Why invest in Aspen?

Aspen has a proud heritage dating back more than 160 years and is committed to sustaining life and promoting healthcare through increasing access to its high quality, affordable medicines and products.

Aspen is the largest pharmaceutical company listed on the South African securities exchange, JSE Limited, and is one of the top 20 companies listed on this exchange. Aspen’s market capitalisation at 30 June 2016 was R165 billion (approximately USD11 billion). The Group has 26 manufacturing facilities at 18 sites on six continents and more than 10 000 employees.

Aspen is well positioned in both developing and developed markets – it is the largest pharmaceutical company in Africa, and has an expanding presence in Latin America, Asia, Europe and the Commonwealth of Independent States, comprising Russia and the former Soviet Republics. Aspen is also one of the leading pharmaceutical companies in Australia and is establishing a presence in other developed markets such as the United States of America and Canada.

QUICK FACTS

Market capitalisation

R164 billion

US$14 billion

Ranking in generic producers globally

9th largest

Manufacturing facilities

26

Sites

18

Continents

6

Employees

+10 000

INVESTMENT PROPOSITION

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Strong market position Diversified geographies and product offering Proven track record Leverages on local knowledge and expertise Centralised Group activities facilitate synergies and mitigate pricing pressures Positive growth drivers Responsible corporate citizen Other considerations

Strong market position

One of the largest pharmaceutical companies in the southern hemisphere
Substantial presence in major developing markets such as Latin America, Russia, Eastern Europe, sub-Saharan Africa and South East Asia
Accredited manufacturing facilities that are scalable to demand
Vertical integration advantages for the manufacture of certain of Aspen’s leading global brands
The leading pharmaceutical company in South Africa
One of the top five pharmaceutical companies in Australia

Diversified geographies and product offering

Well positioned in both developing and developed territories with products distributed in more than 150 countries and an established presence in approximately 50 of these countries
Approximately 80% of revenues and EBITA are generated from territories outside of South Africa
A broad product portfolio including branded medicines, biologicals, generics, infant nutritionals and other consumer healthcare products
Targeted acquisitions of product portfolios in niche therapeutic areas which have a broad geographical footprint and which present value creation opportunities for the Group
Diverse manufacturing capabilities across 26 manufacturing facilities covering a wide variety of product types including oral solid dose, liquids, semi-solids, steriles, biologicals, APIs and infant nutritionals
Diversification of geopolitical and currency risk

Proven track record

Leverages on local knowledge and expertise

Centralised Group activities facilitate synergies and mitigate pricing pressures

Positive growth drivers

Provider of high quality, affordable medicines and products to historically under-served markets
Exposure to faster growing developing markets
Expanding footprint in targeted strategic growth territories
Ongoing consolidation of production volumes and procurement efficiencies at strategic manufacturing sites will deliver competitive advantages to the Group
Capital investment in production technologies and capacities to harness synergies from recent acquisitions in the medium term
Strong cash generation enables reinvestment into the business

Responsible corporate citizen

Committed to pursuing the Group’s strategic objectives in a responsible and sustainable manner
Operates on an established foundation of strong corporate governance
Active participant in the United Nations Global Compact (“UN Global Compact”) initiative, applying the 10 Principles
Participant in the annual Carbon Disclosure and Water Disclosure Projects
Focused investment for the development of our human capital and empowerment of future leaders
A constituent of the FTSE/JSE Responsible Investment Index

Other considerations

Aspen’s shares have good trading liquidity, with an average daily trading volume of approximately 1,3 million shares for the 2016 financial year
Aspen’s executive directors are founders and material shareholders of the Group, ensuring alignment of shareholders’ and executives’ interests
Aspen operates in the pharmaceutical industry which is considered to be defensive in nature