Regional Leader Investor Presentation November 2013 Aspen Asia - PowerPoint PPT Presentation

Regional Leader Investor Presentation November 2013

Aspen Asia Pacific Presented by Greg Lan & Trevor Ziman 2

Asia Pacific Revenue Growth 2001 - 2013 9 000 8 000 7 000 2013 Aspen acquired rights to 6 000 intellectual property R’million licenses, net assets and 5 000 shares in the Infant Nutritional portfolio S26 4 000 from Nestle. The portfolio accounts 3 000 for annual sales of $90 million in Australia. 2 000 1 000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2001 2004 2011 2012 On 1 st February 2011 Aspen Aspen commenced With the purchase of Keflex In August Aspen acquired 25 operations in Australia in and Ceclor from Eli Lilly took over the pharmaceutical products from GSK for the May 2001 with 2 people (combined sales of ca. division of Sigma for around Australian market (among and 2 laptops through the $10.5 million) Aspen $900 million. others Amoxil, Augmentin, purchase of a basket of acquired two antibiotic Valtrex, Zantac) with annual products worth $10 million products which are still sales of around $95 million. in sales. highly prescribed. 3

Australian Market in Decline IMS Market Sales  Government price cuts impacting 14 500 000 000 value of market 14 000 000 000  13 500 000 000 Further price reductions are inevitable 13 000 000 000 12 500 000 000  Aspen’s savings and organic growth will mitigate impact of price 12 000 000 000 cuts 11 500 000 000 11 000 000 000 10 500 000 000 10 000 000 000 Aug Aug Aug Aug 2010 2011 2012 2013 Values Values (2013 prices) 4

Aspen Australia Outlook Despite the difficult market conditions, Aspen expects to outperform the market due to the following:  S26 Nutritional acquisition to produce synergies, and marketing focus that will result in organic growth (no exposure to government price cuts)  Products will continue to go off patent, resulting in: More generic launches for Aspen Australia o Multinational companies seeking Aspen’s assistance to promote their o originator brands and launch Authorized Generics More acquisition opportunities as off-patent drugs become non-core and o multinationals seek to divest them  Aspen is the partner of choice for many drug companies (multinationals as well as niche companies) because of our innovative business model  Access to a huge global pipeline of products with low cost sourcing 5

Asia  23 million people in Australia versus 4.3 billion in Asia. Population huge and growing rapidly  The Australian pharmaceutical market is worth $14 billion. The Asian Pharmaceutical market is almost $200 billion and growing Asia’s Attraction to Aspen  Emerging middle class – many already loyal to Aspen’s global brands and originator brands  Partnering or acquisition opportunities from global relationships  Developing niche pipeline to launch  Growing immature markets  Aspen will offer a Pan Asia solution 6

Asia Pharmaceutical Market Significant & Growing 250 197.3 200 187.5 KOREA 160.4 KOREA USD’ billion 142.1 150 KOREA 123.1 KOREA JAPAN JAPAN KOREA 100 JAPAN JAPAN JAPAN 50 CHINA CHINA CHINA CHINA CHINA 0 2008 2009 2010 2011 2012 BANGLADESH CHINA HONG KONG INDIA INDONESIA JAPAN KOREA MALAYSIA PAKISTAN PHILIPPINES SINGAPORE TAIWAN THAILAND VIETNAM CHINA trend JAPAN trend KOREA trend Source : IMS 2012 7

Hong Kong Aspen Regional Hub  Close proximity to all Asian markets  Manage Aspen’s businesses Korea China ◦ Ongoing businesses Japan ◦ Acquisition transitions Taiwan ◦ Business development such Hong Kong as regional acquisitions, in- Thailand Philippines licensing & pipeline launches Malaysia ◦ Asian markets entry feasibility Singapore studies and strategies, Indonesia Aspen’s entities set up and Basic facts company acquisitions ◦ Population: 7 million evaluation ◦ GDP per capita: USD 49,417 ◦ One of the leading global financial hubs ◦ Most competitive economy in the world ◦ Legal system based on rule of law and 8 independent judiciary

Growing Aspen In Asia  Criteria for setting up subsidiaries ◦ Critical mass ◦ Cost comparison: Aspen affiliates vs distributors ◦ Risk vs potential returns  Potential acquisition and in-licensing opportunities more effectively targeted  Subsidiaries established so far ◦ Philippines ◦ Taiwan ◦ Malaysia 9

Aspen Up And Running Philippines Malaysia Taiwan Pharma market size: $3.1 billion Pharma market size: $1.9 billion Pharma market size: $4.4 billion Population: 97 million Population: 30 million Population: 23 million Economic growth of 6.6% Economic growth of 4.3% Economic growth of 2.31% Pharma market growth of 3% Pharma market growth of 8% Pharma market growth of 3.9% Reimbursement status: Reimbursement status: Reimbursement status: Non-Reimbursed market One Third Reimbursed market Reimbursed market Number of heads: 111 Number of heads: 1 Number of heads: 7 • • • Started trading in 2012 Started trading from May 2013 Started trading from July 2013 10

Japan Is A Key Opportunity Critical mass exists for subsidiary to be set up  Population: 127 million  World’s 3 rd largest economy and second largest pharmaceutical market. Market worth $89 billion growing at 5.1%  Healthcare expenditure: 8.5% of GDP  Rapidly ageing population  Fully reimbursed pharmaceutical market  Government pushes for more usage of generics  Partnering model being considered  Aspen nearly ready to action 11

On Aspen’s Radar China Indonesia Thailand Population: 1.34 billion Population: 237 million Population: 65 million GDP per capita: USD 6,091 GDP per capita: USD 4,666 GDP per capita: USD 9,398 Economic growth of 7% Economic growth of 6.2% Economic growth of 6.4% Pharma market growth of 22% Pharma market growth of 5.1% Pharma market growth of 8.4% Pharma market at USD 50 billion Pharma market at USD 6.5 billion Pharma market at USD 4.6 billion 12

Aspen Brazil Presented by Alexandre França 13

Ten largest world economies 14

Aspen in Brazil 15

Aspen and Brazilian Pharma Market Rank USD: 26 billion + 4% EMS (bra) 1 Hypermarcas (bra) 2 Sanofi (fra) 3 Leader Aché (bra) 4 since Novartis (swi) 5 11/2012 Eurofarma (bra) 6 Teuto (bra) 7 Takeda (jpn) 8 Bayer (ger) 9 Leader União Q. (bra) 10 since 07/2012 2012 2013 ASPEN 63 41 Source : IMS - September 2013 16

Aspen Brazil : Continuous Growth ZAR’millions 503 575 817 17

Milk of Magnesia – Aspen Impact Milk of Magnesia unit sales 2 150 000 2 100 000 2 050 000 2 000 000 Units 1 950 000 1 900 000 1 850 000 1 800 000 1 750 000 1 700 000 GSK Aspen 18

Aspen’s growth drivers  Local & Global acquisitions  Continuous organic growth  MSD & GSK acquisitions to bring credibility  Pipeline based on main categories supports our growth  Profit oriented  People development and teamwork Profit, Process and People 19

Why are we going to succeed in Brazil? Because ….  We do know how to sell our products  We do know our numbers  We have got the right people  We don ´ t give up  We want to make ASPEN BRAZIL bigger and bigger  We are 20

Brazil team 21

Aspen Spanish Latin America Presented by Carlos Abelleyra Cordero 22

Content  Spanish Latam Region Overview  Aspen’s history in Latin America  Outlook  Spanish Latam medium term targets 23

Spanish Latam Region Overview Expenses per capita in Health & Growth (USD) Source: WHO – Global Health Expenditure Databes (varying years from 2004 to 2011) http://apps.who.int/nha/database/PreDataExplorer.aspx?r=1&d=1 Source: IMS Health, MIDAS, MAT Dec 2012; Retail Market only; List prices 24

Spanish Latam Region Overview USD billions CAGR 2008-2012 Latam* 13.9% Japan Asia Europe North America 0 5 10 15 LATAM Second fastest growing region in sales Source: WHO – Global Health Expenditure Databes (varying years from 2004 to 2011) http://apps.who.int/nha/database/PreDataExplorer.aspx?r=1&d=1 25 Source: IMS Health, MIDAS, MAT Dec 2012; Retail Market only; List prices

Aspen Footprint in Spanish Latam Building identity and ownership IMF, Merck, GSK Acquisitions 2 9 Aspen Subsidiaries Commercialization 26

Outlook Key Success Factors  Focus on key Aspen Therapeutic Areas  Right level of investment & flawless execution  Product portfolio upgrade & revamp Sales Projection Full Year 1 product pipeline after all the acquisitions are in place >USD 400M Key Challenges  Position Aspen as a Key Player in a short term  Focus on robust product portfolio understanding market particularities  Operational excellence 27

Spanish Latam - Medium term targets Revenue > $ 400m USD Revenue = $ 800m USD TOP 10 Ranking (IMS) > # 19 $ 0.37m USD per Head $ 0.5m USD / Head 2014 = 1,060 SKUs > 865 + SKUs > 1,200 + Markets > 25 Markets > 25 Aspen affiliates > 9 Aspen affiliates > 12 28

Aspen Europe CIS Presented by Michael Crow 29