Slide 1: HY14 Results Presentation
For personal use only Mayne Pharma Group Limited HY14 Results Presentation 26 February 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 Appendix 4D and market disclosures. This material is not intended to be relied upon as advice to investors or potentia
Slide 3: Mayne Pharma overview
Mayne Pharma overview For personal use only ● A specialty pharmaceutical company with an increasingly diversified portfolio of products, technologies and footprint ● Fully integrated pharmaceutical business with direct commercial presence in US and Australia ● 30-year history in drug delivery ● ~500
Slide 4: Key financials
Key financials For personal use only ● Sales revenue1 $70.0m, up 159% on pcp ● Gross margin $36.9m, up 210% on pcp ● Reported EBITDA $18.2m up 1,364% on pcp ● Underlying EBITDA2 $19.1m up 254% on pcp ● NPAT $8.4m ● R&D Investment $10.8m, up 251% on pcp ● Net operating cashflow $14.6m, up 7,145% on p
Slide 5: Group sales breakdown
Group sales breakdown For personal use only Sales revenue by segment(1) Total revenue by region(2) 100% 100% 5% 11% 10% 7% 17% 80% 80% 22% 34% 31% 60% 60% 20% 20% 40% 40% 78% 71% 20% 35% 39% 20% 0% 0% 2H13 1H14 2H13 1H14 US Generic Products USA Metrics Contract Services Australia MP Global Rest of W
Slide 6: US Generic Products (USGP)
US Generic Products (USGP) For personal use only Highlights $million 2H13 1H14 Change 1H14 v ● Majority of products now distributed directly 2H13 ● Growth in Nystatin and Oxycodone HCl Sales revenue 20.1 27.5 37% combination products offset by decline in 3rd Gross Profit 12.3 17.0 38% party distribu
Slide 7: Metrics Contract Services
Metrics Contract Services For personal use only Highlights $million 2H13 1H14 Change 1H14 v ● Excluding exchange rate impacts, Contract Services 2H13 grew 5% to US$12.6m on 2H13 in a competitive Sales revenue 11.8 13.7 16% marketplace Gross profit 4.6 6.0 32% ● Key performance measures trending favo
Slide 8: Mayne Pharma Global (MP Global)
Mayne Pharma Global (MP Global) For personal use only Highlights $million 1H13 2H13 1H14 Change Change 1H14 v 1H14 v ● Successful launch of 200mg Doryx™ tablet 1H13 2H13 Sales revenue 14.1 19.3 21.4 52% 11% ● 200mg represents more than 80% of branded Doryx™ prescriptions Gross profit 4.4 7.8 10.7 14
Slide 9: Mayne Pharma Australia (MPA)
Mayne Pharma Australia (MPA) For personal use only Highlights $million 1H13 2H13 1H14 Change Change 1H14 v 1H14 v ● Kapanol™ sales decline reversed as sales force 1H13 2H13 begins to impact prescriptions Sales revenue 4.8 6.2 6.9 44% 11% ● Sales (ex-Kapanol™) mixed performance Gross profit 2.1 2.9 3
Slide 10: Earnings comparison
Earnings comparison For personal use only Half year ending Half year ending Change $ millions 31 Dec 13 31 Dec 12 $m % Sales revenue(1) 70.0 27.0 42.9 159% Gross margin 36.9 11.9 25.0 210% Gross margin % 52.8% 44.1% EBITDA (as per guidance) 19.1 5.4 13.7 254% Adjustments (0.9) (4.1) 3.3 (79%) Report
Slide 11: Notable items
Notable items For personal use only ● Gross profit margins were stronger at 53% up from 44% in the pcp driven by the inclusion of USGP segment (GM: 62%) and significant rebound in MP Global margins (GM: 50% versus 31% in pcp) ● Underlying adjustments made to HY14 EBITDA include: - $0.2m of acquisiti
Slide 12: Balance sheet position
Balance sheet position For personal use only As at As at Change $ millions 31/12/13 30/6/13 $m % Cash 19.8 18.9 0.9 5% Inventory & receivables 47.1 39.8 7.3 18% PP&E 55.6 55.0 0.6 1% Intangibles 130.1 115.5 14.6 13% Other assets 4.0 4.1 (0.1) (2%) Total assets 256.6 233.4 23.2 10% Interest bearing d
Slide 13: Key features of the financial position
Key features of the financial position For personal use only ● Intangible assets increased by $14.6m reflecting: - $7.4m of development costs; - $4.3m for acquisition of Libertas; - $2.1m for Zebutal™ trademark; - $2.5m of amortisation; and - $3.3m of foreign currency restatement ● Borrowings increa
Slide 14: Cash flow
Cash flow For personal use only Half year ending Half year ending Change $ millions 31 Dec 13 31 Dec 12 $ EBITDA – underlying 19.1 5.4 13.7 Working capital movements & other (0.2) 0.5 (0.7) Net operating cash flow pre-tax, interest and transaction costs 18.9 5.9 13.0 Net interest received / (paid) (
Slide 15: R&D update
R&D update For personal use only US Australia ● 24 products under development ● 20 products under development targeting US markets with annual sales targeting Australian markets with greater than US$5bn1: annual sales greater than $150m1 - 3 ANDAs filed with FDA in 1H14 - 12 products pending approva
Slide 16: Business development
Business development For personal use only Australia Rest of world ● Active in-licensing program to expand ● Lozanoc™ out-licensing Australian portfolio which is focused on - Boryung appointed supply and - Injectables; distribution partner in South Korea - Pain; and - In discussions with potential p