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ASCENDIS HEALTH LIMITED - Unaudited interim results for the six months ended 31 December 2018

Release Date: 18/03/2019 07:30
Code(s): ASC     PDF:  
 
Wrap Text
Unaudited interim results for the six months ended 31 December 2018

Ascendis Health Limited
(Incorporated in the Republic of South Africa)
Registration number 2008/005856/06
JSE share code ASC
ISIN ZAE000185005
("Ascendis" or "the Group" or "the Company")

UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2018 

Key features 

Group revenue up 3% to R3.96 billion

International revenue up 7%

Gross margin strengthened 260 bps to 44.9%

Normalised EBITDA up 1% to R684 million

Normalised headline earnings down 6% to R351 million

Commentary

Financial performance
The group is reporting normalised results from continuing operations which have been adjusted for once-off transaction-related
and restructuring costs in the current and prior reporting period.

Group revenue increased by 3% to R3.96 billion (H1 2018: R3.85 billion). International revenue increased by 7% to R1.96 billion
and accounts for 50% (H1 2018: 48%) of the group's total sales. Revenue generated in South Africa declined by 1%.

The group's gross margin strengthened by 260 basis points to 44.9%, mainly due to improved raw material pricing through
strategic sourcing in Farmalider and Remedica, the discontinuation of low margin products in Wellness, Biosciences and Pharma,
the acquisition of the high margin Kyron Laboratories (Kyron) business and improved selling prices in Biosciences owing to Rand
weakness.

Operating expenses grew by 15% owing to increased investment in sales, marketing, distribution and head office, and the costs
of Kyron which was acquired in March 2018.

Normalised earnings before interest, tax, depreciation and amortisation (EBITDA), increased by 1% to R684 million. The EBITDA
margin contracted by 20 basis points due to the higher operating expenses.

Higher depreciation and finance costs resulted in normalised profit after tax for the six months being down by 4.4%. Normalised
headline earnings from continuing operations, which excludes capital profits of R19.6 million from the sale of the Isando
manufacturing facility, declined by 6% to R351 million. Normalised headline earnings per share were 10% lower at 72.5 cents.
The weighted average number of shares in issue increased by 4.3% during the reporting period.

Cash generated from operations totaled R502 million. The group invested R262 million in capital projects (including R171 million
in property, plant and equipment, and R91 million in intangibles), repaid deferred vendor liabilities of R228 million and incurred
R156 million in investing and financing activities, with cash and cash equivalents totaling R239 million at the end of the period.
The cash conversion rate at 73% improved from 46% in H1 2018.

Gearing levels increased from the 2018 year end, with the net debt: EBITDA ratio at 3.9 times (2018 year end: 3.5 times) due to
Rand weakness at the period end and increased short-term debt facilities.

The directors have again elected not to declare a dividend and to retain the cash to settle debt obligations.

Segmental performance

                       Consumer Health    Pharma   Medical   Animal Health   Biosciences   
Revenue                        R1 299m   R1 289m     R636m           R234m         R497m   
Revenue growth                      5%        0%      (9%)             54%            4%   
Revenue contribution               33%       32%       16%              6%           13%   
EBITDA                           R153m     R317m     R133m            R46m          R84m   
EBITDA growth                     (7%)       13%     (21%)             48%           10%   
EBITDA margin                    11.8%     24.6%     20.9%           19.7%         16.9%   
EBITDA contribution                21%       43%       18%              6%           12%   

In Consumer Health, which is the largest contributor to group revenue, Sun Wave Pharma again delivered strong revenue (+21%)
and EBITDA (+38%) growth. This was partially offset by the performance of the Consumer Health business in South Africa which
was impacted by the increasingly challenging consumer environment in the country. Sales growth was supported by the good
performance from the Solal skin brand and the launch of the Solal RestorX range. The Scitec sports nutrition business maintained
sales volumes but selling prices were 5% lower owing to increased competitor activity. Profitability was negatively impacted by
pricing pressure and increased marketing investments.

In the Pharma division, which contributed 43% of the group's EBITDA, Remedica and Farmalider showed solid growth and
improved margins. Revenue in the South African Pharma business was impacted by supplier issues and low market growth, while
profitability was affected by factory and supply issues which negatively impacted costs. 

The Medical division reported lower sales owing primarily to supply constraints while margins were impacted by foreign exchange movements.

Revenue in Biosciences benefited from the agri-business recovering from the drought while cost savings and synergies from the
restructuring of the pet accessories business contributed to EBITDA growth. Animal Health delivered strong sales growth following
the launch of a new vaccine range and improved performance in the compounding segment. However, the margin was impacted
by increased marketing costs relating to the vaccine launch and higher sales from the low margin compounding business. The
Animal Health business continues to realise synergies from the acquisition and integration of Kyron.

Divestments
Selected businesses and assets were identified as non-core to the group's strategy and classified for divestment. Negotiations
are at a very advanced stage for the sale of the Efekto, Marltons and Afrikelp businesses which form part of the Biosciences
division. The remaining business within Biosciences, Avima/KlubM5, may be considered for disposal in the short to medium term.

An agreement was concluded with Mylan Proprietary Limited on 20 December 2018 for the sale of the group's Isando
manufacturing facility for a total cash consideration of R130 million. The Group realised a profit on sale of R19.6 million.

As announced in the group's 2018 annual results in September 2018, the South African Sports Nutrition business was sold with
effect from 1 September 2018 for R54 million, reporting a loss on sale of R0.5 million. Agreement was reached for the sale of
Ascendis Direct on 10 September 2018, however the sale did not materialise and negotiations with a potential buyer are
continuing.

After the end of the reporting period, the group received an unsolicited offer for the Remedica business unit in Cyprus. The board
is involved in ongoing negotiations regarding the potential disposal of Remedica and has extended the process to include other
potential bidders.

Focus areas
In the months ahead management will maintain its strong focus on organic revenue and EBITDA growth as well as cash
conversion, while addressing areas of underperformance in the South African operations and accelerating the Scitec plans. The
group is committed to implementing a more efficient capital structure to refinance debt and improve the health of the balance
sheet. The completion of the Biosciences transaction and progressing the Remedica offer are major priorities, while the group's
strategy will be revised should the Remedica business be sold.


Thomas Thomsen                                         Kieron Futter
Chief Executive Officer                                Chief Financial Officer

Johannesburg
18 March 2019

Condensed group statement of financial position at 31 December 2018

                                                                                                                    Restated*                
                                                                                                    31 December   31 December      30 June   
                                                                                                           2018          2017         2018   
                                                                                                      Unaudited     Unaudited      Audited   
                                                                                                          R'000         R'000        R'000   
Property, plant and equipment                                                                         1 244 569     1 098 193    1 126 632   
Intangible assets and goodwill                                                                  5    10 029 785     9 038 862    9 833 747   
Investments accounted for using the equity method                                                         1 633        11 185        1 621   
Derivative financial assets                                                                                 118         1 136          114   
Other financial assets                                                                                   61 566        31 239       55 751   
Deferred tax assets                                                                                     100 268        50 450       91 700   
Non-current assets                                                                                   11 437 939    10 231 065   11 109 565   
Inventories                                                                                           1 857 338     1 726 055    1 619 441   
Trade and other receivables                                                                           2 196 139     2 018 951    1 871 775   
Other financial assets                                                                                   15 863        23 470        1 112   
Current tax receivable                                                                                  141 996        36 819      116 781   
Derivative financial assets                                                                              17 210         6 575       30 848   
Cash and cash equivalents                                                                               385 469       502 426      767 924   
Assets held for sale                                                                            8       130 075             -      359 625   
Current assets                                                                                        4 744 090     4 314 296    4 767 506   
Total assets                                                                                         16 182 029    14 545 361   15 877 071   
Stated capital                                                                                        6 507 529     6 560 751    6 512 930   
Other reserves                                                                                        (553 623)     (932 953)    (626 225)   
Retained income                                                                                         967 524       666 622      745 889   
Equity attributable to equity holders of parent                                                       6 921 430     6 294 420    6 632 594   
Non-controlling interest                                                                                183 168       155 848      161 515   
Total equity                                                                                          7 104 598     6 450 268    6 794 109   
Borrowings and other financial liabilities                                                      6     4 478 600     4 480 532    4 554 138   
Deferred tax liabilities                                                                                483 342       458 009      491 908   
Deferred vendor liabilities                                                                     7       179 011       640 101      876 386   
Put-option on equity instrument                                                                          15 920       113 967       14 309   
Derivative financial liabilities                                                                              -        12 651            -   
Finance lease liabilities                                                                                24 734        23 615       26 976   
Long-term employee benefits                                                                               5 866         9 120        4 714   
Non-current liabilities                                                                               5 187 473     5 737 995    5 968 431   
Trade and other payables                                                                              1 524 554     1 229 493    1 321 784   
Derivative financial liabilities                                                                          2 225        38 247        4 711   
Borrowings and other financial liabilities                                                      6     1 038 731       512 076      939 272   
Current tax payable                                                                                      85 559        12 628       83 128   
Deferred vendor liabilities                                                                     7       937 169       373 903      422 969   
Put-option on equity instrument                                                                          80 555             -       78 108   
Provisions                                                                                               31 331        25 775       92 854   
Finance lease liabilities                                                                                13 001         9 728       15 099   
Long-term employee benefits                                                                                   -         2 730       12 180   
Bank overdraft                                                                                          146 611       152 518       81 301   
Current liabilities held for sale                                                               8        30 222             -       63 125   
Current liabilities                                                                                   3 889 958     2 357 098    3 114 531   
Total liabilities                                                                                     9 077 431     8 095 093    9 082 962   
Total equity and liabilities                                                                         16 182 029    14 545 361   15 877 071   

* The comparative information were restated as a result of the change in plan to sell the Wynberg manufacturing facility and intercompany
  profit elimination. Refer to Note 4 and Note 8 for more details.

Condensed group statement of profit and loss and other comprehensive income
for the six months ended 31 December 2018

                                                                                                                   Restated*                 
                                                                                                    Six months    Six months                 
                                                                                                         ended         ended    Year ended   
                                                                                                   31 December   31 December       30 June   
                                                                                                          2018          2017          2018   
                                                                                                         R'000         R'000         R'000   
Revenue                                                                                              3 955 324     3 853 523     7 736 552   
Cost of sales                                                                                      (2 177 970)   (2 222 788)   (4 267 091)   
Gross Profit                                                                                         1 777 354     1 630 735     3 469 461   
Other income                                                                                            37 607         8 563        34 412   
Selling and distribution costs                                                                       (404 466)     (345 524)     (769 056)   
Administrative expenses                                                                              (726 039)     (645 323)   (1 341 600)   
Other operating expenses                                                                             (209 453)     (166 715)     (453 455)   
Operating profit                                                                                       475 003       481 736       939 762   
Finance income                                                                                           4 628         2 446        16 422   
Finance expenses                                                                                     (208 851)     (196 888)     (394 836)   
Gain from equity accounted investments                                                                       -        13 164         2 687   
Profit before taxation                                                                                 270 780       300 458       564 035   
Tax expense                                                                                   10      (33 653)      (41 280)      (68 471)   
Profit from continuing operations                                                                      237 126       259 178       495 564   
Loss from discontinued operations                                                              8      (16 738)      (51 948)     (193 409)   
Profit for the period                                                                                  220 388       207 230       302 155   
Other comprehensive income:                                                                                                                  
Items that may be reclassified to profit and                                                                                                 
loss net of tax                                                                                                                              
Foreign currency translation reserve                                                                   115 594     (162 749)       128 924   
Effects of cash flow hedges                                                                              2 488       (3 445)         4 495   
Fair value adjustments                                                                                   (981)       (5 964)       (1 617)   
Recycled to profit and loss                                                                              3 469         2 519         6 112   
Items that will not be reclassified to profit and                                                                                            
loss net of tax                                                                                                                              
Revaluation of property, plant and equipment                                                                 -             -       (4 196)   
Other comprehensive income for the period                                                              118 082     (166 194)       129 223   
Total comprehensive income for the period                                                              338 470        41 036       431 378   
Profit attributable to:                                                                                                                      
Owners of the parent                                                                                   204 892       190 977       277 171   
Non-controlling interest                                                                                15 496        16 253        24 984   
                                                                                                       220 388       207 230       302 155   
Total comprehensive income attributable to:                                                                                                  
Owners of the parent                                                                                   321 522        40 074       412 937   
Non-controlling interest                                                                                16 948           962        18 441   
                                                                                                       338 470        41 036       431 378   
Earnings per share from continuing operations                                                                                                
Basic and diluted earnings per share (cents)                                                   2          45.8          52.3         101.9   
Total earnings per share                                                                                                                     
Basic and diluted earnings per share (cents)                                                   2          42.3          41.1          60.0   

* The comparative information were restated as a result of the change in plan to sell the Wynberg manufacturing facility, restatement of
  discontinued operations and intercompany profit elimination. Refer to Note 4 and Note 8 for more details.

Condensed group statement of changes in equity
for the six months ended 31 December 2018

                                                                                                                  non-                          attributable                             
                                                                        Foreign                            controlling                             to equity          Non-               
                                                           Stated   translation   Revaluation    Hedging      interest       Other   Retained     holders of   controlling       Total   
R'000                                                     capital       reserve       reserve    reserve       reserve    reserves     income      the group      interest      equity   
Balance at 1 July 2017 (Audited)                        5 447 899     (210 323)        15 848   (10 155)     (111 794)   (465 664)    475 645      5 141 456       154 886   5 296 342   
Profit for the period                                           -             -             -          -             -           -    190 977        190 977        16 253     207 230   
Other comprehensive income                                      -     (147 458)             -    (3 445)             -           -          -      (150 903)      (15 291)   (166 194)   
Total comprehensive income for the period                       -     (147 458)             -    (3 445)             -           -    190 977         40 074           962      41 036   
Issue of ordinary shares                                1 035 027             -             -          -             -           -          -      1 035 027             -   1 035 027   
Raising fees capitalised                                    (519)             -             -          -             -           -          -          (519)             -       (519)   
Net movement of treasury shares                            78 344             -             -          -             -           -          -         78 344             -      78 344   
Foreign currency translation reserve                            -         5 765             -          -         5 746    (11 473)          -             38             -          38   
Total contributions by and distributions to owners of                                                                                                                                    
the Group recognised directly in equity                 1 112 852         5 765             -          -         5 746    (11 473)          -      1 112 890             -   1 112 890   
Balance at 30 December 2017 (Unaudited)                 6 560 751     (352 016)        15 848   (13 600)     (106 048)   (477 137)    666 622      6 294 420       155 848   6 450 268   
Profit for the period                                           -             -             -          -             -           -     86 194         86 194         8 731      94 925   
Other comprehensive income                                      -       282 925       (4 196)      7 940             -           -          -        286 669         8 748     295 417   
Total comprehensive income for the period                       -       282 925       (4 196)      7 940             -           -     86 194        372 863        17 479     390 342   
Issue of ordinary shares                                    5 478             -             -          -             -           -          -          5 478             -       5 478   
Raising fees capitalised                                    (869)             -             -          -             -           -          -          (869)             -       (869)   
Net movement in treasury shares                          (52 430)             -             -          -             -           -          -       (52 430)             -    (52 430)   
Dividends                                                       -             -             -          -             -           -          -              -       (7 879)     (7 879)   
Foreign currency translation reserve                            -       (5 765)         (141)          -       (8 602)      21 098          -          6 590         2 609       9 199   
Acquisition of non controlling interest                         -             -             -          -             -       (667)          -          (667)           667           -   
Statutory reserve: Farmalider allocation to reserve             -             -             -          -             -      14 136    (6 927)          7 209       (7 209)           -   
Total contributions by and distributions to owners of                                                                                                                                    
the Group recognised directly in equity                  (47 821)       (5 765)         (141)          -       (8 602)      34 567    (6 927)       (34 689)      (11 812)    (46 501)   
Balance at 30 June 2018 (Audited)                       6 512 930      (74 856)        11 511    (5 660)     (114 650)   (442 570)    745 889      6 632 594       161 515   6 794 109   
IFRS 9 adjustment                                               -             -             -          -             -           -    (3 778)        (3 778)             -     (3 778)   
IFRS 15 adjustment                                              -             -             -          -             -           -      (206)          (206)             -       (206)   
Adjusted opening balance as at 30 June 2018                                                                                                                                              
(Unaudited)                                             6 512 930      (74 856)        11 511    (5 660)     (114 650)   (442 570)    741 905      6 628 610       161 515   6 790 125   
Profit for the period                                           -             -             -          -             -           -    204 892        204 892        15 496     220 388   
Other comprehensive income                                      -       114 142             -      2 488             -           -          -        116 630         1 452     118 082   
Total comprehensive income for the period                       -       114 142             -      2 488             -           -    204 892        321 522        16 948     338 470   
Net movement in treasury shares                           (5 401)             -             -          -             -           -          -        (5 401)             -     (5 401)   
Dividends                                                       -             -             -          -             -           -          -              -      (13 205)    (13 205)   
Foreign currency translation reserve                            -             -         (124)          -       (3 281)       1 677          -        (1 728)       (1 971)     (3 699)   
Acquisition of subsidiary                                       -             -             -          -             -           -          -              -       (1 692)     (1 692)   
Statutory reserve: Farmalider allocation to reserve             -             -             -          -             -    (42 300)     20 727       (21 573)        21 573           -   
Total contributions by and distributions to owners of                                                                                                                                    
the Group recognised directly in equity                   (5 401)             -         (124)          -       (3 281)    (40 623)     20 727       (28 702)         4 705    (23 997)   
Balance at 31 December 2018 (Unaudited)                 6 507 529        39 286        11 387    (3 172)     (117 931)   (483 193)    967 524      6 921 430       183 168   7 104 598   


Condensed group cash flow statement
for the six months ended 31 December 2018

                                                                                                                   Restated*                 
                                                                                                    Six months    Six months                 
                                                                                                         ended         ended    Year ended   
                                                                                                   31 December   31 December       30 June   
                                                                                                          2018          2017          2018   
                                                                                                         R'000         R'000         R'000   
Cash generated from operations                                                                 9       502 203       309 782     1 232 723   
Cash generated from/(utilised by) operations - discontinued                                                                                  
operations                                                                                     8         1 338         4 127      (52 553)   
Finance income received                                                                                  3 238         2 446        16 422   
Finance costs paid                                                                                   (183 703)     (172 193)     (381 904)   
Income taxes paid                                                                             11      (75 095)      (63 303)     (128 790)   
Net cash inflow from operating activities                                                              247 981        80 859       685 898   
Cash flows from investing activities                                                                                                         
Additions to property, plant and equipment                                                           (196 402)      (86 868)     (255 407)   
Proceeds on the sale of property, plant and equipment                                                   25 910         5 400         6 315   
Additions to intangible assets                                                                 5      (94 646)     (104 959)     (163 837)   
Proceeds on the sale of intangible assets                                                                3 561         4 473             -   
Payment for acquisition of subsidiaries - net of cash                                                        -             -      (96 268)   
Repayments of deferred vendor liabilities                                                     12     (228 219)   (1 093 193)   (1 220 305)   
Payments for the settlement of financial instruments                                                  (39 340)      (96 452)     (120 229)   
Proceeds of loans advanced to related parties                                                                -             -        16 445   
Receivable for disposal of a disposal group                                                          (130 000)             -             -   
Loans advanced to related parties                                                                     (19 006)             -      (18 446)   
Proceeds from disposal of disposal group                                                                54 183             -             -   
(Repayment of)/proceeds from loans advanced to external                                                                                      
parties                                                                                               (12 180)         7 220             -   
Proceeds from disposal of other financial assets                                                             -             -         7 844   
Net cash flow from investing activities - discontinued                                                                                       
operations                                                                                     8       (7 875)         2 695      (67 142)   
Net cash utilised in investing activities                                                            (644 014)   (1 361 684)   (1 911 030)   
Cash flows from financing activities                                                                                                         
Proceeds from issue of shares                                                                                -     1 035 027     1 039 117   
Proceeds on the sale of treasury shares                                                                      -        67 357        67 357   
Payments made to acquire treasury shares                                                               (5 401)             -      (44 163)   
Proceeds from borrowings raised                                                               12       214 223       388 880       449 362   
Repayment of borrowings                                                                       12     (278 954)     (395 240)     (288 688)   
Finance lease movement                                                                        12       (5 224)         1 884        10 695   
Net cash flow from financing activities - discontinued                                                                                       
operations                                                                                     8         7 685            35       115 588   
Net cash(outflow)/inflow from financing activities                                                    (67 671)     1 097 943     1 349 268   
Net (decrease)/increase in cash and cash equivalents                                                 (463 704)     (182 882)       124 136   
Net increase/(decrease) in cash and cash equivalents -                                                                                       
discontinued operations                                                                        8         1 148         6 857       (4 107)   
Cash and cash equivalents at beginning of period                                                       686 623       527 175       527 175   
Effect of exchange difference on cash balances                                                          14 791       (1 242)        39 419   
Cash and cash equivalents at end of period                                                             238 858       349 908       686 623   

* The comparative information were restated as a result of the change in plan to sell the Wynberg manufacturing facility, restatement of
  discontinued operations and intercompany profit elimination. Refer to Note 4 and Note 8 for more details.

Notes to the condensed group interim financial statements
for the six months ended 31 December 2018  

Corporate information
Ascendis Health Limited is a health and care brands company. The Group operates through the following health care areas:
Consumer Health, Pharma, Medical, Animal Health and Biosciences. Consumer Health consists of health and personal care
products sold to the public, primarily at the retail store level. The division offers over-the-counter (OTC) medicine and consumer
brands products, including vitamins and minerals, homeopathic products, herbal products, dermaceuticals functional foods,
functional super foods, sports nutrition, health beverages, weight management and therapeutic cosmetics. Pharma consists of
the sale of prescription and selected OTC pharmaceuticals. Medical offers sale and rental of medical devices including the related
consumables to health care institutions. Animal Health supplies products to the animal care and health markets. Biosciences
supplies plant products. The Animal Health and Biosciences divisions manufacture and supply over 3 500 different products to
over 4 500 retail stores.

These condensed consolidated Group interim financial results as at 31 December 2018 comprise of the Company and its
subsidiaries (together referred to as the Group) and the Group's interest in equity accounted investments. The condensed
consolidated interim financial statements have not been externally reviewed or audited.

Going concern
The directors consider that the Group has adequate resources to continue operating for the foreseeable future and that it is
therefore appropriate to adopt the going-concern basis in preparing the Group's financial statements. The directors have satisfied
themselves that the Group is in sound financial position and that it has access to sufficient borrowing facilities to meet its
foreseeable cash requirements.

Basis of preparation
The condensed consolidated Group interim financial statements for the six months ended 31 December 2018 are prepared in
accordance with the requirements of the JSE Limited Listings Requirements, and the requirements of the Companies Act, 2008
applicable to summary financial statements. The JSE Limited Listings Requirements requires interim results to be prepared in
accordance with International Accounting Standard ("IAS") 34 Interim Financial Reporting and the SAICA Financial Reporting
Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by the Financial Reporting
Standards Council.

The condensed consolidated Group interim financial statements should be read in conjunction with the annual financial statements
for the year ended 30 June 2018, which have been prepared in accordance with the International Financial Reporting Standards
(IFRS).

The unaudited condensed interim Group financial statements for the six months ended 31 December 2018 have been prepared
under the supervision of Chief Financial Officer, Kieron Futter (CA) SA. The interim financial statements have been prepared on
the historical cost basis, except for the measurement of certain financial instruments and land and buildings at fair value. The
financial statements are prepared on the going concern basis using accrual accounting.

All the amounts have been rounded off to the nearest thousand Rand unless otherwise stated.

Items included in the interim financial statements of each entity in the Group are measured using the functional currency of the
primary economic environment in which that entity operates. The interim financial statements are presented in Rand. This
represents the presentation and functional currency of Ascendis. The Group owns the following entities which operate in primary
economic environments that are different to the Group:

-   Farmalider - Spain
-   Remedica - Cyprus
-   Scitec - Hungary
-   Ascendis Wellness (Sun Wave) - Romania
-   Ascendis Health International Holdings - Malta

For each of these entities a functional currency assessment has been performed. Where the entity has a functional currency
different to that of the Group's presentation currency they are translated upon consolidation in terms of the requirements of IFRS.

Principal Accounting Policies
The accounting polices applied in the preparation of the condensed consolidated Group interim financial statements are in terms
of IFRS and are consistent with those accounting policies applied in the preparation of the consolidated annual financial
statements for the year ended 30 June 2018.

New standards adopted by the Group
The Group has adopted all the new, revised or amended accounting pronouncements as issued by the International Accounting
Standards Board (IASB) which were effective for the Group from 1 July 2018.

The following standards had an impact on the Group:

-   IFRS 9 Financial Instruments
-   IFRS 15 Revenue from Contracts with Customers

Refer to Note 3 Changes in Accounting Policies for more details on the impact of the new Standards.

Impact of standards issued but not yet applied by the Group
-   IFRS 16 Leases

IFRS 16 was issued in January 2016. It will result in almost all leases being recognised on the balance sheet, as the distinction
between operating and finance leases is removed. Under the new standard, a right of use asset and a financial liability are
recognised. The only exceptions are short-term and low-value leases.

The accounting for lessors will not significantly change. The new standard mainly affects the accounting for operating leases. As
at 31 December 2018, the Group has non-cancellable operating lease commitments of R39.7 million. The Group is in the process
of determining to what extent these commitments will result in the recognition of the right of use asset and liability for future
payments and how this will affect the Group's profit and classification of cash flows. Some commitments may relate to exceptions
or arrangements that will not qualify as leases under IFRS 16. More disclosures will be provided in the June 2019 annual financial
statements.

The Group does not intend to early adopt the standard, therefore IFRS 16 will be applied in the annual financial period beginning
on 1 July 2019.

Judgements and estimates
In preparing these interim financial results, management made judgements, estimates and assumptions that affect the application
of accounting policies and the reported amounts of assets, liabilities, income and expenses.

Significant estimates and judgements were made on the following items:

-   The useful lives and residual values of property, plant and equipment and intangible assets.
-   Impairment testing and allocation of cash-generating units.
-   Estimation of fair value in business combinations.
-   Estimated goodwill impairment.
-   Estimation of fair values of land and buildings.
-   Control assessments of investments in other entities acquired.

1.  Group Segmental Analysis
    On 25 September 2018, the Group adopted a new strategic focus which would be achieved through the implementation of
    the new Target Operating Model ("TOM"). The new strategy is focused on strengthening the core of the business in order to
    create and achieve a sustainable and leading market position for the business. As a result, the segment analysis was
    changed with a view to focus on the core health care areas and to strengthen operational oversight.

    Five core health care areas have been identified, namely Pharma, Medical, Consumer Health, Animal Health and
    Biosciences. The core health care areas have been split into nine new reportable segments that are used by the Group
    executive committee (Chief operating decision maker ("CODM")) to make key operating decisions, allocate resources and
    assess performance. The new reportable segments were split taking into account the nature of the products, production
    process, distribution channels, types of customers and the regulatory environment in which the business units operate.

    The new reportable segments are as follows:

    -   Consumer Health, incorporating Sports Nutrition, Skin and all of the Ascendis over-the-counter (OTC) and
        complementary and alternative medicines Consumer Brands products. This division includes three reportable segments:
        -    Consumer Health Africa segment: operating predominantly in the South African market.
        -    Scitec segment: operating predominantly in the European market.
        -    Sun Wave segment: operating predominantly in Romania.
    -   Pharma, incorporating Ascendis' pharmaceutical products. This division includes three reportable segments:
        -    Pharma Africa segment: operating predominantly in the South African market.
        -    Remedica segment: operating predominantly in the European market.
        -    Farmalider segment: operating predominantly in Spain.
    -   Medical, incorporating the supply of medical devices and consumables. The segment is operating predominantly in South
        Africa.
    -   Animal Health, incorporating manufacturing and distribution of animal health products. The segment is operating
        predominantly in South Africa.
    -   Biosciences, incorporating manufacturing and distribution of crop protection, public pesticides and equipment. The
        segment is operating predominantly in South Africa.

    Due to the change in segment reporting, the comparative information has been restated.

    (a) Statement of profit and loss and other comprehensive income measures applied
     
                                                                                                                      Restated    Restated
                                                                                                      Six months    Six months        Year
                                                                                                           ended         ended       ended
                                                                                                     31 December   31 December     30 June
                                                                                                            2018          2017        2018
                                                                                                       Unaudited     Unaudited   Unaudited
    Revenue split by segment                                                                               R'000         R'000       R'000   
    Consumer Health                                                                                    1 298 488     1 241 170   2 491 230   
    Africa                                                                                               336 270       346 048     658 491   
    Scitec                                                                                               624 943       625 318   1 278 644   
    Sun Wave                                                                                             337 275       269 804     554 095   
    Pharma                                                                                             1 289 174     1 284 911   2 643 174   
    Africa                                                                                               293 699       372 795     758 562   
    Remedica                                                                                             701 233       643 194   1 325 308   
    Farmalider                                                                                           294 242       268 922     559 304   
    Medical                                                                                              636 462       699 343   1 336 734   
    Animal Health                                                                                        234 112       152 082     365 004   
    Biosciences                                                                                          497 088       476 017     900 410   
    Total revenue                                                                                      3 955 324     3 853 523   7 736 552   
    Revenue by geographical location                                                                                                         
    South Africa                                                                                       1 997 631     2 015 623   3 998 613   
    Cyprus                                                                                               701 233       643 194   1 325 308   
    Spain                                                                                                294 242       273 202     559 203   
    Other Europe                                                                                         954 584       894 333   1 853 135   
    Other Africa                                                                                           7 634        27 171         293   
    Total revenue                                                                                      3 955 324     3 853 523   7 736 552   
    Revenue by destination                                                                                                                   
    Africa                                                                                             2 094 380     2 143 613   4 181 908   
    South Africa                                                                                       1 791 451     1 865 154   3 525 465   
    Rest of Africa                                                                                       302 929       278 459     656 443   
    Europe                                                                                             1 490 141     1 394 812   2 882 021   
    Romania                                                                                              349 666       278 869     573 931   
    Spain                                                                                                271 632       268 593     523 930   
    Germany                                                                                              159 449       118 259     290 305   
    Hungary                                                                                              104 654       140 493     287 370   
    France                                                                                                99 704        91 271     242 458   
    Cyprus                                                                                                40 096        49 634     116 809   
    Other                                                                                                464 940       447 693     847 218   
    Asia Pacific                                                                                         283 726       234 045     490 978   
    Asia                                                                                                 259 668       212 363     424 248   
    Australia                                                                                             18 533        15 739      55 148   
    New Zealand                                                                                            5 525         5 943      11 582   
    United Kingdom                                                                                        37 684        52 454     103 268   
    South America                                                                                         33 199        12 224      43 151   
    North America                                                                                         16 194        16 375      35 226   
    Total revenue                                                                                      3 955 324     3 853 523   7 736 552   

    The Group has an expanding international footprint and currently exports products to 120 countries, mainly in Africa and
    Europe.
    
    The revenue presented by geographic location represents the domicile of the entity generating the revenue.

    51% of the Group's revenue is generated through the wholesale and retail market (December 2017: 51%). In this market,
    6% (December 2017: 4%) of the total Group revenue is derived from a single customer and 10% of the Group's revenue
    is generated from government institutions (local and international) (December 2017: 12%).

    The Group evaluates the performance of its reportable segments based on normalised EBITDA (earnings before interest,
    tax, depreciation and amortisation) and further adjusted for business combinations, integration and restructuring costs.
    The financial information of the Group's reportable segments is reported to the EXCO for purposes of making decisions
    about allocating resources to the segment and assessing its performance.

    The percentage disclosed represents the EBITDA/revenue margin.
                                                                                                                                  Restated
                                                                      Six months ended         Six months ended                 Year ended   
                                                                      31 December 2018         31 December 2017               30 June 2018   
    Normalised EBITDA                                                        Unaudited                Unaudited                  Unaudited   
    split by segment                                              R'000              %      R'000             %       R'000              %   
    Consumer Health                                             153 469                   165 337           15%     315 690            13%   
    Africa                                                       47 321            14%     53 827           16%     101 575            15%   
    Scitec                                                       12 275             2%     46 697            7%      88 557             7%   
    Sun Wave                                                     93 873            28%     64 813           24%     125 558            23%   
    Pharma                                                      317 011            26%    279 740           22%     588 943            22%   
    Africa                                                       18 485            13%     25 201            7%      79 511            10%   
    Remedica                                                    230 676            33%    206 431           32%     407 360            31%   
    Farmalider                                                   67 850            23%     48 108           18%     102 072            18%   
    Medical                                                     132 778            21%    167 619           24%     318 208            24%   
    Animal Health                                                46 250            20%     30 522           20%      68 060            19%   
    Biosciences                                                  84 197            17%     76 435           16%     131 413            15%   
    Headoffice                                                 (49 976)                  (43 873)                  (82 889)                  
    Total normalised EBITDA                                     683 729                   675 780                 1 339 425                  
    Non-controlling interest                                                                                                                 
    proportionate share                                        (27 798)                  (15 364)                  (39 087)                  
    Total normalised EBITDA                                                                                                                  
    attributable to the parent                                  655 931                   660 416                 1 300 338                  
    Reconciliation of normalised                                                                                                             
    EBITDA to consolidated results                                                                                                           
    Consolidated operating profit                               475 002                   481 736                   939 762                  
    Total impairment, amortisation                                                                                                           
    and depreciation                                            167 320                   142 487                   344 767                  
    Business combination costs *                                    526                    21 804                    29 655                  
    Restructuring costs *                                        39 684                     6 952                     7 150                  
    Isando manufacturing operations                                                                                                          
    loss *                                                       20 754                    22 801                    45 602                  
    Profit on disposal of Isando                                                                                                             
    factory *                                                  (19 557)                         -                         -                  
    Put/call option  remeasurement *                                  -                         -                  (32 532)                  
    Impairment of investment *                                        -                         -                     5 021                  
    Non-controlling interest                                                                                                                 
    proportionate share                                        (27 798)                  (15 364)                  (39 087)                  
    Total normalised EBITDA                                                                                                                  
    attributable to the parent                                  655 931                   660 416                 1 300 338                  
    
    *These reconciling items are excluded from EBITDA for performance measurement purposes.

                                                                                                         Restated                 Restated
                                                                         Six months ended        Six months ended               Year ended
                                                                         31 December 2018        31 December 2017             30 June 2018
                                                                                Unaudited               Unaudited                Unaudited
                                                                    Finance       Finance   Finance       Finance   Finance        Finance
    Net finance cost                                                 income       expense    income       expense    income        expense
    split by segment                                                  R'000         R'000     R'000         R'000     R'000          R'000   
    Consumer Health                                                     396      (76 925)   (2 280)      (79 048)   (2 985)      (146 153)   
    Africa                                                               91         (455)       384       (3 611)     1 332          (784)   
    Scitec                                                               10      (70 744)   (2 704)      (70 118)       105      (139 533)   
    Sun Wave                                                            295       (5 726)        40       (5 319)   (4 422)        (5 836)   
    Pharma                                                              208      (17 147)     (604)       (9 474)     2 336       (21 941)   
    Africa                                                                4         (251)     (263)          (95)     1 735          (664)   
    Remedica                                                             54      (15 470)     (466)       (6 762)       269       (14 606)   
    Farmalider                                                          150       (1 426)       125       (2 617)       332        (6 671)   
    Medical                                                             317          (47)       733          (18)     1 841          (139)   
    Animal Health                                                       108          (71)       438         (256)       739          (472)   
    Biosciences                                                         253         (320)       317       (6 310)       893       (10 407)   
    Head Office                                                       3 346     (114 341)     3 842     (101 782)    13 598      (215 724)   
    Total finance income/(cost)                                       4 628     (208 851)     2 446     (196 888)    16 422      (394 836)   

    Finance income and finance costs are managed centrally through the Group's Treasury function housed within Ascendis
    Financial Services (included in Head office) and Scitec (Consumer Health Europe). The EXCO evaluates the finance income
    and expenses based on utilisation within subsidiaries as illustrated above.

    (b) Statement of financial position measures applied       
    
                                                                                                      Restated                    Restated
                                                                  31 December 2018            31 December 2017                30 June 2018
                                                                         Unaudited                   Unaudited                   Unaudited
    Assets and liabilities                                   Assets    Liabilities       Assets    Liabilities       Assets    Liabilities
    split by segment                                          R'000          R'000        R'000          R'000        R'000          R'000   
    Consumer Health                                       5 487 049    (5 372 481)    5 263 362    (3 837 747)    5 423 567    (5 348 139)   
    Africa                                                1 194 004    (1 370 931)    1 139 574       (97 664)    1 246 650    (1 399 555)   
    Scitec                                                3 116 770    (2 917 988)    3 193 316    (3 379 630)    3 071 827    (2 883 958)   
    Sun Wave                                              1 176 275    (1 083 562)      930 472      (360 453)    1 105 090    (1 064 626)   
    Pharma                                                6 477 387    (6 455 308)    5 797 482    (3 549 333)    6 509 299    (6 411 316)   
    Africa                                                  924 741      (968 777)    1 015 702      (138 071)    1 067 985    (1 101 695)   
    Remedica                                              4 622 113    (4 821 100)    3 975 569    (3 042 736)    4 551 789    (4 658 696)   
    Farmalider                                              930 533      (665 431)      806 211      (368 526)      889 525      (650 925)   
    Medical                                               1 747 638    (1 327 782)    1 557 566      (289 355)    1 599 948    (1 201 566)   
    Animal Health                                           847 099      (801 411)      173 647       (39 704)      845 321      (814 679)   
    Biosciences                                             971 045      (893 969)    1 255 912      (287 163)    1 007 239      (933 283)   
    Head office                                             651 811      5 773 520      497 392       (91 791)      491 697      5 626 021   
    Total assets and                                                                                                                         
    liabilities                                          16 182 029    (9 077 431)   14 545 361    (8 095 093)   15 877 071    (9 082 962)   
    
    The fixed assets presented below represent the non-current assets held in various geographic locations.
    
                                                                                                                      Restated               
                                                                                                     31 December   31 December     30 June   
                                                                                                       Unaudited     Unaudited     Audited   
    Fixed assets per geographic location                                                                   R'000         R'000       R'000   
    South Africa                                                                                         359 311       385 539     266 900   
    Cyprus                                                                                               581 145       486 961     572 600   
    Other Europe                                                                                         304 113       225 693     287 132   
    Total fixed assets per geographic location                                                         1 244 569     1 098 193   1 126 632   

2.  Earnings per share, Diluted earnings per share and Headline earnings per share
    The calculation of headline earnings per share is based on the profit attributable to equity holders of the parent, after excluding
    all items of a non-trading nature, divided by the weighted average number of ordinary shares in issue during the year. The
    presentation of headline earnings is not an IFRS requirement, but is required by the JSE Listings Requirements and the
    SAICA Circular 4/2018. 

    Weighted average number of shares in issue is calculated as the number of shares in issue at the beginning of the period,
    increased by shares issued during the period weighted on a time basis for the period during which they have participated in the
    profit of the Group. Shares which are held by a subsidiary company as treasury shares have been adjusted on a time basis
    when determining the weighted average number of shares in issue. 

    The Group has determined that no instruments existed during the period that will result in a potential dilutive effect. Based on    
    this assessment, basic earnings per share also represents diluted earnings per share. 

                                                                                                                      Restated
                                                                   Six months ended                           Six months ended                                 Year ended   
                                                                   31 December 2018                           31 December 2017                               30 June 2018   
                                                                          Unaudited                                  Unaudited                                    Audited   
                                           Continuing   Discontinued                  Continuing   Discontinued                  Continuing   Discontinued                  
                                           operations     operations          Total   operations     operations          Total   operations     operations          Total   
                                                R'000          R'000          R'000        R'000          R'000          R'000        R'000          R'000          R'000   
    Basic earnings per share                                                                                                                                                
    Profit attributable to owners of the                                                                                                                                    
    parent                                    221 630       (16 738)        204 892      242 925       (51 948)        190 977      470 580      (193 409)        277 171   
    Earnings                                  221 630       (16 738)        204 892      242 925       (51 948)        190 977      470 580      (193 409)        277 171   
    Weighted average number of                                                                                                                                              
    ordinary shares in issue                                            484 827 324                                464 796 223                                461 996 223   
    Basic earnings per share (cents)             45.8          (3.5)           42.3         52.3         (11.2)           41.1        101.9         (41.9)           60.0   
    Headline earnings per share                                                                                                                                             
    Profit attributable to owners of the                                                                                                                                    
    parent                                    221 630       (16 738)        204 892      242 925       (51 948)        190 977      470 580      (193 409)        277 171   
    Adjusted for:                                                                                                                                                           
    Net (profit)/loss on the sale of                                                                                                                                        
    property, plant and equipment             (4 592)              -        (4 592)        4 923              -          4 923        (739)              -          (739)   
    (Profit)/loss on investment disposal     (19 557)              -       (19 557)            -              -              -          580              -            580   
    Goodwill and intangible asset                                                                                                                                           
    impairment                                      -              -              -            -              -              -       30 269         71 319        101 588   
    Put-option remeasurement                        -              -              -            -              -              -     (32 532)              -       (32 532)   
    Impairment of investment                        -              -              -            -              -              -        5 021              -          5 021   
    Non-controlling interest portion                -              -              -        (429)              -          (429)            -              -              -   
    Tax effect thereof                          3 002              -          3 002      (1 442)              -        (1 442)        9 128              -          9 128   
    Headline earnings                         200 483       (16 738)        183 745      245 977       (51 948)        194 029      482 307      (122 090)        360 217   
    Weighted average number of shares                                                                                                                                       
    in issue                                                            484 827 324                                464 796 223                                461 996 223   
    Headline earnings per share                                                                                                                                             
    (cents)                                      41.4          (3.5)           37.9         52.9         (11.2)           41.7        104.4         (26.4)           78.0   


    (c) Normalised headline earnings per share

    Since Ascendis is a health and care company and not an investment company, normalised headline earnings is calculated by excluding amortisation and certain costs
    from the Group's earnings. The Group's effective tax rate is applied to normalised earnings adjustments except if a specific item relates to a specific country, then that tax
    jurisdiction's tax rate is used. Costs excluded for normalised headline earnings purposes include restructuring costs to streamline, rationalise and structure companies in
    the Group as well as costs relating to capital structure changes. It also includes the costs incurred to acquire and integrate the business combinations into the Group and
    the listed environment. A normalised earnings adjustment is also made for operations that will not form part of the future of the Group that have not been recognised as a
    discontinued operation in terms of IFRS.
    
                                                                                                                    Restated                                              
                                                                  Six months ended                          Six months ended                                 Year ended   
                                                                  31 December 2018                          31 December 2017                               30 June 2018   
                                                                         Unaudited                                 Unaudited                                    Audited   
                                           Continuing   Discontinued                 Continuing   Discontinued                 Continuing   Discontinued                  
    Reconciliation of normalised           operations     operations         Total   operations     operations         Total   operations     operations          Total   
    headline earnings                           R'000          R'000         R'000        R'000          R'000         R'000        R'000          R'000          R'000   
    Headline earnings                         200 483       (16 738)       183 745      245 977       (51 948)       194 029      482 307      (122 090)        360 217   
    Adjusted for:                                                                                                                                                         
    Business combination costs                    526              -           526       21 804              -        21 804       29 655              -         29 655   
    Isando manufacturing operation loss        20 754              -        20 754       22 801              -        22 801       45 602              -         45 602   
    Restructuring costs                        39 684              -        39 684        6 952            334         7 286        7 150         17 000         24 150   
    Tax effect thereof                              -              -             -      (1 834)              -       (1 834)            -              -              -   
    Amortisation                              102 581              -       102 581       95 646              -        95 646      196 453              -        196 453   
    Tax effect thereof                       (12 751)              -      (12 751)     (18 727)              -      (18 727)     (23 221)        (4 760)       (27 981)   
    Normalised headline earnings              351 277       (16 738)       334 539      372 619       (51 614)       321 005      737 946      (109 850)        628 096   
    Weighted average number of shares in                                                                                                                                  
    issue                                                              484 827 324                               464 796 223                                461 996 223   
    Normalised headline earnings per                                                                                                                                      
    share (cents)                                72.5          (3.5)          69.0         80.2         (11.1)          69.1        159.7         (23.8)          136.0   
    
    Normalised diluted headline earnings per share is calculated on the same basis used for calculating diluted earnings per share, other than normalised headline earnings
    being the numerator.

3.  Changes in accounting policies

    Adoption of IFRS 15 Revenue from contracts with customers
    IFRS 15 establishes a comprehensive framework for determining whether, how much and when revenue is recognised. It
    replaced IAS 18 Revenue, IAS 11 Construction Contracts and related interpretations. Under IFRS 15 revenue is recognised
    at an amount that reflects the consideration an entity expects to receive for transferring goods or services to a customer.

    The core principle of IFRS 15 is that any entity should recognise revenue to depict the transfer of promised goods or services
    to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those
    goods or services. The standard requires the apportionment of revenue earned from contracts to identified performance
    obligations in the contracts on a relative stand-alone selling price basis based on a five-step model. The standard also requires
    the capitalisation of costs incremental to obtaining the contract and recognition of these costs as an expense over the term
    of the contracts.

    The Group principally generates revenue from manufacturing and distribution of consumer and animal health products,
    pharmaceutical products, biosciences products and supplying of medical devices and consumables. Revenue is measured
    based on the consideration agreed with the customer excluding indirect taxes, estimated returns and trade discounts and
    rebates.

    In accordance with the transition provisions in IFRS 15, the Group has adopted the new standard using the modified
    retrospective approach and has processed an adjustment to the opening balance of retained earnings at 1 July 2018 (date
    of initial application). The modified retrospective approach is applied only to contracts that are not completed as at
    1 July 2018.

    The Group sells goods with a right of return in line with the current consumer legislation and the company policy, where
    applicable. The sales are cancelled when the right of return is exercised. IFRS 15 requires the recognition of a refund liability
    and refund asset for the expected returns given that there will be a significant reversal of revenue as a result. This results in
    an adjustment to revenue, cost of sales, trade receivables, trade payables and deferred tax.
    
    The adjustment to opening retained earnings on the adoption of IFRS 15 as at 1 July 2018 is as follows:

                                                                                                                               31 December   
                                                                                                                                      2018   
                                                                                                                                 Unaudited   
                                                                                                                                     R'000   
    Gross amount                                                                                                                     (286)   
    Increase in other receivables                                                                                                    5 741   
    Increase in other payables                                                                                                     (6 027)   
    Deferred tax                                                                                                                        80   
    Impact on retained earnings                                                                                                      (206)   

    Adoption of IFRS 9 Financial Instruments

    The new IFRS 9 includes the final classification and measurement model for financial assets and liabilities as well as the new
    expected credit loss (ECL) model for the impairment of financial assets that replaces the incurred loss model prescribed in
    IAS 39. The IAS 39 classification model for financial liabilities has been retained, however changes in own credit risk will be
    presented in other comprehensive income for liabilities designated at fair value through profit or loss. IFRS 9 also includes
    new requirements for general hedge accounting.

    Initial classification and measurement

    The Group has assessed the implications and concluded that the new standard has no impact on the initial classification and
    measurement of financial instruments.

    Impairment
    Before the adoption of IFRS 9, the Group calculated the allowance for credit loss using the incurred loss model. Under this
    model, the Group assessed whether there was any objective evidence of impairment at the end of each reporting period. The
    allowance for credit losses was calculated on an individual basis based on payment history, adjusted for national and industry-
    specific economic conditions and other indicators such as the credit terms of the customer, financial difficulties that correlate
    with the defaults of the individual receivable.

    IFRS 9 requires the Group to record expected credit losses on all of its receivables, either on 12-month or lifetime basis. The
    expected credit losses (ECLs) are a probability weighted estimate of credit losses. The Group applies the simplified approach
    to determine the ECL for trade receivables and contract assets. This results in calculating lifetime expected credit losses for
    these trade receivables. ECL for trade receivables is calculated using a combination of the simplified parameter based
    approach and provision matrix.

    Provision matrix
    ECLs are calculated by applying a loss ratio to the aged balance of trade receivables at each reporting date. The loss ratio is
    calculated according to the ageing/payment profile of sales by applying historic/proxy write-offs to the payment profile of the
    sales population. In instances where there was no evidence of historical write-offs, management used a proxy write-off based
    on the previous provision for bad debts that was raised. Trade receivable balances have been grouped so that the ECL
    calculation is performed on groups of receivables with similar risk characteristics and ability to pay. Similarly, the sales
    population selected to determine the ageing/payment profile of the sales is representative of the entire population and in line
    with future payment expectations. The historic loss ratio is then adjusted for forward looking information to determine the ECL
    for the portfolio of trade receivables at the reporting period to the extent that there is a strong correlation between the forward
    looking information and the ECL.

    Simplified parameter-based approach
    ECLs are calculated using a formula incorporating the following parameters: exposure at default (EAD), probability of default
    (PD), loss given default (LGD) (i.e. PD x LGD x EAD = ECL). Exposures are mainly segmented by the size of the customer.
    This is done to allow for risk differentiation. The probability of a customer defaulting as well as the realised loss with defaulted
    accounts have been determined using historical data.

    The adjustment to opening retained earnings for the transition to the expected credit loss model (impairment of trade
    receivables) as at 1 July 2018 is as follows:
    
                                                                                                                               31 December   
                                                                                                                                      2018   
                                                                                                                                 Unaudited   
                                                                                                                                     R'000   
    Decrease in trade receivables                                                                                                  (5 247)   
    Attributable deferred tax                                                                                                        1 469   
    Impact on retained earnings                                                                                                    (3 778)   

4.  Restatements

    Restatements relating to 31 December 2017 unaudited results:

    Discontinued operations
    In the June 2018 annual financial statements, Ascendis presented Direct Selling and Sports Nutrition as discontinued
    operations and represented the Wynberg manufacturing facility as a continuing operation, which was previously classified 
    as a discontinued operation. The December 2018 unaudited interim financial statements comparative information have been 
    restated in terms of IFRS 5. Refer to Note 8 for more details.

    Intercompany profit in inventory
    Intercompany profit in inventory amounting to R25.5 million relating to intercompany sales between Sun Wave and Remedica
    IP for the six months ended 31 December 2017 was not eliminated on consolidation . Cost of sales and inventory as at
    31 December 2017 have been restated in terms of IAS 8. The impact on basic and diluted earnings per share is a decrease
    of 5.5 cents per share. All intercompany profit in inventory elimination have already been recorded for the year ended
    30 June 2018.

    The impact of the restatements are set out below:
    
                                                                                                                          31 December 2017   
                                                                                                                                 Unaudited   
                                                                               Reversal of   Discontinued   Intercompany             Total   
                                                                          Wynberg facility     Operations         Profit       Restatement   
    Statement of Profit and Loss                                                     R'000          R'000          R'000             R'000   
    Revenue                                                                              -      (108 575)              -         (108 575)   
    Cost of sales                                                                        -         15 178       (25 518)          (10 340)   
    Gross Profit                                                                         -       (93 397)       (25 518)         (118 915)   
    Expenses                                                                      (27 436)        151 481              -           124 045   
    Net finance cost                                                               (3 171)            211              -           (2 960)   
    Income tax                                                                       1 797        (6 347)              -           (4 550)   
    Net impact on profit from                                                                                                                
    continuing operations                                                         (28 810)         51 948       (25 518)           (2 380)   
    Net impact on loss from                                                                                                                  
    discontinued operations                                                         28 810       (51 948)              -          (23 138)   
    Net impact on profit for the period                                                  -              -       (25 518)          (25 518)   
    Impact on basic and diluted                                                                                                              
    earnings per share                                                                   -              -          (5.5)             (5.5) 

      
                                                                               Reversal of   Discontinued   Intercompany             Total   
                                                                          Wynberg facility     Operations         Profit       Restatement   
    Statement of Financial Position                                                  R'000          R'000          R'000             R'000   
    Property, plant and equipment                                                   68 320              -              -            68 320   
    Inventory                                                                            -              -       (25 518)          (25 518)   
    Asset held for sale                                                           (68 320)              -              -          (68 320)   
    Retained earnings                                                                    -              -         25 518            25 518   
    Net Impact                                                                           -              -              -                 -   


5.  Intangible assets and goodwill
    
                                                                                 Licence and     Intangible                                                            
                                                                    Brands and      computer   assets under        Customer   Contractual   Drug master                
    R'000                                                Goodwill   trademarks      software    development   relationships    agreements         files        Total   
    Opening balance                                                                                                                                                    
    Cost                                                5 496 124    2 209 556        55 901         24 651       1 068 389       335 107     1 241 242   10 430 970   
    Accumulated amortisation and impairment             (134 614)    (145 904)      (22 895)              -       (194 327)      (21 687)      (77 796)    (597 223)   
    Carrying value as at 30 June 2018 (Audited)         5 361 510    2 063 652        33 006         24 651         874 062       313 420     1 163 446    9 833 747   
    Additions                                                   -        7 128         6 078          1 478             130             -        79 832       94 646   
    Disposals                                                   -         (43)             -              -               -             -       (3 518)      (3 561)   
    Transfers between categories                                -        8 427       (3 972)              -               -             -       (4 455)            -   
    Transfers from discontinued operations                  4 944        1 750             -              -           3 847             -             -       10 541   
    Amortisation                                                -     (36 832)       (6 204)              -        (37 120)       (4 920)      (17 505)    (102 581)   
    Exchange rate differences                              89 732       55 858         1 192             22          16 400             -        33 789      196 993   
    Carrying value as at 31 December 2018 (Unaudited)   5 456 186    2 099 940        30 100         26 151         857 319       308 500     1 251 589   10 029 785   
    Made up as  follows:                                                                                                                                               
    Cost                                                5 590 806    2 282 585        63 500         26 151       1 092 012       335 107     1 348 057   10 738 218   
    Accumulated amortisation and impairment             (134 620)    (182 645)      (33 400)              -       (234 693)      (26 607)      (96 468)    (708 433)   
    Carrying value (Unaudited)                          5 456 186    2 099 940        30 100         26 151         857 319       308 500     1 251 589   10 029 785   


    Impairment tests for goodwill 
    Management reviews the business performance based on type of business and products. While the valuation is based on
    the projected sustainable cash flows methodology, the latest budgets and forecasts are utilised. A five-year time horizon is
    used to project the cash flows. Cash flows are discounted using a discounting factor, which was determined taking into
    account both systematic and unsystematic risks. 
     
    The Group's share price has decreased significantly over the past 6 months resulting in an impairment indication. The Group
    performed impairment assessments on all goodwill balances as at 31 December 2018. The following is a summary of
    goodwill allocation for each reporting segment:

    Goodwill reconciliation                                                                             Transfer                             
    31 December 2018                                                                                        from       Foreign               
    Unaudited                                                    Opening                            discontinued      currency     Closing   
    R'000                                                        balance   Additions   Impairment     operations   translation     balance   
    Consumer Health Africa                                       465 150           -            -          4 944             -     470 094   
    Scitec                                                     1 283 585           -            -              -        36 737   1 320 322   
    Sunwave                                                       95 210           -            -              -         3 004      98 214   
    Pharma Africa                                                426 806           -            -              -             -     426 806   
    Remedica                                                   1 631 398           -            -              -        45 970   1 677 368   
    Farmalider                                                   140 497           -            -              -         4 021     144 518   
    Medical                                                      545 100           -            -              -             -     545 100   
    Animal Health                                                474 780           -            -              -             -     474 780   
    Biosciences                                                  298 984           -            -              -             -     298 984   
    Total                                                      5 361 510           -            -          4 944        89 732   5 456 186   
    
    Goodwill reconciliation                                                                                                                  
    Restated*                                                                                                                                
    30 June 2018                                                                                     Transfer to       Foreign               
    Unaudited                                                    Opening                            discontinued      currency     Closing   
    R'000                                                        balance   Additions   Impairment     operations   translation     balance   
    Consumer Health Africa                                       608 633           -     (96 535)       (46 948)             -     465 150   
    Scitec                                                     1 185 227           -            -              -        98 358   1 283 585   
    Sun Wave                                                      93 180           -            -              -         2 030      95 210   
    Pharma Africa                                                426 806           -            -              -             -     426 806   
    Remedica                                                   1 505 679           -            -              -       125 719   1 631 398   
    Farmalider                                                   130 842           -            -              -         9 655     140 497   
    Medical                                                      545 100           -            -              -             -     545 100   
    Animal Health                                                225 499     249 281            -              -             -     474 780   
    Biosciences                                                  298 984           -            -              -             -     298 984   
    Total                                                      5 019 950     249 281     (96 535)       (46 948)       235 762   5 361 510   
    
    * Due to the change in segment reporting, the comparative information has been restated. Refer to Note 1 for more details.


    The key assumptions used for value-in-use calculations are as follows:
    
                                                                                                                                 Restated*   
                                                                                           31 December 2018                   30 June 2018  
                                                                                                  Unaudited                      Unaudited
                                                                                    Revenue                        Revenue        Discount   
                                                                                growth rate   Discount rate    growth rate            rate   
    Consumer Health Africa                                                     7.3% - 14.1%   11.4% - 12.4%   5.0% - 14.0%   10.9% - 12.7%   
    Scitec                                                                             3.0%            7.4%           3.1%            7.4%   
    Sun Wave                                                                           2.5%            8.8%           2.5%            8.8%   
    Pharma Africa                                                              4.8% - 10.8%           12.9%   6.0% - 10.0%           12.9%   
    Remedica                                                                           2.5%           10.3%           2.5%           10.3%   
    Farmalider                                                                  6.2% - 7.2%            8.8%    2.0% - 3.0%            8.8%   
    Medical                                                                            4.8%           12.7%    5.1% - 5.3%   12.6% - 13.2%   
    Animal Health                                                                      4.8%           11.7%    5.1% - 5.3%   13.3% - 14.3%   
    Biosciences                                                                 4.8% - 8.0%   11.7% - 12.2%    5.1% - 8.0%   11.4% - 12.5%   
    
    * The comparative information were restated due to the changes in segment reporting. Refer to Note 1 for more details.
 
6.  Borrowings and other financial liabilities

    For the purposes of financing the acquisition of international businesses, as well as to allow for a structure that supports
    growth and an integrated treasury function, Ascendis implemented a debt structure arranged and underwritten by
    ABSA Bank Ltd and HSBC Bank Plc. The structure consists of a syndicated facility denominated in local currency and
    Euro term and revolving credit facilities.  

    In terms of the existing debt structure, the total facilities drawn down amounts to R1 660 million and EUR238 million. 

    International loans 

    The Group has a EUR180 million secured term facility which matures in August 2021, the outstanding balance as at period end
    amounts to EUR163 million. The debt balance consists of the ZAR translated amount of R2 657 million net of debt capitalisation
    costs of R28.4 million. Capital repayments commenced on 30 June 2017 on a bi-annual basis. Interest is charged at 4% per
    annum and is repayable quarterly. The Group has a facility with the Bank of Cyprus of EUR10 million, interest is charged at
    Euribor rate and is repayable quarterly. The Group also has access to a EUR47 million revolving credit facility. 

    Syndicated South African facility 

    The secured syndicated facility is administered through ABSA Bank with various local registered financial institutions. The
    Group has two facilities of R850 million and R810 million. As at period end R850 million and R493.2 million was outstanding
    from the two facilities respectively. The R850 million facility matures in 2021 with the full capital amount due at maturity date.
    Interest is charged at JIBAR plus 4.2% per annum and is payable quarterly. The R810 million facility is payable bi-annually
    with a maturity date of December 2020. Interest is charged at JIBAR plus 3.75% per annum and is payable quarterly. Included
    with this balance are debt capitalisation fees of R35 million. Additional facilities relating to letters of credit and performance
    guarantees exist. 

    The above facilities are subject to financial covenants based on key financial ratios. For the period ended 
    31 December 2018, the lenders required that the Group maintain a normalised leverage ratio below 4.0, a minimum of 1.2
    cash cover ratio and a minimum of 3.0 interest cover ratio. None of these were breached during the period. 
     

    The table below provides a detailed breakdown of the individual balances making up the total balance.
    
                                                                                                     31 December   31 December     30 June
                                                                                                            2018          2017        2018
                                                                                                       Unaudited     Unaudited     Audited
                                                                                                           R'000         R'000       R'000   
    Borrowings at amortised cost                                                                                                             
    Term loan - South Africa debt                                                                      1 308 235     1 385 777   1 390 291   
    Term loan - European debt                                                                          2 667 830     3 025 893   2 660 853   
    Cyprus loan facility*                                                                                145 451             -     158 271   
    Revolving credit facility                                                                            769 405       157 591     758 922   
    Farmalider debt                                                                                      131 230       121 413     143 112   
    Short-term loans with financial institutions                                                         372 000       293 188     297 000   
    Other financial liabilities at amortised cost                                                                                            
    Other South African borrowings                                                                        74 544         8 746      38 013   
    Other European borrowings                                                                             48 636             -      46 948   
                                                                                                       5 517 331     4 992 608   5 493 410   
    Made up as follows:                                                                                                                      
    Non-current                                                                                        4 478 600     4 480 532   4 554 138   
    Current                                                                                            1 038 731       512 076     939 272   
                                                                                                       5 517 331     4 992 608   5 493 410   
    
    * Cyprus loan facility is secured by buildings with a fair value of EUR6 million (R99 million)

7.  Deferred vendor liabilities
    The Group structures its acquisitions to include contingent and deferred consideration that is included in the cost of the
    business combination at the fair value on the date of the acquisitions. Subsequent changes in the fair value of contingent
    consideration is recognised in profit and loss. Deferred consideration is subsequently measured at amortised cost. No
    new businesses were acquired during the period under review.

    Detailed breakdown of the individual vendor liabilities: 
    
                                                                                                     31 December   31 December     30 June
                                                                                                            2018          2017        2018
                                                                                                       Unaudited     Unaudited     Audited
                                                                                                           R'000         R'000       R'000  
    Remedica Group                                                                                       643 190       558 512     614 388   
    Sun Wave Pharma Group                                                                                286 165       266 729     353 267   
    Cipla Group                                                                                                -        67 421      50 000   
    Ortho-Xact                                                                                                 -        54 600           -   
    Klub M5 Proprietary Limited                                                                           55 000        53 677      55 000   
    Afrikelp Group                                                                                             -         9 913           -   
    Umecom Proprietary Limited                                                                             2 874         3 152       2 792   
    Kyron Group                                                                                          128 951             -     223 908   
                                                                                                       1 116 180     1 014 004   1 299 355   
    Current                                                                                              937 169       373 903     422 969   
    Non-current                                                                                          179 011       640 101     876 386   
                                                                                                       1 116 180     1 014 004   1 299 355   
    Deferred consideration                                                                               646 065       693 631     767 180   
    Contingent consideration                                                                             470 115       320 373     532 175   
                                                                                                       1 116 180     1 014 004   1 299 355   

    During the period under review, the following payments were made in relation to deferred vendors: EUR5 million for the
    Sun Wave acquisition, R50 million for the Cipla acquisition and R99 million (R100 million less R1 million discount) for
    the Kyron acquisition.

8.  Discontinued operations
    Ascendis initiated a strategic business review in March 2018 following the appointment of Thomas Thomsen as chief
    executive officer ("CEO"). The strategic review is primarily aimed at creating a leading market position for the business,
    accelerating organic growth across the Group following the completion of several local and international acquisitions,
    improving cash generation and enhancing profitability. As a result, the board decided to dispose of certain non-core assets.  

    8.1 Discontinued operations 

    Supply chain manufacturing - Change of plan 

    In May 2017 the Ascendis management made a decision to dispose of the Group's Supply Chain business with its
    manufacturing plant in Wynberg. This was disclosed as a discontinued operation, and as a result, the relevant assets and
    liabilities were classified as being held for sale. However, following key changes in management and consequently a
    strategic review of the business, the Group has undertaken to retain its good manufacturing practice ("GMP") approved
    pharmaceutical manufacturing facility located in Wynberg, Johannesburg, rather than the Isando facility as initially planned. 

    As a result of the change in the strategic direction of the business, the discontinued operation as disclosed during December
    2017 period, will no longer be disposed of and the losses are included in continuing operations. The comparatives have
    been represented 

    Ascendis Direct 

    Ascendis Direct ("AD") is the Group's direct selling and network marketing business selling Sportron and Swissgarde
    products, operating in Southern Africa and Nigeria. AD has limited integration with Ascendis as it operates its own
    management structure, head office and supply chain. The AD business model is not applied anywhere else in the Group.
    The sale-purchase agreement was concluded with a potential buyer on 10 September 2018. However, the transaction did
    not materialize and negotiations are continuing with another potential buyer. 

    Ascendis Sports Nutrition 

    Following a review of the Sports Nutrition business the Group decided to focus solely on its biggest sports nutrition brand,
    Scitec, in targeted consumer segments and geographies. The Group concluded the sale of the business, which includes
    Evox, SSN, Supashape, Muscle Junkie and Nutrimax, effective 1 August 2018. 

    The Sports Nutrition business was sold for a consideration of R54 million, a loss on sale of R0.5 million was recognised in
    the statement of profit and loss. 

    8.2 Held for sale 

    Isando manufacturing 

    The Group planned to dispose of the Isando pharmaceutical manufacturing operations and its 23 000 m(2) GMP
    pharmaceutical manufacturing facility. The manufacturing facility was acquired through the Group's purchase of Akacia
    Healthcare during the June 2016 financial period. 

    Going forward the Group will manufacture its pharmaceutical products, currently manufactured at Isando through a third-
    party manufacturing agreement since the other manufacturing facilities within South Africa do not meet the relevant
    requirements. The manufacturing facility did not qualify to be classified as a discontinued operation in terms of IFRS 5.
    However, the assets and liabilities have been reclassified to assets and liabilities held for sale. 

    On 20 December 2018, Ascendis concluded a sale agreement with Mylan Proprietary Limited (Mylan) for the sale of the
    manufacturing facility. The manufacturing facility was sold for a consideration of R130 million and a profit on sale of R19.6
    million was recognised in the statement of profit or loss. 

    Inventory and liabilities for Isando manufacturing facility will be disposed separately during the second half of the year. 

    Comparative information has been represented for the discontinued operations and segmental reporting in note 1 has also
    been restated to reflect comparative information relating to continuing operations. 
     
    Financial performance and cash flow information 

    Financial performance and cash flow information of the discontinued operations presented for the period ended 31 December 2018:  
    
                                                    Six months ended                   Six months ended                         Year ended   
                                                    31 December 2018                   31 December 2017                       30 June 2018   
                                                           Unaudited                          Unaudited                            Audited   
                                                Ascendis                           Ascendis                           Ascendis               
                                    Ascendis       Sport               Ascendis       Sport               Ascendis       Sport               
    R'000                             Direct   Nutrition       Total     Direct   Nutrition       Total     Direct   Nutrition       Total   
    Revenue                           46 787       3 077      49 864     34 554      74 021     108 575     89 824     128 609     218 433   
    Expenses                        (51 648)    (12 273)    (63 921)   (46 249)   (120 621)   (166 870)   (96 546)   (232 923)   (329 469)   
    Loss before impairments          (4 861)     (9 196)    (14 057)   (11 695)    (46 600)    (58 295)    (6 722)   (104 314)   (111 036)   
    Impairments                            -           -           -          -           -           -   (12 000)    (59 319)    (71 319)   
    Loss before tax                  (4 861)     (9 196)    (14 057)   (11 695)    (46 600)    (58 295)   (18 722)   (163 633)   (182 355)   
    Tax                              (2 681)           -     (2 681)      3 238       3 109       6 347    (4 384)     (6 670)    (11 054)   
    Loss after tax expense                                                                                                                   
    of discontinued                                                                                                                          
    operations                       (7 542)     (9 196)    (16 738)    (8 457)    (43 491)    (51 948)   (23 106)   (170 303)   (193 409)   
    Total comprehensive                                                                                                                      
    loss                             (7 542)     (9 196)    (16 738)    (8 457)    (43 491)    (51 948)   (23 106)   (170 303)   (193 409)   
    Net cash inflow/(outflow)                                                                                                                
    from operating activities          2 214       (876)       1 338        435       3 692       4 127   (17 013)    (35 540)    (52 553)   
    Net cash (outflow)/inflow                                                                                                                
    from investing activities        (6 380)     (1 495)     (7 875)        182       2 513       2 695   (10 011)    (57 131)    (67 142)   
    Net cash inflow/(outflow)                                                                                                                
    from financing activities          6 097       1 588       7 685        611       (576)          35     31 117      84 471     115 588   
    Net increase/(decrease)                                                                                                                  
    in cash generated by                                                                                                                     
    discontinued operations            1 931       (783)       1 148      1 228       5 629       6 857      4 093     (8 200)     (4 107)   

    Assets and liabilities classified as held for sale
    
    The following assets and liabilities were classified as held for sale in the periods reported:
    
                                                                            31 December 2018                                  30 June 2018   
                                                                                   Unaudited                                       Audited
                                                                        Ascendis                                      Ascendis               
                                                            Ascendis       Sport                          Ascendis       Sport               
    R'000                                          Isando     Direct   Nutrition       Total     Isando     Direct   Nutrition       Total   
    Property, plant and equipment                   1 496      5 632           -       7 128    113 037      6 025         298     119 360   
    Intangible assets & Goodwill                        -     48 450           -      48 450          -     48 688      39 160      87 848   
    Deferred tax asset                                711      2 136           -       2 847         14      2 582         137       2 733   
    Inventories                                    20 875     14 287           -      35 162      9 300     14 379      31 776      55 455   
    Current Income tax receivable                      96        839           -         935          -        840         832       1 672   
    Trade and other receivables                     3 192     27 643           -      30 835        418     28 956       3 663      33 037   
    Cash and cash equivalents                           -      4 718           -       4 718        125      2 585         704       3 414   
    Other financial assets                              -          -           -           -          -     56 006         100      56 106   
    Assets held for sale                           26 370    103 705           -     130 075    122 894    160 061      76 670     359 625   
    Borrowings                                          -          -           -           -          -   (18 270)           -    (18 270)   
    Finance lease liabilities                           -          -           -           -          -      (326)        (76)       (402)   
    Deferred tax liability                       (15 846)    (1 130)           -    (16 976)   (14 648)      (942)       (638)    (16 228)   
    Trade and other payables                      (1 977)    (6 503)           -     (8 480)    (3 078)   (14 630)     (2 373)    (20 081)   
    Provisions                                      (950)    (1 776)           -     (2 726)    (1 637)    (2 279)     (2 294)     (6 210)   
    Current Income tax payable                          -    (2 040)           -     (2 040)      (226)    (1 707)         (1)     (1 934)   
    Liabilities held for sale                    (18 773)   (11 449)           -    (30 222)   (19 589)   (38 154)     (5 382)    (63 125)   

9.  Cash generated from operations                                                                                                      
                                                                                                                    Restated*
                                                                                          Six months ended   Six months ended   Year ended
                                                                                               31 December        31 December      30 June
                                                                                                      2018               2017         2018
                                                                                                 Unaudited          Unaudited      Audited
                                                                                                     R'000              R'000        R'000  
    Profit after tax                                                                               220 388            259 178      302 155   
    Adjustments for:                                                                                                                         
    Tax                                                                                             36 334             34 933       79 525   
    Depreciation and amortisation                                                                  167 320            145 245      318 129   
    Impairment on intangible assets                                                                      -                  -      101 588   
    Net loss on sale of assets                                                                     (4 592)              4 923          739   
    Net profit on disposal of investment                                                          (19 557)                  -        (580)   
    Net loss on foreign exchange                                                                     3 412             57 020        1 555   
    Put-option remeasurement                                                                             -                  -     (32 532)   
    Fair value measurement of financial assets and liabilities                                           -           (15 982)       14 520   
    Movement in provisions                                                                        (36 868)              5 704       70 140   
    Finance income                                                                                 (4 628)            (2 446)     (16 422)   
    Finance expense                                                                                208 851            196 888      394 836   
    Income from equity accounted investments                                                             -           (13 164)      (2 687)   
    Long-term incentive adjustment                                                                   1 152                  -        1 706   
    Changes in working capital:                                                                                                              
    (Increase)/decrease in inventory                                                             (187 747)          (141 575)       10 292   
    (Increase)/decrease in trade and other receivables                                           (145 355)          (142 951)       85 885   
    Increase/(decrease) in trade and other payables                                                263 493           (77 991)     (96 126)   
    Cash generated from operations                                                                 502 203            309 782    1 232 723   
    
    * The comparative information were restated as a result of the change in plan to sell the Wynberg manufacturing facility, restatement of
    discontinued operations and intercompany profit elimination. Refer to Note 4 and Note 8 for more details.
    
10. Income tax expense                    
                                                           
    Major components of the tax expense                                                                                                         
                                                                                                                    Restated*
                                                                                         Six months ended    Six months ended   Year ended
                                                                                              31 December         31 December      30 June
                                                                                                     2018                2017         2018
                                                                                                Unaudited           Unaudited      Audited
                                                                                                    R'000               R'000        R'000 
    South African taxation                                                                                                                   
    Current tax                                                                                     28 005             41 781       72 850   
    Current tax on profits for the period                                                           20 428             43 360       76 665   
    Recognised in current tax for prior periods                                                      7 577            (1 579)      (3 815)   
    Deferred tax                                                                                  (10 201)           (13 829)     (21 110)   
    Originating and reversing temporary differences                                                 16 259            (1 638)     (15 552)   
    Increase in tax loss                                                                          (27 604)           (12 949)      (8 633)   
    Measurement period adjustment                                                                    1 144                758        3 075   
    South African income tax expense                                                                17 804             27 952       51 740   
    Foreign taxation                                                                                                                         
    Current tax                                                                                     23 238             14 242       45 186   
    Current tax on profits for the period                                                           23 995             14 338       48 930   
    Fiscal tax credits                                                                               (757)                  -      (3 744)   
    Recognised in current tax for prior periods                                                          -               (96)            -   
    Deferred tax                                                                                   (4 708)            (7 261)     (17 401)   
    Originating and reversing temporary differences                                                  (223)            (9 473)     (16 858)   
    (Increase in)/utilisation of tax loss                                                            (995)                 22           41   
    Measurement period adjustment                                                                  (3 490)              2 190        (584)   
    Foreign income tax expense                                                                      18 530              6 981       27 785   
    Total income tax expense                                                                        36 334             34 933       79 525   
    Income tax expense attributable to:                                                                                                      
    Profit from continuing operations                                                               33 653             41 280       68 471   
    Profit from discontinued operations                                                              2 681            (6 347)       11 054   
                                                                                                    36 334             34 933       79 525   
    
    * The comparative information were restated as a result of the change in plan to sell Wynberg manufacturing facility and restatement of
    discontinued operations. Refer to Note 8 for more details.
    
                                                                                                                  Restated*                  
                                                                                       Six months ended    Six months ended     Year ended   
                                                                                            31 December         31 December        30 June   
                                                                                                   2018                2017           2018
                                                                                              Unaudited           Unaudited        Audited   
    Tax at the South Africa tax rate                                                             28.00%              28.00%         28.00%   
    Amortisation and impairments                                                                  0.92%               1.45%          0.66%   
    Disallowable charges - consulting / legal fees                                                0.02%               1.95%          0.02%   
    Disallowable charges - donations / sponsorships                                               0.02%               0.90%          0.88%   
    Effect of prior year adjustments                                                            (2.65%)               1.88%        (0.68%)   
    Exempt dividend income                                                                     (10.06%)            (15.32%)          0.00%   
    Fines and penalties                                                                           0.36%               0.18%          0.18%   
    (Utilisation of)/ increase in tax losses                                                    (4.45%)               1.41%          1.47%   
    Local tax incentives                                                                        (0.51%)             (0.94%)        (0.41%)   
    Foreign tax incentives                                                                      (1.08%)              11.94%        (5.17%)   
    Lower foreign tax rates                                                                     (9.08%)             (1.41%)        (6.11%)   
    Other disallowable charges                                                                   11.84%            (16.99%)          0.31%   
    Unrealised gains on revaluation of foreign loans                                            (0.90%)               0.00%        (7.01%)   
    Average effective tax rate                                                                   12.43%              13.05%         12.14%   
    
    * The comparative information were restated as a result of the change in plan to sell Wynberg manufacturing facility and restatement of   
      discontinued operations. Refer to Note 8 for more details.                                                                               

11. Tax paid                                                                                                                             
                                                                                                                Restated*                    
                                                                                       Six months ended  Six months ended       Year ended   
                                                                                            31 December       31 December          30 June   
                                                                                                   2018              2017             2018   
                                                                                              Unaudited         Unaudited          Audited   
    Balance at the beginning of the period                                                       33 653            18 585           18 585   
    Current tax for the period recognised in profit or loss                                    (51 244)          (56 023)        (118 036)   
    Adjustments in respect of businesses sold and acquired                                                                                   
    during the year including exchange rate movements                                           (1 067)           (1 674)            4 314   
    Balance at the end of the period                                                           (56 437)          (24 191)         (33 653)   
    Tax paid                                                                                   (75 095)          (63 303)        (128 790) 
      
    * The comparative information were restated as a result of the change in plan to sell Wynberg manufacturing facility and restatement of   
      discontinued operations. Refer to Note 8 for more details.                                                                               
    
12. Liabilities from financing activities                                                                                                
                                                                                               Liabilities from financing            Other   
                                                                                                               activities                    
                                                                                                                                  Deferred   
                                                                                                          Financial lease           Vendor   
    R'000                                                                         Borrowings                  liabilities     Liabilities*   
    Closing balance as at 30 June 2018                                             5 493 410                       42 075        1 299 355   
    Cash flows                                                                      (64 731)                      (5 224)        (228 219)   
    New loans raised                                                                 214 223                        6 190                -   
    Capital repayments made                                                        (278 954)                     (11 414)        (228 219)   
    Non cash movements                                                                88 652                          884           45 044   
    Foreign exchange adjustments                                                     108 505                          808           23 640   
    Interest capitalised                                                               2 825                            -           21 404   
    Other non cash movements                                                        (22 678)                           76                -   
    Closing balance as at 31 December 2018                                         5 517 331                       37 735        1 116 180   
    
    * The Group notes that the cash flows from deferred vendor liabilities are included as investing activities in the cash flow statement,   
      however this information is considered to be useful to the users of the financial statements, since deferred vendor liabilities are included   
      in the Group's net debt position and is therefore included in the above disclosure.                                                           

13. Dividends paid

    The directors have elected not to declare an interim dividend and to retain cash to fund working capital requirements and
    settle debt obligations.
       
14. Events after reporting period

    Unsolicited offer for purchase of Remedica 
    On 14 January 2019, Ascendis received an unsolicited offer in respect of its business unit based in Cyprus. The Group is
    involved in ongoing negotiations regarding the potential disposal of Remedica and has extended the offer to include other
    potential bidders. 
     
    Sale of Biosciences 
    Selected businesses and assets were identified as non-core to the Group's strategy and classified for divestment.
    Negotiations are at a very advanced stage for the sale of Efekto, Marltons and Afrikelp businesses which form part of the
    Biosciences division. The remaining businesses within Biosciences, Avima/Klub M5, may be considered for disposal in the
    short to medium term. 

Administration

Country of Incorporation and domicile   South Africa


Registered office                       31 Georgian Crescent East
                                        Bryanston
                                        Gauteng
                                        2191

Postal address                          PostNet Suite(#) 252
                                        Private Bag X21
                                        Bryanston
                                        2021

Contact details                         +27 (0)11 036 9600
                                        info@ascendishealth.com
                                        www.ascendishealth.com

Auditors                                PricewaterhouseCoopers Inc.

Transfer secretaries                    Computershare Investor Services Proprietary Limited
                                        Rosebank Towers, 15 Biermann Avenue,
                                        Rosebank, Johannesburg, 2196
                                        PO Box 61051, Marshalltown, 2107
                                        Telephone: +27 (0)11 370 5000

Company secretary                       A Sims CA (SA)
                                        andy.sims@ascendishealth.com

Directors                               JA Bester (Chairman)*
                                        MS Bomela*
                                        K Futter (Chief Financial Officer)
                                        B Harie*
                                        Dr NY Jekwa*
                                        Dr KS Pather*
                                        J Sebulela* (Appointed 2 Oct 2018)
                                        GJ Shayne(#)
                                        TB Thomsen^ (Chief Executive Officer)

                                        *   Independent non-executive
                                        (#) Non-executive
                                        ^   Danish

JSE sponsor                             Questco Corporate Advisory (Pty) Ltd





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