Financial

Johannesburg – JSE Limited listed Aspen Pharmacare Holdings Limited (APN), a global multinational specialty pharmaceutical company, has announced unaudited interim financial results for the six months ended 31 December 2019. GROUP PERFORMANCE (CONTINUING OPERATIONS) Aspen increased revenue by 3% to R18,4 billion for the six months ended 31 December 2019. Commercial Pharma increased 2% to R15,2 billion, supported by 6% revenue growth in Regional Brands. Manufacturing revenue grew 6% to R3,2 billion, favourably impacted by the recommencing of commercial sales of heparin API. Normalised EBITDA was flat at R5,3 billion and normalised headline earnings per share (“NHEPS”) increased 1% to 707,0 cents, benefiting from lower net financing costs. The Group delivered an improved operating cash conversion rate of 87%, up from 43% in the prior comparable period, supported by controlled working capital outflow and reduced taxation payments. Internally generated cash flows have been used to reduce debt, assisting net borrowings to decline to R37,9 billion from R39,0 billion as at 30 June 2019. The implementation of IFRS 16 – leases on a modified retrospective basis resulted in a once off increase in borrowings of R547 million. A leverage ratio of 3,5 times has been achieved, comfortably below the covenant ratio of 4,0 times. Aspen classifies certain of its intangible assets as being of indefinite life.  Lower performance against prior expectations resulted in the decision to impair certain Regional Brands by R489 million. The Japanese Business was disposed of, with effect from 31 January 2020. Aspen has exited the commercialisation of public sector ARVs in South Africa. The Group has entered into an agreement with Laurus, a leading Indian producer of ARV APIs, to toll manufacture ARVs, thus ensuring the South African government retains access to competitive prices for these critical medicines. Aspen will continue to sell ARVs in the South African private sector. Both the Japanese Business and the commercialisation of ARVs in the South African public sector have been reclassified to discontinued operations for the period ended 31 December 2019. The results for the comparative period ended 31 December 2018 as well as for the year ended 30 June 2019 have also been restated to exclude these discontinued operations, together with the previously discontinued operations, namely the Nutritionals Business and the Asia Pacific non-core pharmaceutical portfolio. Relative movements in exchange rates had no material impact on financial performance, as is illustrated in the table below which compares performance in the prior comparable period at previously reported exchange rates and then at constant exchange rates (“CER”).  The CER results for the six months ended 31 December 2018 re-state performance for that period using the average exchange rates for the six months ended 31 December 2019. Six months ended 31 December 2019 Continuing operations Reported H1 2020 Rmillion Reported restated H1 2019^ Rmillion Change at reported rates % H1 2019^ CER Rmillion Change at CER % Revenue 18 417 17 878 3% 17 937 3% Normalised EBITDA* 5 260 5 241 –  5 259 – NHEPS** (cents) 707,0 702,4 1% 706,8 – ^ H1 2019 has been restated taking into account the impact of discontinued operations, namely the Nutritionals Business, the Asia Pacific non-core pharmaceutical portfolio, Japanese Business and the South African public sector ARVs. * Operating profit before depreciation and amortisation adjusted for specific non-trading items as defined in the Group’s accounting policy. ** NHEPS is HEPS adjusted for specific non-trading items, being transaction costs and other acquisition and disposal-related gains or losses, restructuring costs, settlement of product related litigation costs, net monetary adjustments and currency devaluations relating to hyperinflationary economies and significant once-off tax provision charges or credits arising from the resolution of prior year tax matters. SEGMENTAL PERFORMANCE Note:  CER is used as the reference point for the six months ended 31 December 2018 Commercial Pharma Commercial Pharma comprises Aspen’s Regional Brands and Sterile Focus Brands. Revenue of R15,2 billion represented 2% growth while gross profit remained flat at R8,6 billion. Regional Brands Regional Brands grew 6% to R8,3 billion with positive growth well spread across the Group. Gross profit percentage was negatively impacted by the decline in revenues from the oncology portfolio in Europe CIS and the previously reported recall of Zantac in Australia. Sub-Saharan Africa (+7%) performed well, benefiting from the increased focus achieved by splitting the portfolio into two discrete divisions. Revenue from Latin America (+11%) continued to grow supported by a strong performance from domestic brands. Sterile Focus Brands Sterile Focus Brands, comprising Aspen’s Anaesthetics and Thrombosis portfolios, maintained a flat gross profit at R3,9 billion despite revenue reducing 2% to R7,0 billion. The gross margin percentage improved to 56,6 % benefiting from a higher relative weighting of Anaesthetics sales in the product mix. Revenue from Anaesthetics grew 3% to R 3,9 billion. China (+23%) delivered strong growth. Europe CIS (-6%) was impacted by changes in commercial structures and ongoing Anaesthetics supply constraints. Performance in Europe CIS accelerated over the six months as supply improved and changes to the commercial structure yielded a positive response. Thrombosis revenue declined 8% to R3,1 billion, negatively impacted by Europe CIS (-10%) which contributes approximately 80% of the Group’s total Thrombosis revenue. Europe CIS commenced a commercial restructure at the start of the half and results have progressively improved since this initiative was implemented resulting in a notably stronger second quarter. Manufacturing Manufacturing revenue increased 6% to R3,2 billion. The recommencement of commercial sales of heparin API to third parties added R273 million. Gross profit percentage of 26,6% was in line with that achieved in the full year to 30 June 2019 although lower than the 36,2% in the six months to 31 December 2018 when there was a favourable product mix in the API Business. PROSPECTS We anticipate a continuation of the positive progress towards the Group’s medium-term priorities in the second half of the financial year. These priorities are directed towards ensuring Aspen is continuing to adapt effectively to the dynamic environment in which we operate, focusing on our areas of competitive advantage, driving organic growth and

Johannesburg – JSE Limited listed Aspen Pharmacare Holdings Limited (APN), a global multinational specialty pharmaceutical company, has announced reviewed provisional Group financial results for the year ended 30 June 2019. Stephen Saad, Aspen Group Chief Executive said, “Despite the challenging environment, we have achieved most of our short-term goals, including the completion of the disposal of our Nutritionals business and a portfolio of products distributed in Asia Pacific. We delivered strong second half cash flows with the proceeds from these disposals resulting in a reduction in net borrowings to R39.0 billion. We will continue with active assessment of value realisation opportunities to accelerate deleveraging our balance sheet.” COMMENTARY GROUP PERFORMANCE (CONTINUING OPERATIONS) Aspen increased revenue by 1% to R38.9 billion while normalised EBITDA declined 2% to R10.8 billion, influenced by a lower contribution from the Manufacturing business. Commercial Pharma delivered an increase in revenue of 3% to R33.1 billion. Normalised headline earnings per share (“NHEPS”) was 7% lower at R14.14. Strong cash flows in the second half allowed the Group to achieve a cash conversion ratio of 107% for the year.  In the closing six months Aspen also completed the disposals of its Nutritionals business and a portfolio of products distributed in Asia Pacific, realising cash proceeds before tax of R12.3 billion and a combined profit on disposal of R5.4 billion.  The positive cash flows and the proceeds from the disposals have enabled net borrowings to be reduced from R53.5 billion at 31 December 2018 to R39.0 billion at financial year end. A leverage ratio of 3.62x was achieved, comfortably below the covenant level of 4.0x. Rigorous impairment testing of tangible and intangible asset values was once again performed, resulting in total impairments of R 3.1 billion of which R 2.4 billion related to intangible asset impairments. Relative movements in exchange rates had an impact on financial performance, as is illustrated in the table below, which compares performance in the prior comparable period at previously reported exchange rates and then at constant exchange rates (“CER”).  The CER results for the year ended 30 June 2018 re-state performance for that period using the average exchange rates for the year ended 30 June 2019. Year ended 30 June 2019 Continuing operations ReportedFY 2019 R’million   Restated FY 2018^ R’million   % Change at reported rates   FY 2018 CER R’million   % Change at CER Revenue 38 872   38 314   1%   39 856   (2)% Normalised EBITDA* 10 824   11 031   (2)%   11 219   (4)% NHEPS** (cents) 1 414.3   1 518.4   (7)%   1 536.6   (8)% ^ FY 2018 has been restated for the adoption of IFRS 15 and IFRS 9 as well as discontinued operations. *Operating profit before depreciation and amortisation adjusted for specific non-trading items as defined in the Group’s accounting policy. ** NHEPS is headline earnings adjusted for specific non-trading items, being transaction costs and other acquisition and disposal-related gains or losses, restructuring costs, settlement of product related litigation costs, net monetary adjustments and currency devaluations relating to hyperinflationary economies and significant once-off tax provision charges or credits arising from the resolution of prior year tax matters. From this point forward in the commentary,  (1) all performance references are to continuing operations and (2) all June 2018 financial information is stated in CER and all related percentage changes in revenue between June 2019 and June 2018 are based on June 2018 CER financial information revenue in order to enhance the comparability of underlying performance. GROUP PERFORMANCE Revenue for the Group declined 2% to R 38.9 billion and normalised EBITDA was 4% lower at R 10.8 billion with weaker Manufacturing results being the most material unfavourable influence on both results.  Higher net financing costs contributed to an 8% decline in normalised headline earnings to R6.5 billion. SEGMENTAL PERFORMANCE Sterile Focus Brands Sterile Focus Brands, comprising the Anaesthetics and Thrombosis portfolios, delivered improved gross profit up 3% to R 8.4 billion despite revenue declining 2% to R 15.3 billion. The gross margin percentage improvement was driven by lower Thrombosis manufacturing costs. Anaesthetics Brands Revenue from Anaesthetics was 2% lower at R 8.7 billion as ongoing supply constraints weighed on performance. China (+5%), Latin America (+7%) and MENA (+12%) achieved good revenue gains, but these were offset by Europe CIS (-8%) and Australasia (-9%) which suffered the most from supply limitations. Japan ended the year flat (0%) as volume gains offset pricing decreases.  Thrombosis Brands Thrombosis revenue was down 3% to R 6.6 billion, negatively impacted by Europe CIS (-6%) which contributes 80% of Aspen’s Group Thrombosis revenue. The decline in Europe CIS was exacerbated by the once-off impact of switching from a wholesaler model to Aspen’s own distribution channel in Russia. Collectively, the other regions grew revenue by 14%, supported by a 34% increase from China. Regional Brands Regional Brands revenue was flat at R17.8 billion vs the prior year, despite the impact of the strike at our South African manufacturing facilities which has now been resolved, and a reduced contribution from the oncology portfolio in Europe CIS. The downward pricing pressure on the oncology products also affected gross margins. Australasia grew 5% supported by the OTC business which grew 8% and Latin America delivered 6% growth due to a strong performance from the domestic brands. Manufacturing Manufacturing revenue was down 11% to R 5.8 billion, with contributing factors to this being a major third party customer losing a material tender in the prior year, the suspension of sales of heparin to third parties due to limited global availability and strike action undertaken at our South African manufacturing facilities. At Aspen Oss, sales of active pharmaceutical ingredients (APIs) are generally contracted in advance and tend to be stable with a relatively even spread over the year, but there can be margin variability dependent on the mix of products ordered.   In particular, the mix effect was such that the margin earned was higher in the first half of the year than in the second.

Johannesburg – JSE Limited listed Aspen Pharmacare Holdings Limited (APN), a global multinational specialty pharmaceutical company, has been approved for a secondary listing on A2X Markets with effect from 1 April 2019. Stephen Saad, Aspen Group Chief Executive said, “We continually strive to identify ways to increase value for our shareholders and the complementary A2X listing offers investors trading benefits while simultaneously providing the prospect of increasing our shareholder base. We will retain our primary listing on the Johannesburg Stock Exchange and our issued share capital will be unaffected by the secondary listing.” A2X CEO, Kevin Brady said, “A2X is thrilled to have South Africa’s largest pharmaceutical company on board.  No doubt that Aspen will reap the benefits of a secondary listing, including the opportunity to attract potential new investors through A2X’s lower-cost trading structure and broadening their shareholder base.” A2X is a licensed stock exchange which provides a secondary listing venue for companies. It is regulated by the Financial Sector Conduct Authority and the Prudential Authority (SARB) in terms of the Financial Markets Act. A2X began trading in October 2017 and has nine approved brokers that account for about 50% of market activity.

Johannesburg – JSE Limited listed Aspen Pharmacare Holdings Limited (APN), a global multinational specialty pharmaceutical company, has announced interim financial results for the six months ended 31 December 2018 in line with management’s expectations. Stephen Saad, Aspen Group Chief Executive said, “Revenue increases from Anaesthetics in China and Latin America of 6% and 22% respectively have been very encouraging, despite the supply constraints experienced. China also delivered  strong revenue growth in the Thrombosis portfolio.” “The disposal of our Nutritionals business is nearing completion which will enable us to put all our focus on pharmaceuticals. We are conducting a strategic review of both our European and South African Commercial Pharma businesses and have already decided to split the latter into two distinct divisions to achieve heightened product and customer focus. The second phase of the South African review will focus on developing strategies specific to each division to optimise value delivery.” GROUP RESULTS Aspen’s earnings for the six months ended 31 December 2018 are in line with management’s expectations.  A good performance from Commercial Pharma in Emerging Markets is offset by a decline in revenue from Manufacturing (as guided in the September 2018 result announcement).  Earnings are diluted by higher financing costs. The published results record the impact of recent transactional activity and changes in accounting standards, namely:- In September 2018 Aspen announced that it had reached an agreement to divest of its Nutritionals Business to the Lactalis Group (“Lactalis”). Positive progress has been made in satisfying of the conditions precedent and all but one of the conditions which are reliant on third party consent had been fulfilled before the end of February 2019.  The outstanding third party condition relates to approval by New Zealand’s Overseas Investment Office for Lactalis to invest in that country.  The remaining conditions precedent are within the control of the parties. The parties are mutually committed to working towards a closing date for this transaction of 31 May 2019. The Nutritionals Business has accordingly been classified as discontinued and the related assets transferred to assets held for sale; The Group has concluded various agreements relating to the divestment and discontinuation of a non-core pharmaceutical portfolio in the Asia Pacific region. These products have also been classified as discontinued operations and the assets relating to this portfolio have been transferred to assets held for sale; and Aspen has adopted two new accounting standards, IFRS 9 (Financial instruments) and IFRS 15 (Revenue from contracts with customers) which have resulted in the re-statement of the disclosed comparable financial information for the six months ended 31 December 2017 and the year ended 30 June 2018. Relative movements in exchange rates had an impact on financial performance, as is illustrated in the table below which compares performance in the prior comparable period at previously reported exchange rates and then at constant exchange rates (“CER”).  The CER results for the six months ended 31 December 2017 re-state performance for that period using the average exchange rates for the six months ended 31 December 2018.     Six months ended 31 December   Continuing operations   Reported 2018 R’billion Reported 2017^ R’billion Change at reported rates % CER 2017^ R’billion Change 2018/2017 at CER     % Revenue 19 673 19 509 +1 19 743 0 Normalised EBITDA* 5 535 5 712 -3 5 616 -1 NHEPS (cents) 743 814 -9 792 -6 *Operating profit before depreciation and amortisation adjusted for specific non-trading items as defined in the Group’s accounting policy. ^ Restated for IFRS 9 & 15 implementation. In order to enhance comparability of relevant underlying performance, in this commentary, (1) all performance references are to continuing operations and (2) all December 2017 revenue numbers are stated in CER and all percentage changes in revenue between December 2018 and December 2017 are based on December 2017 CER revenue. SEGMENTAL PERFORMANCE Sterile Focus Brands Sterile Focus Brands, comprising the Anaesthetics and Thrombosis portfolios, delivered revenue in line with the prior comparable period at R7,8 billion. The gross profit from Sterile Focus Brands of R4,3 billion was at an improved gross margin percentage benefitting from lower Thrombosis manufacturing costs. Anaesthetics Brands Revenue from Anaesthetics was 1% lower at R4,4 billion. This is a sound performance given ongoing supply constraints affecting all major territories other than Japan. China (+6%) and Latin America (+22%) are the material regions driving growth. Supply limitations have adversely impacted sales in Europe CIS and Australasia.  Price decreases in Japan offset strong volume gains.  Supply is expected to improve from the commencement of the 2020 financial year and should be unconstrained midway through that year. Thrombosis Brands Thrombosis revenue of R3,4 billion is unchanged from the prior comparable period. Emerging Markets are up 7%, propelled by a strong performance in China, which offsets the declines in Developed Markets. Other Pharmaceuticals Other Pharmaceuticals, comprising Regional Brands and Manufacturing, deliver revenue of R11,9 billion, flat with the prior comparable period. Regional Brands Regional Brands, which comprise 45% of Group revenue, have shown growth of 3%.  The High Potency & Cytotoxic Brands have been reclassified under Regional Brands in line with a change to regional management of this portfolio. Revenue growth has been recorded in most territories, but this has been partially offset by pricing pressure on the oncology portfolio in Europe that also dilutes the margins. Manufacturing Manufacturing revenue declines 10% to R3,0 billion, primarily due to a tender lost in the prior year by one of Aspen’s major third party customers, as reported in the results announcement for the 2018 financial year, and the suspension of sales of heparin to third parties due to limited global availability.  Resultant lower volumes weigh on margins. FUNDING Borrowings, net of cash, has increased by R6,7 billion to R53,5 billion. R1,0 billion of this increase is the consequence of Rand weakness relative to foreign currency denominated loans.  Payments relating to acquisitions of R4,9 billion and capital expenditure of R1,5 billion have been the main other drivers of the higher debt levels.  The gearing ratio covenant measure is 4,43

Johannesburg – JSE Limited listed Aspen Pharmacare Holdings Limited (APN), a leading global pharmaceutical company, has announced today, in conjunction with the announcement of its annual results for the year ended 30 June 2018, that it has concluded an agreement to divest of its global Nutritional Business to the Lactalis Group Stephen Saad, Aspen Group Chief Executive said, “We are pleased to announce that an agreement has been signed to divest of our Nutritionals Business to French-based Lactalis Group, a leading multinational dairy corporation, for Euro 740 million (R12.9 billion at current exchange rates). The disposal is in line with our strategic intention to focus our attention on our core pharmaceutical business which includes the Anaesthetics, Thrombosis and High Potency & Cytotoxic portfolios. The heightened focus is expected to drive increased business efficiency and performance.” “This year we celebrate 20 years since we listed on the JSE. Over the past two decades we have evolved from being a domestic generics player to a global multi-national focusing on specialised niche products that are complex to manufacture. Generic products contribute less than 15% to the Group’s pharma revenue today and our strategic focus is on building our specialty portfolio.” DIVESTMENT OF GLOBAL NUTRITIONALS BUSINESS TO LACTALIS FOR EUR 739.8 MILLION With reference to Aspen’s earlier announcement wherein it advised that it had undertaken a strategic review of its Global Nutritionals Business predominantly carried on in Latin America, Sub-Saharan Africa and Asia Pacific under the S-26, Alula and Infacare brands (“Nutritionals Business”), Aspen is pleased to announce that it has concluded an agreement to divest of its Nutritionals Business to the Lactalis Group, a leading multinational dairy corporation based in Laval, France, for a fully funded cash consideration of EUR 739.8 million / R12.9 billion (translated at ZAR17.4/EUR) (“the Transaction”). The Lactalis Group is a privately owned, global leader in the dairy industry with revenue of EUR 18.4 billion, sales in over 200 countries, approximately 80 000 employees and 246 industrial plants in 47 different countries. Lactalis’ strategic intent is to develop a global infant nutritional business to complement their existing global product range. The transaction is considered to be a compelling opportunity for both the transferring Aspen employees as well as the shareholders of both Aspen and Lactalis. In terms of the Transaction, the disposal of the Nutritionals Business will comprise the following elements: Intellectual property and any related goodwill presently owned by: Aspen Holdings and Pharmacare Limited in respect of the South African and Sub-Saharan Africa Nutritionals Businesses; and Aspen Global Incorporated in respect of the Latin American and Asia Pacific Nutritionals Businesses; Tangible assets (including plant, leased immovable property, equipment, associated fixed assets and inventory) presently owned by various Aspen Group companies in respect of the South African, Sub- Saharan Africa and Latin American Nutritionals Businesses; Product registrations and retail registrations regarding Aspen’s nutritional products; Shares in companies conducting Aspen’s Nutritional Business across Asia Pacific (including the acquisition of shares held by joint venture partners in New Zealand and Hong Kong); and Transfer of dedicated Nutritionals staff employed within each of the geographical regions. Rationale Aspen’s disposal of the Nutritionals Business will allow the Aspen business units in Asia Pacific, Latin America and Sub-Saharan Africa to dedicate all of their time and attention to their core pharmaceutical businesses. This heightened focus is expected to drive increased business efficiency and performance. Aspen believes that Lactalis’ entrepreneurial spirit and commitment to develop a leading global position in infant nutrition will provide the Nutritional Business and the transferring Aspen employees with exciting future opportunities for growth and development. Financial information The Global Nutritional Business contributed ZAR 3.091 billion to Group revenue and ZAR 512 million to Group segmental contribution profit for the year ended 30 June 2018. The proceeds of EUR 739.8 million will be reduced by approximately EUR 62 million which will be utilised to buy-out Aspen’s joint venture partners in New Zealand and China. The balance of the proceeds from the Transaction, after costs and taxes, will be utilised to reduce Aspen’s gearing, creating greater headroom and capacity. Conditions precedent and completion The Transaction is conditional upon the fulfilment of a number of conditions precedent, the more material of which are the following: Approval by the Mexican and South African Competition/Anti-Trust authorities; South African Reserve Bank approval to the extent required under the Exchange Control Regulations; New Zealand and Australian foreign investment approvals to the extent required; Signature by Aspen and Lactalis of implementation agreements, including certain regional asset purchase and share purchase agreements with the various Aspen subsidiaries; and Signature or renewal of certain transitional service and other incidental agreements, some of which are with third parties. It is anticipated that the Transaction will complete within the next 6 months. Categorisation of the Transaction The Transaction is categorised as a Category 2 transaction in terms of the JSE Limited Listings Requirements. Withdrawal of Cautionary Announcement Aspen has advised shareholders that following the release of the full details of the divestment of the Nutritionals Business, shareholders no longer need to exercise caution when dealing in their Aspen securities in this regard. GROUP PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2018 Revenue increased by 3% to R42.6 billion. Normalised headline earnings per share (“NHEPS”) rose by 10% to 1604.9 cents. Normalised EBITDA increased by 5% to R12.0 billion. Earnings per share grew by 17% to 1316.6 cents. Headline earnings per share increased by 13% to 1468.8 cents. Operating cash flow per share increased by 8% to 1537.3 cents. Distribution to shareholders per share increased by 10% to 315.0 cents. Lower earnings in the second half of the year than in the first half were primarily influenced by the unfavourable impact of the strengthened ZAR. At constant exchange rates (“CER”), revenue in the second half of the financial year was in line with that of the first half. However, the stronger ZAR in the second half resulted in ZAR reported second half revenue being lower by R1.3 billion. Significant factors influencing performance

Johannesburg – JSE Limited listed Aspen Pharmacare Holdings Limited (APN), a leading global pharmaceutical company, has announced favourable results for the six months ended 31 December 2017. Aspen Interim Results release March 2018

Johannesburg – JSE Limited listed Aspen Pharmacare Holdings Limited (APN), a leading global pharmaceutical company, has announced pleasing results for the year ended 30 June 2017. Download (PDF 86.7KB)