Q4 2026 Aspen Pharmacare Holdings Ltd Earnings Call

September 3, 2026

Speaker #1: Good morning, and welcome to Aspen Pharmacare's 2026 annual financial presentation. Thank you all for joining us this morning. Just to quickly run you through the agenda: this morning, Stephen Saad is going to give us an introduction and overview. He will then hand over to Sean Capazorio, our Chief Financial Officer, who will run through the financial performance for the year. Stephen will then return to give us an overview of the operational update, strategic update, and financial guidance for the next financial year.

[Company Representative] (Aspen Pharmacare): Good morning, and welcome to Aspen Pharmacare's 2026 annual financial presentation. Thank you all for joining us this morning. Just to quickly run you through the agenda this morning. Stephen Saad is going to give us an introduction and overview. He will then hand over to Sean Capazorio, our Chief Financial Officer, who will run through the financial performance for the year, and Stephen will then return to give us an overview of the operational update, strategic update, and financial guidance for the next financial year. We will conclude with a Q&A session, so please feel free to send questions through via the webcast. We will get to as many as we can with the time available. Please do identify yourself. If we do not get to them, we will follow up with you over the next couple of days.

[Company Representative] (Aspen Pharmacare): Good morning, and welcome to Aspen Pharmacare's 2026 Annual Financial Presentation. Thank you all for joining us this morning. Just to quickly run you through the agenda this morning. Stephen Saad is going to give us an introduction and overview. He will then hand over to Sean Capazorio, our Chief Financial Officer, who will run through the financial performance for the year, and Stephen will then return to give us an overview of the operational update, strategic update, and financial guidance for the next financial year. We will conclude with a Q&A session, so please feel free to send questions through via the webcast. We will get to as many as we can with the time available. Please do identify yourself. If we do not get to them, we will follow up with you over the next couple of days.

Speaker #1: We'll conclude with a Q&A session, so please feel free to send questions through via the webcast. We'll get to as many as we can with the time available.

Speaker #1: Please do identify yourself, and if we don't get to them, we'll follow up with you over the next couple of days. With that, I'm going to welcome up Stephen Saad, our Chief Executive Officer, to give us an introduction.

[Company Representative] (Aspen Pharmacare): With that, I am going to welcome up Stephen Saad, our Chief Executive Officer, to give us an introduction. Thank you, Stephen.

Speaker #1: Thank you, Stephen.

Speaker #2: Thank you.

Stephen Saad: Thank you. Thank you very much. Thank you, Roy. Thank you for that. Good morning, everyone. Sorry, my voice is a little croaky. I think it is because it is a cold, but it might also be because of some pretty solid support on Saturday for the rugby. We will see how far we get through this. We have got a presentation for you. On route here, I was just reflecting, if I could pick five things and five hallmarks of really great businesses, what would I choose either to run or to own? I came up with five points, and I am not sure these are not in books, but these were my view. One, a dependable business. Two, a resilient business. Three, a business with a bit of sizzle. Four, a business that creates value, and five, a business that is enduring.

Speaker #3: Thank you very much. Thank you, Roy. Thank you for that. Good morning, everyone, and sorry, my voice is a little croaky. I think it's because it's a cold, but it might also be because of some pretty solid support on Saturday at the rugby, but we'll see how far we get through this.

Speaker #3: So, we've got a presentation for you, but on route here I was just reflecting: if I could pick five things, and five hallmarks of really great businesses, what would I choose?

Speaker #3: Either to run or to own. I came up with five points, and I'm not sure these aren't in books, but these were my views.

Speaker #3: One, a dependable business. Two, a resilient business. Three, a business with a bit of sizzle. Four, a business that creates value. And five, a business that's enduring.

Speaker #3: And I try to see where Aspen is positioned against those five key areas for me. And in terms of a dependable foundation—something that you can ground your business on, that can give you security over your earnings and your cash flows.

Stephen Saad: I try to see where Aspen positioned against those five key areas for me. In terms of a dependable foundation, something that you can ground your business on. You can give you security over your earnings, your cash flows. Our commercial pharma business in emerging markets has demonstrated that publicly for more than two decades. If there was any confusion about how well-positioned that business is both for now and in the future, I will ask you to look at how many innovator multinationals, the biggest in the world, say, "Aspen, in your emerging market, in some of your emerging markets, we are trusting you with our IP because we think you can do a better job in those territories than we could do by ourselves." That is what I call a dependable foundation, and it is something that never varies too much.

Stephen Saad: I try to see where Aspen positioned against those five key areas for me. In terms of a dependable foundation, something that you can ground your business on. You can give you security over your earnings, your cash flows. Our commercial pharma business in emerging markets has demonstrated that publicly for more than two decades. If there was any confusion about how well-positioned that business is both for now and in the future, I will ask you to look at how many innovator multinationals, the biggest in the world, say, Aspen, in your emerging market, in some of your emerging markets, we are trusting you with our IP because we think you can do a better job in those territories than we could do by ourselves. That is what I call a dependable foundation, and it is something that never varies too much.

Speaker #3: Our commercial farmer business in emerging markets has demonstrated that publicly for more than two decades. And if there was any confusion about how well positioned that business is, both for now and in the future, I ask you to look at how many innovator multinationals—the biggest in the world—say, "Aspen, in your emerging markets and some of your emerging markets, we trust you with our IP because we think you can do a better job in those territories than we could do by ourselves."

Speaker #3: So that is what I call a dependable foundation. And it's something that never varies too much. It doesn't shoot the lights out and grow 100%, and it doesn't go to zero.

Stephen Saad: It doesn't shoot the lights out and grow 100%, it doesn't go to zero. A resilient business. A resilient business is particularly important in the type of business, for example, that Aspen has, in that we have a global business. Every shock hits us. If you think about where we started with a zero base in Durban and to move into a very high technology business like pharmaceuticals, really we're sort of one of a kind. The reality is we do difficult things, really difficult things. In order to be successful, we have to challenge so many boundaries. We certainly take knocks. Taken many knocks. More knocks than we would like to have. I will tell you this much, although you're battered and bruised at all of this, we simply never go away.

Speaker #3: And then a resilient business. And a resilient business is particularly important in the type of business, for example, that Aspen has, in that we have a global business.

Speaker #3: So every shock hits us, and if you think about where we started with a zero base in Durban, and to move into a very high technology business like pharmaceuticals, really, we'd sort of be one of a kind.

Speaker #3: But the reality is, we do difficult things—really difficult things. And in order to be successful, we have to challenge so many boundaries. We certainly take knocks—I've taken many knocks, more knocks than we would like to have.

Speaker #3: But I will tell you this much: although we are battered and bruised through all of this, we simply never go away. And we try to learn a lesson from each knock, and we try to learn that lesson just once.

Stephen Saad: We try and learn a lesson from each knock, and we try and learn that lesson just once. Then we have to modify strategies from those learnings. I believe that if you've been watching our results over the last period, you'll see a demonstration in these results, and you'll see the future as well, which shows how resilient this business and how well we learnt and how we take those learnings to drive future growth. Talking of future growth, I come to sizzle. What is sizzle? That's something that gets you, wakes you up, and gets you excited and positive. It's about your future growth. It's what you add onto your foundation in time as it matures.

Speaker #3: And then we have to modify strategies from those learnings. I believe that if you've been watching our results over the last period, you'll see a demonstration in these results, and you'll see the future as well, which shows how resilient this business is, how well we've learned, and how we take those learnings to drive future growth.

Speaker #3: Talking of future growth, I come to sizzle. What is sizzle? That's something that wakes you up and gets you excited and positive.

Speaker #3: It's about your future growth. It's what you add on to your foundation in time as it matures. And we've invested for a long time into areas, and we're starting to see green shoots now. We'll see, and we believe we'll build on these in the years to come.

Stephen Saad: We've invested for a long time in two areas, and we're starting to see green shoots now, and we'll see. We believe we'll build on these in the years to come. Those two areas are steriles, our sterile manufacturing business, and our GLP-1s weight loss. We took a bet on the weight loss category long before it was popular or the category to be in. In terms of the GLP-1s, it is an exciting area for us, and you'll see it during the presentation. The steriles is particularly pleasing to be talking positively about. It was just less than just over a year ago that we lost a contract.

Speaker #3: And those two areas are steriles—our sterile manufacturing business—and our GLP-1s, weight loss. We took a bet on the weight loss category long before it was popular or the category to be in.

Speaker #3: And in terms of the GLP-1s, it is an exciting area. It would be us, and you'll see it during the presentation. The steriles is particularly pleasing to be talking positively about it.

Speaker #3: It was just less than, just over a year ago that we lost a contract. At the time, I said to you, we might have lost the milk, but we didn't lose the cow, and we're in a good neighborhood.

Stephen Saad: At the time, I said to you, "We might have lost the milk, but we didn't lose the cow, and we're in a good neighborhood." Of course, having all the tariff noise at that stage was also particularly amplified in pharmaceuticals. It was a particularly, it was a period of quite deep despair. But you'll see it's come back, and we'll talk about it in numbers and the future of it. We're really comfortable, and we're excited about where we've invested in both of them. Then creating value. This is often a very contentious area, and I sometimes do it on a back of cigarette box, and people give me lots of formulas and all sorts of other things, and it's quite hard to work out what is and isn't there. But when we look at it, we've done many, many transactions over the years at Aspen.

Speaker #3: Of course, having all the tariffs noise at that stage was also particularly amplified in pharmaceuticals. So it was a period of quite deep despair.

Speaker #3: But you'll see it's come back, and we'll talk about it in numbers and the future of it. But we're really comfortable, and we're excited about where we've invested in both of them.

Speaker #3: Then, creating value—this is often a very contentious area, and I sometimes do it on the back of a cigarette box. People give me lots of formulas and all sorts of other things, and it's quite hard to work out what is and isn't there.

Speaker #3: But when we look at it, we've done many, many transactions over the years, at Aspen. We've made divestments of big, big assets, and in all instances, and you can go through the history, we've sold those assets and this is going to come to what we think about some of parts, etc.

Stephen Saad: We have made divestments of big assets. In all instances, you can go through the history, we have sold those assets. This is going to come to what we think about sum of parts, et cetera. We sold those assets for double digits. For me, it is a very simple story. If you are really unsure if Aspen has created value, I put this to you. We have never issued shares. I am glad to say this is the first time I am going to say this in 25 years, we do not have debt, and we are going to deliver over ZAR 9 billion of earnings next year. For me, that is value creation. The final point is an enduring business. An enduring business is one that has got to be able to last the distance. To be able to last the distance, in my opinion, it has to be purposeful.

Speaker #3: But we've sold those assets for double digits. And for me, it's a very simple story. If you're really unsure if Aspen's created value, I put this to you.

Speaker #3: We've never issued shares. I'm glad to say this is the first time I'm going to say this in 25 years: we don't have debt.

Speaker #3: And we're going to deliver 9 billion over 9 billion of earnings next year. So for me, that's creating to me, that is value creation.

Speaker #3: The final point is an enduring business. An enduring business is one that's got to be able to last the distance. It's got to be able to last the distance.

Speaker #3: To be able to last the distance, in my opinion, it has to be purposeful. You've got to contribute meaningfully to society. I fully respect, and we fully respect and appreciate, and focus on all those very important financial and commercial metrics. Without achieving those, it is very hard to be purposeful.

Stephen Saad: You have got to contribute meaningfully to society. I fully respect, and we fully respect and appreciate and focus on all those very important financial and commercial metrics. Without achieving those, it is very hard to be purposeful. In equal measures, we focus on how we create access to medicines, access to patients. I think our track record there is well known, be it in ARVs, COVID, and access to Africa. In this presentation, I think we are on the cusp of increasing that contribution and being able to assist those that are vulnerable even more, with a particular focus on Africa. We will talk about that, too. When I go through those five yardsticks and I look at where we are and where we are going to, I am really comfortable we have got a hallmark of a great business. Thank you for that.

Speaker #3: But in equal measure, we focus on how we create access to medicines and access to patients. I think our track record there is well known, be it in ARVs, COVID, or access to Africa.

Speaker #3: But in this presentation, I think we're on the cusp of increasing that contribution and being able to assist those that are vulnerable even more, with a particular focus on Africa.

Speaker #3: And we'll talk about that too. So, when I go through those five yardsticks and I look at where we are and where we're going to, I'm really comfortable.

Speaker #3: We've got a hallmark of a great business, so thank you—thank you for that. And from here, let me click onto the presentation, onto where we are.

Stephen Saad: From here, let me click onto the presentation onto where we are. Let us start with a welcome. Thank you for being here. Where is this? Here we go. Sorry. Apologies. Let us look at our performance and overview. As Roy said, I am going to just give you a quick snapshot of what we set out to do, what we have achieved, and then I will hand it over to Sean, and I will come back for effectively the performance, the strategy, and the guidance. What are our six core objectives? I encourage all of you to look back over the last couple of years as to the objectives we set ourselves. These are not new objectives. This is what we told you we hoped to do last year. In terms of a dependable foundation, our commercial pharma momentum, it endures.

Speaker #3: So, let's start with the welcome. Thank you—thank you for being here. Where is this... here we go. Sorry, apologies. And let's look at our performance and overview.

Speaker #3: So, as Roy said, I'm going to just give you a quick snapshot of what we set out to do, what we've achieved, and then I'll hand it over to Sean. I'll come back for, effectively, the performance, the strategy, and the guidance.

Speaker #3: So, what were our six core objectives? And I encourage all of you to look back over the last couple of years at the objectives we set ourselves.

Speaker #3: These are not new objectives. This is what we told you we hoped to do last year. So, in terms of a dependable foundation, our commercial pharma momentum endures, and we had a 13% growth in constant exchange rate in EBITDA, and that built on double-digit growth in fiscal '25 as well.

Stephen Saad: We had a 13% growth in constant exchange rate in EBITDA, and that built on double-digit growth in financial 2025 as well. For 2027, we expect to sustain organic growth led by our emerging markets. We are starting to realize our GLP-1 investments. I will show you some charts later as to the type of growth we are seeing in South Africa. How Mounjaro powers the entire South African private market. We started a process of now registering in sub-Sahara. We are commencing our GLP-1 generic global growth rollout. We have got two products registered now in Canada, and emerging markets will follow. Brazil, we believe we are relatively close and is under review. Manufacturing growth engine. This is what caused us a bit of a hiccup in the last period. What we guided you was that we lost a contract that cost us ZAR 1 billion.

Speaker #3: For 27, we expect to sustain organic growth. Led by our emerging markets. We've got we're starting to realize our GLP-1 investments. We'll show you I'll show you some charts later as to the type of growth we're seeing in South Africa, how Mounjaro powers the entire South African private market.

Speaker #3: And we've started a process of now registering in Sub-Sahara. We're re-commencing our GLP-1 generic global growth, GROLAT. We've got two products registered now in Canada, and we're—emerging markets will follow.

Speaker #3: And Brazil, we believe we're relatively close, and it is under review. The manufacturing growth engine—so this is what caused us a bit of a hiccup in the last period.

Speaker #3: What we guided you was that we lost a contract that cost us $1 billion. And to get back to break even in steriles, we needed to make $1.7 billion.

Stephen Saad: To get back to breakeven in Steriles, we needed to make ZAR 1.7 billion of EBITDA, and we had to do that over 2 years, financial year 2026 and 2027. That is what we targeted ourselves. Sean will show you now we achieved ZAR 1.2 billion of that in financial year 2026. For 2027, we will raise that guidance from ZAR 1.7 billion to ZAR 2.2 billion, and that is a function of growing volumes, growing revenue, and reduced costs. We will give you a sense of where those revenues will get you and where the profitability, what drives it. I am very happy to say, I think that this will be the primary driver of group growth. Of course, a rapid take-on of GLP-1s could change everything. Right now, if you look at where our budgets are, it is a primary driver of group growth.

Speaker #3: Of EBITDA. And we had to do that over two years: financial year '26 and '27. That's what we targeted ourselves. Sean will show you now.

Speaker #3: We achieved $1.2 billion of that in financial year '26. For 2027, we will raise that guidance from $1.7 billion to $2.2 billion. And that's a function of growing volumes, growing revenue, and reduced costs.

Speaker #3: And we'll give you a sense of where those revenues will get to, and where the profitability—what drives it. But I'm very happy to say, I think that this will be the primary driver of group growth.

Speaker #3: Of course, a rapid take-up of GLP-1s could change everything, but right now, if you look at where our budgets are, it's the primary driver of group growth.

Speaker #3: We also told you last year we would look to unlock value where we saw value beyond what we could achieve. We would look to the sum of the parts, and we believe that the sum of the parts of our business is not represented in our share price.

Stephen Saad: We also told you last year we would look to unvalue. Where we saw value beyond what we could achieve, we would look to the sum of parts, and we believe that the sum of parts of our business is not represented in our share price. We invested the APAC business for ZAR 28 billion. That was an 11.5x EBITDA. People I know I am going to be asked and have already been asked, "Would you continue?" Yes, we will respond to any opportunities to unlock values for the sum of parts where it makes sense for Aspen. Big focus from Sean and the financial team and the whole of the company on free cash flows. A really commendable performance, ZAR 3.8 billion of free cash flow generated. We had net cash of ZAR 0.8 billion, ZAR 800 million in the bank. I have got to say that slowly.

Speaker #3: We invested in the APAC business for 28 billion rand. That was at 11 and a half times EBITDA. People know I'm going to be asked, and I've already been asked: Would you continue?

Speaker #3: Yes, we will respond to any opportunities to unlock value for the sum of parts where it makes sense for Aspen. There is a big focus from Sean and the financial team, and the whole company, on free cash flows.

Speaker #3: And a really commendable performance: $3.8 billion of free cash flow generated. We had net cash of $0.8 billion—$800 million in the bank. We've got to say that slowly.

Speaker #3: I remember once somebody asked me, I think in the last presentation, "What would you do?" I said, "I'm just going to look at it for a while."

Stephen Saad: I remember once somebody asked me, I think in the last presentation, "What would you do?" I said, "I am just going to look at it for a while." In fact, we started a share buyback program, which was at ZAR 0.5 billion at the end of the year but has now stretched to ZAR 2 billion or 3% of the company as of recently. The free cash flows will be driving even stronger cash flows. Very simply, we will be showing you that our EBITDA is going up, our finance costs go away, and we have very stable capital investments. We have seen significant earnings growth. That has been a priority for us. We achieved 28% growth in continuing operations in NHEPS. We expect substantial future growth in NHEPS, more than 50% going into financial year 2027, with more than ZAR 9 billion of EBITDA.

Speaker #3: And in fact, we started a share buyback program, which was at $0.5 billion at the end of the year, but has now stretched to $2 billion, or 3% of the company, as of recently.

Speaker #3: The free cash flows will be driven—we'll be driving even stronger cash flows. I mean, very simply, we'll be showing you that our EBITDA is going up.

Speaker #3: Our finance costs go away. And we don't have—we are very stable capital investments. We've seen significant earnings growth. That's been a priority for us.

Speaker #3: And we achieved 28% growth in continuing operations in heads. We expect substantial future growth in NHEPs, at more than 50% going into financial year '27, with more than $9 billion of EBITDA, and obviously the interest savings will be whatever the finance costs were in this year, which was about $1.2 billion.

Stephen Saad: Obviously the interest savings will be whatever the finance costs were in this year, which was about ZAR 1.2 billion. Those were 6 key commercial objectives, and they were core to us. I believe we can tick the block on all of them. You will see in our results in this period, flat revenue and a very big growth in NHEPS. Really it is the operating leverage that has driven these efficiencies. It is also some of these efficiencies that will be annualized that leads to an increase and a raising of our guidance on the sterile finished dose form. In this year, you will see in our commercial pharma, the double-digit EBITDA growth outpace sales growth. Manufacturing, we grow EBITDA despite a decline in revenue. We have got a reshaped sterile business, more than recovered a ZAR 1 billion contract loss.

Speaker #3: So those were 6 commercial those were 6 key commercial objectives, and they were core to us. And I believe we've can tick the block on all of them.

Speaker #3: You will see in our results in this period, flat revenue and very big growth in NHEPs. And really, it's operating leverage that has driven these efficiencies.

Speaker #3: And it's also some of these efficiencies that will be annualized that lead to an increase and a raising of our guidance on the sterile finished dose form.

Speaker #3: So, in this year, you'll see in our Commercial Pharma, the double-digit EBITDA growth outpaced sales growth. In Manufacturing, we grew EBITDA despite a decline in revenue.

Speaker #3: We've got a reshaped sterile business, and we've more than recovered a R1 billion contract loss. So, when I talk about resilient businesses, these are the things I'm referring to.

Stephen Saad: When I talk about resilient businesses, these are the things I am referring to. We have put a lot of work into heparin, and we have got this fantastic new streamlined process, which gives us cost reductions, lower inventory levels, both in value and volume. You will see that when we talk about heparin, give you guidance later. The manufacturing has seen many sustainable benefits from the numerous restructuring processes. For financial year 2027, as I said to you in the opening start, we raise our guidance for steriles by half a billion. When I say guidance, it was in the last presentation, we told you we were targeting ZAR 1.7 billion. That has been raised. The EBITDA will increase very strongly there because the costs are relatively fixed. You have got increased volumes, increased value off a lower cost base.

Speaker #3: And then we've put a lot of work into heparin. We've got this fantastic new streamlined process, which gives us cost reductions and lower inventory levels, both in value and volume.

Speaker #3: And you'll see that when we talk about heparin, I'll give you guidance later. And the manufacturing has seen many sustainable benefits from the numerous restructuring processes.

Speaker #3: For financial year '27, as I said to you in the opening, we raised our guidance for steriles by half a billion. And when I say guidance, it was in the last presentation — we told you we were targeting $1.7 billion.

Speaker #3: So that's been raised. And the EBITDA will increase very strongly there because the costs are relatively fixed. So you've got increased volumes, increased value, off a lower cost base.

Speaker #3: And then there will be further cost reductions as we disentangle from our divestment that we made in the APAC region. So, with that, thank you.

Stephen Saad: There will be further cost reductions as we disentangle from the divestment that we made in the APAC region. With that, thank you. That is my introduction. With that, Sean, I am going to hand it over to you, and you will see me a little bit later. Thank you.

Speaker #3: That's my introduction. And with that, Sean, I'm going to hand it over to you. You'll see me a little bit later. Thank you.

Speaker #1: Great.

Sean Capazorio: Great. Thank you. Thank you, Stephen. A very good summary of a very exciting year that has passed, and you can see that we have delivered on all our key six commercial objectives, and that really marks an inflection point for us for sustained future growth. You will see that theme coming through in my presentation and back to Stephen’s as we move through the discussions. On to the numbers. On the first slide, you will note I have got a pyramid there. Those of you that have been following Aspen for a very long time will remember this pyramid from my inaugural presentation back in June 2022. I am very pleased to say that the pyramid has returned this year, and we are absolutely focused on retaining this pyramid. What does the pyramid mean? It means as you go down the pyramid, the growth gets bigger.

Speaker #2: Thank you. Thank you, Stephen. That was a very good summary of a very exciting year that's passed. As you can see, we've delivered on all our key commercial objectives—all six commercial objectives.

Speaker #2: And that really marks an inflection point for us, for sustained future growth. You'll see that theme coming through in my presentation—and back to Stephen's—as we move through the discussions.

Speaker #2: On to the numbers. On the first slide, you'll note I've got a pyramid there. Those of you that have been following Aspen for a very, very long time will remember this pyramid from my inaugural presentation back in June '22.

Speaker #2: And I'm very, very pleased to say that the pyramid has returned this year, and we are absolutely focused on retaining this pyramid. What does the pyramid mean?

Speaker #2: It means, as you go down the pyramid, the growth gets bigger. So, this year, if I start at the top—in constant exchange rates—our revenue was flat.

Sean Capazorio: This year, if I start at the top in constant exchange rate, our revenue was flat. I will unpack that later. In that flat revenue, we had growth in commercial pharma and a decline in the manufacturing. If we go down to the EBITDA, we have grown our EBITDA at 14%. Moving down to NHEPS, growth of 28%. Very pleasingly, as you saw from Stephen’s slide, a ZAR 3.8 billion free cash flow. A significant growth in our free cash flow. We are very happy with the shape of the pyramid, and as I say, we are absolutely focused on its retention. What is going to drive its retention is us continue to realize these efficiencies in all of our value enhancing and operational efficiency projects. What are the key takeaways from a commercial financial perspective for the year?

Speaker #2: And I'll unpack that later. But in that flat revenue, we had growth in Commercial Pharma and a decline in the Manufacturing. If we go down to the EBITDA, we've grown our EBITDA by 14%.

Speaker #2: Moving down to NHEPs, growth of 28%. And very pleasingly, as you saw from Stephen's slide, a $3.8 billion free cash flow. So significant growth in our free cash flow.

Speaker #2: So, we're very happy with the shape of the pyramid. And as I say, we are absolutely focused on its retention. What's going to drive its retention is us continuing to realize these efficiencies in all of our value-enhancing and operational efficiency projects.

Speaker #2: What are the key takeaways from a commercial financial perspective for the year? Well, Commercial Pharma this year has been our primary organic growth engine.

Sean Capazorio: Well, commercial pharma this year has been our primary organic growth engine. You will see that coming through all the numbers, with Mounjaro being a big underpin there, plus our organic growth in our emerging markets. On our manufacturing side, we have demonstrated operational improvement, and you will see that coming through in the numbers that I will take you through. If you take the combination of those first two takeaways, that has given us operating leverage, which has driven the EBITDA and the NHEPS growth above revenue, as you have seen in the pyramid on the left. This year, we have also had lower CapEx and working capital investment, and that has generated strong free cash flow of ZAR 3.8 billion. That has given us the opportunity, together with the APAC divestment, to end the year with a very strong balance sheet and a net cash position of ZAR 0.8 billion off the share buybacks of ZAR 0.5 billion.

Speaker #2: You'll see that coming through all the numbers—with Mounjaro being a big underpin there, plus our organic growth in our emerging markets. On our manufacturing side, we've demonstrated operational improvement.

Speaker #2: And you'll see that coming through in the numbers that I'll take you through. If you take the combination of those first two takeaways, that's given us operating leverage, which has driven the EBITDA and the NHEPs growth above revenue, as you've seen in the pyramid on the left.

Speaker #2: In this year, we've also had lower capex and working capital investment. And that's generated strong free cash flow of 3.8 billion. And that's given us the opportunity together with the APAC divestment to have a very to end the year with a very strong balance sheet in the net cash position of 0.8 billion after share buybacks of 0.5 billion.

Speaker #2: And as we said, I think as of two days ago, we announced the 3% share buyback at 2 billion rand of investment. So, we continue to buy back.

Sean Capazorio: As we said, I think as at two days ago, we announced the 3% share buyback at ZAR 2 billion of investment. We continue to buy back. Moving on to the group revenue. Overall, if you recall from our first slide, we ended with a flat position. If I have to unpack that into the two components and look at commercial pharma first and then manufacturing. Commercial pharma, we grew the year at 5%. That 5% was, however, diluted by our reshape program in China, where we identified a lot of unprofitable products that we discontinued. You will note that it does not affect our EBITDA, but obviously it affected our top line. That impacted our growth. If you take that out, our growth excluding China was 7% in constant exchange rate. Within our prescription division, the China discontinuations resulted in a -3% decline there.

Speaker #2: Moving on, then, to the group revenue. Overall, if you recall from our first slide, we ended with a flat position. If I have to unpack that into the two components, and I look at the commercial farmer first and then manufacturing: for commercial farmer, we grew the year at 5%.

Speaker #2: That 5% was our EBITDA diluted by our reshaped program in China, where we identified a lot of unprofitable products that we discontinued. So you'll note that it doesn't affect our EBITDA, but obviously it affected our top line.

Speaker #2: So that impacted our growth. If you take that out, our growth, excluding China, was 7% in constant exchange rates. Within our Prescription division, the China discontinuations resulted in a minus 3% decline there.

Speaker #2: If I move then on to injectables, there we grew at 16%. And Mounjaro, obviously, the momentum in Mounjaro. And South Africa was a key growth driver there.

Sean Capazorio: If I move on to injectables, there we grew at 16%. Mounjaro, obviously the momentum in Mounjaro in South Africa was a key growth driver there, and very pleasing. Next year you will see the rankings change. Injectables is now our biggest revenue generator. It has now outperformed the prescription division at ZAR 9.2 billion of turnover. OTC had a strong year. Unfortunately, it was diluted by the impact of the Middle East, where we have quite a strong OTC presence. We grew at 3%, but unfortunately the strong performance was diluted by the Middle East conflict. On the manufacturing side, we had a 10% decline in revenue, and that was driven by the loss of the mRNA contract that Stephen spoke about earlier on. Moving on to our key segments in the business.

Speaker #2: And very pleasing, next year you'll see the rankings change. But injectables is now our biggest revenue generator. It's now outperformed the prescription division at $9.2 billion of turnover.

Speaker #2: OTC had a strong year. Unfortunately, what we did was diluted by the impact of the Middle East, where we have quite a strong OTC presence.

Speaker #2: So, we grew at 3%, but unfortunately, the strong performance was diluted by the Middle East conflict. On the manufacturing side, we had a 10% decline in revenue.

Speaker #2: And that was driven by the loss of the mRNA contract that Stephen spoke about earlier on. Moving on then to our key segments in the business.

Speaker #2: And what I’ve got on this slide is, on the left, I’ve got the commercial farmer revenue and normalized EBITDA, comparing ’25 to ’26. And on the right, I’ve got the manufacturing, with the same comparators.

Sean Capazorio: What I have got on this slide is on the left, I have got the commercial pharma revenue and normalized EBITDA comparing 2025 to 2026. On the right I have got the manufacturing with the same comparatives. If we start with commercial pharma revenue growth, which I have taken you through already at 5% in constant exchange rate. A nice, steady, and strong growth of 13% in EBITDA. That was underpinned by good organic growth in our business. Very stable growth margins. We have been very proud to have kept our growth margins stable over the last five, six, seven years. Then obviously, we also had the benefit of the reshape in our China business model, and that gave us operating leverage to drive 13% and double-digit EBITDA growth. Also pleasing to note that obviously resulted in an increased EBITDA margin.

Speaker #2: So, if we start with Commercial Farmer, revenue growth—which I’ve taken you through already—at 5% in constant exchange rates, and a nice, steady, and strong growth of 13% in EBITDA.

Speaker #2: And that was underpinned by good organic growth in our business. Very stable gross margins. We've been very proud to have kept our gross margins stable over the last five, six, seven years.

Speaker #2: And then, obviously, we also had the benefit of the reshape in our China business model. That gave us operating leverage to drive 13% and double-digit EBITDA growth.

Speaker #2: Also pleasing to note that that obviously resulted in an increased EBITDA margin. So EBITDA margins in Commercial Pharma have hopped up from 25.6% to 27.1% in FY26.

Sean Capazorio: EBITDA margins in commercial pharma have hopped up from 25.6% to 27.1% in FY26. Moving then to the right to manufacturing. I think we have covered the revenue already. The EBITDA, a 21% increase in constant exchange rate. Moving from ZAR 647 EBITDA last year to ZAR 828, just under ZAR 200 million increase. Two moving parts there. We lost ZAR 1 billion of mRNA contract. However, through our reshape program in our FDF sterile, we were able to grow that EBITDA by ZAR 1.2 billion. So more than offsetting the ZAR 1 billion loss and resulting in a net just under a net ZAR 200 million increase in EBITDA. These are only the initial benefits and going into FY27, we will see the annualized benefit of these reshaped program benefiting the growth in the new year.

Speaker #2: Moving then to the right, to Manufacturing. I think we've covered the revenue already. The EBITDA had a 21% increase in constant exchange rate, moving from 647 EBITDA last year to 828—just under a 200 million increase.

Speaker #2: There were two moving parts there. We lost a billion rand MRNA contract. However, through our reshape program, in our FDF sterile, we were able to grow that EBITDA by R1.2 billion.

Speaker #2: So, more than offsetting the $1 billion loss and resulting in a net increase of just under $200 million in EBITDA. These are only the initial benefits.

Speaker #2: And obviously, going into FY27, we will see the annualized benefit of these reshaped programs benefiting the growth in the new year. On to our group normalized EBITDA.

Sean Capazorio: On to our group normalized EBITDA. I will just quickly talk you through the table so you can absorb it. We take you through revenue, gross profit, right the way down to normalized EBITDA. And I am comparing FY26 to FY25 reported. And on next slide, I have got constant exchange rate FY25, and then all the growth factors on the right. I am going to keep to constant exchange rate trends. What I will start with is our gross profit. Gross profit grew 4% ahead of the flat revenue of zero. And a nice jump in the gross profit percentage, up from 41.6% to 43%. What drove this increase? Well, certainly the key driver was our sterile SDF recovery that I have talked you through already in the previous slide. So there was a strong augmentation of the gross margin.

Speaker #2: I'll just quickly talk you through the table so you can absorb it. We've got—you can see we've taken you through revenue, gross profit, right the way down to normalized EBITDA.

Speaker #2: And I'm comparing FY26 to FY25 reported. Then, next year, I've got constant exchange rate FY25 and all the growth factors on the right.

Speaker #2: I'm going to keep to constant exchange rate trends. So, what I'll start with is our gross profit. Gross profit grew 4% ahead of the flat revenue, which was zero.

Speaker #2: And a nice jump in the gross profit percentage, up from 41.6% to 43%. What drove this increase? Well, certainly the key driver was our sterile FDF recovery that I've talked you through already.

Speaker #2: And in the previous slides, there was a strong augmentation of the gross margin, and then also underpinned by very stable commercial farmer gross profit percentages.

Sean Capazorio: And then also underpinned by very stable commercial pharma gross profit percentages. So a nice overall trend there. When we look at operating expenses, we have enjoyed a decline in our operating expense base of 4% this year, driven by the reshape benefits. Expenses coming in at just under 25% of revenue as a ratio. So well below last year's 26%. And you can see if I flip then down to the normalized EBITDA, how if you take the 4% gross profit and the saving and expenses, how that leverages you to a 14% growth in normalized EBITDA. And so that is a really pleasing result. And our EBITDA ending the year at ZAR 7.7 billion. Based on our guidance for 2027, we do expect our EBITDA margins to continue to well increase in FY27. Probably my favorite slide.

Speaker #2: So, a nice overall trend there. When we look at operating expenses, we've enjoyed a decline in our operating expense base of 4% this year.

Speaker #2: Driven by the Reshape benefits. So, expenses coming in at just under 25% of revenue as a ratio—well below last year's 26%. And you can see, if I then flip down to the normalized EBITDA, how if you take the 4% gross profit and the saving in expenses, how that leverages you to a 14% growth in normalized EBITDA.

Speaker #2: And so that's a really pleasing result, and our EBITDA ending the year at R7.7 billion. Based on our guidance for '27, we do expect our EBITDA margins to continue to increase, with further improvement in FY27.

Speaker #2: Probably my favorite slide. We generated very strong free cash flow this year of $3.8 billion, and we look to sustain this growth in FY27.

Sean Capazorio: We generated a very strong free cash flow this year of ZAR 3.8 billion, and we look to sustain this growth in FY27, and I will talk through that in a later slide. But just to sort of unpack this slide, if you look at the graphs, I have got a comparison from FY24, FY25, and FY26. The first bars are our cash generated from operations. The blue bar next to that is our CapEx spend, and the very dark blue is our free cash flow that we have generated, which is the net of those two numbers. So looking at our cash from generation, you can see cash from operating activities. You can see we took a dip in 2025. We went down from ZAR 6 billion to ZAR 5 billion, and this year we ended pleasingly at ZAR 6.8 billion.

Speaker #2: And I'll talk through that in a later slide. But just to sort of unpack this slide, if you look at the graphs, I've got a comparison from FY24, FY25, and FY26.

Speaker #2: The first bars are our cash generated from operations. The blue bar next to that is our capex spend. And the very dark blue is our free cash flow that we've generated, which is the net of those two numbers.

Speaker #2: So looking at our cash generation, you can see cash from operating activities. As you can see, we took a dip in '25. We went down from $6 billion to $5 billion.

Speaker #2: And this year, we ended pleasingly at $6.8 billion—a nice growth over the last two financial years from a cash from operating activities perspective.

Sean Capazorio: So a nice growth over the last two financial years from a cash from operating activities perspective. In terms of CapEx, very nice trend there. You can see we started 2024, we were at ZAR 5.5 billion of CapEx, down to ZAR 5 billion in 2025, and this year we ended the year at ZAR 3 billion. So when you look at all of that from a free cash flow perspective, ending the year at ZAR 3.8 billion this year. Last year, almost a breakeven free cash flow, and the previous year, ZAR 700 million. So a significant leap in free cash flow, and certainly something that we're going to continue to drive going forward. What are the contributors to this strong free cash flow? Well, our strong EBITDA growth of 14% is a key underpin. We've also continued to drive more than 100% operating cash conversion.

Speaker #2: In terms of capex, very nice trend there. You can see we started '24, we were at $5.5 billion of capex, down to $5 billion in '25.

Speaker #2: And this year, we ended the year at $3 billion. So, when you look at all of that from a free cash flow perspective, ending the year at $3.8 billion this year, last year almost at break-even free cash flow, and the previous year, $700 million.

Speaker #2: So, a significant leap in free cash flow, and certainly something that we're going to continue to drive going forward. What are the contributors to this strong free cash flow?

Speaker #2: Well, our strong EBITDA growth of 14% is a key underpin. We've also continued to drive more than 100% operating cash conversion. Our working capital ratio this year ended at 44% of revenue.

Sean Capazorio: Our working capital ratio this year ended at 44% of revenue. Last year, it was at 47%, so a nice drop in that ratio. Our finance costs were lower this year due to our better cash flow and the benefit of the APAC divestment in the last month. And very importantly, our capital expenditure was ZAR 2 billion lower than that of FY25, as you saw, from ZAR 5 billion down to ZAR 3 billion. If you remember from the previous two presentations, we were guiding CapEx of ZAR 3.8 billion. So we've managed to generate ZAR 800 million of CapEx savings this year. Of that, ZAR 400 million is a real saving, and ZAR 400 will be carried forward as CapEx into the new year.

Speaker #2: Last year, it was at 47, so a nice drop in that ratio. Our finance costs were lower this year due to our better cash flow and the benefit of the APAC divestment in the last month.

Speaker #2: And very importantly, our capital expenditure was R2 billion lower than that of FY25, as you saw—from R5 billion down to R3 billion.

Speaker #2: If you remember from the last two presentations, we were guiding capex of $3.8 billion. So we've managed to generate $800 million of capex savings this year.

Speaker #2: Of that, $400 million is a real saving, and $400 million will be carried forward as capex into the new year. But all in all, when you put all of that together, you can see a very good trend there.

Sean Capazorio: But all in all, when you put all of that together, you can see a very good trend there, and obviously it gives credence to the pyramid that we spoke about earlier on. Then moving on to the APAC divestment itself, really an intrinsic value unlock, and then moved us into a net cash position together with our strong fee cash flow. Just unpacking some of the elements here. This transaction was completed effective 31 May. ZAR 28 billion gross proceeds generated with a profit on sale of ZAR 2.4 billion, which benefited our earnings per share. But the very important point I want to make is this is an indicator of the underlying asset value of the sum of our parts at 11.5x multiple.

Speaker #2: And obviously, it gives credence to the pyramid that we spoke about earlier on. Then, moving on to the APAC divestment itself—really an intrinsic value unlock.

Speaker #2: And then moved us into a net cash position, together with our strong free cash flow. So just unpacking some of the elements here: this transaction was completed effective 31 May.

Speaker #2: 28 billion proceeds, gross proceeds generated, with a profit on sale of $2.4 billion, which benefited our earnings per share. But the very important point I want to make is that this is an indicator of the underlying asset value of the sum of our parts.

Speaker #2: At an 11.5 times multiple. So, certainly a big indicator of what value we have created in this business and what value can still be demonstrated if we continue to look at our sum-of-the-parts value unlock strategies.

Sean Capazorio: So certainly a big indicator of what value we have created in this business and what value can still demonstrate if we continue to look at our sum of our parts value unlock strategies. From a financial effects perspective, the APAC divestment has resulted in a materially stronger balance sheet, also giving us flexibility for capital allocation opportunities, hence our movement into share buybacks. And I just wanted to alert you that we obviously will lose free cash flow with the divestment, and that's around ZAR 600 million that we will lose, and that's a combination of losing ZAR 1.6 billion of after-tax earnings. We do, however, save interest after tax of just under a billion and a little bit of CapEx. So net-net, we're going to lose ZAR 600 million.

Speaker #2: From a financial effects perspective, the APAC divestment has resulted in a materially stronger balance sheet, also giving us flexibility for capital allocation opportunities. Hence, our movement into share buybacks.

Speaker #2: And I just wanted to alert you that we obviously will lose free cash flow with the divestment, and that's around $600 million that we'll lose. That's a combination of losing $1.6 billion of after-tax earnings. We do have a save interest after-tax of just under a billion.

Speaker #2: And a little bit of capex. So net-net, we're going to lose $600 million. So when I talk about driving stronger free cash flow in '27, we've got to cover this $600 million plus to get to a better landing next year.

Sean Capazorio: So when I talk about driving stronger free cash flow in 2027, we have got to cover this ZAR 600-plus to get to a better landing next year. That is our target for 2027. Moving on. This year, you will have noticed we had three different buckets of large earnings adjustments, be they in the normal earnings or the headline earnings or our normalized earnings. The three buckets are intangible asset impairments, our restructuring costs, and the profit on the sale of APAC. Coincidentally, all quite similar numbers in absolute terms. Maybe if I start with the intangible asset impairments. There we picked up a charge of ZAR 2.3 billion for the year. Bearing in mind that there is no cash impact for this. This is an accounting entry. For this year specifically, the impairment was mainly as a result of increased discount rates because of geopolitical and macroeconomic volatility.

Speaker #2: And that's our target for 2027. Moving on, this year, you will have noticed we had quite a large amount—three different buckets—of large earnings adjustments.

Speaker #2: Be they in the normal earnings, the headline earnings, or our normalized earnings. And the three buckets are intangible asset impairments, our restructuring costs, and the profit on the sale of APAC—all, coincidentally, quite similar numbers in absolute terms.

Speaker #2: So maybe if I start with the intangible asset impairments. There we picked up a charge of $2.3 billion for the year, bearing in mind that there's no cash impact for this.

Speaker #2: This is an accounting entry. For this year specifically, the impairment was mainly a result of increased discount rates because of geopolitical and macroeconomic volatility.

Speaker #2: So, certainly something outside of management's control and a technical impairment. If you look at our overall intangible asset portfolio, we retain a valuation of more than 45% above the carrying amount.

Sean Capazorio: Certainly something outside of management's control, and a technical impairment. If you look at our overall intangible asset portfolio, we retain a valuation of more than 45% above carrying amount. Unfortunately, in accounting terms, you only write down. You cannot write up above carrying amount, so you have to take the impairment. Just important to note that this premium of 45% is supported by the sustainable organic growth in commercial pharma, which Stephen has spoken about, and that we have demonstrated as part of our DNA and our deliverables over two decades. Moving on into restructure costs. There, we have picked up a charge of ZAR 2.3 billion for the year, of which ZAR 1.4 billion is a cash impact and about ZAR 900 million relates to impairments. These restructuring costs have been incurred to drive sustainable efficiency benefits.

Speaker #2: But unfortunately, in accounting terms, you can only write down; you can't write up above carrying amount. So you have to take the impairment. And it's just important to note that this premium of 45% is supported by the sustainable organic growth in Commercial Farmer, which Stephen has spoken about.

Speaker #2: And that we've demonstrated as part of our DNA and our deliverables over two decades. Moving on to restructure costs: there, we've picked up a charge of $2.3 billion for the year, of which $1.4 billion is a cash impact and about $900 million relates to impairments.

Speaker #2: And these restructuring costs have been incurred to drive sustainable efficiency benefits. Not only have we enjoyed some of them this year, but these will also deliver sustainable benefits into the future.

Sean Capazorio: Not only we have enjoyed some of them this year, but also it is sustainable benefits into the future. Basically, based on the programs that we have already implemented, that has given us the confidence to raise our sterile EBITDA growth guidance that Stephen spoke about, where we are confident to now raise that by ZAR 0.5 billion to ZAR 2.2 billion based on the efficiencies that we are going to be driving out of these restructuring projects. On the profit of APAC, profit on sale, that speaks for itself. It is ZAR 2.4 billion, and that is all cash. That came from the ZAR 28 billion proceeds unlock. I think the two important takeaways from this slide are, the one is that if you look at the net cash impact of those three buckets, the cash outflow, which is the ZAR 1.4 billion in the restructuring bucket, is more than offset by the ZAR 2.4 billion.

Speaker #2: And basically, based on the programs that we've already implemented, that's given us the confidence to raise our sterile EBITDA growth guidance that Stephen spoke about. We're confident in our raise by $0.5 billion to $2.2 billion, based on the efficiencies that we're going to be driving out of these restructuring projects.

Speaker #2: On the profit of APAC, profit on sale—that speaks for itself. It's $2.0 billion, and that's all cash. That came from the $2.8 billion proceeds unlocked.

Speaker #2: So, I think the two important takeaways from this slide are: one is that if you look at the net cash impact of those three buckets, the cash outflow—which is the $1.4 billion in the restructuring bucket—is more than offset by the $2.4 billion.

Speaker #2: So, you've got a R1 billion surplus there in terms of the three, when you're looking at it from a cash perspective. And very importantly, the restructuring-related costs have been incurred to drive sustainable returns, not only for this year, but for the future.

Sean Capazorio: So you have got a ZAR 1 billion surplus there in terms of the three when you are looking at it from a cash perspective. Very importantly, the restructuring related costs have been incurred to drive sustainable returns, not only for this year but for the future, and Stephen will unpack that in some of our outlook slides. Moving on to next year. We have guided substantial normalized earnings growth for next year for FY27 and stronger free cash flow. If we look at the two elements of that, what is going to drive that? Well, in our guidance, we have guided that we are going to get to a normalized EBITDA of at least ZAR 9 billion in 2027, which implies that you are going to grow your normalized EBITDA over FY27 by ZAR 1.3 billion, being the difference between the ZAR 7.7 billion and the ZAR 9 billion.

Speaker #2: And Steve will unpack that in some of our outlook slides. Moving on to next year, we have guided for substantial normalized earnings growth for next year, for FY27, and stronger free cash flow.

Speaker #2: If we look at the two elements of that, what's going to drive that? Well, in our guidance, we've guided that we're going to get to a normalized EBITDA of at least $9 billion in 2027, which implies that you're going to grow your normalized EBITDA over FY27 by $1.3 billion.

Speaker #2: That’s the difference between the 7.7 and the 9. That’s underpinned by our sterile growth being the main driver of growth, and also solid and continuing organic growth in our commercial farmer business.

Sean Capazorio: That is underpinned by sterile growth being the main driver of growth and also solid and continuing organic growth in our commercial pharma business. On top of that, we are going to save interest. Obviously, we do not have debt anymore. We are going to have the interest saving of more than ZAR 1.2 billion. If you just take the after-tax impact of those two elements together, that gives you an earnings benefit of over ZAR 4. When you look to the right, I have got the stepped program of where we see our NHEPS progressing.

Speaker #2: On top of that, we're going to save interest—obviously, we don't have debt anymore. We're going to have the interest saving of more than $1.2 billion.

Speaker #2: And if you just take the after-tax impact of those two elements together, that gives you an earnings benefit of over 4 rand. So, when you look to the right, I've got the stepped program of where we see our NFs progressing.

Speaker #2: So looking at FY25 to 26, moving from 625 cents to 802 cents at 28% growth that we've spoken about earlier on. And we look to be driving substantial double-digit growth in FY27 of more than 50%, being the 4 rand on over the 8 more than 4 rand over the 8 rand that we did this year.

Sean Capazorio: Looking at FY25 to FY26, moving from 625 cents to 802 cents, a 28% growth that we have spoken about early on, and we look to be driving substantial double-digit growth in FY27 of more than 50%, being the ZAR 4 over the ZAR 8, more than ZAR 4 over the ZAR 8 that we did this year. Looking at the free cash flow, we look to drive stronger free cash flow in FY27. As you picked up from the previous slide, we have got to still recover the APAC free cash flow loss. The underpins of this are going to be our EBITDA growth, lower finance costs, stable capital investment, and really just continued discipline in our capital allocation. We are very happy that we are confident that we will drive stronger cash flow.

Speaker #2: Looking at the free cash flow, we aim to drive stronger free cash flow in FY27. As you picked up from the previous slide, we still need to recover the APAC free cash flow loss.

Speaker #2: And the underpins of this are going to be our EBITDA growth, lower finance cost, stable capital investment, and really just continued discipline in our capital allocation.

Speaker #2: So we're very happy and confident that we will drive stronger cash down. You can see, again just to repeat what I showed in an earlier slide, our free cash flow in '16 was $166 million, up to $3.8 billion this year.

Sean Capazorio: You can see again, just to repeat what I showed in an earlier slide, our free cash flow in FY26 was ZAR 166 million, up to ZAR 3.8 billion this year, and we are looking to drive stronger free cash flow into the new year. That is all on the profit and the cash flow metrics. As Stephen said, we never take our eye off our very important ambitions and sustainability, our projects. As you know, we have got 16 goals that we aim for across the group, and those have been published. Of those 16 goals, we have got four key pillars that we have put an absolute target on and progress that we want to maintain. Those are our patients, our people, society, and environment. On the patient aspect, we have now been able to quantify.

Speaker #2: And we're looking to drive stronger free cash flow into the new year. That is all on the profit and the cash flow metrics, but as Stephen said, we never take our eye off our very important ambitions in sustainability projects.

Speaker #2: And as you know, we've got 16 goals that we aim for across the group, and those have been published. Of those 16 goals, we've got four key pillars that we put an absolute target on.

Speaker #2: And progress, we want to maintain. And those are our patients, our people, society, and environment. On the patient aspect, we've now been able to quantify.

Speaker #2: It's still subject to final verification, but we've been able to quantify that we've reached more than 165 million patients in emerging markets with our critical and essential medicines.

Sean Capazorio: It is still subject to final verification, but we have been able to quantify that we have been able to reach more than 165 million patients in emerging markets with our critical and essential medicines. Obviously, our target is to grow that well, grow that to our end state point of 2030. Some of the little underpins there, we have obviously made good progress in our vaccines, the Serum Institute of India vaccines, and on the human insulin manufacture. You have seen the progress that we are making on our branded and our generic GLP-1s, and there is also some good progress in the AAV space in terms of further licensing agreements for new AAV technology. Those are good green shoots to drive us for further growth in patient access. Patient access, obviously, is the DNA of Aspen. That is our key, our North Star.

Speaker #2: And obviously, our target is to grow that well—grow that to our end-state point of 2030. Some of the little underpins there: we've obviously made good progress in our vaccine serums and on the human insulin manufacture.

Speaker #2: You've seen the progress that we're making on our branded and our generic GELP1s. And there's also some good progress in the AOV space in terms of further licensing agreements.

Speaker #2: For new AOV technology. So those are good green shoots to drive us for further growth in patient access. And patient access, obviously, is the DNA of Aspen.

Speaker #2: That's our key, our north star. Looking at people, we were at a point where we had 32% gender balance in our top leadership positions for women.

Sean Capazorio: Looking at people, we're at a point where we're at 32% gender balance in our top leadership positions for women, and that's nicely up on 19% in 2020 and targeting well towards our 2030 objectives. On society, we've made good progress in our supply chain plan. We've actually screened over 2,000 suppliers from a responsible supply chain program perspective, and we continue to achieve our growth ethics and compliance program goals. Last is the environment. At the moment, for this year, we are at 34% reduction in Scope one and two carbon emissions, with FY20 being our base year. Maybe one call-out for this year, which we're very proud of, is we have increased our renewable energy usage to 26% from 19% in the prior year. So really a strong progress in the renewable energy space. I think that's all on the sustainability.

Speaker #2: And that's a nice lift, up on 19% in 2020, and targeting well towards our 2030 objectives. On society, we've made good progress in our supply chain plan.

Speaker #2: We've actually screened over 2,000 suppliers from a responsible supply chain program perspective, and we continue to achieve our growth, ethics, and compliance program goals.

Speaker #2: Last is the environment. At the moment, for this year, we are at a 34% reduction in Scope 1 and 2 carbon emissions, with FY20 being our base year.

Speaker #2: And maybe one call out for this year, which we're very proud of, is we've increased our renewable energy usage to 26%, up from 19% in the prior year.

Speaker #2: So, really strong progress in the renewable energy space. I think that's all on the sustainability front. We've got lots of other goals there, but just to show we're always very balanced and looking at profit, cash flow, and also our sustainability goals.

Sean Capazorio: We've got lots of other goals there, but just to show we're always very balanced in looking profit, cash flow, and also our sustainability goals. I'd now like to hand back to Stephen, who will take you through the performance overview and the outlook for the year ahead. Thank you, Stephen.

Speaker #2: I'd now like to hand back to Stephen. We'll take you through the performance overview and the outlook for the year ahead. Thank you, Stephen.

Speaker #1: Well done, Sean. Excellent. Thank you. Thanks, Sean. So, we can all run a business from an Excel spreadsheet, and you do start with that.

Stephen Saad: Well done, Sean. Excellent. Thank you. Thanks, Sean. We can all run a business from an Excel spreadsheet, and you do start with that. But what I hope you've seen through these numbers and hopefully what I present further is you got to be able to execute on it. And this is something that it's been a tough year. Reshaping is always tough. But what we have got, what is clear, is that we are back on the horse, and we've got the reins firmly in hand. Sean's shown you his pyramid, and his pyramid went from a flat EBITDA, a flat revenue rather, to NHEPS growth of 28%. What I hope you're going to see now and understand for FY27 is we don't start with flat revenue. We've got growing revenue and even quicker growing NHEPS as well. The triangle is important.

Speaker #1: But what you will see, what I hope you've seen through these numbers and hopefully what I present further, is you've got to be able to execute on it.

Speaker #1: And this is something that—it's been a tough year; reshaping is always tough. But what we have got, what is clear, is that we are back on the horse.

Speaker #1: And we've got the reins firmly in hand. And so Sean's shown you his pyramid. And his pyramid went from a flat EBITDA—a flat revenue, rather—to NFs growth of 28%.

Speaker #1: And what I'm hoping you're going to see now and understand for '27 is we don't start with flat revenue. We've got growing revenue, and an even quicker growing NFs as well.

Speaker #1: So the triangle’s important. It’s not always easily achievable, but it’s certainly a demonstration of having the reins firmly in hand. Let’s have a look a little bit at the performance and the outlook for commercial pharma.

Stephen Saad: It's not always easily achievable, but it's certainly a demonstration of having the reins firmly in hand. Let's have a look a little bit at the performance and the outlook for commercial pharma. Our revenue, excluding China, grew at 7%. Growth was led by South Africa and Brazil. South Africa was driven by Mounjaro, and we'll look at that in a little bit of detail. The Middle East was obviously negatively impacted by regional conflicts, but Before COVID, or 2020, whenever, about five, six years ago, we'd have one world event and we'd talk about it. Now we have an interruption in the business every year. Almost every single year we've had over the last six years or so an interruption of some sort. So you get used to it. The Middle East conflict has impacted our sales, has impacted our profitability commercially. But it has bigger knock-ons.

Speaker #1: Our revenue, excluding China, grew at 7%. Growth was led by South Africa and Brazil. South Africa was driven by Mounjaro, and we'll look at that in a little bit of detail.

Speaker #1: The Middle East was obviously negatively impacted by regional conflicts, but before COVID or 2020—whenever, about five or six years ago—we would have one world event and we would talk about it.

Speaker #1: Now we have an interruption in the business every year. Almost every single year, over the last six years or so, we've had an interruption of some sort.

Speaker #1: So you get used to it. The Middle East conflict has impacted our sales and has impacted our profitability, commercially. But it has bigger knock-ons. For example, it has an impact on solvents, which go into our APIs.

Stephen Saad: For example, it has an impact on solvents, which go into our APIs, particularly expensive in ARV APIs. It goes into plastics. We use a lot of plastics with our blow-fill-seal technologies and with our anesthetics. Of course, all the other things you hear about transport and trying to move stuff around. So it has knock-on implications. I am not going to bore you with all of those because we now take that as part of running a global business. We have had 13% EBITDA growth. This, as I said when I first started, retained the momentum from financial year 2025. The emerging markets are definitely our growth engine. We have reshaped China, which has positively impacted EBITDA. So you are seeing product discontinuations. A lot of those were former Sandoz generic products. We have more products to take out, and some of the 300 is annualized.

Speaker #1: Particularly expensive in ARV APIs. It goes into plastics. And we use a lot of plastics with our blow-fill-seal technologies and with our anesthetics.

Speaker #1: So it's more, and of course, all the other things you hear about—transport and trying to move stuff around. So it has knock-on implications.

Speaker #1: But I'm not going to bore you with all of those, because we now take that as part of running a global business. We've had 13% EBITDA growth.

Speaker #1: And as I said in our first slide, it retained the momentum from financial year '25. The emerging markets are definitely our growth engine. We've reshaped China, which has positively impacted EBITDA.

Speaker #1: So you're seeing product discontinuations; a lot of those were former Sandoz generic products. And we have more products to take out. And some of the 300 is annualized.

Speaker #1: But through all of that, you'll see a declining turnover. But we will not see an EBITDA that's unfavorably impacted. The South African rand has been very strong generally against our basket of currencies.

Stephen Saad: Through all of that, you will see a declining turnover, but we will not see an EBITDA that is unfavorably impacted. The South African rand has been very strong generally against our basket of currencies, and that dilutes this reported revenue. So being a rand hedge stock is not always a positive. In terms of financial year 2027 outlook, we see our base business growing in mid-single digits, both in revenue and EBITDA. We have been very conservative in adding the GLP-1s and what GLP-1 turnover is. Of course, success in Canada, Brazil, et cetera, rest of sub-Saharan Africa will positively impact. But in giving you these estimates, we have been very conservative on this. Let us have a look at Mounjaro. Mounjaro, the GLP market is unbelievably, it is nearly doubled. It has got to ZAR 2.8 billion.

Speaker #1: And that dilutes US reported revenue. So being a rand hedge stock is not always a positive. In terms of financial year 2027, the outlook is that we see our base business growing in the mid-single digits, both in revenue and EBITDA.

Speaker #1: And we have been very conservative in adding the GLP-1s and what GLP-1 turnover is. Of course, success in Canada, Brazil, et cetera, and the rest of sub-Saharan Africa will positively impact.

Speaker #1: But we have been quite in giving you these estimates, we have been very conservative on those. Let's have a look at Mounjaro. Mounjaro, the GLP market is unbelievably it's nearly doubled.

Speaker #1: It's got to R2.8 billion. And Mounjaro has gone, over the last 12 months, from 15% of the market to 53%. So Mounjaro's turnover is effectively what has grown that market.

Stephen Saad: Mounjaro has gone over the last 12 months from 15% of the market to 53%. So Mounjaro's turnover is effectively what has grown that market. The demand has surged. It really has been exponential, actually. When you have a look at the total private market in South Africa grew at 5.2%. Mounjaro alone was 40% of the growth. So it has grown the entire pharmaceutical market. If you take all the other products, they account for 60. Every other pharma, Mounjaro alone accounted for 40. When we look at where we are in terms of the opportunities, we have GLP-1 semaglutide generic. We have got registration for a dossier in Canada. In fact, two dossiers. We had a second. Both of them are dependent on an API supply. We wait to see when that supply will reconnect.

Speaker #1: The demand has surged. It really has been exponential, actually. And when you have a look at the total private market in South Africa, it grew at 5%, 5.2%.

Speaker #1: Mounjaro alone was 40% of the growth, so it's grown the entire pharmaceutical market. And if we take all the other products, they account for 60%.

Speaker #1: Every other pharma, Mounjaro alone accounted for 40. When we look at where we are, in terms of the opportunities, we have GLP-1 semaglutide generics.

Speaker #1: We've got registration for Edossi in Canada—in fact, two dossiers. We had a second; both of them are dependent on an API supply.

Speaker #1: And we wait to see when that supply will reconnect. It will have a very good position by the end of this month—before the end of this month—so the next three weeks or so are pretty important.

Stephen Saad: We will have a very good position by the end of this month or before the end of this month. So the next three weeks or so are pretty important. At the moment, there will be no red flags, but we are in the hands of how that API turns out. We have got numerous emerging market submissions out, many of the geographies, mainly emerging markets, because the patent in emerging markets, aside from Canada, the patent in emerging markets comes off sooner. As I said to you earlier, our Brazil dossier we believe is advancing. All of these opportunities have potential to contribute to financial 2027. Depending upon how early we get in, they should make a meaningful contribution. On GLP-1s Mounjaro, I have shown you the momentum in South Africa. We are hoping to do more than ZAR 2 billion of sales in financial year 2027. We have submitted in Kenya and Nigeria.

Speaker #1: At the moment, there'd be no red flags. But we're in the hands of how that APR turns out. We've got numerous emerging market submissions out, many across the geographies, mainly emerging markets.

Speaker #1: Because of the patent in emerging markets—aside from Canada—the patent in emerging markets comes, as I said to you earlier, Osuna. Our Brazil dossier, we believe, is advancing.

Speaker #1: And all of these opportunities have potential to contribute to financial '27. And, depending upon how early we get in, they could make a meaningful—should make a meaningful—contribution.

Speaker #1: On GLP-1s, Mounjaro, I've shown you the momentum in South Africa. We're hoping to do more than $2 billion of sales in financial year '27.

Speaker #1: We have submitted in Kenya and Nigeria. And then there will be the next waves that follow. But there's potential for Kenya and Nigeria, too, to contribute to financial year '27.

Stephen Saad: And then there will be the next waves that follow. There is potential for Kenya and Nigeria to contribute to financial year 2027. Manufacturing performance, we have had EBITDA growth, as Sean pointed out, despite lower sales, and that has really been driven by efficiency projects. We had over a ZAR 1 billion swing from H2 last year. The sterile finished dose form was impacted, as we have discussed, with the lost contracts. It has been successfully reshaped for positive EBITDA in financial year 2027. If ZAR 1.7 billion was going to get us to break even, that gets us to ZAR 500 million and hopefully a little bit more. Of course, we have turnover drivers, which we will cover later, but the commercialization of the insulin contract in South Africa was an important landmark for us as well.

Speaker #1: Manufacturing performance: we've had EBITDA growth, as Sean pointed out, despite lower sales. That's really been driven by efficiency projects. We had over a $1 billion swing from H2 last year.

Speaker #1: And the sterile finished dose form was impacted, as we've discussed, with the last contracts. But it has been successfully reshaped for positive EBITDA in financial year '27.

Speaker #1: If 1.7 was going to get us to break even, that gets us to 500, and hopefully a little bit more. And of course, we've got turnover drivers, which we'll cover later.

Speaker #1: But the commercialization of the insulin contract in South Africa was an important landmark for us as well. I've done something which we haven't done in the past, which is to really split out the manufacturing business.

Stephen Saad: I have done something which we have not done in the past, which is to really split out the manufacturing business so you can have a look at what the drivers are and where the profits are. The finished dose form other, which is quite a big growth here, really has increased sales, but it has got limited profitability. I would almost scratch that out if I was looking for profitability. The biggest driver of profitability is if the finished dose form steriles grow and if the API business turnover goes up. Just before we flick on, you will notice that the sterile business went from ZAR 3.8 billion to ZAR 2.4 billion, which is a significant downward movement, and we will see where that goes to now. Understand, of course, that was the contract. What is the outlook for manufacturing? We are forecasting revenue growth of greater than 50%.

Speaker #1: So, you can have a look at what the drivers are and where the profits are. The finished dose form 'other' is quite a big growth area this year.

Speaker #1: It really has increased sales, but it's got limited profitability. So I'd almost scratch that out if I was looking at it for profitability.

Speaker #1: The biggest driver of profitability is if the finished dose form steriles grow, and if the APR business—if the APR business's turnover goes up.

Speaker #1: But just before we flick on, you'll notice that the Sterile business went from $3.8 billion to $2.4 billion, which is a significant downward movement. And we'll see where that goes to now.

Speaker #1: But understand, of course, that was the contract. So, what is the outlook for manufacturing? We are forecasting revenue growth of greater than 50%. So, if you go back to the last slide, that takes you back to where you were, turnover-wise.

Stephen Saad: If you go back to the last slide, that takes you back to where you were turnover-wise with the contract. It is of a much lower cost base now, so you are going to make much more profitability now than you did then. It has also helped us. We have raised the guidance by ZAR 0.5 billion to ZAR 1 billion this year alone. Heparin, and that is why in my earlier slide, I said I was really pleased about the process improvements and fixes in heparin. Heparin, I have told you over the years, has been a positive in our results and a negative depending upon where it is or was in the commodity cycle. We have done a lot of work to make sure that commodity cycle does not impact us. You are going to see turnover decrease, substantial decrease in turnover in heparin.

Speaker #1: With the contract. But it's at a much lower cost base now, so you're going to achieve much higher profitability now than you did then.

Speaker #1: And it's also helped us. It's we've raised the guidance to by 0.5 billion to a billion for this to this year alone. Heparin. And that is why in my earlier slide, I said I was really pleased about the process improvements and fixes in heparin.

Speaker #1: Heparin, I've told you over the years, has been a positive in our results and a negative depending upon where it is in the commodity cycle.

Speaker #1: We've done a lot of work to make sure that the commodity cycle does not impact us. So you're going to see a substantial decrease in turnover in heparin.

Speaker #1: But you're going to see the EBITDA doesn't change, and that's because it's shielded—we've got lower sourcing costs, which are matched and would be higher if the price goes up.

Stephen Saad: You are going to see the EBITDA does not change. That is shielded because we have got lower sourcing costs, which are matched, and they would be higher if the price goes up. It is matched to the price, so we have managed to link that. The new processes we have worked through have really given us the savings and the ability to hold more and less stock. We are in a fantastic position. It has taken 10 years to get here, but we have got a model that works. APIs, I have told you, are a very profitable section of the Aspen business, and you will see this year they return to growth. It is driven by improved supply of something called human chorionic gonadotropin. It is a product used for fertility, and you actually have to harvest the urine from pregnant women. We battled with supply, but it has been positive now that supply.

Speaker #1: So it's matched to the price, so we've managed to link that. And then these new, the new processes we've worked through, have really given us the savings and the ability to hold more, and less, stock.

Speaker #1: So we're in a fantastic position. It's taken 10 years to get here, but we've got a model that works. APRs, as I've told you, are a very profitable section of the Aspen business.

Speaker #1: And you will see this year they return to growth. It's driven by improved supply—something called human chorionic gonadotropin. It's a product used for fertility.

Speaker #1: And it was and you actually have to harvest the urine from pregnant women. And we battled with supply. And it's been but it's been positive now, that supply.

Speaker #1: And we also have some new product launches. It's a business that takes on clinical products, and if one of them works, or two of them work, you've got a client going forward.

Stephen Saad: We also have some new product launches. It is a business that takes on clinical products, and if one of them works or two of them work, you have got a client going forward. So it is often dependent on that, and it looks like some of those are going to come to fruition. In terms of the Finished Dose Form, other, the sales will double, driven by the APAC. As I told you earlier, do not get excited about it. There is not a lot of profitability attached to that. So APAC is the region we sold, and we have got to now provide product to that region out of our manufacturing. So steriles. So sterile Finished Dose Form is our primary driver of increase in the whole group's profitability, we believe this year.

Speaker #1: So it's often dependent on that, and it looks like some of those are going to come to fruition. In terms of the finished dose form, the sales will be double driven by the APAC.

Speaker #1: But as I told you earlier, don't get excited about it. There's not a lot of profitability attached to that. So, APAC is the region we sold to, and we've got our provide product to that region.

Speaker #1: Out of our manufacturing—so, steriles. The sterile finished dose form is our primary driver of increase in the whole group's profitability, we believe, this year.

Stephen Saad: The tariffs made it a very, very tricky time for us on top of losing the contract, and there might have been some linkage there as well. What we are seeing is an increase in clients and normal business and growth in businesses that we have. So we are forecasting revenue to grow by 50% for financial year 2027. It is a significant driver of profitability. As I said to you earlier, it is a limited incremental cost, a low fixed base, and that leverage, turnover up, costs down, is what adds to bottom-line growth. We are going to see revenue growth in both South Africa and France. There are material volume increases across both sites and with volume up, take it as revenue as well. That includes, aside from insulin portfolio expansions and just base volume increases from all of our clients as well.

Speaker #1: And the tariffs made it a very, very tricky time for us, on top of losing the contract, and there might have been some linkage there as well.

Speaker #1: But what we are seeing is an increase in clients and normal business growth in the businesses that we have. So we're forecasting revenue to grow by 50% for financial year '27.

Speaker #1: It's a significant driver of profitability. As I said to you earlier, it's a limited incremental cost, a lower fixed base, and that leverage—turnover up, cost down—is what adds to bottom-line growth.

Speaker #1: We're going to see revenue growth in both South Africa and France. There have been material volume increases across both sites, and with volume, take it as revenue as well.

Speaker #1: And that includes, aside from insulin portfolio expansions, just base volume increases from our clients as well. So very, very much more positively placed than we were a little while back.

Stephen Saad: So very much more positively placed than we were a little while back. What are some of the near-term future opportunities? We have had the WHO come and visit us, and this is needed in order to get the pediatric vaccines for Infanrix Hexa and the PCV. Infanrix Hexa is six different components or six different antigens that address things like whooping cough, diphtheria, polio, et cetera, all in one, six in one. Then PCV, which is for pneumonia. It is all the variants on pneumonia. So a pneumococcal vaccine. They are both very high volume vaccines. We need the WHO PQ. PQ means pre-qualified by the WHO. They completed the inspection at Aspen. We hope to get the results, positive results, hopefully from that. Then we are hopeful that we will have pre-qualification in this calendar year.

Speaker #1: What are some of the near-term future opportunities? We've had the WHO come and visit us, and this is needed in order to get the pediatric vaccines for Hexa and the PCV as new. Hexa is six different components, or six different antigens, that address things like whooping cough, diphtheria, polio, etc.

Speaker #1: All in one. Six in one. And then PCV, which is for pneumonia. It's all the variants on pneumonia. So a pneumococcal vaccine. They're both very high volume vaccines.

Speaker #1: We need the WHO PQ. PQ means pre-qualified by the WHO. They completed the inspection in Aspen. We hope to get the results—positive results—hopefully from that.

Speaker #1: And then we're hopeful that we will have pre-qualification in this calendar year. I'm happy to say, we had not spoken to you previously around tariffs.

Stephen Saad: I am happy to say when I spoke to you previously around tariffs, I said all conversations have died. There are other opportunities under discussion and some progressing, and hopefully these will sustain the momentum created in the sterile business. This is probably one of the most exciting developments in ARV if registered in combating HIV. Before I get to that one, which is the license from Merck, let me just tell you, we got the FDA approval for our site to make a triple dose ARV. So instead, we are now not just going to supply South Africa only. We are going to look at broader Africa volumes and the donor funding into those African markets around ARVs. There is really an opportunity with MSD for a new product. It is a once a month oral HIV prevention tablet, so really handy to take. It is not every day, once a month.

Speaker #1: I said, you know, all conversations have died. You know, there are other opportunities under discussion and some progressing, and hopefully these will sustain the momentum created in the sterile business.

Speaker #1: This is probably one of the most ARV if registered in combating HIV. It's a so before I get to that one, which is the license from Merck, let me just tell you, we also had we got the FDA approval for our site to make a triple dose ARV.

Speaker #1: So instead, we're now not just going to supply South Africa only. We're going to look at broader Africa volumes and the donor funding into those African markets around ARVs.

Speaker #1: But there's really an opportunity with MSD for a new product. It's a once-a-month oral HIV prevention tablet, so it's really handy to take—it's not every day.

Speaker #1: Once a month. It's an innovative new dosing approach for the fight against HIV. And it's currently in phase three clinical trials. And we really hopeful that that does come through for all people in for all people across the world and particularly for Africa.

Stephen Saad: It is an innovative new dosing approach for the fight against HIV. It is currently in phase III clinical trials, and we are really hopeful that that does come through for all people across the world, and particularly for Africa. With that, and having looked at where we were, I am going to give you some guidance as to where we are. If you remember in the last presentation, we showed you, listen, we have done ZAR 9.6 billion of profit EBITDA in 2025. We divested Australia and we lost a contract, and in total, although we got ZAR 28 billion, we lost ZAR 3.6 billion of EBITDA. We got an adjusted base of ZAR 6 billion.

Speaker #1: So with that and having looked at where we were I'm going to give you some guidance as to what we where we are. So if you remember in the last presentation, we showed you, listen, we've done 9.6 billion rand of turn of profit EBITDA in 2025.

Speaker #1: We divested Australia and we lost the contract. And in total, although we got R28 billion, we lost R3.6 billion of EBITDA. So we got an adjusted base of R6 billion.

Speaker #1: We've achieved growth of $1.7 billion on that $6 billion, so that's nearly 30% off that base for financial year '27. And our intention is to get at least a further $1.3 billion to achieve $9 billion of EBITDA, which, if we get to $9 billion, that's 50% growth.

Stephen Saad: We have achieved growth of 1.7 on that ZAR 6 billion, just nearly 30% off that base for financial year 2027, and our intention is to get at least a further ZAR 1.3 billion to achieve ZAR 9 billion of EBITDA. If we get to ZAR 9 billion, that is 50% growth. Obviously, if we go beyond that, and we are telling you we want to go beyond that by saying greater than. If we go beyond that, we will have to grow more than 50% off that base. What drives that growth? It is really the sterile finished dose forms driven by the operating leverage. We also see APIs contributing to growth in financial year 2027 with the new product, and then the commercial pharma base rollout. The base is in here, but a global GLP-1 rollout to contribute substantially is not in any of this guidance.

Speaker #1: Obviously, if we go beyond that and we are telling you we want to go beyond that by saying, great. And then but if we go beyond that, we need we'll have to grow more than 50% of that base.

Speaker #1: What drives that growth? It's really the sterile, the sterile finished dose forms driven by the operating leverage. We also see APIs contributing to growth in financial year '27 with the new product.

Speaker #1: And then the commercial pharma base roll out. And the base is in here, but a global GLP-1 roll out to contribute substantially is not enough is not in any of this guidance.

Speaker #1: So, sterile finished dose form leverages from efficiencies and commercial pharma organic growth with GLP-1 additive. And so, the last page on Gardens is the targets.

Stephen Saad: Sterile finished dose form leverage from efficiencies and commercial pharma organic growth with GLP-1 additive. The last page on guidance is the targets we have set for financial 2027. We told you about the EBITDA. That translates into ZAR 9 billion of EBITDA to at least 17%, and that is just a mathematical calculation. Manufacturing will be more than double financial year 2026 EBITDA. Sterile finished dose form will achieve positive to achieve positive EBITDA. Commercial mid-single digits and EBITDA growth in both revenue and EBITDA. Apologies. Commencement of the GLP-1s will be additive. I think you are going to see, as Sean showed you, substantial CER growth in NHEPS, more than 50%. Stronger free cash flows. Disciplined capital allocation, we will touch on that on the next slide. Our tax rates are 24%, 25%, a little bit higher than what were in the past.

Speaker #1: We've set for financial '27. We've told you about the EBITDA. That translates into R9 billion of EBITDA to at least 17%, and that's just a mathematical calculation.

Speaker #1: Manufacturing, we more than double financial year '26 EBITDA. Sterile finish dose form will it will achieve positive to achieve positive EBITDA. Commercial mid single digits and EBITDA growth in both revenue and EBITDA.

Speaker #1: Apologies. And commencement of the GLP-1s will be additive. I think you're going to see, as Sean showed you, substantial CR growth in NHAPS—more than 50%.

Speaker #1: Stronger free cash flows, discipline, capital allocation, and we'll touch on that on the next slide. And then our tax rates are 24% to 25%, a little bit higher than what we've had in the past.

Speaker #1: Manufacturing tends to have a higher tax cost attached to it. And as with all our results this year and every other year before, currency has an impact on our reported results.

Stephen Saad: Manufacturing tends to have a higher tax cost attached to it. As with all our results this year and every other year before, currency has an impact on our reported results. We are going to look at the capital allocation because a lot of people asked a lot of questions last time and how we see it. At the end of the day, we have got a very strong balance sheet. We are in a net cash position. Having a strong balance sheet really enhances your flexibility of options. Sean has told you the CapEx will trend towards his depreciation and amortization numbers, and there is a sustained working capital focus. Big prioritization on free cash flow and returns. With the growth drivers we have got, we focused on organic growth. We do not see any large-scale acquisitions.

Speaker #1: We're going to look at capital allocation because a lot of people asked many questions last time about how we see it.

Speaker #1: At the end of the day, we've got a very strong balance sheet. We're in a net cash position. And having a strong balance sheet really enhances your flexibility of options.

Speaker #1: Sean has told you that capex will trend towards his depreciation and amortization numbers. And there's a sustained working capital focus. Big prioritization on free cash flow and returns.

Speaker #1: And, you know, with the growth drivers we've got, we're focused on organic growth. So we don't see any large-scale acquisitions. There's always opportunities out there at some point to get bolt-on product ranges for our commercial pharma business.

Stephen Saad: There is always opportunities out there at some point to get bolt-on product ranges for our commercial pharma business. What are we going to do? We have cash, growing cash. Our preferred option is buybacks. Of course, we are going to focus on organic growth. We are going to retain the dividend payout. We are going to keep looking at opportunities to unlock sum of parts. That is in motion as we speak. It is always, we are looking at all those opportunities. The buybacks are, as I said earlier, our absolute preferred use of capital, particularly while there is such a big value arbitrage between what we have got in terms of assets versus what the market capitalization of the business.

Speaker #1: So, what are we going to do if our option is buybacks? Of course, we're going to focus on organic growth. We are going to retain the dividend payout.

Speaker #1: We're going to keep looking at opportunities to unlock some of the parts. And that is in motion as we speak. So, as always, we are looking at all those opportunities.

Speaker #1: And then the buybacks are, as I said earlier, our absolute preferred use of capital—particularly while there's such a big value arbitrage between what we've got in terms of assets versus what the market capitalization of the business is.

Speaker #1: So, when you look at it, if someone says, "Oh, you're making $9 billion, or more than $9 billion next year, and I put a multiple on that, and maybe that's, you know, seven times..."

Stephen Saad: When you look at it, if someone says, "Oh, you are making ZAR 9 billion or more than ZAR 9 billion next year," I put a multiple on that, maybe that is 7 times. I do not know what our market cap is, or 7.5 times, whatever the number is. It is low relative to what we could get on our base. In addition, because the sterile business is only breaking even here, you are getting that for free in the multiples. That all does not make sense to us. While it does not make sense, it is great. It gives us a very clear and obvious place of where to put our capital. Yes, buybacks are preferred, and that is how our capital will be allocated. I think that is the last slide. Yeah. From here, we can move to Q&A, Roy. Thank you everyone.

Speaker #1: I don't know what our market cap is, or seven and a half times whatever the number is. It's low relative to what we could get on our base.

Speaker #1: But in addition, because the Sterile business is only breaking even here, you're getting that for free in the multiples. So it all doesn't make sense to us.

Speaker #1: So while it doesn't make sense, it's great. It gives us a very clear and obvious place of where to put our capital. So yes, buybacks are preferred and we would and and that's and that's how capital will be allocated.

Speaker #1: I think that's the last slide. Yeah. So, from here, we can move to Q&A, right? Thank you. So, thank you everyone. I appreciate your time and attendance at our meeting.

Stephen Saad: I appreciate your time and attendance at our meeting. Thank you.

Speaker #1: Thank you. Thank you, Stephen. Thank you, Sean. Well done. Congratulations.

[Company Representative] (Aspen Pharmacare): Thank you, Stephen. Thank you, Sean. Well done. Congratulations.

Speaker #2: Thank you.

Stephen Saad: Thank you.

Speaker #1: And thank you to everybody that has sent through some questions, and especially for the messages of congratulations on a good set of results.

[Company Representative] (Aspen Pharmacare): Thank you to everybody that has sent through some questions and especially for the messages of congratulations on a good set of results. There's been a number of those. There's a few questions that have come through. I'll try and combine most of them, because most of them are still related to the GLP-1 story. The first question to come through was from Matthew. It was very early on in the presentation, and he was asking about how we will continue to respond to the opportunities within the value of the sum of the parts and whether we are in discussions with anybody. Matthew, I hope that Stephen has answered your question as the presentation has gone through. Just now he just said it's always in motion, and obviously we'll follow the right protocol.

Speaker #1: There have been a number of those. There are a few questions that have come through. I'll try and combine most of them, because most of them still relate to the GLP-1 story.

Speaker #1: So, but first, the first question to come through was from Matthew. It was very early on in the presentation, and he was asking about how we will continue to respond to the opportunities within the value of the sum of the parts, and whether we are in discussions with anybody.

Speaker #1: Matthew, I hope that Stephen has answered your question as the presentation has gone through, and just now he said it's always in motion.

Speaker #1: And, obviously, we'll follow the right protocol as soon as there’s always—

Stephen Saad: There's always discussions. There are discussions going on. Excuse me. But as soon as it becomes real and tangible, then we'll let the market know.

Speaker #2: There are discussions going on. Excuse me. But you know, as soon as it becomes real and tangible, then we'll let the market know.

Speaker #1: All right. Let's get on to so Keith from Element Jonathan Dutoy from Oyster Catcher. They just are for let me let me let me phrase the question like this.

[Company Representative] (Aspen Pharmacare): Let's get on to Keith from Element, Jonathan du Toit from Oyster Catcher. Let me phrase the question like this. For the generalist that is now attending the presentation today, they know that there's an API supply issue in Canada. Maybe if you can just unpack what that is and what timing you expect from that.

Speaker #1: For the generalist that is now attending the presentation today, they know that there's an APR supply issue in Canada. So maybe if you can just unpack what that is and what timing you expect from that.

Speaker #2: Okay. I think for a generalist—okay, so you have an API; that's a chemical that goes into the pharmaceutical. You have a look, it's got certain parameters on purity and all of the things that you've got to stick within.

Stephen Saad: Okay. I think for a generalist. Okay, so you have an API that is a chemical that goes into the pharmaceutical. You have a look, it has certain parameters on purity and all of the things that you have to stick within. The API has not stayed within those boundaries set by the Canadian authorities. As a generalist would just want to know what the answer is, I think I mentioned in our presentation, we will know by the end of this month where we stand. Every day you look at your product, you look at your API and see what it is doing. From our understanding, we are in a position where there are no red flags at this point. Of course, it can change very quickly, but the next three weeks are critical, and within three weeks we will be able to answer for that product and that dossier.

Speaker #2: And the API has not stayed within those boundaries set by the Canadian authorities. But if I, as a generalist, would just want you to know what the answer is.

Speaker #2: I think I mentioned, and in my presentation, we will know by the end of this month where we stand. Every day you look at your product, you look at your APR and see what it's doing. From our understanding, we are in a position where there are no red flags at this point.

Speaker #2: Of course, it can change very quickly, but the next three weeks are critical. And within three weeks, we'll be able to answer for that product and that dossier.

Speaker #2: I do want to point out that our GLP-1s are not confined to that APR globally. We've got other APR suppliers in other markets, so Brazil is not dependent on that APR.

Stephen Saad: I do want to point out that our GLP-1s are not confined to that API globally. We have other API suppliers in other markets. Brazil is not dependent on that API. It is just awaiting a registration.

Speaker #2: It's just waiting, awaiting a registration.

Speaker #1: Thank you, Stephen. Then, sticking with the GLP-1s—Warren from Batalia, and another question that has come through, I think from Chip—or just in terms of the competitive environment in the semaglutide generic in the markets that you're in.

[Company Representative] (Aspen Pharmacare): Thank you, Stephen. Sticking with the GLP-1s, Warren from Bateleur, and another question that has come through, I think from SharePort, just in terms of the competitive environment in the semaglutide generic in the markets that you are in, and how should we think about the growth trajectory beyond FY27?

Speaker #1: And how should we think about the growth bridge trajectory beyond FY27?

Speaker #2: Yeah, it's going to be a very competitive market—it always will be. But there are some nuances in this market. Firstly, I think there's simply just not enough people having access.

Stephen Saad: Yeah, it is going to be a very competitive market. It always will be. There are some nuances in this market. Firstly, I think there is simply just not enough people having access, and for those people that can get access, it is very expensive. In a world where it becomes affordable, I believe that there will be a very big explosion of volumes, particularly across emerging markets, which have not been supplied at the volumes required. You will see an explosion in those volumes. Those volumes, because it is sterile, are not simply like making more and more tablets. There will be, in my opinion, you will see prices drop. They will be less than half the price of the innovative products in semaglutide. I think that it is going to be very interesting to see how many. For those of you that are not aware, there are a lot of copy products.

Speaker #2: And for those people that can get access, it's very expensive. So, in a world where it becomes affordable, I believe that there'll be a very big explosion of volumes, particularly across emerging markets, which have not been supplied.

Speaker #2: At the volumes required, you will see an explosion in those volumes. Those volumes, because it's steroid, are not simply like making more and more tablets.

Speaker #2: So, in my opinion, you will see prices drop. They’ll be less than half the price of the innovator products in semaglutide.

Speaker #2: But I think that it's going to be very interesting to see how many, and for those of you that aren't, where there's a lot of copy products.

Speaker #2: I'm not even registered. It even takes South Africa—I'm sure you've all read where the people are compounding these products, just putting—you know, going to the gym instructor, the beauty salon.

Stephen Saad: They're not even registered. Take South Africa, I'm sure you've all read where the people are compounding these products, just going to the gym instructor, the beauty salon, wherever. Everyone's an expert in giving out products that are unregistered. I believe a lower cost profile will mean a lot of switch out of those products. The non-registered product is thought to be significantly bigger than the registered market. There's already a sort of black market out there, but also people who will take it and say, "Look, I feel safe and confident with this medicine." I think the market is going to grow substantially, but will it be competitive? Of course, it will be competitive. But we're used to competing. We're well-positioned to compete with ultimately being able to move all products into our own sterile facilities.

Speaker #2: Wherever they are, everyone's an expert in giving out products that are unregistered. And I believe a lower cost profile will actually mean a lot of switch-out of those products.

Speaker #2: I mean the the non-registered product is thought to be significantly bigger than the registered market. So there's already a sort of black market out there, but also people who will take it say, "Look, I feel safe and confident with this medicine." So I think there's going to the market is going to grow substantially, but it will it be competitive?

Speaker #2: Of course, it will be competitive. But we used to compete in, and we are well positioned to compete with, ultimately being able to move all products into our own sterile facilities.

Speaker #1: Thank you. Apologies. Previously, it was from Sean that Anka asked the question. Sean, does the R1.2 billion lower finance cost take into account the R2 billion share buyback already done? Jade, from Lauren.

[Company Representative] (Aspen Pharmacare): Thank you. Apologies. Previously, it was from Sean that Anke asked the question. Sean, does the ZAR 1.2 billion lower finance costs take into account ZAR 2 billion share buyback already done? Junaid from Laurium.

Speaker #2: Yeah. Yes, it does because you generate cash during the year I mean it might it might if we bought up to 20% for example then there might be a shift into to interest pay but then you've got a lot less shares so it's a good question from that point of view it does it does take account of share barbacks at this level but as you go more and more then there's you might be buying back more shares than you than cash generated.

Sean Capazorio: Yes, it does because you generate cash during the year. If we bought up to 20%, for example, then there might be a shift into interest pay, but then you've got a lot less shares. It's a good question from that point of view. It does take account of share buybacks at this level, but as you go more and more, you might be buying back more shares than cash generated.

Speaker #1: Jan from PSG, just a bit more detail please on the $923 million inventory impairments included in restructuring costs.

[Company Representative] (Aspen Pharmacare): Jan from PSG. Just a bit more detail, please, on the ZAR 923 million inventory impairments included in restructuring costs.

Speaker #2: Sean, a lot of that, so would you want to come in? Sorry, sorry, I'm busy answering all your questions.

Stephen Saad: Sean, a lot of that. Would you want to come in, Sean?

Sean Capazorio: Yeah.

Stephen Saad: Sorry, I am busy answering all your questions.

Speaker #1: No no worries. So that yeah that that's part of our overall efficiency enhancement projects. So there are obviously as we changing processes and and and structuring those various businesses we are looking at the inventory that supports that and and those will come so an example would be the the the eyedrop unit where we've had to impair all of that inventory we had to close down the the eyedrop so that's part of it.

Sean Capazorio: No worries. That is part of our overall efficiency enhancement project. There are obviously as we improve. There is changing processes and structuring those various businesses. We are looking at the inventory that supports that and those will come. An example would be, for example, the eye drops unit. We had to impair all of that inventory. We had to close down the eye drops. That is part of it. It is a mix of products.

Speaker #1: So, it's a mix of products. Okay, thank you, Sean. Maybe if you can just remind the market, just in terms of what we have for general approval for share buybacks.

[Company Representative] (Aspen Pharmacare): Okay. Thank you, Sean. Maybe if you can just remind the market just in terms of what we have for general approval for share buybacks.

Speaker #2: That's what—20%, 20%, 20%. Yeah.

Stephen Saad: What share? 20%.

[Company Representative] (Aspen Pharmacare): 20%, yeah. Just refreshing. I think I have covered all the questions. Tshepo from Umthombo Wealth, he was just asking about, referring to China and the reshape, whether there is any expansion opportunities in that region. I think he was referring to that region.

Speaker #1: Just refreshing, right. I think I have covered all the questions. So Chapo is asking—he's from Mtombo Wealth—he was just asking about if there's any, referring to China and the reshape, whether there's any expansion opportunities in that region.

Speaker #1: I think he was referring to that region.

Speaker #2: Yeah, so if you're referring to China, yes, there are. But, you know, I don't want to bore everyone with a lot of information, but you've got to be very, very careful where you expand and what IP you get. But the very big positive is China itself is producing unbelievable early research. And one of the advantages Aspen has is to say to a developer, we can take your product and we'd like to take it for China. It's always quite difficult sometimes to get China from Chinese developers, but we can also take it globally and put it into our market.

Stephen Saad: Yeah. If you are referring to China, yes, there are. I do not want to bore everyone with a lot of information, but you have got to be very careful where you expand and what IP you get. The very big positive is China itself is producing unbelievable early research. One of the advantages Aspen has is to say to a developer, "We can take your product, and we would like to take it for China." It is quite difficult sometimes to get China from Chinese developers, but we can also take it globally and put it into our market. So there are opportunities, and we do look and find them, but it would be to increase your portfolio. It would be a slightly different review of portfolio compared to, say, what we do in other markets, but probably the most exciting market in terms of developing IP.

Speaker #2: So, there are opportunities, but, you know, we will and we do look, and we'll find them, but it would be—to increase your portfolio—it would be a slightly different review of portfolio compared to, say, what we do in other markets. But it's probably the most exciting market in terms of developing IP. I think that's second now only to the US.

Stephen Saad: I think that is second now only to the US. Incredible from almost nowhere clinically to where they have got to.

Speaker #2: It's incredible, from almost nowhere clinically to where they've got you.

Speaker #1: Good. I think I've covered all the questions that have come through, so congratulations. I think if there is anything else that anybody does want, please feel free to get in touch with myself or Sana, Stephen, or Sean. I'll hand it over to you just to close off the presentation.

[Company Representative] (Aspen Pharmacare): Good. I think I have covered all the questions that have come through, so congratulations. I think if there is anything else that anybody does want, please feel free to get in touch with myself or Sanet. Stephen, Sean, I will hand it over to you just to close off the presentation.

Stephen Saad: Well, thank you. Thanks, everyone, and thanks for your attendance. It has been a tough year, but we are really pleased with where we are. Obviously, we are nearly quarter of the way through the next year, and so sort of got one back in time to get you, but you are great. But just to let you know, we are really positive quarter of the way through this year. What we are telling you is we are very comfortable with what we are going to deliver on. So thank you so much. Thank you.

Speaker #2: Well, thank you. Thanks, everyone, and thanks for your attendance. It's been a tough year, but we're really pleased with where we are. Obviously, we're nearly a quarter of the way through the next year, and that's, you know... and so I sort of have to wind back in time to get you, but you're great. And just to let you know, we're really positive, you know, a quarter of the way through this year. What we're telling you is we're very comfortable with what we're going to deliver on.

Speaker #2: So, thank you so much. Thank you.

[Company Representative] (Aspen Pharmacare): Thank you.

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