Aspen Pharmacare (APN) investor relations material

Transaction overview

• Completion of the APAC divestment marks a significant milestone, with all conditions fulfilled and the transaction completed on 29 May 2026, with no loss of value from license transfers.

• The APAC business, once a startup, grew to supply one in five medicines in Australia and contributed over a quarter of EBITDA in FY2025.

• The divestment achieved a valuation of 11.5x EBITDA, with gross proceeds exceeding ZAR 28 billion, higher than initial estimates due to favorable exchange rates and effective hedging.

• The transaction consideration was AUD 2,370 million, with transaction and related costs less than 5% of the consideration.

• Net proceeds are estimated at ZAR 27 billion, mainly used to reduce group debt and materially strengthen the balance sheet.

Financial and strategic impact

• Leverage has been significantly reduced, with the company close to a net cash position for the first time in 30 years.

• All assets are now fully paid up, with no debt, leading to lower finance costs and increased financial flexibility.

• Focus shifts to organic growth, aiming to restore FY2025 earnings by 2027 despite the APAC divestment and mRNA contract loss.

• Growth drivers include commercial pharma in emerging markets and expansion in GLP-1 products, with launches planned in Africa and Canada.

• Plans to restore loss-making facilities in France and South Africa to profitability by 2027, targeting an EBITDA uplift of ZAR 1.7 billion.

Capital allocation and future outlook

• Strong free cash flow is a priority, supported by high operating cash conversion and reduced capital expenditure.

• Growth will leverage existing assets, with no need for new facilities, focusing on execution and returns.

• Enhanced balance sheet flexibility allows consideration of share buybacks, with authority for up to 20% per annum.

• The board believes the current share price undervalues the group’s businesses and growth prospects.

• The company is positioned to capitalize on organic growth opportunities and deliver improved shareholder returns.