Mayne Pharma Group Ltd. · ASX:MYX

Mayne Pharma — H1 2011 Earnings Presentation

17 slides from Mayne Pharma's earnings presentation, Feb 25, 2011

1. Slide 1: Half Year Results Presentation 2011

   For personal use only Mayne Pharma Group Limited (ACN 115 832 963) Half Year Results Presentation 2011 25 February 2011 1

2. Slide 2: Highlights of the last six months

   For personal use only Highlights of the last six months  EU registration filed for SUBACAP®  Successful US-based Phase II trial for SUBACAP®  Change of company name to Mayne Pharma Group Limited  New Chairman and CFO appointed  Maiden dividend paid and special dividend declared  New Doryx® for

3. Slide 3: Executive Summary

   For personal use only Executive Summary  Strengthened A$ and a delay in the approval of new Doryx® formulations has resulted in earnings not meeting Company expectations for the half  Australian proprietary products division sales were up following acquisition of the marketing and distribution rig

4. Slide 4: Consolidated results for the half-year ended 31/12/10

   For personal use only Consolidated results for the half-year ended 31/12/10  Total revenue $26.9m  Gross profit $12.2m  EBITDA $5.1m  EBITDA margin 18.9%  NPAT $1.1m  EPS 0.76cps  Net operating cash flow before tax of $3.7m  Cash on hand $13.4m  Net cash (cash less debt) of $8.5m  Special

5. Slide 5: H11 Earnings comparison

   For personal use only H11 Earnings comparison H11 H10 Last $ millions Reported Reported 12 months Total revenue 26.9 9.3 54.3 Gross profit 12.2 5.2 24.6 EBITDA 5.1 (0.4) 14.0 Depreciation (0.9) (0.3) (1.9) EBITA 4.2 (0.7) 12.1 Amortisation (3.1) 0.0 (8.6) EBIT 1.1 (0.7) 3.5 Net interest (0.8) (0.4)

6. Slide 6: Key features of the results

   For personal use only Key features of the results  Stronger AUD resulted in a net loss from foreign exchange of $0.8m for the half  $1.7m margin shortfall from the agreed delay in Warner Chilcott orders for Doryx® tablets  Notional interest charge of $0.9m for the earn-out liability  Savings in

7. Slide 7: Balance Sheet Position

   For personal use only Balance Sheet Position $ millions H11 F10 H10 Change Cash 13.4 19.7 14.6 (32.0%) Inventory & receivables 14.0 12.5 11.3 11.8% PP&E 21.3 21.0 19.3 1.3% Intangibles 11.2 14.2 13.3 (21.0%) Other 3.9 3.8 2.1 3.6% Total assets 63.8 71.2 60.6 (10.4%) Interest bearing debt 4.9 8.6 10.

8. Slide 8: Key features of the Balance Sheet movements

   For personal use only Key features of the Balance Sheet movements  Cash reduction due to the payment of the maiden dividend ($3.0m), reduction in the US$ NAB loan ($2.7m) and tax payments ($2.9m)  Increase in receivables from June due largely to the timing of a payment by Warner Chilcott (received

9. Slide 9: Cash flow

   For personal use only Cash flow $ millions H11 EBIT - reported 1.1 Amortisation / depreciation 4.0 Change in working capital (1.4) Net interest paid (0.0) Tax paid (2.9) Net operating cash flow 0.8 Capex (1.1) Acquisitions 0.0 Repayment of borrowings (2.7) Net proceeds from issue of shares 0.8 Divid

10. Slide 10: Doryx®

    For personal use only Doryx®  Doryx® our key proprietary product representing ~50% of revenue  Doryx® revenue impacted by – the stronger than expected AUD: forecast rate AUD/USD: 90c vs average actual settled rate of AUD/USD: 94c – delay in FDA approval of new formulations led to agreed deferral o

11. Slide 11: Astrix®

    For personal use only Astrix®  Astrix® number 1 prescribed low dose aspirin in Australia representing 17% of group sales  Astrix® sales and margins increased following acquisition of marketing and distribution rights from Hospira  New consumer focused website www.astrixaspirin.com.au launched  P

12. Slide 12: SUBACAP® Anti Fungal Global Market

    For personal use only SUBACAP® Anti Fungal Global Market  Super-bioavailable Itraconazole (US$m)  Patent protected 545 Itraconazole Fluconazole 645  EU registration filed Dec 2010 Ketoconazole  Successful US based Phase II trial 479 925 Posaconazole Voriconazole results in Nov 2010 231 Anidulafu

13. Slide 13: Clinical Development Path - SUBACAP®

    Clinical Development Path - SUBACAP® For personal use only Halcygen licensed SUBA® - Itraconazole from Mayne Pharma in 2006 EUROPE 2 pharmacokinetic studies completed in Australia in 2007 to confirm the dose  UNITED STATES IMPD lodged May 09  IND approved June 2008  1 pharmacokinetic study comple

14. Slide 14: Outlook

    For personal use only Outlook  The Company is in the process of transitioning into new improved Doryx formulations – In view of the regulatory uncertainty surrounding FDA approval and the strategic decision to allow our major partner Warner Chilcott to delay orders, the previous guidance of EBITDA

15. Slide 15: Dividend & debt repayment

    For personal use only Dividend & debt repayment  After careful consideration of the outlook for the Company, the Board of Mayne Pharma has declared a special fully franked dividend of 1.0cps – Record date: 9th March 2011 – Payable: 25th March 2011  US$ debt to be completely paid down in 2011 15

16. Slide 16: H11 Milestones

    For personal use only H11 Milestones Achieved  SUBACAP® dossier lodged  Successful Phase II trial of SUBACAP® in US  Settlement with Heritage  Special dividend Ongoing  Appointment of marketing and distribution partner for SUBACAP®  Regulatory approval of SUBACAP® in EU and US  Clarity around

17. Slide 17: Definitions and glossary of terms

    For personal use only Definitions and glossary of terms  IND – Investigational New Drug Application  IMPD – Investigational Medical Product Dossier  MHRA – Medicines and Healthcare Products Regulatory Agency (UK)  Pharmacokinetic study are performed to examine the absorption, distribution, metab

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