Slide 1: FY11 Results Presentation
For personal use only Mayne Pharma Group Limited FY11 Results Presentation 31st August 2011 www.maynepharma.com
Slide 2: Executive summary
Executive summary For personal use only • Challenging 12 month period • Although US Doryx® sales down 46% during the period, sales of other products were up 18% on the full 12 month FY10 result • New business development initiatives expanding product mix and distribution reach • Business restructure
Slide 3: Key financials
Key financials For personal use only • Total revenue $50.1m • Gross profit $23.2m • R&D investment $6.0m (11.9% of sales) • Underlying EBITDA $9.2m • Underlying EBITDA margin 18.4% • Reported NPAT $1.7m • Reported EPS 1.1cps • Net operating cash flow before tax of $7.0m • Cash on hand $5.8m • Net ca
Slide 4: FY11 earnings comparison
FY11 earnings comparison For personal use only $ millions FY11 FY11 FY11 FY101 reported adjustments underlying reported Total revenue 50.1 50.1 36.7 Gross profit 23.2 23.2 18.5 EBITDA 7.9 1.3 9.2 8.5 Depreciation (1.8) (1.8) (1.3) EBITA 6.1 1.3 7.4 7.2 Amortisation (6.1) (6.1) (5.3) EBIT 0.0 1.3 1.3
Slide 5: Key features of the financial result
Key features of the financial result For personal use only • Stronger AUD resulted in unfavourable exchange rate movements reducing earnings by approximately $3m on the full 12 month FY10 period • $1.5m notional non-cash interest charge, representing the unwind of the discount on the earn-out • Adju
Slide 6: Balance sheet position
Balance sheet position For personal use only $ millions As at As at As at Change 30/6/11 31/12/10 30/6/10 30/6/11 over 31/12/10 Cash 5.8 13.4 19.7 (56.7%) Inventory & receivables 12.1 14.0 12.5 (13.3%) PP&E 21.5 21.3 21.0 0.9% Intangibles 8.2 11.2 14.2 (27.1%) Other assets 6.1 3.9 3.8 57.3% Total as
Slide 7: Key features of the financial position
Key features of the financial position For personal use only • Cash reduction of $13.9m due to – $6.6m in earn-out instalment paid to Hospira – $5.1m in loan repayments – $4.5m dividend payments – $2.9m in tax payments – $2.1m in capital expenditure • $6m reduction in intangibles reflects aggressive
Slide 8: Cash flow
Cash flow For personal use only $ millions FY11 FY10 EBIT – reported 0.0 1.9 Amortisation / depreciation 7.9 6.6 Net interest paid 0.0 (0.1) Tax paid (2.9) 0.0 Other (1.0) 2.0 Net operating cash flow 4.1 10.3 Capex (2.1) (0.4) Acquisitions 0.0 (18.4) Net proceeds of borrowings (5.1) 8.0 Net proceeds
Slide 9: Group sales breakdown
Group sales breakdown For personal use only Product sales Regional sales 3% 4% 6% 21% 42% 45% 21% 42% 16% Doryx Australia USA Astrix Korea Canada Contract manufacturing Other Other 9
Slide 10: Doryx®
Doryx® For personal use only • Doryx® our key proprietary product represents 42% of revenue • Doryx® revenue fallen 46% on prior 12 month corresponding year – Continued strength in AUD reduced earnings by approximately $3m year on year – Warner Chilcott reduced its pipeline inventories in anticipati
Slide 11: Astrix®
Astrix® For personal use only • Astrix® represents 16% of revenue and up 27% on prior 12 month corresponding year • HealthOne partnership has increased pharmacy representation from 630 stores to over 2,000 stores now stocking the product • Initiated marketing to GPs for the first time in many years
Slide 12: Contract manufacturing
Contract manufacturing For personal use only • Contract manufacturing of liquids and creams represents 21% of sales and up 11% on prior 12 month corresponding year • New grocery lines introduced by customers • Expanding effort in FY12 with new resources allocated to growing the customer base www.may
Slide 13: SUBACAP® – Regulatory update
SUBACAP® – Regulatory update For personal use only • Marketing authorisation application lodged in FY11 Europe • Launch FY12 subject to appointment of marketing and distribution partner • Successful Phase II onychomycosis study completed US • Phase III trial to be completed • Seek meeting with TGA i
Slide 14: SUBACAP® – Phase II study
SUBACAP® – Phase II study For personal use only All cures at Week 24 * Significantly superior to placebo • Significantly improved 30 formulation of itraconazole 25 SUBACAP® based on SUBA® technology Sporanox® • SUBACAP® significantly Number of Patients 20 Placebo superior to placebo at both 15 effic
Slide 15: Dividend and debt repayment
Dividend and debt repayment For personal use only • The Board has decided to preserve the company’s capital and no final dividend has been declared • The Board will make a decision in respect of future dividends after assessing the Company's operating performance at each half and outlook at that tim
Slide 16: Business strategy for growth
Business strategy for growth For personal use only Optimising current business Product development • Expansion into new territories/markets • Lifecycle management - new dose • Vigorous defense against generic strengths, formulations competition • New drug development – improved • Improved manufactur
Slide 17: FY11 milestones
FY11 milestones For personal use only Achieved • SUBACAP® dossier lodged in EU • Successful Phase II trial of SUBACAP® in the US • Doryx® Settlement agreement with Heritage and Actavis • Maiden dividend and special dividend paid • Restructured business to deliver ongoing savings estimated at $2.9m p