Annual Financial Statements

celebrating 20 years Illustrative constant exchange rate report – Annexure 1

Illustrative constant exchange rate report on selected financial data

The Group has presented selected line items from the consolidated statement of comprehensive income and certain trading profit metrics on a constant exchange rate basis in the tables below.

The pro forma constant exchange rate information is presented to demonstrate the impact of fluctuations in currency exchange rates on the Group’s reported results. The constant exchange rate report is the responsibility of the Group’s Board of Directors and is presented for illustrative purposes only. Due to the nature of this information, it may not fairly present the Group’s financial position, changes in equity and results of operations or cash flows. The pro forma information has been compiled in terms of the JSE Listings Requirements and the Revised Guide on Pro Forma information by SAICA and the accounting policies of the Group as at 30 June 2018. The illustrative constant exchange rate report on selected financial data has been derived from the audited financial information and has been reported on by Aspen’s auditors in an assurance report, which is available for inspection at the Company’s registered office.

The Group’s financial performance is impacted by numerous currencies which underlie the reported trading results, where even within geographic segments, the Group trades in multiple currencies (“source currencies”). The constant exchange rate restatement has been calculated by adjusting the prior year’s reported results at the current year’s reported average exchange rates. Restating the prior year’s numbers provides illustrative comparability with the current year’s reported performance by adjusting the estimated effect of source currency movements.

The listing of average exchange rates against the Rand for the currencies contributing materially to the impact of exchange rate movements are set out below:

2018
average
rates
2017
average
rates
EUR – Euro 15,326 14,840
AUD – Australia Dollar 9,965 10,261
USD – US Dollar 12,856 13,612
CNY – Chinese Yuan Renminbi 1,975 1,999
JPY – Japanese Yen 0,116 0,125
MXN – Mexican Peso 0,686 0,700
BRL – Brazilian Real 3,867 4,198
GBP – British Pound 17,291 17,271
CAD – Canadian Dollar 10,126 10,262
RUB – Russian Ruble 0,218 0,224
PLN – Polish Zloty 3,620 3,440

Revenue, other income, cost of sales and expenses

For purposes of the constant exchange rate report the prior year’s source currency revenue, cost of sales and expenses have been restated from the prior year’s relevant average exchange rate to the current year’s relevant reported average exchange rate.

Interest paid net of investment income

Net interest paid is directly linked to the source currency of the borrowing on which it is levied and is restated from the prior year’s relevant reported average exchange rate to the current year’s relevant reported average exchange rate.

Tax

The tax charge for purposes of the constant currency report has been recomputed by applying the actual effective tax rate to the restated profit before tax.

Reported 
June 2018 
(At 2018 
average 
rates)
R’million 
Reported 
June 2017 
(At 2017 
average
rates)
R’million 
Change at
reported
exchange
rates
%
Illustrative 
constant 
exchange rates 
June 2017 
(At 2018 
average 
rates)
R’million 
Change at
constant
exchange
rates
%
Revenue 42 596 41 213 3 40 690 5
Gross profit 21 605 19 896 9 19 777 9
Normalised EBITDA 12 031 11 416 5 11 427 5
Operating profit 9 237 8 321 11 8 342 11
Normalised headline earnings 7 325 6 678 10 6 675 10
Earnings per share (cents) 1 316,6 1 123,4 17 1 116,2 18
Headline earnings per share (cents) 1 468,8 1 299,5 13 1 288,1 14
Normalised headline earnings per share (cents) 1 604,9 1 463,2 10 1 462,5 10
Reported 
June 2018 
(At 2018 
average
rates)
Reported
June 2017
(At 2017 
average
rates)
Revenue Currency mix
EUR – Euro 27 26
ZAR – South African Rand 20 20
AUD – Australia Dollar 13 14
USD – US Dollar 7 11
CNY – Chinese Yuan Renminbi 6 4
JPY – Japanese Yen 5 5
MXN – Mexican Peso 3 3
BRL – Brazilian Real 3 3
GBP – British Pound 2 2
CAD – Canadian Dollar 1 1
RUB – Russian Ruble 1 2
PLN – Polish Zloty 1 1
Other currencies 11 8
Total 100 100

Summarised Group segmental analysis

Reported 
June 2018 
(At 2018 
average
rates)
R’million 
Reported 
June 2017 
(At 2017 
average 
rates)
R’million 
Illustrative 
constant 
exchange rates 
June 2017 
(At 2018 
average rates)
R’million 
Change at
constant exchange
rates
%
Commercial Pharmaceuticals by customer geography 33 270 31 437 30 947 8
Sub-saharan Africa 8 127 7 459 7 402 10
Developed Europe 7 434 6 817 6 941 7
Australasia 4 816 4 799 4 658 3
Latin America 2 929 2 722 2 577 14
Developing Europe & CIS 2 780 2 589 2 611 6
China 2 415 1 753 1 748 38
Japan 1 930 1 932 1 812 7
Other Asia 1 401 1 206 1 148 22
MENA 877 1 117 1 049 (16)
USA & Canada 561 1 043 1 001 (44)
Manufacturing revenue by geography of manufacture
Manufacturing revenue – finished dose form 1 644 2 141 2 100 (22)
Developed Europe 636 638 667 (5)
Sub-saharan Africa 532 1 031 975 (45)
Australasia 464 472 458 1
Latin America 12 100
Manufacturing revenue – active pharmaceutical ingredients 4 591 4 411 4 480 2
Developed Europe 4 259 3 976 4 263
Sub-saharan Africa 332 435 217 53
Total manufacturing revenue 6 235 6 552 6 580 (5)
Total pharmaceuticals 39 505 37 989 37 527 5
Nutritionals by customer geography 3 091 3 224 3 163 (2)
Latin America 1 290 1 462 1 414 (9)
Sub-saharan Africa 1 017 967 977 4
Australasia 715 795 772 (7)
China 65 100
MENA 4 100
Total revenue 42 596 41 213 40 690 5
Summary of regions
Developed Europe 12 329 11 431 11 871 4
Sub-saharan Africa 10 008 9 892 9 571 5
Australasia 5 995 6 066 5 888 2
Latin America 4 231 4 184 3 991 6
Developing Europe & CIS 2 780 2 589 2 611 6
Japan 2 480 1 753 1 748 42
China 1 930 1 932 1 812 7
Other Asia 1 401 1 206 1 148 22
MENA 881 1 117 1 049 (16)
USA & Canada 561 1 043 1 001 (44)
Total revenue 42 596 41 213 40 690 5

Summarised Group segmental analysis

Commercial pharmaceuticals therapeutic area analysis

Reported June 2018 (At 2018 average rates)
Anaesthetic
Brands
R’million
Thrombosis
Brands
R’million
High Potency
& Cytotoxic
Brands
R’million
Therapeutic
Focused
Brands
R’million
Regional
Brands
R’million
Total
R’million
By customer geography
Commercial Pharmaceuticals
Sub-saharan Africa 143 9 99 251 7 876 8 127
Developed Europe 2 170 3 471 1 417 7 058 376 7 434
Australasia 713 21 477 1 211 3 605 4 816
Latin America 762 71 790 1 623 1 306 2 929
Developing Europe & CIS 434 1 876 406 2 716 64 2 780
China 1 779 616 20 2 415 2 415
Japan 1 213 48 372 1 633 297 1 930
Other Asia 658 151 262 1 071 330 1 401
MENA 156 159 193 508 369 877
USA & Canada 304 8 136 448 113 561
Total Commercial Pharmaceuticals 8 332 6 430 4 172 18 934 14 336 33 270

 

Reported June 2017 (At 2017 average rates)
Anaesthetic’s
Brands
Rmillion
Thrombosis
Brands
Rmillion
High Potency
& Cytotoxic
Brands
R’million
Therapeutic
Focused
Brands
R
million
Regional
Brands
R’million
Total
Rmillion
By customer geography
Commercial Pharmaceuticals
Sub-saharan Africa 144 7 126 277 7 182 7 459
Developed Europe 1 700 3 168 1 472 6 340 477 6 817
Australasia 639 25 483 1 147 3 652 4 799
Latin America 605 92 838 1 535 1 187 2 722
Developing Europe & CIS 317 1 714 472 2 503 86 2 589
China 1 453 252 48 1 753 1 753
Japan 1 293 46 408 1 747 185 1 932
Other Asia 429 176 258 863 343 1 206
MENA 231 169 275 675 442 1 117
USA & Canada 254 16 307 577 466 1 043
Total Commercial Pharmaceuticals 7 065 5 665 4 687 17 417 14 020 31 437

 

Illustrative constant exchange rate June 2017 (June 2017 at 2018 average rates)
Anaesthetic
Brands

R
million
Thrombosis
Brands

R
million
High Potency & Cytotoxic
Brands
R’million
Therapeutic Focused
Brands

R
million
Regional
Brands

R
million
Total
Rmillion
By customer geography
Commercial Pharmaceuticals
Sub-saharan Africa 145 7 126 278 7 124 7 402
Developed Europe 1 732 3 204 1 529 6 465 476 6 941
Australasia 621 25 467 1 113 3 545 4 658
Latin America 571 87 803 1 461 1 116 2 577
Developing Europe & CIS 307 1 760 464 2 531 80 2 611
China 1 435 266 47 1 748 1 748
Japan 1 204 57 379 1 640 172 1 812
Other Asia 412 166 246 824 324 1 148
MENA 228 166 242 636 413 1 049
USA & Canada 251 15 293 559 442 1 001
Total Commercial Pharmaceuticals 6 906 5 753 4 596 17 255 13 692 30 947

 

% Change constant exchange rates
Anaesthetic
Brands

%
Thrombosis
Brands

%
High Potency
& Cytotoxic
Brands
%
Therapeutic
Focused
Brands
%
Regional
Brands
%
Total
%
By customer geography
Commercial Pharmaceuticals
Sub-saharan Africa (1) 29 (21) (10) 11 10
Developed Europe 25 8 (7) 9 (21) 7
Australasia 15 (16) 2 9 2 3
Latin America 33 (18) (2) 11 17 14
Developing Europe & CIS 41 7 (13) 7 (20) 6
China 24 >100 (57) 38 0 38
Japan 1 (16) (2) 0 73 7
Other Asia 60 (9) 7 30 2 22
MENA (32) (4) (20) (20) (11) (16)
USA & Canada 21 (47) (54) (20) (74) (44)
Total Commercial Pharmaceuticals 21 12 (9) 10 5 8