Slide 1: FY13 Results Presentation
For personal use only Mayne Pharma Group Limited FY13 Results Presentation 27 August 2013 Scott Richards, Chief Executive Officer Mark Cansdale, Group CFO
Slide 2: Disclaimer
Disclaimer For personal use only ● The information provided is general in nature and is in summary form only. It is not complete and should be read in conjunction with the company’s Appendix 4E and market disclosures. This material is not intended to be relied upon as advice to investors or potentia
Slide 3: Executive summary
Executive summary For personal use only ● Transformational period following the Metrics, Kapanol® and Libertas(1) acquisitions which have diversified earnings streams across products, technologies and geographies ● Exceeded or in-line with FY13 guidance announced at the time of the Metrics acquisiti
Slide 4: FY13 comparison to guidance
FY13 comparison to guidance For personal use only Guidance Actual Revenue $69–82m $83m Above guidance – Mayne Pharma $38–45m $44m In guidance – Metrics $31–37m $39m Above guidance EBITDA(1) $16.1–18.7m $18.4m In guidance – Mayne Pharma $4.5–5.1m $5.2m Above guidance – Metrics $11.6–13.6m $13.2m In g
Slide 5: Group sales breakdown
Group sales breakdown For personal use only Diversified product revenue mix with increasing exposure to attractive US pharma market 2H13 Sales revenue by segment(1) 2H13 Sales revenue by region 7% 34% 22% 35% A$57m A$57m 71% 11% 20% US Generic Products USA Metrics Contract Services Australia MPA Res
Slide 6: US Generic Products (USGP)
US Generic Products (USGP) For personal use only ● USGP segment manufactures and distributes USGP sales by distribution channel 12 months to 30 June 2013 generic pharmaceutical products in the US ● Sales were A$25.2m and gross profit A$15.8m for the 7.5 month period under Mayne Pharma 33% ownership
Slide 7: Metrics Contract Services
Metrics Contract Services For personal use only ● Metrics Contract Services provides contract pharmaceutical development services to third party customers principally in the US ● Sales were A$14.8m and gross profit was A$6.4m for the 7.5 month period under Mayne Pharma ownership ● Over the 12 months
Slide 8: Mayne Pharma Australia (MPA)
Mayne Pharma Australia (MPA) For personal use only Highlights ● MPA sales were $11.0m, up 11.9% on pcp following $million Jun 12 Jun 13 Change % the acquisition of the Kapanol® rights in Australia from GSK on 1 February 2013 Sales revenue 9.8 11.0 11.9% ● Gross profit was $5.0m up $1.9m or 63% on pc
Slide 9: Mayne Pharma Global (MP Global)
Mayne Pharma Global (MP Global) For personal use only Highlights $million Jun 12 Jun 13 Change % ● MP Global sales were $33.4m, down 20.7% on PCP reflecting the pipeline destocking of Doryx® in the first Sales revenue 42.1 33.4 -20.7% half following the launch of a competing generic ● Strong rebound
Slide 10: Generic pipeline
Generic pipeline For personal use only Increasing investment in R&D in FY14 of >$15m to accelerate growth in new products US Australia ● 20 generic products under development ● 12 injectable products filed with the targeting US markets with annual sales TGA targeting markets with annual sales greate
Slide 11: Branded pipeline – SUBACAP Itraconazole
Branded pipeline – SUBACAP® Itraconazole For personal use only Regulatory status Distribution Pathway Expected launch Market size1 ISDIN – Spain, Italy, Portugal. FY14 - UK & Spain. Approved in the UK, Glenmark – UK FY15 – Italy, Portugal Europe Spain, Sweden and Late stage discussions with and othe
Slide 12: Earnings comparison
Earnings comparison For personal use only Improved underlying profitability achieved in FY13 Year ending Year ending Change $ millions 30 Jun 13 30 Jun 12 $m % Sales revenue 83.4 51.9 31.5 60.8% Gross margin 39.0 22.6 16.4 72.9% Gross margin % 46.7% 43.5% EBITDA (as per guidance) 18.4 11.5 6.9 61.2%
Slide 13: Key features of the financial result
Key features of the financial result For personal use only ● Overall sales were up $32m with Metrics contributing $39m or 47% of total sales - Mayne Pharma (excluding Metrics) sales were down $8m following the launch of a competing generic Doryx® product ● Gross profit margins were stronger at 47% u
Slide 14: Balance Sheet position
Balance Sheet position For personal use only Balance Sheet comparison highlights the transformation of Mayne Pharma’s Net Asset profile across FY13 As at As at Change $ millions 30/6/131 30/06/12 $m % Cash(2) 20.1 11.6 8.5 74% Inventory & receivables 38.2 11.1 27.2 245% PP&E 55.0 22.2 32.8 148% Inta
Slide 15: Key features of the financial position
Key features of the financial position For personal use only ● Total cash increased $8.5m over the period ● US$44.5m loan facility for the acquisition of Metrics and US$4m working capital facility in place ● Intangible assets of $115.5m comprise: - $46.8m of goodwill - $18.0m of development costs -
Slide 16: Cash flow
Cash flow For personal use only $ millions 30 June 13 30 June 12 ● Operating cash flow (pre-tax, interest EBITDA – underlying 18.4 11.5 and transaction costs) was $14.8m, up 19% Working capital movements & other (3.6) 1.1 - Operating cashflow was less than Net operating cash flow pre-tax, underlying
Slide 17: Mayne Pharma Growth Strategy
Mayne Pharma Growth Strategy Key activities For personal use only 1. US retail generics maximisation • Portfolio expansion through organic development and bolt-on acquisitions 2. Doxycycline franchise • Build doxycycline generic portfolio optimisation • Optimise Doryx® franchise • Participate in glo
Slide 18: Outlook
Outlook For personal use only ● SUBACAP® launch in Europe and Australia ● US portfolio expansion through increasing market penetration of existing products and growing product pipeline ● Partner and file SUBACAP® in the US, Korea and Japan Future ● Deliver on key milestones for R&D program globally