ASPEN PHARMACARE HOLDINGS LIMITED - Voluntary Announcement: Provision of Supplementary Information in respect of The 2018 Financial Year Results

Voluntary Announcement: Provision of Supplementary Information in respect of The 2018 Financial Year Results

ASPEN PHARMACARE HOLDINGS LIMITED
(Incorporated in the Republic of South Africa) (“Aspen Holdings”)
Registration number: 1985/0002935/06
Share code: APN
ISIN: ZAE000066692
and its subsidiaries (collectively “Aspen” or “the Group”)




VOLUNTARY ANNOUNCEMENT: PROVISION OF SUPPLEMENTARY INFORMATION IN RESPECT OF THE 2018
FINANCIAL YEAR RESULTS

On 13 September 2018, Aspen released its results for the 2018 financial year which reported that Aspen
had improved revenue by 3% to R42.6 billion and had grown normalised headline earnings per share
(“NHEPS”) by 10% to 1 605 cents in the year ended 30 June 2018. Following the release of these results,
trading volumes in Aspen shares increased with the share price declining significantly. We have received a
number of enquiries in respect of certain aspects of our business and for the benefit of our shareholders
the following supplementary information is provided.

Guarantees to financial institutions relative to net debt levels

Aspen has no off-balance sheet funding and all guarantees to financial institutions apply only to wholly
owned Aspen subsidiaries.

In the announcement of 13 September 2018, Aspen reported guarantees to financial institutions of R73,5
billion and in the accompanying commentary, reported borrowings, net of cash, of R46,8 billion. The
explanation for the difference between these two values is as follows:

    -   The guarantees are for the maximum value of all available facilities and credit lines, and not only
        for the drawn down portion thereof;

    -   Cash balances are offset against borrowings while the guarantees are on the full available debt
        facilities, drawn and undrawn; and

    -   The guarantees also cover the gross value of the South Africa cash pooling system, and certain lines
        which are linked to non-vanilla debt facilities, i.e. derivative lines, guarantee lines and other lines of
        credit.

Revenue growth prospects in Commercial Pharmaceuticals

Aspen is targeting organic revenue growth of between 1% and 4% in its Commercial Pharmaceuticals
business for the 2019 financial year.

Sale of Nutritionals business

As also announced on 13 September 2018, Aspen has concluded an agreement to divest of its global
nutritionals business (“Nutritionals business”) to the Lactalis Group, a leading multinational dairy
corporation, for a fully funded cash consideration of EUR 739,8 million which includes approximately EUR
62 million to be paid to Aspen’s joint venture partners in Asia Pacific.
The net proceeds to Aspen from completion of the divestment of the Nutritionals business, after
transaction costs and related taxes, is expected to be approximately EUR 644 million (R11,2 billion at EUR
17,44/ZAR). These net proceeds will be utilised to reduce Aspen’s gearing, creating greater headroom and
capacity.

Influence of relative exchange rates

Relative exchange rate movements can have a significant impact on Aspen’s Rand-reported results.
Approximately 20% of the Group’s revenue and less than 20% of the Group’s profit after tax was earned in
Rand in the year ended 30 June 2018, with the balance of revenue and profits earned in a wide spread of
global currencies, the most material of which being the EUR, AUD, USD, CNY and JPN. Should present
exchange rates persist for the remainder of the 2019 financial year this would have a positive impact on
Rand-reported earnings.

Any reference to future financial or forecast information included in this announcement has not been
reviewed or reported on by the auditors.



Durban
19 September 2018

Sponsor:
Investec Bank Limited

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