Slide 1: FY16 Results Presentation
For personal use only Mayne Pharma Group Limited FY16 Results Presentation 26 August 2016 Scott Richards, Chief Executive Officer Mark Cansdale, Group CFO 1
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 highlights
Key highlights For personal use only ● Revenue and reported EBITDA up 89% and 146% respectively on the prior corresponding period (pcp) Strong ● All segments contributed to growth year on year financial ● Gross margin percentage of 63% driven by full year inclusion of high margin Doryx® results ● Do
Slide 4: Strong growth in all key financial metrics
Strong growth in all key financial metrics1 For personal use only Underlying basis Reported basis EBITDA2 NPAT Reported basis A$88.5m, +143% A$37.4m, +379% Revenue A$267.3m, +89% Reported basis Reported basis Net operating cashflow EPS after tax and interest A$53.5m, +139% 4.62cents, +302% E
Slide 5: Mayne Pharma segment structure
Mayne Pharma segment structure For personal use only US Business Units Rest of world Generic Products (GPD) Specialty Brands (SBD) Metrics Contract Services (MCS) Mayne Pharma International (MPI) Develops, manufactures, markets Markets and distributes specialty Provides contract pharmaceutical Devel
Slide 6: Generic Products Division (GPD)
Generic Products Division (GPD) For personal use only ● GPD revenue up 60% on pcp to US$77.8m A$million FY16 FY15 Change FY16 v FY15 ● Directly distributed products now represent 87% of GPD revenue and grew 93% on pcp to US$67.8m Revenue 106.8 58.2 83.6% driven by the launch of BAC tablet and dofeti
Slide 7: US generic product acquisition from Teva has been successfully transitioned
US generic product acquisition from Teva has been successfully transitioned For personal use only ● August 2016 completed the acquisition of a portfolio of 42 products from Teva ● All major accounts have supported Mayne Pharma with the transfer of business ● Supply chain focused on quality and relia
Slide 8: Dofetilide capsules – days market exclusivity
Dofetilide capsules – 180 days market exclusivity For personal use only ● Successful launch of dofetilide capsules in the US – first Dofetilide market weekly TRx(2) generic approval to Pfizer’s US$216m Tikosyn® brand1 ● Dofetilide is an antiarrhythmic agent to prevent irregular 10,000 heartbeats suc
Slide 9: Specialty Brands Division (SBD)
Specialty Brands Division (SBD) For personal use only ● SBD revenue was US$56.7m for FY16 A$million FY16 FY15 Change FY16 v FY15 ● Monthly Doryx® EBITDA achieved the US$2.7m guidance given in February 2015 Revenue 77.8 17.6 342.3% ● Since completion of the US$50m Doryx® acquisition Gross Profit 73.4
Slide 10: Metrics Contract Services (MCS)
Metrics Contract Services (MCS) For personal use only ● MCS revenue was US$35.6m up 26% on pcp A$million FY16 FY15 Change FY16 v FY15 ● Stronger gross profit margin reflects operating efficiencies, optimisation of pricing and later stage, Revenue 48.9 33.8 44.7% higher margin development work Gross
Slide 11: Mayne Pharma International (MPI)
Mayne Pharma International (MPI) For personal use only ● Australian sales up 11% to A$26.0m and A$million FY16 FY15 Change international sales were down 10% to A$7.6m FY16 v FY15 ● Australian sales growth was driven by: Revenue 33.7 31.8 6.0% - Launch of oxycodone tablet – the first Gross Profit 7.8
Slide 12: Greenville site expansion on track for completion in early 2018
Greenville site expansion on track for completion in early 2018 For personal use only Site construction as at August 2016 12
Slide 13: R&D update (includes acquired pipeline from Teva)
R&D update (includes acquired pipeline from Teva) For personal use only Addressable market value of US pipeline products ● R&D spend was A$28.6m up 71% as the company focused (US$ millions)1 on higher value and niche product opportunities in the US 6,000 $5bn+ ● 40+ pipeline products in the US targe
Slide 14: Multiple drivers of value in FY17
Multiple drivers of value in FY17 ● Efficiently integrate recently acquired products from Teva For personal use only ● Optimise market penetration of expanded product portfolio Generic ● Commercialise filed pipeline Products ● Efficient and reliable product sourcing, manufacturing and supply Divisio
Slide 15: Appendix
For personal use only Appendix
Slide 16: Earnings comparison – attributable to members
Earnings comparison – attributable to members For personal use only Full year ending Change ● Increased gross profit margins reflect full year inclusion of Doryx® acquisition A$million 30 Jun 16 30 Jun 15 $m ● Underlying adjustments made to FY16 Revenue 267.3 141.4 125.9 EBITDA include: Gross profit
Slide 17: Balance Sheet position
Balance Sheet position For personal use only As at As at Change ● Growth in inventory, receivables and payables reflect the full year inclusion of A$million 30 Jun 16 30 Jun 15 $m Doryx® as well as the launch of new Cash 47.5 59.2 (11.7) products including dofetilide in June 2016 Inventory 38.9 22.4
Slide 18: Cash flow
Cash flow For personal use only Full year ending Change ● Net operating cash flow was A$53.5m up up 139% on FY15 A$million 30 Jun 16 30 Jun 15 $m EBITDA - underlying 88.5 36.4 52.1 ● Notable cashflows during the period were WC movements & other 7.2 2.7 4.6 - $28.6m in payments for R&D (expensed and
Slide 19: Reconciliation of reported NPAT to underlying NPAT attributable to members
Reconciliation of reported NPAT to underlying NPAT attributable to members For personal use only A$million FY16 FY15 NPAT - Reported 37.4 7.8 Remove impact of HedgePath 2.3 (1.9) Distributor settlement 4.7 - Acquisition and related expenses 5.0 3.5 Impact of earn-out (4.1) 3.0 Write off of borrowing