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ASPEN PHARMACARE HOLDINGS LIMITED - Unaudited interim financial results for the six months ended 31 December 2018

Release Date: 07/03/2019 17:30
Code(s): APN     PDF:  
 
Wrap Text
Unaudited interim financial results for the six months ended 31 December 2018

ASPEN PHARMACARE HOLDINGS LIMITED AND ITS SUBSIDIARIES 
("Aspen" or "the Group")
(Registration number 1985/002935/06) 
Share code: APN / ISIN: ZAE000066692
Unaudited interim financial results for the six months ended 31 December 2018

COMMENTARY
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 Pharmaceuticals in Emerging Markets is offset by a decline in revenue from Manufacturing (as guided in the
September 2018 results 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 restatement 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 restate performance for that period 
using the average exchange rates for the six months ended 31 December 2018.

                                                  Six months ended 31 December
                                                                  Change at                        Change     
                                    Reported       Reported        reported            CER      2018/2017     
                                        2018           2017^          rates           2017^        at CER    
Continuing operations              R'million      R'million               %      R'million              %    
Revenue                               19 673         19 509               1         19 743              0    
Normalised EBITDA*                     5 534          5 711              (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 and 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, have 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 times against an upper threshold of 4,75 times in terms of the temporary amendment to this covenant 
measure.

Operating cash flows have been constrained by an increased working capital investment, largely due to strategic stock
builds. Operating cash flow per share of 317 cents represents a 47% rate of conversion of operating profit. Net 
interest paid is covered five times by EBITDA. 

De-leveraging the balance sheet is a priority. The first steps in this process are well progressed with the pending
receipt of the proceeds from the Nutritionals disposal, estimated at EUR635 million, in addition to the inflows received
and expected from the divestment of the non-core pharmaceutical portfolio in the Asia Pacific region. This will bring the
gearing ratio covenant measure within the specified level of 4,0 for each of the June and December 2019 measurement periods. 
Aspen's medium-term target for the gearing ratio is less than 3,0. Opportunities to accelerate the achievement of this target
include the aforementioned potential collaborations in Europe and the ongoing assessment of opportunities to realise value.

PROSPECTS
The pending completion of the Nutritionals disposal will allow complete focus on pharmaceuticals. Aspen has embarked on a 
strategic review of its European and South African Commercial Pharmaceuticals businesses. As an outcome of the 
first phase of the South African review it has been decided to split South African Commercial Pharmaceuticals into two distinct 
divisions in order to achieve heightened product and customer focus. The second phase of the review will concentrate on 
developing strategies specific to each division to optimise value delivery.

Any re-shaping of the Group will be aimed at driving sustainable organic growth with a strong emphasis on Emerging
Markets. Achievement of the de-leveraging objectives will provide headroom for further investment in building Aspen's
product portfolio of niche specialty pharma brands in Emerging Markets. 

The Group's most promising pipeline opportunities in the short to medium term are with the women's health products that
are being developed for launch in the USA. Aspen has reached a memorandum of understanding with a partner that is committed 
to building a women's health franchise in that country. The partner will distribute Aspen's pipeline products in this 
therapeutic area in the USA. 

Normalised headline earnings from continuing operations (at CER) for the full year are expected to be in line
with the percentage decline recorded in the first half. Given the diversity of currencies to which the Group is exposed, 
exchange rate volatility could influence reported results. Operating cash flows are cyclically stronger in the second half 
of the financial year and a conversion rate of operating profits to cash of between 90% and 100% is anticipated for the full 
financial year. 

By order of the Board

K D Dlamini                           S B Saad
Chairman                              Group Chief Executive

Woodmead
7 March 2019


GROUP STATEMENT OF COMPREHENSIVE INCOME
                                                                                      Unaudited                    
                                                                      Unaudited        restated       Restated    
                                                                     six months      six months           year    
                                                                          ended           ended          ended    
                                                                    31 December     31 December        30 June    
                                                       Change              2018            2017           2018     
                                            Notes           %         R'million       R'million      R'million    
CONTINUING OPERATIONS                                                                                             
Revenue                                                     1            19 673          19 509         38 212    
Cost of sales                                                            (9 437)         (9 460)       (18 620)    
Gross profit                                                2            10 236          10 049         19 592    
Selling and distribution expenses                                        (3 514)         (3 262)        (6 612)    
Administrative expenses                                                  (1 569)         (1 539)        (2 981)    
Other operating income                                                       31             130            417    
Other operating expenses                                                   (764)           (677)        (2 025)    
Operating profit                               B#          (6)            4 420           4 701          8 391    
Investment income                              C#                           268             195            343    
Financing costs                                D#                        (1 217)           (833)        (2 107)    
Profit before tax                                         (15)            3 471           4 063          6 627    
Tax                                                                        (600)           (647)        (1 098)    
Profit for the period/year from             
continuing operations                                     (16)            2 871           3 416          5 529    
DISCONTINUED OPERATIONS                                                                                           
Profit from discontinued operations            I#                            66             230            436    
Profit for the period/year                                (19)            2 937           3 646          5 965    
OTHER COMPREHENSIVE INCOME, NET OF TAX*                                                                           
Currency translation gains/(losses)            E#                         1 165          (1 027)         2 372    
Net gains/(losses) from cash flow           
hedging in respect                          
of business acquisition                                                      71            (115)           (96)    
Remeasurement of retirement and other       
employee benefits                                                             -               -              1    
Total comprehensive income                                                4 173           2 504          8 242    
Profit for the period/year attributable to                                                                        
Equity holders of the parent                                              2 937           3 645          5 964    
Non-controlling interests                                                     -               1              1    
                                                                          2 937           3 646          5 965    
Total comprehensive income attributable to                                                                        
Equity holders of the parent                                              4 173           2 503          8 241    
Non-controlling interests                                                     -               1              1    
                                                                          4 173           2 504          8 242    
Weighted average number of shares           
in issue ('000)                                                           456,5           456,4          456,5    
Diluted weighted average number of          
shares in issue ('000)                                                    456,5           456,4          456,5    
EARNINGS PER SHARE                                                                                                
Basic earnings per share (cents)                                                                                  
From continuing operations                                (16)            628,9           748,2        1 211,0    
From discontinued operations                                               14,5            50,4           95,5    
                                                          (19)            643,4           798,6        1 306,5    
Diluted earnings per share (cents)                                                                                
From continuing operations                                (16)            628,9           748,2        1 211,0    
From discontinued operations                                               14,5            50,4           95,5    
                                                          (19)            643,4           798,6        1 306,5    
# See notes on Supplementary Information.                                                                      
* The annual remeasurement of retirement and other employee benefits will not be reclassified to profit and 
  loss. All other items in other comprehensive income may be reclassified to profit and loss.


GROUP STATEMENT OF HEADLINE EARNINGS                                                                             
                                                                                      Unaudited                    
                                                                      Unaudited        restated       Restated    
                                                                     six months      six months           year    
                                                                          ended           ended          ended    
                                                                    31 December     31 December        30 June    
                                                       Change              2018            2017           2018     
                                                            %         R'million       R'million      R'million    
HEADLINE EARNINGS^                                                                                                
Reconciliation of headline earnings                                                                               
Profit attributable to equity holders                                             
of the parent                                             (19)            2 937           3 645          5 964    
Adjusted for:                                                                                                     
Continuing operations                                                                                             
- Net impairment of property, plant                                               
and equipment (net of tax)                                                    7              11             48    
- Impairment of intangible assets (net of tax)                              209             152            606    
- Impairment of assets classified as                                              
  held-for-sale (net of tax)                                                  -               -             37    
- Loss on the sale of tangible and intangible                                     
  assets (net of tax)                                                         1               4              3    
Discontinued operations                                                                                           
- Loss on the sale of intangible                                                  
  assets (net of tax)                                                       127               -              -    
                                                          (14)            3 281           3 812          6 658    
Headline earnings                                                                                                 
From continuing operations                                (14)            3 088           3 582          6 222    
From discontinued operations                                                193             230            436    
                                                          (14)            3 281           3 812          6 658    
HEADLINE EARNINGS PER SHARE                                                                                       
Headline earnings per share (cents)                                                                               
From continuing operations                                (14)            676,5           784,7        1 363,2    
From discontinued operations                                               42,2            50,4           95,5    
                                                          (14)            718,7           835,1        1 458,7    
Diluted headline earnings per share (cents)                                                                       
From continuing operations                                (14)            676,5           784,7        1 363,2    
From discontinued operations                                               42,2            50,4           95,5    
                                                          (14)            718,7           835,1        1 458,7    
NORMALISED HEADLINE EARNINGS                                                                                      
Reconciliation of normalised headline earnings                                                                    
Headline earnings                                         (14)            3 281           3 812          6 658    
Adjusted for:                                                                                                     
Continuing operations                                                                                             
- Restructuring costs (net of tax)                                           54              72            144    
- Transaction costs (net of tax)                                            219             169            363    
- Foreign exchange gain on acquisitions                                           
  (net of tax)                                                                -            (173)          (178)    
- Product litigation costs (net of tax)                                      32              66            293    
                                                           (9)            3 586           3 946          7 280    
Normalised headline earnings                                                                                      
From continuing operations                                 (9)            3 393           3 716          6 844    
From discontinued operations                                                193             230            436    
                                                           (9)            3 586           3 946          7 280    
NORMALISED HEADLINE EARNINGS PER SHARE                                                                            
Normalised headline earnings per share (cents)                                                                    
From continuing operations                                 (9)            743,4           814,1        1 499,3    
From discontinued operations                                               42,2            50,4           95,5    
                                                           (9)            785,6           864,5        1 594,8    
Normalised diluted headline earnings                                              
per share (cents)                                                                 
From continuing operations                                 (9)            743,4           814,1        1 499,3    
From discontinued operations                                               42,2            50,4           95,5    
                                                           (9)            785,6           864,5        1 594,8    
^ Headline earnings is disclosed net of income from non-controlling interests which are not material.


GROUP STATEMENT OF FINANCIAL POSITION                                                                             
                                                                                      Unaudited                   
                                                                      Unaudited        restated       Restated    
                                                                    31 December     31 December        30 June    
                                                                           2018            2017           2018    
                                                         Notes        R'million       R'million      R'million    
ASSETS                                                                                                            
Non-current assets                                                                                                
Intangible assets                                                        70 297          67 326         72 163    
Property, plant and equipment                                            11 692          10 105         11 368    
Goodwill                                                                  4 976           6 003          6 126    
Deferred tax assets                                                       1 029           1 017            966    
Contingent environmental indemnification assets                             824             743            802    
Other non-current assets                                                    657           1 157          1 189    
Total non-current assets                                                 89 475          86 351         92 614    
Current assets                                                                                                    
Inventories                                                              15 575          14 021         14 957    
Receivables and other current assets                                     13 343          13 055         13 439    
Cash and cash equivalents                                                 9 868           8 454         11 170    
Total operating current assets                                           38 786          35 530         39 566    
Assets classified as held-for-sale                          J#            6 560             168            135    
Total current assets                                                     45 346          35 698         39 701    
Total assets                                                            134 821         122 049        132 315    
SHAREHOLDERS' EQUITY                                                                                              
Reserves                                                                 50 409          42 002         47 667    
Share capital (including treasury shares)                                 1 879           1 905          1 905    
Ordinary shareholders' equity                                            52 288          43 907         49 572    
Non-controlling interests                                                     2              27             28    
Total shareholders' equity                                               52 290          43 934         49 600    
LIABILITIES                                                                                                       
Non-current liabilities                                                                                           
Borrowings                                                               52 506          29 579         46 725    
Other non-current liabilities                                             2 860           3 067          2 775    
Unfavourable and onerous contracts                                        1 252           1 476          1 382    
Deferred tax liabilities                                                  2 259           2 348          2 213    
Contingent environmental liabilities                                        824             743            802    
Retirement and other employee benefits                                      669             600            635    
Total non-current liabilities                                            60 370          37 813         54 532    
Current liabilities                                                                                               
Borrowings*                                                              10 869          22 015         11 225    
Trade and other payables                                                  9 343           9 406         10 414    
Other current liabilities                                                 1 538           8 557          6 170    
Unfavourable and onerous contracts                                          359             324            374    
Total operating current liabilities                                      22 109          40 302         28 183    
Liabilities classified as held-for-sale                     J#               52               -              -    
Total current liabilities                                                22 161          40 302         28 183    
Total liabilities                                                        82 531          78 115         82 715    
Total equity and liabilities                                            134 821         122 049        132 315    
Number of shares in issue (net of                                                                 
treasury shares) ('000)                                                   456,0           456,1          456,0    
Net asset value per share (cents)                                      11 467,3         9 626,5       10 871,7    
# See notes on Supplementary Information.                                                                      
* Includes bank overdrafts.                                                                                         


GROUP STATEMENT OF CHANGES IN EQUITY                                                                                    
                                                                            Total                                  
                                        Share capital                attributable                                  
                                           (including                   to equity           Non-                  
                                             treasury                  holders of    controlling                   
                                               shares)    Reserves     the parent      interests         Total    
                                            R'million    R'million      R'million      R'million     R'million    
BALANCE AT 1 JULY 2017 (Restated)               1 929       40 813         42 742             27        42 769    
Total comprehensive income                          -        2 505          2 505              -         2 505    
 Profit for the period                              -        3 646          3 646              -         3 646    
Other comprehensive loss                            -       (1 142)        (1 142)             -        (1 142)    
Dividends paid                                      -       (1 311)        (1 311)             -        (1 311)    
Treasury shares purchased                         (44)           -            (44)             -           (44)    
Deferred incentive bonus                                                             
shares exercised                                   20          (20)             -              -             -    
Share-based payment expenses                        -           15             15              -            15    
BALANCE AT 31 DECEMBER 2017 (Restated)          1 905       42 002         43 907             27        43 934    
BALANCE AT 1 JULY 2018 (Restated)               1 905       47 667         49 572             28        49 600    
Total comprehensive income                          -        4 173          4 173              -         4 173    
Profit for the period                               -        2 937          2 937              -         2 937    
Other comprehensive income                          -        1 236          1 236              -         1 236    
Dividends paid                                      -       (1 431)        (1 431)             -        (1 431)    
Acquisition of non-controlling                                                                     
interest in subsidiary                              -          (14)           (14)           (26)          (40)    
Treasury shares purchased                         (29)           -            (29)             -           (29)    
Deferred incentive bonus                                                             
shares exercised                                    3           (3)             -              -             -    
Share-based payment expenses                        -           17             17              -            17    
BALANCE AT 31 DECEMBER 2018                     1 879       50 409         52 288              2        52 290    
DISTRIBUTION TO SHAREHOLDERS                                                                                      
A dividend of 315 cents per share has been paid during the period (2017: 287 cents). The dividend to shareholders 
of 315 cents relates to the dividend declared on 13 September 2018 and paid on 8 October 2018 (2017: the dividend 
of 287 cents relates to the dividend declared on 14 September 2017 and paid on 9 October 2017).


GROUP STATEMENT OF CASH FLOWS
                                                                                      Unaudited                    
                                                                      Unaudited        restated       Restated    
                                                                     six months      six months           year    
                                                                          ended           ended          ended    
                                                                    31 December     31 December        30 June    
                                                       Change              2018            2017           2018     
                                            Notes           %         R'million       R'million      R'million    
CASH FLOWS FROM OPERATING ACTIVITIES                                                                              
Cash operating profit                                                     5 852           6 092         11 835    
Changes in working capital                                               (2 253)         (1 470)        (1 507)    
Cash generated from operations                                            3 599           4 622         10 328    
Net financing costs paid                                                   (765)           (607)        (1 816)    
Tax paid                                                                 (1 123)         (1 013)        (1 495)    
Cash generated from operating activities                  (43)            1 711           3 002          7 017    
CASH FLOWS FROM INVESTING ACTIVITIES                                                                              
Capital expenditure - property,                                                    
plant and equipment                            A#                        (1 168)           (820)        (2 145)    
Proceeds received on the sale of                                                   
property, plant and equipment                                                 4               5             17    
Acquisition of residual                                                            
rights - AZ Anaesthetics                                                      -               -         (5 202)    
Capital expenditure - intangible assets        A#                          (330)         (3 014)          (881)    
Proceeds received on the                                                           
sale of intangible assets                                                   405              10             62    
Acquisition of subsidiaries and                                                    
businesses                                                                  (50)             (3)          (152)    
Proceeds received/(investment in)                                                  
other non-current assets                                                      7            (321)            50    
Payment of deferred contingent                                                     
consideration relating to prior                                                    
year business acquisitions                                               (4 893)         (4 009)        (4 599)    
Other investing activities cash inflows                                      61              38             37    
Cash used in investing activities                                        (5 964)         (8 114)       (12 813)    
CASH FLOWS FROM FINANCING ACTIVITIES                                                                              
Net proceeds from borrowings                                              4 439           6 496          7 690    
Dividends paid                                                           (1 431)         (1 311)        (1 313)    
Treasury shares purchased                                                   (29)            (44)           (44)    
Cash generated from financing activities                                  2 979           5 141          6 333    
Movement in cash and cash equivalents                                              
before currency translation movements                                    (1 274)             29            537    
Currency translation movements                                              172            (117)           389    
Movement in cash and cash equivalents                                    (1 102)            (88)           926    
Cash and cash equivalents at the                                                   
beginning of the period/year                                              8 114           7 188          7 188    
Cash and cash equivalents at the                                                   
end of the period/year                                                    7 012           7 100          8 114    
Operating cash flow per share (cents)                                                                             
From continuing operations                                (45)            317,4           577,1        1 384,1    
From discontinued operations                                               57,4            80,6          153,2    
                                                          (43)            374,8           657,7        1 537,3    
DISCONTINUED OPERATIONS INCLUDED                                                   
IN THE ABOVE:                                                                      
Cash generated from operating activities                                    262             368            699    
Cash generated from investing activities                                    405               -              -    
Cash and cash equivalents per                                                      
the statement of cash flows                                                 173               -              -    
RECONCILIATION OF CASH AND CASH EQUIVALENTS                                                                       
Cash and cash equivalents per the                                                  
statement of financial position                                           9 868           8 454         11 170    
Less: bank overdrafts                                                    (2 856)         (1 354)        (3 056)    
                                                                          7 012           7 100          8 114    
For the purposes of the statement of cash flows, cash and cash equivalents comprise cash-on-hand plus deposits 
held on call with banks less bank overdrafts.
# See notes on Supplementary Information.


GROUP SEGMENTAL ANALYSIS
                                                                 Unaudited six months ended 31 December 2018
                                                             Sterile Focus                Other                    
                                                                    Brands      Pharmaceuticals          Total    
                                                                 R'million            R'million      R'million    
Revenue                                                              7 801               11 872         19 673    
Cost of sales                                                       (3 521)              (5 916)        (9 437)    
Gross profit                                                         4 280                5 956         10 236    
Selling and distribution expenses                                                                       (3 514)    
Contribution profit                                                                                      6 722    
Administrative expenses                                                                                 (1 569)    
Net other operating income                                                                                  15    
Depreciation                                                                                               366    
Normalised EBITDA*                                                                                       5 534    
Adjusted for:                                                                                                     
Depreciation                                                                                              (366)    
Amortisation                                                                                              (240)    
Loss on sale of assets                                                                                      (1)    
Net impairment of assets                                                                                  (221)    
Restructuring costs                                                                                        (64)    
Transaction costs                                                                                         (185)    
Product litigation costs                                                                                   (37)    
Operating profit                                                                                         4 420    
Gross profit %                                                        54,9                 50,2           52,0    
Selling and distribution expenses %                                                                       17,9    
Contribution profit %                                                                                     34,2    
Administrative expenses %                                                                                  8,0    
Normalised EBITDA %                                                                                       28,1    


                                                                      Unaudited restated six months ended 
                                                                              31 December 2017
                                                             Sterile Focus                Other                    
                                                                    Brands      Pharmaceuticals          Total    
                                                                 R'million            R'million      R'million    
Revenue                                                              7 686               11 823         19 509    
Cost of sales                                                       (3 804)              (5 656)        (9 460)    
Gross profit                                                         3 882                6 167         10 049    
Selling and distribution expenses                                                                       (3 262)    
Contribution profit                                                                                      6 787    
Administrative expenses                                                                                 (1 539)    
Net other operating income                                                                                 118    
Depreciation                                                                                               345    
Normalised EBITDA*                                                                                       5 711    
Adjusted for:                                                                                                     
Depreciation                                                                                              (345)    
Amortisation                                                                                              (210)    
Loss on sale of assets                                                                                      (6)    
Net impairment of assets                                                                                  (168)    
Restructuring costs                                                                                        (75)    
Transaction costs                                                                                         (133)    
Product litigation costs                                                                                   (73)    
Operating profit                                                                                         4 701    
Gross profit %                                                        50,5                 52,2           51,5    
Selling and distribution expenses %                                                                       16,7    
Contribution profit %                                                                                     34,8    
Administrative expenses %                                                                                  7,9    
Normalised EBITDA %                                                                                       29,3    
* Normalised EBITDA represents operating profit before depreciation and amortisation adjusted for specific 
  non-trading items as defined in the Group's accounting policy.

GROUP SEGMENTAL ANALYSIS continued
                                                                                Change
                                                             Sterile Focus                Other                    
                                                                    Brands      Pharmaceuticals          Total    
                                                                         %                    %              %    
Revenue                                                                  2                    0              1    
Cost of sales                                                           (7)                   5              0    
Gross profit                                                            10                   (3)             2    
Selling and distribution expenses                                                                            8    
Contribution profit                                                                                         (1)   
Administrative expenses                                                                                      2    
Net other operating income                                                                                 (87)   
Depreciation                                                                                                 6    
Normalised EBITDA *                                                                                         (3)   
* Normalised EBITDA represents operating profit before depreciation and amortisation adjusted for specific 
  non-trading items as defined in the Group's accounting policy.


GROUP REVENUE SEGMENTAL ANALYSIS
                                                                                         Unaudited                 
                                                                      Unaudited           restated                
                                                                     six months         six months                 
                                                                          ended              ended                
                                                                    31 December        31 December                 
                                                                           2018               2017      Change    
                                                                      R'million          R'million           %    
Commercial Pharmaceuticals by customer geography                         16 687             16 323           2    
Sub-Saharan Africa                                                        4 048              3 883           4    
Developed Europe                                                          3 770              3 889          (3)   
Australasia                                                               2 022              2 010           1    
Latin America                                                             1 551              1 522           2    
Developing Europe & CIS                                                   1 333              1 452          (8)   
China                                                                     1 407              1 166          21    
Japan                                                                     1 107              1 069           4    
Other Asia                                                                  656                704          (7)   
MENA                                                                        480                356          35    
USA & Canada                                                                313                272          15    
Manufacturing revenue by geography of manufacture                                                                 
Manufacturing revenue - finished dose form                                  694                889         (22)   
Australasia                                                                 272                218          25    
Developed Europe                                                            302                290           4    
Sub-Saharan Africa                                                          120                381         (69)   
Manufacturing revenue - active pharmaceutical ingredients                 2 292              2 297           0    
Developed Europe                                                          2 138              2 168          (1)   
Sub-Saharan Africa                                                          154                129          19    
                                                                                                                  
Total manufacturing revenue                                               2 986              3 186          (6)   
Total Revenue                                                            19 673             19 509           1    
Summary of regions                                                                                                
Developed Europe                                                          6 210              6 347          (2)   
Sub-Saharan Africa                                                        4 322              4 393          (2)   
Australasia                                                               2 294              2 228           3    
Latin America                                                             1 551              1 522           2    
Developing Europe & CIS                                                   1 333              1 452          (8)   
China                                                                     1 407              1 166          21    
Japan                                                                     1 107              1 069           4    
Other Asia                                                                  656                704          (7)   
MENA                                                                        480                356          35    
USA & Canada                                                                313                272          15    
Total revenue                                                            19 673             19 509           1    

Commercial Pharmaceuticals therapeutic area analysis
                                                    Unaudited six months ended 31 December 2018
                                 Anaesthetics       Thrombosis     Sterile Focus       Regional                    
                                       Brands           Brands            Brands         Brands          Total    
                                    R'million        R'million         R'million      R'million      R'million    
By customer geography                                                                                             
Commercial Pharmaceuticals                                                                                        
Sub-Saharan Africa                         56                4                60          3 988          4 048    
Developed Europe                        1 131            1 785             2 916            854          3 770    
Australasia                               342               12               354          1 668          2 022    
Latin America                             463               38               501          1 050          1 551    
Developing Europe & CIS                   176              950             1 126            207          1 333    
China                                     944              445             1 389             18          1 407    
Japan                                     707               13               720            387          1 107    
Other Asia                                325               76               401            255            656    
MENA                                      105               55               160            320            480    
USA & Canada                              163               11               174            139            313    
Total Commercial Pharmaceuticals        4 412            3 389             7 801          8 886         16 687    

                                                Unaudited restated six months ended 31 December 2017
                                 Anaesthetics       Thrombosis     Sterile Focus       Regional                    
                                       Brands           Brands            Brands         Brands          Total    
                                    R'million        R'million         R'million      R'million      R'million    
By customer geography                                                                                             
Commercial Pharmaceuticals                                                                                        
Sub-Saharan Africa                         75                5                80          3 803          3 883    
Developed Europe                        1 134            1 799             2 933            956          3 889    
Australasia                               391               12               403          1 607          2 010    
Latin America                             435               38               473          1 049          1 522    
Developing Europe & CIS                   238              973             1 211            241          1 452    
China                                     869              281             1 150             16          1 166    
Japan                                     681               23               704            365          1 069    
Other Asia                                350               86               436            268            704    
MENA                                       68               57               125            231            356    
USA & Canada                              164                5               169            103            272    
Total Commercial Pharmaceuticals        4 405            3 279             7 684          8 639         16 323    

                                                                       Variances
                                 Anaesthetics       Thrombosis     Sterile Focus       Regional                    
                                       Brands           Brands            Brands         Brands          Total    
                                            %                %                 %              %              %    
By customer geography                                                                                             
Commercial Pharmaceuticals                                                                                        
Sub-Saharan Africa                        (25)             (20)              (25)             5              4    
Developed Europe                            0               (1)               (1)           (11)            (3)   
Australasia                               (13)               0               (12)             4              1    
Latin America                               7                0                 6              0              2    
Developing Europe & CIS                   (26)              (2)               (7)           (14)            (8)   
China                                       9               58                21             13             21    
Japan                                       4              (44)                2              6              4    
Other Asia                                 (7)             (12)               (8)            (5)            (7)   
MENA                                       54               (4)               28             39             35    
USA & Canada                               (1)            >100                 3             35             15    
Total Commercial Pharmaceuticals            0                3                 2              3              2    


GROUP SUPPLEMENTARY INFORMATION
                                                                                    Unaudited                      
                                                                  Unaudited          restated                     
                                                                 six months        six months         Restated    
                                                                      ended             ended       year ended    
                                                                31 December       31 December          30 June    
                                                                       2018              2017             2018    
                                                                  R'million         R'million        R'million    
A. CAPITAL EXPENDITURE                                                                                            
   Incurred                                                           1 498             3 834            8 228    
   - Property, plant and equipment                                    1 168               820            2 145    
   - Intangible assets                                                  330             3 014            6 083    
   Contracted                                                         1 730               824            1 812    
   - Property, plant and equipment                                    1 626               794            1 786    
   - Intangible assets                                                  104                30               26    
   Authorised but not contracted for                                  3 528             5 759            4 184    
   - Property, plant and equipment                                    3 371             5 426            3 829    
   - Intangible assets                                                  157               333              355    
                                                                                                                  
B. OPERATING PROFIT HAS BEEN ARRIVED AT AFTER CHARGING                                                            
   Depreciation of property, plant and equipment                        366               345              674    
   Amortisation of intangible assets                                    240               210              632    
   Net impairment of tangible and intangible assets                     221               168              742    
   Net impairment of tangible assets                                     10                17               68    
   Net impairment of intangible assets                                  211               151              623    
   Impairment on assets classified as held-for-sale                       -                 -               51    
   Loss on the sale of tangible and intangible assets                     1                 6                4
   Restructuring costs                                                   64                75              199   
   Transaction costs                                                    185               133              160    
   Product litigation costs                                              37                73              317    
                                                            
C. INVESTMENT INCOME                                                                                              
   Interest received                                                    268               195              343    
                                                            
D. FINANCING COSTS                                                                                                
   Interest paid                                                       (952)             (781)          (1 756)    
   Debt raising fees on acquisitions                                    (47)              (63)            (209)    
   Net (losses)/gains on financial instruments                          (41)               50               88    
   Foreign exchange gains/(losses)                                       24               140              (16)    
   Fair value (losses)/gains on financial instruments                   (65)              (90)             104    
   Notional interest on financial instruments                          (177)             (217)            (408)    
   Foreign exchange gain on acquisitions                                  -               178              178    
                                                                     (1 217)             (833)          (2 107)    

E. CURRENCY TRANSLATION GAINS/(LOSSES)
   Currency translation gains/(losses) on the translation of 
   the offshore businesses are as a result of the difference 
   between the weighted average exchange rate used for trading 
   results and the opening and closing exchange rates applied 
   in the statement of financial position. For the period the 
   weaker closing Rand translation rate has increased the 
   Group net asset value.                                             1 165            (1 027)           2 372    

F. GUARANTEES TO FINANCIAL INSTITUTIONS                                                                           
   Total guarantees                                                  78 546            58 676           70 545    
   Guarantees utilised                                               63 153            53 741           57 085    
   Guarantees available and not utilised                             15 393             4 935           13 460    

G. POTENTIAL DISPUTED MATTER - EUROPEAN COMMISSION
   In May 2017, the European Commission (the "Commission") instituted an investigation of Aspen Pharmacare 
   Holdings Limited and certain of its indirect wholly owned subsidiaries under Article 102 of the Treaty on 
   the Functioning of the European Union ("Article 102") in respect of the molecules (i) Chlorambucil; 
   (ii) Melphalan; (iii) Mercaptopurine; (iv) Thioguanine; and (v) Busulfan, for (a) alleged setting of 
   unfair and excessive pricing in the form of significant price increases; (b) alleged unfair/abusive 
   negotiating practices; (c) alleged stock allocation strategies designed to reduce supply; and (d) alleged 
   practices hindering parallel trade, in the European Economic Area (excluding Italy).

   The Commission's investigation is continuing and Aspen and its advisers are fully cooperating with the 
   Commission in its investigation. The Commission's decision whether to formally open a case by issuing a 
   statement of objection, is not likely to be made before the second calendar quarter of 2019 after 
   conclusion of its investigation.

   The outcome of the Commission matter is unknown at this stage and therefore no liability has been raised 
   in the statement of financial position.

H. POTENTIAL DISPUTED MATTER - UK COMPETITION AND MARKETS AUTHORITY
   In October 2017, the UK Competition and Markets Authority ("CMA") opened an investigation of Aspen in 
   respect of alleged anti-competitive conduct and pricing practices in relation to the supply of 
   fludrocortisone acetate 0.1mg tablets and dexamethasone 2mg tablets in the UK. The CMA has subsequently 
   advised that it will not be proceeding with its investigation in relation to dexamethasone 2mg tablets.

   A high level of cooperation and diligence is being afforded to the investigation team by Aspen and its advisers.

   The CMA's decision whether to formally open a case by issuing a statement of objection, is not likely to be 
   made before the second calendar quarter of 2019 after conclusion of its investigation.

   The outcome of the CMA matter is unknown at this stage and therefore no liability has been raised in the 
   statement of financial position.

I. DISCONTINUED OPERATIONS
   Asia Pacific non-core pharmaceutical portfolio

   The Group has continued following its strategy of divesting non-core pharmaceutical products. In the 
   Asia Pacific region, a portfolio of non-core products has been selected for divestment and accordingly 
   been classified as part of discontinued operations in terms of IFRS 5 and the assets relating to these 
   portfolios have been transferred to assets held-for-sale.

   Nutritionals Business
   In September 2018, the Group concluded an agreement (subject to conditions precedent) to divest of its 
   Nutritionals Business predominantly carried on in Latin America, Sub-Saharan Africa and Asia Pacific 
   under the S-26, Alula and Infacare brands ("Nutritionals Business") to the Lactalis Group, a leading 
   multinational dairy corporation based in Laval, France. Consequently the Nutritionals Business has 
   been classified as a discontinued operation in terms of IFRS 5 and all related assets and liabilities 
   have been transferred to assets held-for-sale.

                                                                                    Unaudited                      
                                                                  Unaudited          restated                     
                                                                  six month         six month         Restated    
                                                                      ended             ended       year ended    
                                                                31 December       31 December          30 June    
                                                                       2018              2017             2018    
                                                                  R'million         R'million        R'million    
   Summarised discontinued operations statement of            
   comprehensive income                                           
   Revenue                                                            1 924             2 306            4 234    
   Gross profit                                                         901             1 075            1 941    
   Normalised EBITDA                                                    409               549            1 039    
   Loss on sale of non-core Asia Pacific intangible assets             (127)                -                -    
   Operating profit                                                     213               411              776    
   Tax                                                                  (83)             (145)            (260)    
   Profit after tax                                                      66               230              436    
   Normalised EBITDA split as follows:                                                                            
   Nutritional Business                                                 224               227              530    
   Asia Pacific non-core pharmaceutical portfolio                       185               322              509    
                                                                        409               549            1 039    

                                                                                    Unaudited                      
                                                                  Unaudited          restated                     
                                                                  six month         six month         Restated    
                                                                      ended             ended       year ended    
                                                                31 December       31 December          30 June    
                                                                       2018              2017             2018    
                                                                  R'million         R'million        R'million    
J. NET ASSETS CLASSIFIED AS HELD-FOR-SALE                                                                         
   Split as follows:                                                                                              
   Assets classified as held-for-sale                                 6 560               168              135    
   Liabilities associated with assets classified 
   as held-for-sale                                                     (52)                -                -    
   Net asset classified as held-for-sale                              6 508               168              135    
   Summarised as follows:                                                                                         
   Nutritional Business                                               4 665                 -                -    
   Asia Pacific non-core pharmaceutical brands                        1 778                 -                -    
   Other                                                                 65               168              135    
                                                                      6 508               168              135    
   Net assets classified as held-for-sale can be 
   split as follows:                                                
   Assets                                                                                                         
   Property, plant and equipment                                        773               163              112    
   Intangible assets                                                  2 915                 -                -    
   Goodwill                                                           1 131                 -                -    
   Other non-current assets                                             461                 -                -    
   Deferred tax assets                                                   18                 -                -    
   Inventories                                                          835                 5               23    
   Trade and other receivables                                          165                 -                -    
   Current tax assets                                                    90                 -                -    
   Cash and cash equivalents                                            172                 -                -    
   Total assets                                                       6 560               168              135    
   Liabilities                                                                                                    
   Deferred tax liabilities                                             (33)                -                -    
   Trade and other payables                                             (19)                -                -    
   Total liabilities                                                    (52)                -                -    
   Net asset                                                          6 508               168              135    

K. CHANGES IN ACCOUNTING POLICIES/NEW STANDARDS ADOPTED BY THE GROUP
   Please refer to the basis of accounting note for the background supporting the changes in accounting 
   policy necessitated by the adoption of the new accounting standards IFRS 9: Financial Instruments 
   and IFRS 15: Revenue from Contracts with Customers.
   
   The following tables show the adjustments recognised for each individual line item. Line items that 
   were not affected by the changes have not been included. As a result, the subtotals and totals 
   disclosed cannot be recalculated from the numbers provided.

   DECEMBER 2017
                                       As originally
                                           presented    Discontinued     Continuing                   Restated 
                                         31 December     31 December    31 December                31 December 
                                                2017            2017           2017      IFRS 15          2017 
                                           R'million       R'million      R'million    R'million     R'million 
   Statement of comprehensive 
   income                                                                           
   Revenue                                    21 924          (2 306)        19 618         (109)       19 509 
   Cost of sales                             (10 747)          1 231         (9 516)          56        (9 460)
   Gross profit                               11 177          (1 075)        10 102          (53)       10 049 
   Tax                                          (811)            145           (666)          19          (647)
   Profit after tax                            3 680            (230)         3 450          (34)        3 416 
   
   Earnings per share                          806,0           (50,4)         755,6         (7,4)        748,2 
   Headline earnings per share                 842,5           (50,4)         792,1         (7,4)        784,7 
   Normalised headline earnings 
   per share                                   871,9           (50,4)         821,5         (7,4)        814,1 

   DECEMBER 2017
                                                       As originally
                                                           presented                                  Restated  
                                                         31 December                               31 December  
                                                                2017         IFRS 9      IFRS 15          2017  
                                                           R'million      R'million    R'million     R'million  
   Statement of financial position                                                                              
   ASSETS                                                                                                       
   Current assets                                                                                               
   Inventories                                                13 570              -          451        14 021  
   Receivables and current assets                             14 008            (80)        (873)       13 055  
   Total assets                                               27 578            (80)        (422)       27 076  
   SHAREHOLDERS' EQUITY                                                                                         
   Reserves                                                   42 485            (80)        (403)       42 002  
   Total shareholders' equity                                 42 485            (80)        (403)       42 002  
   LIABILITIES                                                                                                  
   Current liabilities                                                                                          
   Other current liabilities                                   8 576              -          (19)        8 557  
   Total shareholders' equity                                  8 576              -          (19)        8 557  

   JUNE 2018
                                       As originally
                                           presented    Discontinued     Continuing                   Restated     
                                             30 June         30 June        30 June                    30 June     
                                                2018            2018           2018      IFRS 15          2018    
                                           R'million       R'million      R'million    R'million     R'million    
   Statement of comprehensive income                                                                                
   Revenue                                    42 596          (4 245)        38 351         (139)       38 212    
   Cost of sales                             (20 992)          2 305        (18 687)          67       (18 620)    
   Gross profit                               21 604          (1 940)        19 664          (72)       19 592    
   Tax                                        (1 384)            260         (1 124)          26        (1 098)    
   Profit after tax                            6 011            (436)         5 575          (46)        5 529    

   Earnings per share                        1 316,6           (95,5)       1 221,1        (10,1)      1 211,0    
   Headline earnings per share               1 468,8           (95,5)       1 373,3        (10,1)      1 363,2    
   Normalised headline earnings 
   per share                                 1 604,9           (95,5)       1 509,4        (10,1)      1 499,3    

                                                       As originally
                                                           presented                                  Restated 
                                                             30 June                                   30 June 
                                                                2018         IFRS 9      IFRS 15          2018 
                                                           R'million      R'million    R'million     R'million 
   Statement of financial position                                                                             
   ASSETS                                                                                                      
   Current assets                                                                                              
   Inventories                                                14 496              -          461        14 957 
   Receivables and current assets                             14 421            (80)        (902)       13 439 
   Total assets                                               28 917            (80)        (441)       28 396 
   SHAREHOLDERS' EQUITY                                                                                        
   Reserves                                                   48 162            (80)        (415)       47 667 
   Total shareholders' equity                                 48 162            (80)        (415)       47 667 
   LIABILITIES                                                                                                 
   Current liabilities                                                                                         
   Other current liabilities                                   6 196              -          (26)        6 170 
   Total shareholders' equity                                  6 196              -          (26)        6 170 

L. ILLUSTRATIVE CONSTANT EXCHANGE RATE REPORT ON SELECTED FINANCIAL DATA
   The Group has presented selected line items from the consolidated statement of comprehensive income and 
   certain trading profit metrics on a constant exchange rate basis in the tables below.
   
   The pro forma constant exchange rate information is presented to demonstrate the impact of fluctuations 
   in currency exchange rates on the Group's reported results. The constant exchange rate report is the 
   responsibility of the Group's Board of Directors and is presented for illustrative purposes only. Due to 
   the nature of this information, it may not fairly present the Group's financial position, changes in 
   equity and results of operations or cash flows. The pro forma information has been compiled in terms of 
   the JSE Listings Requirements and the Revised Guide on Pro Forma Information by SAICA and the accounting 
   policies of the Group as at 31 December 2018. The illustrative constant exchange rate report on selected 
   financial data has not been reviewed or audited by the Group's auditors.
   
   The Group's financial performance is impacted by numerous currencies which underlie the reported trading 
   results, where even within geographic segments, the Group trades in multiple currencies ("source currencies"). 
   The constant exchange rate restatement has been calculated by adjusting the prior period's reported results 
   at the current period's reported average exchange rates. Restating the prior period's numbers provides 
   illustrative comparability with the current period's reported performance by adjusting the estimated effect 
   of source currency movements.
   
   The listing of average exchange rates against the Rand for the currencies contributing materially to the 
   impact of exchange rate movements are set out below:
                                                                                         December       December     
                                                                                             2018           2017     
                                                                                          average        average     
                                                                                            rates          rates    
   EUR - Euro                                                                              16,342         15,774    
   AUD - Australian Dollar                                                                 10,270         10,447    
   USD - US Dollar                                                                         14,188         13,410    
   CNY - Chinese Yuan Renminbi                                                              2,068          2,019    
   JPY - Japanese Yen                                                                       0,127          0,120    
   MXN - Mexican Peso                                                                       0,729          0,724    
   BRL - Brazilian Real                                                                     3,637          4,227    
   GBP - British Pound                                                                     18,365         17,672    
   CAD - Canadian Dollar                                                                   10,797         10,627    
   RUB - Russian Ruble                                                                      0,214          0,229    
   PLN - Polish Zloty                                                                       3,800          3,714    
   
   Revenue, other income, cost of sales and expenses                                  
   For purposes of the constant exchange rate report the prior period's source currency revenue, cost of sales 
   and expenses have been restated from the prior period's relevant average exchange rate to the current period's 
   relevant reported average exchange rate.
   
   Interest paid net of investment income
   Net interest paid is directly linked to the source currency of the borrowing on which it is levied and is 
   restated from the prior period's relevant reported average exchange rate to the current period's relevant 
   reported average exchange rate.
   
   Tax
   The tax charge for purposes of the constant currency report has been recomputed by applying the actual effective 
   tax rate to the restated profit before tax.

                                  Reported      Reported                 Illustrative               Illustrative  
                                  December      December                     constant                   constant  
                                      2018          2017                     exchange                   exchange  
                                 (December     (December                        rates                      rates   
                                   2018 at       2017 at                    (December                 (June 2018  
                                  December      December    Change at         2017 at   Change at    at December  
                                      2018          2017     reported        December    constant           2018  
                                   average       average     exchange            2018    exchange        average  
                                     rates)        rates)       rates   average rates)      rates         rates)  
                                 R'million     R'million            %       R'million           %      R'million  
   Key constant exchange        
   rate indicators                                                                          
   Continuing operations                                                                                          
   Revenue                          19 673        19 509            1          19 743           0         39 915  
   Gross profit                     10 236        10 049            2           9 995           2         20 115  
   Normalised EBITDA                 5 534         5 711           (3)          5 616          (1)        11 100  
   Operating profit                  4 420         4 701           (6)          4 633          (5)         8 369  
   Normalised headline          
   earnings                          3 393         3 716           (9)          3 615          (6)         6 864  
   Earnings per share (cents)        628,9         748,2          (16)          728,7         (14)       1 200,3  
   Headline earnings            
   per share (cents)                 676,5         784,7          (14)          761,9         (11)       1 347,4  
   Normalised headline          
   earnings per share (cents)        743,4         814,1           (9)          792,0          (6)       1 503,9

                                                                                          Reported      Reported     
                                                                                          December      December     
                                                                                              2018          2017     
                                                                                         (December     (December     
                                                                                           2018 at       2017 at     
                                                                                          December      December     
                                                                                              2018          2017     
                                                                                           average       average     
                                                                                             rates)        rates)    
                                                                                                 %             %    
   Revenue currency mix                                                                                             
   EUR - Euro                                                                                   29            30    
   ZAR - South African Rand                                                                     19            18    
   AUD - Australian Dollar                                                                      11            10    
   USD - US Dollar                                                                               7             8    
   CNY - Chinese Yuan Renminbi                                                                   7             6    
   JPY - Japanese Yen                                                                            6             6    
   MXN - Mexican Peso                                                                            3             2    
   BRL - Brazilian Real                                                                          3             4    
   GBP - British Pound                                                                           2             2    
   CAD - Canadian Dollar                                                                         1             1    
   RUB - Russian Ruble                                                                           1             1    
   PLN - Polish Zloty                                                                            1             1    
   Other currencies                                                                             10            11    
   Total                                                                                       100           100    

   GROUP REVENUE SEGMENTAL ANALYSIS
                                                                                       Illustrative  
                                                        Reported                           constant  
                                                        December         Reported     exchange rate  
                                                            2018         December          December  
                                                       (December             2017              2017    Change in     
                                                    2018 at 2018        (December         (December     constant     
                                                         average     2017 at 2017      2017 at 2018     exchange     
                                                           rates)   average rates)    average rates)       rates    
                                                       R'million        R'million         R'million            %    
   Commercial Pharmaceuticals by                    
   customer geography                                     16 687           16 323            16 434            2    
   Sub-Saharan Africa                                      4 048            3 883             3 899            4    
   Developed Europe                                        3 770            3 889             4 019           (6)   
   Australasia                                             2 022            2 010             1 978            2    
   Latin America                                           1 551            1 522             1 387           12    
   Developing Europe & CIS                                 1 333            1 452             1 450           (8)   
   China                                                   1 407            1 166             1 194           18    
   Japan                                                   1 107            1 069             1 129           (2)   
   Other Asia                                                656              704               736          (11)   
   MENA                                                      480              356               375           28    
   USA & Canada                                              313              272               267           17    
   Manufacturing revenue by geography 
   of manufacture                                                                
   Manufacturing revenue - finished dose form                694              889               926          (25)   
   Australasia                                               272              218               214           27    
   Developed Europe                                          302              290               321           (6)   
   Sub-Saharan Africa                                        120              381               391          (69)   
   Manufacturing revenue - active                   
   pharmaceutical ingredients                              2 292            2 297             2 383           (4)   
   Developed Europe                                        2 138            2 168             2 249           (5)   
   Sub-Saharan Africa                                        154              129               134           15    
   Total manufacturing revenue                             2 986            3 186             3 309          (10)   
   Total revenue                                          19 673           19 509            19 743            0    
   Summary of regions                                                                                               
   Developed Europe                                        6 210            6 347             6 589           (6)   
   Sub-Saharan Africa                                      4 322            4 393             4 424           (2)   
   Australasia                                             2 294            2 228             2 192            5    
   Latin America                                           1 551            1 522             1 387           12    
   Developing Europe & CIS                                 1 333            1 452             1 450           (8)   
   China                                                   1 407            1 166             1 194           18    
   Japan                                                   1 107            1 069             1 129           (2)   
   Other Asia                                                656              704               736          (11)   
   MENA                                                      480              356               375           28    
   USA & Canada                                              313              272               267           17    
   Total revenue                                          19 673           19 509            19 743            0    


   Commercial Pharmaceuticals therapeutic area analysis
                                               Reported December 2018 (December 2018 at 2018 average rates)
                                   Anaesthetics       Thrombosis     Sterile Focus       Regional
                                         Brands           Brands            Brands         Brands          Total    
                                      R'million        R'million         R'million      R'million      R'million    
   By customer geography                                                                                            
   Commercial Pharmaceuticals                                                                                       
   Sub-Saharan Africa                        56                4                60          3 988          4 048    
   Developed Europe                       1 131            1 785             2 916            854          3 770    
   Australasia                              342               12               354          1 668          2 022    
   Latin America                            463               38               501          1 050          1 551    
   Developing Europe & CIS                  176              950             1 126            207          1 333    
   China                                    944              445             1 389             18          1 407    
   Japan                                    707               13               720            387          1 107    
   Other Asia                               325               76               401            255            656    
   MENA                                     105               55               160            320            480    
   USA & Canada                             163               11               174            139            313    
   Total Commercial Pharmaceuticals       4 412            3 389             7 801          8 886         16 687    

                                               Restated December 2017 (December 2017 at 2017 average rates)
                                   Anaesthetics       Thrombosis     Sterile Focus       Regional
                                         Brands           Brands            Brands         Brands          Total    
                                      R'million        R'million         R'million      R'million      R'million    
   By customer geography                                                                                            
   Commercial Pharmaceuticals                                                                                       
   Sub-Saharan Africa                        75                5                80          3 803          3 883    
   Developed Europe                       1 134            1 799             2 933            956          3 889    
   Australasia                              391               12               403          1 607          2 010    
   Latin America                            435               38               473          1 049          1 522    
   Developing Europe & CIS                  238              973             1 211            241          1 452    
   China                                    869              281             1 150             16          1 166    
   Japan                                    681               23               704            365          1 069    
   Other Asia                               350               86               436            268            704    
   MENA                                      68               57               125            231            356    
   USA & Canada                             164                5               169            103            272    
   Total Commercial Pharmaceuticals       4 405            3 279             7 684          8 639         16 323    

                                                  Illustrative constant exchange rate December 2017 
                                                         (December 2017 at 2018 average rates)
                                   Anaesthetics       Thrombosis     Sterile Focus       Regional                    
                                         Brands           Brands            Brands         Brands          Total    
                                      R'million        R'million         R'million      R'million      R'million    
   By customer geography                                                                                            
   Commercial Pharmaceuticals                                                                                       
   Sub-Saharan Africa                        76                5                81          3 818          3 899    
   Developed Europe                       1 166            1 864             3 030            989          4 019    
   Australasia                              385               12               397          1 581          1 978    
   Latin America                            380               37               417            970          1 387    
   Developing Europe & CIS                  228              989             1 217            233          1 450    
   China                                    890              288             1 178             16          1 194    
   Japan                                    719               25               744            385          1 129    
   Other Asia                               366               91               457            279            736    
   MENA                                      72               59               131            244            375    
   USA & Canada                             168                4               172             95            267    
   Total Commercial Pharmaceuticals       4 450            3 374             7 824          8 610         16 434    

                                                      Change in constant exchange rates
                                   Anaesthetics       Thrombosis     Sterile Focus       Regional                    
                                         Brands           Brands            Brands         Brands          Total    
                                              %                %                 %              %              %    
   By customer geography                                                                                            
   Commercial Pharmaceuticals                                                                                       
   Sub-Saharan Africa                       (26)             (20)              (26)             4              4    
   Developed Europe                          (3)              (4)               (4)           (14)            (6)   
   Australasia                              (11)               0               (11)             6              2    
   Latin America                             22                3                20              8             12    
   Developing Europe & CIS                  (23)              (4)               (7)           (11)            (8)   
   China                                      6               55                18             13             18    
   Japan                                     (2)             (48)               (3)             1             (2)   
   Other Asia                               (11)             (16)              (12)            (9)           (11)   
   MENA                                      46               (7)               22             31             28    
   USA & Canada                              (3)            >100                 1             46             17    
   Total Commercial Pharmaceuticals          (1)               0                 0              3              2    

BASIS OF ACCOUNTING
The unaudited interim financial results for the six months ended 31 December 2018 have been prepared in
accordance with International Financial Reporting Standards, IFRIC interpretations, the Listings Requirements 
of the JSE Limited, South African Companies Act, 2008 and the presentation and disclosure requirements of 
IAS 34: Interim Reporting. 

The accounting policies applied in the preparation of the unaudited interim financial results are in terms
of International Financial Reporting Standards and are consistent with those applied in the annual financial
statements for the year ended 30 June 2018 except for changes to the segmental analysis, new standard
implementations as well as discontinued operations which are explained in detail below.

The unaudited interim financial results have been reported in Rand millions in the current period to augment
effective financial analysis. This has changed from the previous interim period where the financial results 
were reported in Rand billions. 

These interim Group financial results have been prepared under the supervision of the Deputy Group Chief
Executive, M G Attridge CA(SA) and approved by the Board of Directors.

Restatement of the Group segmental analysis
Following the integration of the recent Anaesthetics Business acquisitions into the Group and the pending
disposal of the Nutritionals Business segment, the Group has revised its reportable segments to reflect the
newly updated operating model which aligns to the way in which the business is managed and reported on by the
Chief Operating Decision Maker ("CODM"). The business segments which make up the Pharmaceutical segment have 
been revised as follows:
- The High Potency & Cytotoxic therapeutic segment has been reclassified to Regional Brands as these
  products are now managed on a regional basis; and
- The Therapeutic Focused Brand segment has been replaced by the Sterile Focus Brand segment and includes
  the Anaesthetics and Thrombosis portfolios.

Restatement of discontinued operations
IAS 34 requires that the interim financial report disclose the effect of changes in the composition of the
entity during the interim period. The Group is discontinuing the following portfolios:

Asia Pacific non-core pharmaceutical portfolio
The Group has continued following its strategy of divesting non-core pharmaceutical products. In the Asia
Pacific region, a portfolio of non-core products has been selected for divestment and accordingly been
classified as part of discontinued operations in terms of IFRS 5 and the assets relating to these portfolios 
have been transferred to assets held-for-sale. 

Nutritionals Business
In September 2018 the Group concluded an agreement (subject to conditions precedent) to divest of its
Nutritionals Business predominantly carried on in Latin America, Sub-Saharan Africa and Asia Pacific under 
the S-26, Alula and Infacare brands ("Nutritionals Business") to the Lactalis Group, a leading multinational 
dairy corporation based in Laval, France. Consequently the Nutritionals Business has been classified as a 
discontinued operation in terms of IFRS 5 and all related assets and liabilities have been transferred to 
assets held-for-sale.

Restatement due to changes in accounting standards
The implementation of IFRS 15: Revenue from Contracts with Customers and IFRS 9: Financial Instruments
became effective for Aspen in the 2019 financial year. Aspen has assessed and applied the new standards and 
the December 2018 interim results have been reported in line with the new requirements. The 31 December 2017 
and 30 June 2018 comparative periods have been restated in the unaudited results on a full retrospective basis. 

IFRS 15 
In applying the new standard the Group recognises revenue upon the transfer of control over the products to the 
customer and the amount of revenue can be measured reliably and it is probable that future economic benefits will 
flow to the entity. Revenue comprises the fair value of the consideration received or receivable for the sale of 
goods in the ordinary course of the Group's activities. Revenue, net of trade discounts, distribution fees paid 
to independent wholesalers and excluding value added tax, comprises the total invoice value of goods and 
co-marketing fees. 

Following a detailed review of the impact of implementing the revised standard, the Group identified certain
distribution arrangements in terms of which control of inventory did not transfer to the customer within the
relevant financial period and this required a restatement in terms of IFRS 15. The details of the restatement
are set out in note K. 

IFRS 9
Applying the incurred loss model, the Group assessed whether there was any objective evidence of impairment
at the end of each reporting period. The assessment resulted in an increase in the allowance account for
losses and the resultant restatement has been applied on a full retrospective basis and the details are set 
out in note K.


DIRECTORS
K D Dlamini (Chairman)*, R C Andersen*, M G Attridge, L de Beer*, C N Mortimer*, B Ngonyama*, D S Redfern*,
S B Saad, S V Zilwa* 
*Non-executive director


COMPANY SECRETARY
R Verster

REGISTERED OFFICE
Building Number 8, Healthcare Park, Woodlands Drive, Woodmead
PO Box 1587, Gallo Manor, 2052
Telephone +27 11 239 6100
Telefax +27 11 239 6144

SPONSOR
Investec Bank Limited

TRANSFER SECRETARY
Link Market Services South Africa (Pty) Ltd
13th Floor, 19 Ameshoff Street, Braamfontein, 2001
PO Box 4844, Johannesburg, 2000

Disclaimer
We may make statements that are not historical facts and relate to analyses and other information based on
forecasts of future results and estimates of amounts not yet determinable. These are forward looking statements
as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as "prospects",
"believe", "anticipate", "expect", "intend", "seek", "will", "plan", "indicate", "could", "may", "endeavour" and
"project" and similar expressions are intended to identify such forward looking statements, but are not the
exclusive means of identifying such statements. By their very nature, forward looking statements involve inherent
risks and uncertainties, both general and specific, and there are risks that predictions, forecasts, projections
and other forward looking statements will not be achieved. If one or more of these risks materialise, or should
underlying assumptions prove incorrect, actual results may be very different from those anticipated. The
factors that could cause our actual results to differ materially from the plans, objectives, expectations,
estimates and intentions expressed in such forward looking statements are discussed in each year's annual report.
Forward looking statements apply only as of the date on which they are made, and we do not undertake other than
in terms of the Listings Requirements of the JSE Limited, any obligation to update or revise any of them,
whether as a result of new information, future events or otherwise. Any profit forecasts published in this report
are unaudited and have not been reviewed or reported on by Aspen's external auditors.

www.aspenpharma.com

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