6,2 16 7,0 18 (12%)
SSA 3,2 9 2,8 7 15%
Latin America (excluding
hyperinflationary economy) 2,0 5 2,1 6 (5%)
Middle East and North Africa 0,9 2 0,6 2 51%
USA and Canada 0,8 2 0,6 2 42%
Hyperinflationary economy - - 0,9 2 (100%)
Commercial - Nutritionals 3,5 9 4,9 13 (28%)
Latin America (excluding
hyperinflationary economy) 1,5 4 1,3 3 18%
Asia Pacific 1,0 3 1,0 3 6%
South Africa 0,9 2 0,7 2 11%
SSA 0,1 - 0,1 - 51%
Hyperinflationary economy - - 1,8 5 (100%)
Total commercial revenue 31,4 83 32,9 87 (5%)
Manufacturing revenue by geography
of manufacturer
Manufacturing revenue - finished
dose forms 2,1 5 1,5 4 37%
South Africa 0,9 2 0,5 1 69%
Europe CIS 0,7 2 0,5 2 39%
Asia Pacific 0,5 1 0,5 1 -
Manufacturing revenue - APIs 4,4 12 3,6 9 22%
Europe CIS 4,0 11 3,3 9 19%
South Africa 0,4 1 0,3 - 52%
Total manufacturing revenue 6,5 17 5,1 13 26%
Total gross revenue 37,9 100 38,0 100 -
Adjustment* (2,3) (1,9)
Total revenue 35,6 36,1 (2%)
Summary of regions
International 18,4 49 18,1 49 2%
South Africa 8,4 21 8,5 21 (3%)
Asia Pacific 7,8 21 8,5 22 (8%)
SSA 3,3 9 2,9 8 16%
Total gross revenue 37,9 100 38,0 100 -
Adjustment (2,3) (1,9) 21%
Total revenue 35,6 36,1 (2%)
@ Excludes intersegment revenue of R2,6 billion (2015: R1,8 billion).
^ Excludes intersegment revenue of R0,3 billion (2015: R0,1 billion).
* The profit share from the SSA Collaboration has been disclosed as revenue in the statement of comprehensive
income.
For segmental purposes the total revenue for the SSA Collaboration has been included to provide enhanced revenue
visibility in this territory.
# The aggregate segmental operating profit is R9,0 billion (2015: R8,4 billion).
+ The entity-wide revenue disclosure format has been restated to reflect Aspen’s current operating model. Refer to
the basis of accounting for detailed information.
GROUP SUPPLEMENTARY INFORMATION
for the year ended 30 June 2016
Note Reviewed Audited
2016 2015
R’billion R’billion
A. CAPITAL EXPENDITURE
Incurred 2,8 2,4
- Property, plant and equipment 1,7 1,6
- Intangible assets 1,1 0,8
Contracted 1,2 0,7
- Property, plant and equipment 0,8 0,6
- Intangible assets 0,4 0,1
Authorised but not contracted for 2,6 2,6
- Property, plant and equipment 2,1 2,4
- Intangible assets 0,5 0,2
B. OPERATING PROFIT HAS BEEN ARRIVED AT AFTER CHARGING/(CREDITING):
Depreciation of property, plant and equipment 0,6 0,5
Amortisation of intangible assets 0,6 0,5
Net impairment of assets 0,9 0,3
Share-based payment expenses - employees 0,1 0,1
Transaction costs 0,3 0,1
Restructuring costs 0,3 0,1
Profit on the disposal of assets classified as held-for-sale (1,6) -
C. INVESTMENT INCOME
Interest received 0,3 0,4
D. FINANCING COSTS
Interest paid (1,8) (1,8)
Debt raising fees on acquisitions (0,3) (0,1)
Net foreign exchange losses - (0,5)
Notional interest on financial instruments (0,2) (0,2)
Net monetary adjustments and currency devaluations relating
to hyperinflationary economies F# (0,9) 0,3
(3,2) (2,3)
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. Hyperinflationary economy
The Venezuelan economy is regarded as a hyperinflationary economy in terms of International Financial Reporting
Standards.
Effective March 2016 two regulated exchange rates were applicable to Aspen’s business:
* The DIPRO rate (previously the official CENCOEX rate) for the importation of high priority goods including
nutritionals and pharmaceutical medicines. This rate increased to VEF10,0 per USD from VEF6,30 per USD in
March 2016.
* The DICOM rate (previously the SIMADI rate) which is a floating rate published daily by the Venezuelan
central bank. The DICOM rate opened in March 2016 at an initial rate of VEF206,8 per USD and the closing
rate at 30 June was VEF628,34 per USD. The previous SIMADI rate was VEF200 per USD as at 31 December
2015.
Due to the continuing political and economic uncertainty in Venezuela, the Group concluded in December 2015
that it would be more appropriate to apply the DICOM rate (previously the SIMADI rate) to report the Venezuelan
business financial position, results of operations and cash flows for the 12 months ended 30 June 2016. The
economic situation in Venezuela has further deteriorated since December 2015 and the Venezuelan authorities
have only approved payments for imports to the value of US$3 million at the DIPRO rate (previously the official
CENCOEX rate) which ranged between VEF6,30 and 10,0 per USD during the second six-month period to 30 June 2016.
(For the six-month period to 31 December imports to the value of US$9 million were approved at the DIPRO rate).
This has resulted in a devaluation loss on foreign denominated liabilities of R870 million (December 2015:
R841 million). For the 12 months ended 30 June 2015, the Group applied the DIPRO rate (previously the official
CENCOEX rate) of 6,30 per USD as circumstances at that time supported this rate. Aspen will continue to monitor
the development of payments received and the exchange rate mechanism. Should the receipt of payments from
Venezuela improve or if it can no longer be assumed that the DICOM exchange rate is the relevant exchange rate
for the translation this could lead to an amended estimate, which in turn could trigger an amended currency
translation. No significant trading activity was undertaken during the six-month period to 30 June 2016 and the
business has accordingly been downscaled pending a future change in the economic conditions.
2016 2015
R’billion R’billion
G. GUARANTEES TO FINANCIAL INSTITUTIONS
Material guarantees given by Group companies for
indebtedness of subsidiaries to financial institutions 40,6 13,4
H. PROCEEDS ON THE DISPOSAL OF ASSETS CLASSIFIED AS HELD-FOR-SALE
Divestment of a portfolio of products in South Africa to Litha 1,7 -
Divestment of generics business and certain branded products
to Strides entities 3,4 -
Divestment of land and buildings in Australia 0,1 -
Divestment of fondaparinux products to Mylan - 3,1
5,2 3,1
Divestment of a portfolio of products in South Africa to Litha
On 9 May 2015, Pharmacare, 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
R1,7 billion. The portfolio of products comprised injectables and established brands. The approval of this
transaction by the South African competition authorities was obtained on 4 August 2015. This transaction was
completed on 1 October 2015.
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 AU$217 million. The portfolio of products in this
transaction comprised a generic pharmaceutical business together with certain branded pharmaceutical assets. In
a separate transaction, 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 US$77 million. Both of the
above transactions completed on 31 August 2015.
I. DISPUTED INCOME TAX MATTER
The Aspen Group has been subject to an international tax audit by the South African Revenue Service and Aspen
Pharmacare Holdings Limited has received a revised assessment in relation to its 2011 fiscal year as a consequence
of this audit. Aspen has disputed the assessment and there has been no change in the status thereof. Aspen believes
that it has appropriately dealt with its related party transactions and that this position is supported by Aspen’s
legal and tax advisers.
J. ACQUISITION OF SUBSIDIARIES AND BUSINESSES
2016
Set out below is the provisional accounting for the following June 2016 business combinations:
Norgine SA
On 21 May 2015, Pharmacare acquired 100% of the issued share capital of Norgine (Pty) Limited in South Africa
(“Norgine SA”) for a consideration of EUR29 million. Norgine SA 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. This transaction was completed on
30 September 2015.
Post-acquisition revenue included in the statement of comprehensive income was R100,4 million. The estimation of
post-acquisition operating profits is impracticable and not reasonably determinable due to the immediate integration
of the business into the existing operations of the Group.
HPC business
AGI entered into an agreement with McGuff Pharmaceuticals Inc. (“McGuff”) for the exclusive supply of the finished
dose form of Hydroxyprogesterone Caproate (“HPC”) in the USA. AGI acquired the related intellectual property and
the approved Abbreviated New Drug Application for an upfront consideration of US$15 million. Milestone payments,
of between US$21 million and US$28 million, are payable over a five-year supply term and are partly contingent on
future sales performance.
Post-acquisition revenue included in the statement of comprehensive income was R29,9 million. The estimation of
post-acquisition operating profits is impracticable and not reasonably determinable due to the immediate integration
of the business into the existing operations of the Group.
Norgine SA HPC business Total
R’billion R’billion R’billion
Fair value of assets and liabilities acquired
Intangible assets 0,5 0,6 1,1
Trade and other receivables 0,1 - 0,1
Trade and other payables (0,1) - (0,1)
Purchase consideration paid 0,5 0,6 1,1
Deferred consideration - (0,4) (0,4)
Cash outflow on acquisition 0,5 0,2 0,7
2015
Set out below is the final accounting for the following June 2015 business combinations:
Kama
On 1 May 2015, the Company acquired 65% of the issued share capital of Kama Industries Limited (“Kama”), a privately
owned company incorporated in Ghana for a purchase consideration of US$4,5 million.
Florinef and Omcilon business
AGI and Aspen Brazil 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 United Kingdom and Brazil) and Omcilon
in Brazil, for a consideration of US$41 million. Contingent consideration of US$4 million was paid to Bristol Myers
Squibb Company. Additional consideration of up to US$2 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.
Mono-Embolex business
AGI acquired the rights to Mono-Embolex, an injectable anticoagulant, from Novartis AG for a consideration of
US$142 million effective 20 February 2015.
Florinef and Mono-
Kama Omcilon business Embolex business Total
R'billion R’billion R’billion R/billion
Fair value of assets and liabilities
acquired
Property, plant and equipment 0,1 - - 0,1
Intangible assets - 0,4 1,7 2,1
Deferred tax liabilities - - (0,1) (0,1)
Fair value of net assets acquired 0,1 0,4 1,6 2,1
Goodwill acquired - - 0,1 0,1
Cash outflow on acquisition 0,1 0,4 1,7 2,2
The initial accounting for these acquisitions, which were classified as business combinations in the prior year,
were reported on a provisional basis and was finalised in the June 2016 financial year.
K. ILLUSTRATIVE COMPARABLE EARNINGS
The comparability of the reported results for the year ended 30 June 2016 to the prior reporting period has been
influenced by the following factors:
* The completion on 31 August 2015 of the divestment of the generics business conducted in Australia as well as
certain branded products distributed in Australia to Strides group companies, the related termination of licence
arrangements in Australia and the completion on 1 October 2015 of the divestment of a portfolio of products
distributed in South Africa to Litha Pharma (collectively “the Divestments”). The contribution to the Aspen
results by the Divestments is consequently substantially reduced in the current period. In the period from
1 July 2015 until effective date of divestment, revenue from the Divestments was R0,2 billion whereas revenue
from the Divestments for the year ended 30 June 2015 was R1,8 billion.
* The change in translation rate to report the financial position, results of operations and cash flows relating
to Aspen’s Venezuelan business for the year ended 30 June 2016 from the official DIPRO rate (previously CENCOEX)
which ranged between 6,3 and 10,0 per USD to the DICOM rate (previously SIMADI rate) of VEF628,34 per USD.
To provide meaningful comparability of the financial performance of Aspen’s ongoing underlying business, a measure
described as comparable normalised headline earnings, has been determined which excludes the contribution from the
Divestments and includes the results of Aspen’s Venezuelan business translated at the DICOM rate of VEF628,34 per
USD for the prior reporting period.
Set out below is the comparable information for revenue, operating profit, normalised headline earnings and NHEPS.
The comparable group segmental analysis and comparable group statement of comprehensive income are included to
enable meaningful analytical review. The comparable information has been derived from the reviewed financial
information and has not been reported on by Aspen's auditors. This information has been prepared for illustrative
purposes only and is the responsibility of the Board of Directors of Aspen.
Illustrative Illustrative
2016 2015
Change R’billion R’billion
COMPARABLE REVENUE
Reconciliation of comparable revenue
Revenue (2%) 35,6 36,1
Adjusted for:
- Revenue from the Divestments (0,2) (1,8)
- Translation of Aspen Venezuela’s revenue at the DICOM
exchange rate - (2,7)
Comparable revenue 12% 35,4 31,6
COMPARABLE OPERATING PROFIT
Reconciliation of comparable operating profit
EBITA 3% 9,5 9,2
Amortisation (0,6) (0,5)
Normalised operating profit 8,9 8,7
Adjusted for:
- Operating profit from the Divestments (0,1) (0,6)
Comparable operating profit 8% 8,8 8,1
COMPARABLE NORMALISED HEADLINE EARNINGS+
Reconciliation of comparable normalised headline earnings
Normalised headline earnings 10% 5,8 5,2
Adjusted for:
- Operating profit from the Divestments (net of tax) - (0,4)
- Interest savings from proceeds on the Divestments (net of tax) (0,2) -
Comparable normalised headline earnings 15% 5,6 4,8
COMPARABLE NORMALISED HEADLINE EARNINGS PER SHARE
Comparable normalised headline earnings per share (cents) 15% 1 222,0 1 066,7
+ Comparable headline earnings is disclosed net of income from non-controlling interests which are not material.
COMPARABLE GROUP SEGMENTAL ANALYSIS
for the year ended 30 June 2016
Illustrative Illustrative
2016 2015
R’billion % of total R’billion % of total Change
REVENUE
International 18,9 50 15,8 48 19%
South Africa 8,1 22 8,2 24 (1%)
Asia Pacific 7,4 20 6,7 20 11%
SSA 3,3 8 2,8 8 18%
Gross revenue 37,7 100 33,5 100 12%
Less: IFRS adjustment (2,3) (1,9)
Total revenue 35,4 31,6 12%
NORMALISED OPERATING PROFIT
BEFORE AMORTISATION
Adjusted for specific non-trading items ("EBITA")
International 5,9 63 5,1 59 15%
South Africa 1,5 16 1,8 20 (15%)
Asia Pacific 1,6 17 1,4 17 10%
SSA 0,4 4 0,3 4 31%
Total EBITA 9,4 100 8,6 100 9%
ENTITY-WIDE DISCLOSURE - REVENUE
Commercial revenue by customer geography
Commercial - Pharmaceutical 27,7 74 25,3 75 10%
Europe CIS 8,5 23 7,0 20 22%
Asia Pacific 6,1 16 5,6 17 8%
South Africa 6,2 17 6,6 20 (6%)
SSA 3,2 9 2,8 8 15%
Latin America (excluding
hyperinflationary economy) 2,0 5 2,1 6 (5%)
Middle East and North Africa 0,9 2 0,6 2 51%
USA and Canada 0,8 2 0,6 2 42%
Commercial - Nutritionals 3,5 9 3,1 9 13%
Latin America (excluding
hyperinflationary economy) 1,5 4 1,3 4 18%
Asia Pacific 1,0 3 1,0 3 6%
South Africa 0,9 2 0,7 2 11%
SSA 0,1 - 0,1 - 51%
Total commercial revenue 31,2 83 28,4 84 10%
Manufacturing revenue by geography of manufacturer
Manufacturing revenue - finished
dose form 2,1 5 1,5 5 37%
South Africa 0,9 2 0,5 2 69%
Europe CIS 0,7 2 0,5 2 39%
Asia Pacific 0,5 1 0,5 1 -
Manufacturing revenue - APIs 4,4 12 3,6 11 22%
Europe CIS 4,0 11 3,3 10 19%
South Africa 0,4 1 0,3 1 52%
Total manufacturing revenue 6,5 17 5,1 16 26%
Total gross revenue 37,7 100 33,5 100 12%
Adjustment* (2,3) (1,9)
Total revenue 35,4 31,6 12%
Summary of regions
International 18,4 49 15,4 46 20%
South Africa 8,4 22 8,1 24 2%
Asia Pacific 7,6 20 7,1 21 7%
SSA 3,3 9 2,9 9 16%
Total gross revenue 37,7 100 33,5 100 12%
Adjustment* (2,3) (1,9)
Total revenue 35,4 31,6 12%
* The profit share from the SSA Collaboration has been disclosed as revenue in the statement of comprehensive
income.
COMPARABLE GROUP STATEMENT OF COMPREHENSIVE INCOME
for the year ended 30 June 2016
Illustrative Illustrative
2016 2015
Change R’billion R’billion
Revenue 12% 35,4 31,6
Cost of sales (17,6) (16,1)
Gross profit 15% 17,8 15,5
Selling and distribution expenses (5,9) (4,8)
Administrative expenses (2,6) (2,5)
Net other operating expenses 0,1 0,4
Normalised operating profit before amortisation 9% 9,4 8,6
Amortisation (0,6) (0,5)
Operating profit 8% 8,8 8,1
Net financing costs (1,9) (2,0)
Profit before tax 15% 6,9 6,1
Tax (1,3) (1,3)
Profit for the year 15% 5,6 4,8
Subsequent events
Post year end corporate activity
In August 2016, AGI signed an agreement with AstraZeneca AB and AstraZeneca UK ("AstraZeneca") whereby AGI agreed
to acquire the exclusive rights to commercialise AstraZeneca’s global (excluding the USA) anaesthetics portfolio
(“the AZ Transaction”). AstraZeneca’s anaesthetics portfolio comprises seven established medicines, namely Diprivan
(general anaesthesia), EMLA (topical anaesthetic) and five local anaesthetics (Xylocaine/Xylocard/Xyloproct, Marcaine,
Naropin, Carbocaine and Citanest) (“the AZ Portfolio”). The products in the AZ Portfolio are sold in more than 100
countries worldwide including China, Japan, Australia and Brazil. These products generated revenue of US$592 million
in the year ended 31 December 2015. In terms of the concluded agreement, as consideration for the commercialisation
rights, AGI will pay US$520 million and double-digit percentage royalties on sales of the Portfolio. Additionally,
AGI will make sales-related payments of up to US$250 million based on sales in the 24 months following
completion. AGI and AstraZeneca have also signed a supply agreement whereby AstraZeneca will supply the AZ
Portfolio to AGI. This supply agreement has an initial period of 10 years. This transaction became effective
on 1 September 2016. Based on the terms of the agreements and Aspen’s current cost of funding, Aspen’s
interest in the AZ Portfolio would have generated a contribution to profit before tax of approximately
US$100 million in the year ended 31 December 2015.
On 12 September 2016 Aspen announced that various Group subsidiaries had concluded three separate transactions
with GlaxoSmithkline (“GSK”) companies as follows:
* AGI signed an agreement with GSK whereby AGI will acquire a portfolio of anaesthetic products globally (with
the exception of certain territories, primarily North America) (“the Anaesthetics Transaction”). GSK’s
anaesthetics portfolio comprises five established medicines, namely Ultiva (general anaesthesia) and four
muscle relaxants (Nimbex, Mivacron, Tracrium and Anectine) (“the GSK Portfolio”). The products in the GSK
Portfolio are sold in more than one hundred countries worldwide including Japan, Brazil, Korea, Germany and
Italy. In terms of the concluded agreement, as consideration for the Portfolio, AGI will pay an initial
amount of £180 million and milestone payments of up to £100 million based on the results of the Portfolio in
the 36 months following completion. AGI and GSK have also signed a supply agreement whereby GSK will supply
the products to AGI for four years. The GSK Portfolio is expected to generate revenue of approximately
£70 million in the year ended 31 December 2016. The Anaesthetics Transaction is subject to customary closing
conditions and is anticipated to complete during the third quarter of Aspen’s 2017 financial year.
* As part of its acquisition of the thrombolytic products Fraxiparine and Arixtra from GSK in 2014, AGI also
acquired an option to acquire the same products in certain countries to which GSK retained the rights, most
notably China. AGI has exercised its option to acquire Fraxiparine and Arixtra in these countries for a
consideration of £45 million. Approximately £30 million of revenue is generated by the thrombolytic products
in China. The completion of the acquisition of the thrombolytic products in the relevant territories is
subject to customary closing conditions and is expected to occur during the third quarter of Aspen’s 2017
financial year.
* Pharmacare Limited (“Pharmacare”) and GSK have agreed to cancel the rights of Pharmacare to collaborate in
the sub-Saharan business of GSK (“the SSA Collaboration”). These rights were acquired as part of a basket of
transactions with GSK in 2009. GSK will pay Pharmacare £45 million as consideration for the cancellation. The
SSA Collaboration generated approximately R2.6 billion of gross revenue in the 2016 financial year. The
cancellation of the SSA Collaboration is expected to become effective in the third quarter of Aspen’s 2017
financial year.
If the GSK Portfolio was owned for the entire 2017 financial year, it would be expected to add approximately
75 cents per share to the normalised headline earnings per share (“NHEPS”) of the Group. The net impact on
NHEPS of the acquisition of the thrombolytic products and the cancellation of the SSA Collaboration should
not be material.
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 applied in the preparation of these provisional Group financial results are in terms of
International Financial Reporting Standards and are consistent with those used in the annual financial statements
for the year ended 30 June 2015, apart from the change in accounting policy relating to the definition of
normalised headline earnings.
Aspen has amended its accounting policy relating to the definition of normalised headline earnings to exclude net
monetary adjustments and currency devaluations relating to hyperinflationary economies. The normalised headline
earnings and normalised headline earnings per share for the year ended 30 June 2015 have been restated to
retrospectively reflect the change in accounting policy.
The entity-wide revenue disclosure within the Group segmental analysis has been revised to reflect the Group’s
current operating model and all comparative numbers have been restated accordingly. The updated segmental analysis
is aligned to the way the business is managed and reported on by the Chief Operating Decision Maker (“CODM”). The
regional split has been expanded to reflect the “USA and Canada” and “Middle East and North Africa” as separate
regions. Revenue has been categorised between commercial and manufacturing revenue:
* Commercial revenue includes the commercial sale of all Aspen-owned or licensed finished products. Commercial
revenue has been further categorised between pharmaceutical and nutritional products and has been allocated by
region based upon end-customer geography.
* Manufacturing revenue includes the sale of Aspen-owned and manufactured APIs and revenue generated from the
manufacture of third party-owned finished dose form products.
Manufacturing revenue has been allocated by region based upon point of manufacturing geography.
The provisional Group financial results have been rounded and disclosed in R’billions to assist financial
analysis. All percentage change variances have been calculated using unrounded numbers to record accurate
variance trends.
These provisional Group financial results have been prepared under the supervision of the Deputy Group Chief
Executive, M G Attridge CA(SA) and approved by the Board of Directors.
Audit review
These results have been reviewed by Aspen’s auditors, PricewaterhouseCoopers Inc. Their unmodified review
conclusion 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.
The comparable information has been derived from the reviewed financial information and has not been reported
on by Aspen's auditors. This information has been prepared for illustrative purposes only and is the
responsibility of the Board of Directors of Aspen.
Directors
K D Dlamini (Chairman)*, R C Andersen*, M G Attridge, J F Buchanan*, M M Manyama*, C N Mortimer*, B Ngonyama*,
D S Redfern*, S B Saad, S V Zilwa*
*Non-executive director
Changes in directorate
Judy Dlamini resigned as Chairman and non-executive director of the Board with effect from 7 December 2015.
Kuseni Dlamini was appointed as Chairman with effect from that date. Babalwa Ngonyama was appointed as a
non-executive director on 1 April 2016.
Company Secretary
R Verster
Sponsor
Investec Bank Limited
Registered office
Building Number 8, Healthcare Park, Woodlands Drive, Woodmead
PO Box 1587, Gallo Manor, 2052
Telephone 011 239 6100 • Telefax 011 239 6144
Transfer secretary
Trifecta Capital Services (Pty) Limited
(Registration number 2009/018890/07)
31 Beacon Road, Florida North
(PO Box 61272, Marshalltown, 2107)
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”)
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: 14/09/2016 02:32:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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