Introduction to Aspen About Aspen 2 Leading specialty and branded - - PowerPoint PPT Presentation

Healthcare. We Care.

Introduction to Aspen

2

About Aspen

• Leading specialty and branded multinational pharmaceutical company with a 20-year history
• Well positioned in both emerging and developed markets
• Markets and distributes products renowned for quality, efficacy and affordability
• Core therapeutic categories include Regional Brands, Anaesthetics, Thrombosis and High Potency & Cytotoxics
• Manufacturing capability covering a wide range of product types including injectables, oral solid dose, liquids, semi-solids, steriles,

biologicals and active pharmaceutical ingredients

• World class facilities with international approvals from global regulatory agencies

25 manufacturing facilities

• n 17 sites

Over 150 countries have access to

• ur products

More than

10 000 employees

in 52 countries More than

24 billion tablets

manufactured annually

R42,6 billion

revenue generated in FY2018

3

Vision & Values

Our vision:

“To deliver value to all our stakeholders as a responsible corporate citizen that provides high quality, affordable medicines and products globally”

Teamwork

We optimize our performance by pulling

• together. Our combined

capabilities exceed the sum of each individual

Integrity

Our integrity is not negotiable.

Commitment

We go the extra mile, seeking to exceed expectations

Excellence

We strive to be the best we can be and to deliver to the highest standards

Innovation

We constantly search for better ways of doing things and are solution orientated

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Milestones

1997 Began trading 1998 Listed on the JSE 1999 Acquired South African Druggists 2003 Launched Aspen Stavudine; the first generic ARV developed and manufactured in Africa 2005 Unit 1 facility in Port Elizabeth became world's first site to receive tentative US FDA approval for the production of certain generic ARVs

Fo Foundation Phase

1997 1997 to

• 2007

2007

Commercial focus on Emerging Markets Increase in complex manufacturing capacities Leverage of geographic footprint Portfolio management through development, acquisition & disposal

Glob

• bal Expansion
• n Phase

2008 2008 to

• 2014

2014

Sp Specialty Focus Phase

2015 2015 to

• 2017

2017

Fu Future

2008 Entered Latam market Acquired IP rights to GSK global brands 2009 Concluded a series of strategic transactions with GSK: (1) acquired distribution rights to GSK products in South Africa; (2) formed The GSK Aspen Healthcare for Africa Collaboration; (3) acquired eight specialist brands; and (4) acquired the Bad Oldesloe site in Germany. 2011 Acquired Australian-based Sigma Pharmaceuticals Limited 2013 and 2014 Acquired API business & products from MSD; an Anticoagulant portfolio & a specialized Sterile production site from GSK Concluded transactions with Nestlé for infant milks in Australia, South Africa & Latam 2015 Synergy realisation plans established following 2013 & 2014 acquisitions 2016 Restructured business to align with therapeutic focus areas Acquired the AZ & GSK anaesthetics portfolios Exercised option to acquire Fraxiparine & Arixtra from GSK for commercialisation in China 2017 Acquired remaining rights to IP & manufacturing know-how related to AZ’s anaesthetics portfolio

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Investment in a product portfolio

• f niche, specialty medicines and

strong domestic brands that present opportunities for sustainable revenue Efficiencies achieved through end-to-end global supply chain management performed by a highly experienced team Generation of organic revenue and profit growth through focused promotion

Business model

• Targeted acquisitions
• Internal product development
• Line extensions of existing IP
• Reliable supply
• Operational costs optimisation
• Maximisation of vertical

integration synergies

• Extensive sales representation in more

than 50 countries

GLOBALLY INTEGRATED VALUE CHAIN

Product pipeline development Manufacturing and supply chain operations Commercialisation

Patient/consumer needs Procurement API manufacturing FDF manufacturing Distribution Marketing and sales Product development, acquisition and registration Healthcare professional engagement and support Patient/consumer use

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Manufacturing sites (25 facilities on 17 sites)

Regional sites

• Vitoria, Brazil
• Vallejo, Mexico (Nutritionals)
• Nairobi, Kenya
• Johannesburg, South Africa

(Nutritionals)

• East London, South Africa
• Dar es Salaam, Tanzania
• Accra, Ghana
• Melbourne, Australia
• Auckland, New Zealand

(Nutritionals) Product development site

• Hyderabad, India

Key sites Finished Dose

• Port Elizabeth, South Africa

Sterile manufacturing, solids, high-potency, hormonal

• Notre Dame de Bondeville,

France Sterile manufacturing, solids, semi-solids

• Bad Oldesloe, Germany

Solids & semi-solids, liquids, blow-fill seals API

• Oss, the Netherlands (De Geer,

Moleneind and Boxtel) Biochemical API, hormonal API, Chemical API

• Notre Dame de Bondeville,

France Biochemical API, Chemical API

• FCC Cape Town, South Africa

Specialised API

• Sioux City, USA

Biochemical API

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NORTH AMERICA EUROPE ASIA AFRICA SOUTH AMERICA AUSTRALIA

Global presence

Note: Revenue referred to is applicable to the 2018 financial year

10%

Contribution to revenue

Latin America

R4,2 billion

29%

Contribution to revenue

Developed Europe

R12,3 billion

1%

Contribution to revenue

USA & Canada

R0,6 billion

7%

Contribution to revenue

Developing Europe & CIS

R2,8 billion

6%

Contribution to revenue

China

R2,5 billion

3%

Contribution to revenue

Other Asia

R1,4 billion

5%

Contribution to revenue

Japan

R1,9 billion

23%

Contribution to revenue

Sub-Saharan Africa

R10,0 billion

14%

Contribution to revenue

Australia

R6,0 billion

70 established

business operations

Key Group headquarters Combined sales, marketing, distribution & manufacturing centres Sales, marketing & distribution centres Marketing centres Branch representative offices Manufacturing site Sales, marketing, distribution & support centres Support centre New product development sites

23%

MENA

2%

Contribution to revenue

R0,9 billion

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5 Year Financial Review

Revenue (R’bn) Normalised EBITDA (R’bn) Operating cashflow per share (cents) Normalised HEPS (cents)

29,5 36,1 35,6 41,2 42,6 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 CAGR +10% 8,2 9,7 10,1 11,4 12,0 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 CAGR +10% 841 1 060 707 1 422 1 537 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 CAGR +16% 1 064 1 146 1 264 1 463 1 605 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 CAGR +11%

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FY 2018 Revenue contribution by category

Regional Brands Anaesthetics Thrombosis High Potency & Cytotoxics Manufacturing R14,3 billion R8,3 billion R6,4 billion R4,2 billion R9,4 billion

34% 19% 15% 10% 22%

Circadin Foxair Mybulen Tribuss Zyloric

Key Brands Key Brands Key Brands Key Brands

Diprivan EMLA Naropin Ultiva Xylocaine Arixtra Fraxiparine Fraxodi Mono-embolex Orgaran Alkeran Eltroxin Imuran Ovestin Purinethol

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Broader opportunities Established platform to further enhance therapeutically focused areas Weighting towards Emerging Markets Focus on technically complex products in specialist areas Record of performance with post- patent molecules World class production concentrated in steriles and other complex manufacture Financial flexibility to take advantage

• f profitable opportunities

Strong correlation of earnings to cash flow Established foundation of strong corporate governance Active participant in the United Nations Global Compact initiative A constituent of the FTSE/JSE Responsible Investment Index

Global footprint & infrastructure Unique Business Model Strong Operating Cash Flows Responsible corporate citizen

Investment case

01 02 03 04

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