Slide 1: FY14 Results Presentation
For personal use only Mayne Pharma Group Limited FY14 Results Presentation 27 August 2014 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 audited Financial Statements and market disclosures. This material is not intended to be relied upon as advice to inve
Slide 3: Key financials
Key financials For personal use only ● Revenue of $143.3m, up 72% on pcp ● Gross profit of $75.1m, up 92% on pcp ● Gross profit margin grew from 46.7% to 52.4% ● Reported EBITDA of $43.1m up 364% on pcp ● Underlying EBITDA1 of $40.4m up 120% on pcp ● NPAT at $21.3m ● Net operating cashflow (pre R&D/
Slide 4: Operational highlights
Operational highlights For personal use only ● Strong growth in revenue and gross profit across all segments ● Successful integration of Libertas and US product acquisitions ● Margin expansion from changing sales mix and increased sales of key branded products ● New products launched in the US, Aust
Slide 5: Mayne Pharma's business segments
Mayne Pharma’s business segments For personal use only Mayne Pharma Metrics International (MPI) US Products (USP) (formerly MPA & MP Global) Contract Services (MCS) Overview Develops, manufactures, markets Develops, manufactures, markets Provides contract and distributes branded and and distri
Slide 6: Group revenue breakdown
Group revenue breakdown For personal use only Revenue by segment(1) Revenue by region(2) 100% 100% 5% 8% 16% 80% 42% 80% 29% 53% 60% 60% 19% 40% 17% 40% 79% 63% 20% 39% 20% 30% 0% 0% FY13 FY14 FY13 FY14 US Products USA Metrics Contract Services Australia MPI (formerly MPA and MP Global) Rest of Worl
Slide 7: MPI and USP revenue breakdown
MPI and USP revenue breakdown For personal use only MPI revenue breakdown USP revenue breakdown 3% US Doryx™ 16% 9% 37% of MPI 2% 20% revenue 4% 5% 3% 45% 6% 8% A$61.2m US$52.2m 7% 18% 12% 7% 13% 8% 14% Nystatin Liothyronine Doxycycline Aspirin Oxycodone Butalbital/APAP/Caffeine Morphine Itraconazol
Slide 8: US Products (USP)
US Products (USP) For personal use only Highlights A$million FY131 FY142 Change FY14 v ● New products launched in FY14 include: FY13 — Generic: Doxycycline Hyclate DR tablet, Revenue 25.2 56.9 125.5% Erythromycin DR capsule, Hydrocodone/APAP tablet Gross Profit 15.8 32.0 102.7% — Branded: ZEBUTAL™ c
Slide 9: Metrics Contract Services (MCS)
Metrics Contract Services (MCS) For personal use only Highlights A$million FY131 FY14 Change FY14 v ● New leadership and reinvigorated sales team FY13 delivering improved performance Revenue 14.8 28.4 92.1% — MCS revenue was US$26m up 6% on the 12 months to 30 June 2013 Gross Profit 6.4 13.0 101.2%
Slide 10: Mayne Pharma International (MPI)
Mayne Pharma International (MPI) (formerly MPA and MP Global) For personal use only Highlights A$million FY13 FY14 Change FY14 v ● Strong rebound in the performance of MPI FY13 driven by Doryx™ 200mg , licensing fee income Revenue 44.4 61.2 37.8% and the additional contribution from Kapanol™ Gross P
Slide 11: Earnings comparison
Earnings comparison For personal use only Year ending Year ending Change $ millions 30 Jun 14 30 Jun 13 $m % Revenue 143.3 83.4 59.9 71.7% Gross profit 75.1 39.0 36.1 92.5% Gross profit % 52.4% 46.7% EBITDA 40.4 18.4 22.0 120.0% Adjustments 2.7 (9.1) 11.8 NM Reported EBITDA 43.1 9.3 33.8 363.7% Depr
Slide 12: Notable items
Notable items For personal use only ● Revenue includes licensing fee income of $4.9m which includes: - $4.5m non-cash income from the out-licensing of SUBA™-Itraconazole to HedgePath Pharmaceuticals (HedgePath) in return for an equity stake of 41.5% in HedgePath; and - $0.4m from the out-licensing o
Slide 13: Balance Sheet position
Balance Sheet position For personal use only As at As at Change $ millions 30/6/14 30/6/13 $m % Cash 14.8 18.9 (4.1) (21.7%) Inventory 17.2 13.6 3.6 26.8% Receivables 29.8 24.6 5.2 21.1% PP&E 53.4 55.0 (1.6) (3.0%) Development expenditure 33.4 18.0 15.4 85.7% Other intangibles & goodwill 107.7 97.5
Slide 14: Key features of the Balance Sheet
Key features of the Balance Sheet For personal use only ● Intangible assets and goodwill increased by $25.6m reflecting: - $16.3m of development costs; - $4.3m for acquisition of Libertas; - $13.6m for marketing and distribution rights associated with ZEBUTAL™, ESGIC™ AND LORCET™; - $4.9m of amortis
Slide 15: Cash flow
Cash flow For personal use only Year ending Year ending Change $ millions 30 Jun 14 30 Jun 131 $m EBITDA - underlying 40.4 18.4 22.0 HedgePath equity investment (non-cash) (4.5) - (4.5) Working capital movements & other (1.6) (3.6) 2.0 Net operating cash flow before tax, interest 34.3 14.8 19.5 and
Slide 16: Pipeline update
Pipeline update >30 filings under review today with the FDA and TGA For personal use only US addressable market1 for FDA filed products increased from $0.4bn to US$1.8bn R&D cash investment (US$m) US Pipeline statistics – IMS market size (US$bn)2 August 2014 12 $10.7 7.0 $8.7 6.0 10 $7.8 5.0 8 4.0 4
Slide 17: Specialty product and business development focus
Specialty product and business development focus For personal use only Expanding our specialty platform Dermatology ● Maximise value from Lozanoc™ anti-fungal application ● Expand global footprint through out-licensing key branded products - Kapanol™ rest of world rights acquired back from GSK Pain
Slide 18: Senior management recruits
Senior management recruits For personal use only Stefan Cross Ilana Stancovski, PhD President - Mayne Pharma USA Chief Scientific Officer 20+ years of industry experience 20+ years of industry experience Previous experience includes Hospira, Mayne Previous experience includes Actavis, Intas
Slide 19: Future catalysts for value
Future catalysts for value For personal use only Growth strategy Strategic acquisitions, US retail generics Doxycycline franchise R&D execution licensing and maximisation optimisation partnerships ● Approval and launch of ● Leverage patent and ● Portfolio selection that ● Licensing niche generic or
Slide 20: Outlook
Outlook For personal use only US Products ● US Generic market grew 15% in FY14 to US$62bn1 driven by strong underlying fundamentals ● Consolidation of retail customer base is creating more competitive market dynamics ● Further revenue growth expected from recent product acquisitions (ESGIC™, LORCET™