APNHY (APNHY) Q4 2026 Earnings Report, Transcript and Summary

Good morning, and welcome to Aspen Pharmacare's 2026 Annual Financial Presentation. Thank you all for joining us this morning. Just to quickly run you through the agenda. This morning, Stephen Saad is going to give us an introduction and overview. He will then hand over to Sean Capazorio, our Chief Financial Officer, who will run through the financial performance for the year. And Stephen will then return to give us an overview of the operational update, strategic update and financial guidance for the next financial year. We'll conclude with a Q&A session. [Operator Instructions] With that, I'm going to welcome up Stephen Saad, our Chief Executive Officer, to give us an introduction. Thank you, Stephen.

Thank you very much. Thank you, Roy. Thank you for that. Good morning, everyone. And sorry, my voice is a little croaky. I think it's because it's a cold, but it might also be because of some pretty solid support and on Saturday for the rugby, but we'll see how far we get through this. So we've got a presentation for you. But on my route here, I was just reflecting I could pick 5 things and 5 hallmarks of really great businesses. What would I choose either to run or to own? And I came up with 5 points, and I'm not sure these aren't in books, but these were my view. One, a dependable business; two, a resilient business; three, a business with a bit of sizzle; four, business that creates value; and five, a business that's enduring. And I try to see where Aspen positioned against those 5 key areas for me. And in terms of a dependable foundation, something that you can ground your business on. You can be -- give you security over your earnings, your cash flows. Our commercial pharma business in emerging markets has demonstrated that publicly for more than 2 decades. And if there was any confusion about how well positioned that business is both for now and in the future, I ask you to look at how many innovator multinationals, the biggest in the world, say Aspen in your emerging markets -- in some of your emerging markets, we're trusting you with our IP because we think you can do a better job in that -- in those territories than we could do by ourselves. So that is what I call a dependable foundation. And it's something that it never varies too much. It doesn't go -- doesn't shoot the lights out and grow 100%, and it doesn't go to 0. And then a resilient business. And a resilient business is particularly important in the type of business, for example, that Aspen has in that we have a global business. So every shock hits us. And if you think about where we started with a 0 base in Durban and to move into a very high-technology business like pharmaceuticals, really we're sort of one of a kind. But the reality is we do difficult things, really difficult things. And in order to be successful, we have to challenge so many boundaries. We certainly take -- taken many knocks, more knocks than we would like to have. But I will tell you this much, although you battered and bruised at all of this, we simply never go away. And we try and learn a lesson from each knock, and we try and learn that lesson just once. And then we have to modify strategies from those learnings. And I believe that if you've been watching our results over the last period, you'll see a demonstration in these results, and you'll see the future as well, which shows how resilient this business and how well we learned and how we take those learnings to drive future growth. Talking of future growth, I come to Sizzle. What is Sizzle? That's something that gets you wakes you up and gets you excited and positive. It's about your future growth. It's what you add on to your foundation in time as it matures. And we've invested for a long time in 2 areas, and we're starting to see green shoots now, and we'll see -- and we believe we'll build on these in the years to come. And those 2 areas are steriles, our sterile manufacturing business and our GLP-1s weight loss. We took a bet on the weight loss category long before it was popular or the category to be in. And in terms of the GLP-1s, it is an exciting area for beers, and you'll see it during the presentation. The steriles is particularly pleasing to be talking positively about it. It was just less than -- just over a year ago that we lost the contract. And at the time, I said to you, we might have lost the milk, but we didn't lose the cow, and we're in a good neighborhood. Of course, having all the tariffs noise at that stage was also particularly amplified in pharmaceuticals. So it was a particularly -- it was a period of quite deep despair. But you'll see it's come back, and we'll talk about it in numbers and the future of it. But we're really comfortable and we're excited about where we've invested in both of them. Then creating value. This is often a very contentious area, and I sometimes do it on a back of a red box and people give me lots of formulas and all sorts of other things. and it's quite hard to work out what is and isn't there. But when we look at it, we've done many, many transactions over the years at Aspen. We've made divestments of big, big assets. And in all instances, and you can go through the history, we've sold those assets. And this is going to come to what we think about sum of parts, et cetera, but we sold those assets for double digits. And for me, it's a very simple story. If you're really unsure of Aspen's created value, I put this to you, we've never issued shares. I'm glad to say this is the first time I'm going to say this in 25 years. We don't have debt, and we're going to deliver ZAR 9 billion -- over ZAR 9 billion of earnings next year. So for me, that's creating -- to me, that is value creation. The final point is an enduring business. An enduring business is one that's got to be able to last the business -- it's got to be able to last the distance. It's -- to be able to last the distance, in my opinion, it has to be purposeful. You've got to contribute meaningfully to society. I fully respect and we fully respect and appreciate and focus on all those very important financial and commercial metrics. Without those, you achieving those is very hard to be purposeful. But in equal measures, we focus on how we create access to medicines, access to patients. I think our track record there is well known, be it in ARVs, COVID and access to Africa. But in this presentation, I think we're on the cusp of increasing that contribution and be able to assist those that are vulnerable even more and with a particular focus on Africa, and we'll talk about that, too. So when I go through those 5 yardsticks and I look at where we are and where we're going to, I'm really comfortable we've got a hallmark of a great business. So thank you. Thank you for that. And from here, let me click on to the presentation on to where we are. So let's start with a welcome. Thank you for being here. Where is -- here we go, sorry, apologies. And let's look at our performance and overview. So as Roy said, I'm going to just give you a quick snapshot of what we set out to do, what we've achieved, and then I'll hand it over to Sean, and I'll come back for effectively the performance, the strategy and the guidance. So what were our 6 core objectives? And I encourage all of you to look back over the last couple of years as to the objectives we set ourselves. These are not new objectives. This is what we told you we hope to do last year. So in terms of a dependable foundation, our commercial pharma momentum, it endures. We had a 13% growth in constant exchange rate and EBITDA, and that built on double-digit growth in financial '25 as well. For '27, we expect to sustain organic growth, led by emerging markets. We've got -- we're starting to realize our GLP-1 investments. We -- I'll show you some charts later as to the type of growth we're seeing in South Africa, how Mounjaro powers the entire South African private market. And we've started a process of now registering in Sub-Sahara. We're commencing our GLP-1 generic global growth rollout. We've got 2 products registered now in Canada and the emerging markets will follow. And Brazil, we believe we're relatively close and is under review. Manufacturing growth engine. So this is what caused us a bit of a hiccup in the last period. What we guided you was that we lost a contract that cost us ZAR 1 billion. And to get back to breakeven in steriles, we needed to make ZAR 1.7 billion of EBITDA. And we had to do that over 2 years, financial year '26 and '27. That's what we targeted ourselves. Sean will show you now, we achieved ZAR 1.2 billion of that in financial year '26. For 2027, we will raise that guidance from ZAR 1.7 billion to ZAR 2.2 billion. And that's a function of growing volumes, growing revenue and reduced costs. And we'll give you a sense of where those revenues will get to and where the profitability, what drives it. But I'm very happy to say I think that this will be the primary driver of group growth. Of course, a rapid take on of GLP-1s could change everything. But right now, if you look at where our budgets are, it's a primary driver of group growth. We also told you last year, we would look to unvalue where we saw value beyond what we could achieve, we would look to the sum of parts, and we believe that the sum of parts of our business is not represented in our share price. We invested the APAC business for ZAR 28 billion. That was an 11.5x EBITDA. People I know I'm going to be asked and have really been asked, would you continue? Yes, we will respond to any opportunities to unlock values for the summer pass where it makes sense for Aspen. Big focus from Sean and the financial team and the whole of the company on free cash flows and a really commendable performance, ZAR 3.8 billion of free cash flow generated. We had net cash of ZAR 0.8 billion, ZAR 800 million in the bank. I've got to say that slowly. I remember once somebody asked me, I think in the last presentation, what would you do? I said I'm just going to look at it for a while. And in fact, we started a share buyback program, which was at ZAR 0.5 billion at the end of the year, but has now stretched to ZAR 2 billion or 3% of the company as of recently. The free cash flows will be driven -- we'll be driving even stronger cash flows. I mean, very simply, we've got -- we'll be showing you that our EBITDA is going up. Our finance costs go away, and we don't have -- we have very stable capital investments. We've seen significant earnings growth. That's been a priority for us. And we got -- we achieved 28% growth in continuing operations in NHEPS. We expect substantial future growth in NHEPS, more than 50% going into financial year '27 with more than ZAR 9 billion of EBITDA. And obviously, the interest savings will be whatever the finance costs were in this year, which was about ZAR 1.2 billion. So those were 6 key commercial objectives, and they were core to us. And I believe we can tick the block on all of them. You will see in our results in this period, flat revenue and a very big growth in NHEPS. And really, it's operating leverage that has driven these efficiencies. And it's also some of these efficiencies that will be annualized that leads to an increase in a raising of our guidance on the sterile finished dose form. So in this year, you'll see in our commercial pharma, the double-digit EBITDA growth outpaced sales growth. Manufacturing, we grow EBITDA despite a decline in revenue. We've got a reshaped sterile business more than recovered ZAR 1 billion contract loss. So when I talk about resilient businesses, these are the things I'm referring to. And then we've put a lot of work into heparin, and we've got this fantastic new streamlined process, which gives us cost reductions, lower inventory levels, both in value and volume. And you'll see that when we talk about heparin give you guidance later. And so -- and it's been -- the manufacturing has seen many sustainable benefits from the numerous restructuring processes. For financial year '27, as I said to you in the opening slide, we raised our guidance for steriles by ZAR 0.5 billion. And when I say guidance, it was in the last presentation, we told you we were targeting ZAR 1.7 billion. So that's been raised. And the EBITDA will increase very strongly there because the costs are relatively fixed. So you've got increased volumes, increased value off a lower cost base. And then there will be further cost reductions as we disentangle from the divestment that we made in the APAC region. So with that, thank you. That's my introduction. And with that, Sean, I'm going to hand over to you, and you'll see me a little bit later. Thank you.

Thank you, Stephen. A very good summary of a very exciting year that's passed. And you can see that we've delivered on all our key commercial -- all 6 commercial objectives, and that really marks an inflection point for us for sustained future growth and that you'll see that theme coming through in my presentation and back to Stephen as we move through the discussions. On to the numbers. On the first slide, you'll note I've got a pyramid there. Those of you that have been following Aspen for a very, very long time, will remember this pyramid from my inaugural presentation back in June '22. And I'm very, very pleased to say that the pyramid has returned this year, and we are absolutely focused on retaining this pyramid. What does the pyramid mean? It means as you go down the pyramid, the growth gets bigger. So this year, if I start at the top in constant exchange rate, our revenue was flat, and I'll unpack that later. But in that flat revenue, we had growth in commercial pharma and a decline in the manufacturing. If we go down to the EBITDA from -- we've grown our EBITDA at 14% -- moving down to NHEPS growth of 28%. And very pleasingly, as you saw from Stephen's slide, ZAR 3.8 billion free cash flow, so a significant growth in our free cash flow. So we're very happy with the shape of the pyramid. And as I say, we're absolutely focused on retention. And what's going to drive its retention is us continue to realize these efficiencies in all of our value-enhancing and operational efficiency projects. What are the key takeaways from a commercial financial perspective for the year? Well, commercial pharma this year has been our primary organic growth engine. You'll see that coming through all the numbers with Mounjaro being a big underpin there plus our organic growth in our emerging markets. On our manufacturing side, we've demonstrated operational improvement, and you'll see that coming through in the numbers that I'll take you through. If you take the combination of those first 2 takeaways, that's given us operating leverage, which has driven the EBITDA and the NHEPS growth above revenue, as you've seen in the pyramid on the left. In this year, we've also had lower CapEx and working capital investment, and that's generated strong free cash flow of ZAR 3.8 billion. And that's given us the opportunity together with the APAC divestment to have a very -- to end the year with a very strong balance sheet in a net cash position of ZAR 0.8 billion after share buybacks of ZAR 0.5 billion. And as we said, we -- I think as at 2 days ago, we announced a 3% share buyback at ZAR 2 billion of investment. So we continue to buy back. Moving on then to the group revenue. Overall, if you recall from our first slide, we ended with a flat position. If I have to unpack that into the 2 components and look at commercial pharma first and then manufacturing. Commercial pharma, we grew the year at 5% -- that 5% was, however, diluted by our reshape program in China, where we identified a lot of unprofitable products that we discontinued. So you'll note that it doesn't affect our EBITDA, but obviously it affected our top line. So that impacted our growth. If we take that out, our growth, excluding China, was 7% in constant exchange rate. Within our Prescription division, the China discontinuations resulted in a minus 3% decline there. If I move then on to our injectables, there, we grew at 16% and Mounjaro, obviously, the momentum in Mounjaro and South Africa was a key growth driver there. And very pleasing. Next year, you'll see the rankings change, but injectables is now our biggest revenue generator. It's now outperformed the prescription division at ZAR 9.2 billion of turnover. OTC had a strong year. Unfortunately, we did -- it was diluted by the impact of the Middle East, where we have quite a strong OTC presence. So we grew at 3%, but unfortunately diluted -- the strong performance was diluted by the Middle East conflict. On the manufacturing side, we had a 10% decline in revenue, and that was driven by the loss of the mRNA contract that Stephen spoke about earlier on. Moving on then to our key segments in the business. And what I've got on this slide is on the left, I've got the commercial pharma revenue and normalized EBITDA comparing '25 to '26. And on the right, I've got the manufacturing with the same comparators. So if we start with Commercial Pharma, revenue growth, which I've taken you through already at 5% in constant exchange rate, a nice steady and strong growth of 13% in EBITDA, and that was underpinned by good organic growth in our business, very stable gross margins. We're very proud to have kept our gross margins stable over the last 5, 6, 7 years. And then obviously, we also had the benefit of the reshape in our China business model, and that gave us operating leverage to drive 13% and double-digit EBITDA growth. Also pleasing to note that we've -- that obviously resulted in an increased EBITDA margin. So EBITDA margins in Commercial Pharma have hopped up from 25.6% to 27.1% in FY '26. Moving then to the right to manufacturing. I think we've covered the revenue already. The EBITDA, a 21% increase in constant exchange rate, moving from ZAR 647 million EBITDA last year to ZAR 828 million, just under ZAR 200 million increase. Two moving parts there. We lost ZAR 1 billion of mRNA contract. However, we -- through our reshape program in our FDF sterile, we were able to grow that EBITDA by ZAR 1.2 billion. So more than offsetting the ZAR 1 billion loss and resulting in a net -- just under a net ZAR 200 million increase in EBITDA. These are only the initial benefits. And obviously, the -- going into FY '27, we will see the annualized benefit of the reshape program benefiting the growth in the new year. On to our group normalized EBITDA. I'll just quickly just talk you through the table so you can absorb it. So we've got -- we take you through revenue, gross profit right the way down to normalized EBITDA, and I'm comparing FY '26 to FY '25 reported. And then on next that, I've got constant exchange rate FY '25 and then all the growth factors on the right. I'm going to keep to constant exchange rate trends. So what I'll start with is our gross profit. Gross profit grew 4%, ahead of the flat revenue of 0 and a nice jump in the gross profit percentage, up from 41.6% to 43%. What drove this increase? Well, certainly, the key driver was our sterile FDF recovery that I've talked to you through already in the previous slide. So there was a strong augmentation of the gross margin and then also underpinned by very stable commercial pharma gross profit percentages. So a nice overall trend there. When we look at operating expenses, we've enjoyed a decline in our operating expense base of 4% this year, driven by the reshape benefits. expenses coming in at just under 25% of revenue as a ratio, so well below last year's 26%. And you can see, if I flip then down to the normalized EBITDA, how the -- if you take the 4% gross profit and the saving in expenses, how that leverages you to a 14% growth in normalized EBITDA. And so that's a really pleasing result and our EBITDA ending the year at ZAR 7.7 billion. We do -- based on our guidance for '27, we do expect our EBITDA margins to continue to increase well increase in FY '27. Probably my favorite slide. We generated a very strong free cash flow this year of ZAR 3.8 billion, and we will look to sustain this growth in FY '27, and I'll talk through that in a later slide. But just to sort of unpack this slide, if you look at the graphs, I've got a comparison from FY '24, FY '25 and FY '26. The first bars are our cash generated from operations. The blue bar next to that is our CapEx spend and the very dark blue is our free cash flow that we've generated, which is the net of those 2 numbers. So looking at our cash from generation, you can see cash from operating activities. That's -- you can see we took a dip in '25. We went down from ZAR 6 billion to ZAR 5 billion. And this year, we ended pleasingly at ZAR 6.8 billion. So a nice growth over the last 2 financial years from a cash from operating activities perspective. In terms of CapEx, a very nice trend there. You can see we started '24, we were at ZAR 5.5 billion of CapEx, down to ZAR 5 billion in '25. And this year, we ended the year at ZAR 3 billion. So when you look at all of that from a free cash flow perspective, ending the year at ZAR 3.8 billion this year, last year, almost a breakeven free cash flow and the previous year, ZAR 700 million. So a significant leap in free cash flow and certainly something that we're going to continue to drive going forward. What are the contributors to this strong free cash flow? Well, our strong EBITDA growth of 14% is a key underpin. We've also continued to drive more than 100% operating cash conversion. Our working capital ratio this year ended at 44% of revenue. Last year, it was at 47%. So a nice drop in that ratio. Our finance costs were lower this year due to a better cash flow and the benefit of the APAC divestment in the last month. And very importantly, our capital expenditure was ZAR 2 billion lower than that of FY '25, as you saw from ZAR 5 billion down to ZAR 3 billion. If you remember from the last previous 2 presentations, we were guiding CapEx of ZAR 3.8 billion. So we've managed to generate ZAR 800 million of CapEx savings this year. Of that, ZAR 400 million is a real saving and ZAR 400 million will be carried forward as CapEx into the new year. But all in all, when you put all of that together, you can see a very good trend there and obviously gives credence to the pyramid that we spoke about earlier on. Then moving on to the APAC divestment itself, really an intrinsic value unlock moved us into a net cash position together with our strong free cash flow. So just unpacking some of the elements here. This transaction was completed effective 31 May, ZAR 28 billion proceeds -- gross proceeds generated with a profit on sale of ZAR 2.4 billion, which benefited our earnings per share. But the very important point I want to make, this is an indicator of the underlying asset value of the sum of our parts at 11.5x multiple. So certainly a big indicator of what value we have created in this business and what value can still demonstrate if we continue to look at our sum of the parts value unlock strategies. From a financial effects perspective, it's the APAC divestment has resulted in a materially stronger balance sheet, also giving us flexibility for capital allocation opportunities, hence, our movement into share buybacks. And I just wanted to alert you that we obviously will lose free cash flow with the divestment, and that's around ZAR 600 million that we'll lose. And that's a combination of losing ZAR 1.6 billion of after-tax earnings. We do, however, save interest after tax of just under ZAR 1 billion and a little bit of CapEx. So net-net, we're going to lose ZAR 600 million. So when I talk about driving stronger free cash flow in '27, we've got to cover this ZAR 600 million plus to get to a better landing next year, and that's our target for 2027. Large earnings adjustments, be they in the normal earnings or the headline earnings or normalized earnings, and the 3 buckets are intangible asset impairments, our restructuring costs and the profit on the sale of APAC, all coincidentally, all quite similar numbers in absolute terms. So maybe if I start with the intangible asset impairments, there, we picked up a charge of ZAR 2.3 billion for the year. Bearing in mind that there's no cash impact for this. This is an accounting entry. For this year, specifically, the impairment was a result -- mainly as a result of increased discount rates because of geopolitical and macroeconomic volatility. So certainly something outside of management's control and a technical impairment. If you look at our overall intangible asset portfolio, we've got -- we retain a valuation of more than 45% above carrying amount. But unfortunately, in accounting terms, you only write down, you can't write up above carrying amount. So you have to take the impairment. And just important to note that this premium of 45% is supported by the sustainable organic growth in commercial pharma, which Stephen has spoken about and that we've demonstrated as part of our DNA and our deliverables over 2 decades. Moving on to restructure costs. There, we picked up a charge of ZAR 2.3 billion for the year, of which ZAR 1.4 billion as a cash impact and about ZAR 900 million relates to impairments. And these restructuring costs have been incurred to drive sustainable efficiency benefits, not only we've enjoyed some of them this year, but also sustainable benefits into the future. And basically, based on the programs that we've already implemented, we -- that's given us the confidence to raise our sterile EBITDA growth guidance that Stephen spoke about, where we're confident to now raise that by ZAR 0.5 billion to ZAR 2.2 billion based on the efficiencies that we're going to be driving out of these restructuring projects. On the profit of APAC, profit on sale, that speaks for itself. It's ZAR 2.2 billion, and that's all cash. So that -- and that came from the ZAR 28 billion proceeds unlock. So I think the 2 important takeaways from this slide are the one is that -- if you look at the net cash impact of those 3 buckets, the cash outflow, which is the ZAR 1.4 billion in the restructuring bucket is more than offset by the ZAR 2.4 billion. So you've got ZAR 1 billion surplus there in terms of the 3 when you're looking at it from a cash perspective. And very importantly, the restructuring-related costs have been incurred to drive sustainable returns, not only for this year, but for the future, and Steve will unpack that in some of our outlook slides. Moving on to next year. We have guided substantial normalized earnings growth for next year for FY '27 and stronger free cash flow. If we look at the 2 elements of that, what's going to drive that? Well, in our guidance, we've guided that we're going to get to a normalized EBITDA of at least ZAR 9 billion in 2027, which implies that you're going to grow your normalized EBITDA over FY '27 by ZAR 1.3 billion being the difference between the ZAR 7.7 billion and the ZAR 9 billion. That is underpinned by our sterile growth being the main driver of growth and also solid and continuing organic growth in our commercial pharma business. On top of that, we're going to save interest. Obviously, we don't have debt anymore. We're going to have the interest saving of more than ZAR 1.2 billion. And if you just take the after-tax impact of those 2 elements together, that gives you an earnings benefit of over ZAR 4 -- so when you look to the right, I've got the stepped program of where we see our NHEPS progressing. So looking at FY '25 to '26, moving from ZAR 6.25 to ZAR 8.02, a 28% growth that we've spoken about earlier on, and we look to be driving substantial double-digit growth in FY '27 of more than 50% being the ZAR 4 over the -- more than ZAR 4 over the ZAR 8 that we did this year. Looking at the free cash flow, we look to drive stronger free cash flow in FY '27. As you picked up from the previous slide, we've got to still recover the APAC free cash flow loss. And the underpins of this are going to be our EBITDA growth, lower finance costs, stable capital investment and really just disciplined -- continued discipline in our capital allocation. So we're very happy that we're confident that we will drive stronger cash flow. And you can see, again, just to repeat what I showed in an earlier slide, our free cash flow in '26 was ZAR 166 million, up to ZAR 3.8 billion this year, and we're looking to drive stronger free cash flow into the new year. That is all on the profit and the cash flow metrics. But we -- as Stephen said, we never take our eye off our very important ambitions and sustainability projects. And as you know, we've got 16 goals that we aim for across the group, and those have been published. Of those 16 goals, we've got 4 key pillars that we've put an absolute target on and progress that we want to maintain. And those are our patients, our people, society and environment. On the patient aspect, we've now been able to quantify. It's still subject to final verification, we've been able to quantify that we've been able to reach more than 165 million patients in emerging markets with our critical and essential medicines. And obviously, our target is to grow that well, grow that to our end state point of 2030. Some of the little underpins there, we've obviously made good progress in our vaccines, serum vaccines and on the human insulin manufacturer. You've seen the progress that we're making on our branded and our generic GLP-1s, and there's also some good progress in the AOV space in terms of further licensing agreements for new AOV technology. So those are good green shoots to drive us for further growth in patient access. And patient access, obviously, is the DNA of Aspen. That's our key North Star. Looking at people, we were at a point where we're at 32% gender balance in our top leadership positions for women, and that's nicely up on 19% in 2020 and targeting well towards our 2030 objectives. On society, we've made good progress in our supply chain plan. We've actually screened over 2,000 suppliers from a responsible supply chain program perspective, and we continue to achieve our group ethics and compliance program goals. Last is the environment. At the moment, for this year, we are at 34% reduction in Scope 1 and 2 carbon emissions with FY '20 being our base year. And maybe one call out for this year, which we're very proud of is we have increased our renewable energy usage from -- to 26% from 19% in the prior year. So really a strong progress in the renewable energy space. I think that's all on the sustainability. We've got lots of other goals there, but we're always very balanced in looking at profit, cash flow and also our sustainability goals. I'd now like to hand back to Stephen, who will take you through the performance overview and the outlook for the year ahead. Thank you, Stephen.

Well done, Sean. Excellent. Thank you. Thanks, Sean. So we can all run a business from an Excel spreadsheet, and you do start with that. But what you will see -- what I hope you've seen through these numbers, and hopefully, that I present further is you've got to be able to execute on it. And this is something that it's been a tough year. Reshaping is always tough. But what we have got, what is clear is that we are back on the horse. -- and we've got the reins firmly in hand. And so Sean shown his pyramid and his pyramid went from a flat EBITDA -- a flat revenue rather to NHEPS growth of 28%. And what I hope you're going to see now and understand for '27 is we don't start with flat revenue. We've got growing revenue and an even quicker growing NHEPS as well. So the triangle is important. It's not always easily achievable, but it's certainly a demonstration of having the reins firmly in hand. Let's have a look a little bit at the performance and the outlook for Commercial Pharma. Our revenue, excluding China, grew at 7%. Growth was led by South Africa and Brazil. South Africa was driven by Mounjaro, and we'll look at that in a little bit of detail. The Middle East was obviously negatively impacted by regional conflicts. But before COVID or 20, whenever, about 5, 6 years ago, we'd have one world event and we talk about it. Now we have an interruption in the business every year, almost every single year we've had over the last 6 years or so, an interruption of some sort. So you get used to it. The Middle East conflict has impacted our sales, has impacted our profitability commercially. But it has bigger knock-ons. For example, it has an impact on solvents, which go into our APIs, particularly expensive in ARV APIs. It goes into plastics. And we use a lot of plastics with our blow fill seal technologies and with our anesthetics. So it's more -- and of course, all the other things you hear about transport and trying to move stuff around. So it has a knock-on implication. But I'm not going to bore you with all of those because we now take that as part of running a global business. We've had 13% EBITDA growth. And this, as I said in our first slide, it retained the momentum from financial year '25. The emerging markets are definitely our growth engine. We've reshaped China, which has positively impacted EBITDA. So you're seeing product discontinuations. A lot of those were former Sandoz generic products. And we have more products to take out and some of the 300 million is annualized. But through all of that, you'll see a declining turnover, but we will not see an EBITDA that's unfavorably impacted. The South African rand has been very strong on generally against our basket of currencies, and that dilutes reported revenue. So being a rand hedge stock is not always a positive. So in terms of financial year '27 outlook, we see our base business growing in mid-single digits, both in revenue and EBITDA. And we have been very conservative in adding the GLP-1s and what GLP-1 turnover is. Of course, success in Canada, Brazil, et cetera, rest of Sub-Saharan Africa will positively impact. But we have been -- in giving you these estimates, we have been very conservative on those. Let's have a look at Mounjaro. Mounjaro, the GLP market is unbelievably has nearly doubled. It's got to ZAR 2.8 billion. and Mounjaro has gone over the last 12 months from 15% of the market to 53%. So Mounjaro's turnover is effectively what has grown that market. The demand has surged. It's been -- it really has been exponential actually. And when you have a look at the total private market in South Africa, grew at 5%, 5.2%. Mounjaro alone was 40% of the growth. So it's been -- it's grown the entire pharmaceutical market. And if we take all the other products, they account for 60%. Every other pharma, Mounjaro alone accounted for 40% -- when we look at where we are in terms of the opportunities, we have GLP-1 semaglutide generic. We've had -- we've got registration for a dossier in Canada. In fact, 2 dossiers, we had a second. Both of them are dependent on an API supply. And we wait to see when that supply will reconnect. It will -- we will have a very good position by the end of this month or before the end of this month. So the next 3 weeks or so are pretty important. At the moment, there have been no red flags, but we're in the hands of the -- of how that API turns out. We've got numerous emerging market submissions out across many of the geographies, mainly emerging markets because the patent in emerging markets, aside from Canada, the patent in emerging markets comes off sooner. As I said to you earlier, our Brazil dossier, we believe, is advancing. And all of these opportunities have potential to contribute to financial '27. And depending upon how early we get in, they could make a meaningful -- should make a meaningful contribution. On GLP-1s, Mounjaro, we've -- I've shown you the momentum in South Africa. We're hoping to do more than ZAR 2 billion of sales in financial year '27. We have submitted in Kenya and Nigeria. And those -- and then there will be the next waves that follow, but there's potential for Kenya and Nigeria to contribute to financial year '27. Manufacturing performance. We've had EBITDA growth, as Sean pointed out, despite lower sales, and that's really been driven by efficiency projects. We had over ZAR 1 billion swing from H2 last year. And the sterile finished dose form was impacted, as we've discussed with the lost contracts, but it was -- it's been successfully reshaped for positive EBITDA in financial year '27. If ZAR 1.7 billion was going to get us to breakeven, that gets us to ZAR 500 million and hopefully a little bit more. And of course, we've got turnover drivers, which we'll cover later, but the commercialization of the insulin contract in South Africa was an important landmark for us as well. I've done something which we haven't done in the past, which is to really split out the manufacturing business, so you can have a look at what the drivers are and where the profits are. The finished dose form other, which is quite a big growth here, really is -- has increased sales, but it's got limited profitability. So I'd almost scratch it out if I was looking for profitability. The biggest driver of profitability is if the finished dose form steriles grow and if the APR business' turnover goes up. But just before we flick on, you'll notice that the sterile business went from ZAR 3.8 billion to ZAR 2.4 billion, which is a significant downward movement, and we'll see where that goes to now, but understand, of course, that was the contract. So what is the outlook for manufacturing? We are forecasting revenue growth of greater than 50%. So if you go back to the last slide, that takes you back to where you were turnover-wise with the contract. but it's off a much lower cost base now. So you're going to make much more profitability now than you did then. And it's also helped us. It's -- we've raised the guidance to -- by ZAR 0.5 billion to ZAR 1 billion for this year alone. Heparin, and that is why in my earlier slide, I said I was really pleased about the process improvements and fixes in heparin. Heparin, I've told you over the years, has been a positive in our results and a negative depending upon where it is or was in the commodity cycle. We've done a lot of work to make sure that commodity cycle does not impact us. So you're going to see turnover decrease, substantial decrease in turnover in heparin, but you're going to see the EBITDA doesn't change. And that's shielded because we've got lower sourcing costs, which are matched and they'd be higher if the price goes up. So it's matched to the price. So we've managed to link that. And these -- the new processes we've worked through have really given us the savings and the ability to hold more and less stock. So we're in a fantastic position. It's taken 10 years to get here, but we've got a model that works. APIs, I've told you, a very profitable section of the Aspen business. And you'll see this year, they returned to growth. It's driven by improved supply of something called human chorionic gonadotropin. It's a product used for fertility and it was -- and you actually have to harvest the urine from pregnant women. And we battled with supply, and it's been -- but it's been positive now that supply. And we also have some new product launches. It's a business that takes on clinical products. And if one of them works or 2 of them work, you've got a client going forward. So it's often dependent on that. And it looks like there's -- some of those are going to come to fruition. In terms of the finished dose form other, the sales will double driven by the APAC. But as I told you earlier, don't get excited about it. There's not a lot of profitability attached to that. So APAC is the region we sold, and we've got to now provide product to that region out of our manufacturing. So steriles. The sterile finished dose form is our primary driver of increasing in the whole group's profitability, we believe, this year. And the tariffs made it a very, very tricky time for us on top of losing the contract, and we -- there might have been some linkage there as well. But what we are seeing is clients an increase in clients in normal business and growth in businesses that we have. So we're forecasting revenue to grow by 50% for financial year '27. It's a significant driver of profitability. As I said to you earlier, it's a limited incremental cost, a lower fixed base and that leverage, turnover up, cost down is what adds to bottom line growth. We're going to see revenue growth in both South Africa and France. There have been the material volume increases across both sites and with volume, take it as revenue as well. And that includes aside from insulin portfolio expansions and just base volume increases from our clients as well. So very, very much more positively placed than we were a little while back. What are some of the near-term future opportunities? We've had the WHO come and visit us. And this is needed in order to get the pediatric vaccines for HEXA and the PCV as new and HEXA is 6 different components or 6 different antigens that address things like whooping cough, diphtheria, polio, et cetera, all in 1, 6 in 1 and then PCV, which is for pneumonia, it's all the variants on pneumonia. So a pneumococcal vaccine. They're both very high-volume vaccines. We need the WHO PQ. PQ means prequalified by the WHO. They completed their inspection at Aspen. We hope to get the results -- positive results, hopefully, from that. And then we're hopeful that we will have prequalification in this calendar year. There are -- I'm happy to say when I spoke to you previously around tariffs, I said all conversations have died. There are other opportunities under discussion and some progressing. And hopefully, these will sustain the momentum created in the Sterile business. This is probably one of the most exciting developments in ARV if we're registered in combating HIV. It's -- so before I get to that one, which is the license from Merck, let me just tell you, we also -- we got the FDA approval for our site to make a triple-dose ARV. So instead, we're now not just going to supply South Africa only. We're going to look at broader Africa volumes and the donor funding into those African markets around ARVs. But there's really an opportunity with MSD for a new product. It's a once-a-month oral HIV prevention tablet. So really handy to take. It's not every day, once a month. It's an innovative new dosing approach for the fight against HIV, and it's currently in Phase III clinical trials. And we're really hopeful that, that does come through for all people across the world and particularly for Africa. So with that and having looked at where we were, I'm going to give you some guidance as to what we -- where we are. So if you remember in the last presentation, we showed you, listen, we've done ZAR 9.6 billion of EBITDA in 2025. We divested Australia and we lost the contract. And in total, although we got ZAR 28 billion, we lost ZAR 3.6 billion of EBITDA. So we got an adjusted base of ZAR 6 billion. We've achieved growth of ZAR 1.7 billion on that ZAR 6 billion, so just nearly 30% of that base for financial year '27. And we will get -- our intention is to get at least a further ZAR 1.3 billion to achieve ZAR 9 billion of EBITDA, which -- if we get to ZAR 9 billion, that's 50% growth. Obviously, if we go beyond that, and we are telling you we want to go beyond that by saying greater then. But if we go beyond that, we need -- we'll have to grow more than 50% of that base. What drives that growth? It's really the sterile finished dose forms driven by the operating leverage. We also see APIs contributing to growth in financial year '27 with the new product. And then the commercial pharma base rollout. And the base is in here, but a global GLP-1 rollout to contribute substantially is not in any of this guidance. So sterile finished dose form leverage from efficiencies and commercial pharma organic growth with GLP-1 is additive. And so the last page on guidance is the targets we've set for financial '27. We've told you about the EBITDA. That translates into ZAR 9 billion of EBITDA to at least 17% of -- and that's just a mathematical calculation. Manufacturing, we more than double financial year '26 EBITDA. Sterile finished dose form we will achieve positive to achieve positive EBITDA. Commercial mid-single digits and EBITDA growth in both revenue and EBITDA, apologies. and commencement of the GLP-1s will be additive. I think you're going to see, as Sean showed you, substantial CER growth in NHEPS, more than 50% stronger free cash flows, disciplined capital allocation, and we'll touch on that on the next slide. And our tax rates are 24%, 25%, a little bit higher than what we were in the past. Manufacturing tends to have a higher tax cost attached to it. And as with all our results, this year and every other year before currency has an impact on our reported results. We're going to look at the capital allocation because a lot of people asked a lot of questions last time and how we see it. At the end of the day, we've got a very strong balance sheet. We're in a net cash position and balance -- having a strong balance sheet really enhances your flexibility of options. Sean has told you the CapEx will trend towards his depreciation and amortization numbers, and there's a sustained working capital focus. big prioritization on free cash flow and returns. And with the growth drivers we've got, we focused on organic growth. So we don't see any large-scale acquisitions. There's always opportunities out there at some point to get bolt-on product ranges for our commercial pharma business. So what are we going to do? We've got cash, growing cash, our preferred option is buybacks. Of course, we're going to focus on organic growth. We're going to retain the dividend payout. We're going to keep looking at opportunities to unlock some of parts. And that is in motion as we speak. So it's always -- we are looking at all those opportunities. And then the buybacks are, as I said earlier, our absolute preferred use of capital, particularly while there's such a big value arbitrage between what we've got in terms of assets versus what the market capitalization of the business. So when you look at it, if someone says, oh, you're making ZAR 9 billion or more than ZAR 9 billion next year, and I put a multiple on that. And maybe that's 7x, I don't know what our market cap is or 7.5x, whatever the number is, it's low relative to what we could get on our base. But in addition, because the Sterile business is only breaking even here, you're getting that for free in the multiple. So it all doesn't make sense to us. So while it doesn't make sense, it's great, it gives us a very clear and obvious place where to put our capital. So yes, buybacks are preferred, and we would -- and that's how capital will be allocated. I think that's the last slide. So from here, we can move to Q&A, Roy. So thank you, everyone. I appreciate your time and attendance at our meeting. Thank you.

Thank you, Stephen. Thank you, Sean. Well done. Congratulations. And thank you to everybody that has sent through some questions and especially for the messages of congratulations on a good set of results. There's been a number of those. There's a few questions that have come through. I'll try and combine because most of them are still relate to the GLP-1 story. So -- but first, the first question to come through was from Matthew. It was very early on in the presentation, and he was asking about how we will continue to respond to the opportunities within the value of the sum of the parts and whether we are in discussions with anybody. Matthew, I hope that Stephen has answered your question as the presentation has gone through. And just now he just said it's always in motion. And obviously, we'll follow the right protocol.

There's always discussions. There are discussions going on. But as soon as it becomes real and tangible, then we'll let the market know.

Let's get on to -- so Keith from Element, Jonathan du Toit from Oyster Catcher. They're just -- let me phrase the question like this. For the generalist that is now attending the presentation today, they know that there's an API supply issue in Canada. So maybe if you can just unpack what that is and what timing you expect from that?

Okay. I think for a generalist -- okay. So you have an API, that's a chemical that goes into the pharmaceutical. You have a look, it's got certain parameters on purity and all the things that you've got to stick within. And the API has not stayed in those -- within those boundaries set by the Canadian authorities. But if I -- as a generalist, I just want to know what the answer is, I think I mentioned in our presentation. We will know by the end of this month where we stand. Every day, you look at your product, you look at your API and see what's it doing. From our understanding, we are in a position where there are no red flags at this point. Of course, it can change very quickly, but the next 3 weeks are critical. And within 3 weeks, we'll be able to answer for that product and that dossier. I do want to point out that our GLP-1s are not confined to that API globally. We've got other API suppliers in other markets. So Brazil is not dependent on that API. It's just awaiting a registration.

Thank you, Stephen. And then sticking with the GLP-1s Warren from Bateleur and another question that has come through, I think, from Sharepoint just in terms of the competitive environment in the semaglutide generic in the market that you're in? And how should we think about the growth trajectory beyond FY '27?

Yes, it's going to be a very competitive market. It always will be, but there's some nuances in this market. Firstly, I think there's simply just not enough people having access. And for those people that can get access, it's very expensive. So in a world where it becomes affordable, I believe that there will be a very big explosion of volumes, particularly across emerging markets, which have not been supplied at the volumes required. But you will see an explosion in those volumes. Those volumes because it's sterile are not simply like making more and more tablets. So there's there will be -- in my opinion, you will see prices drop. They will be less than half the price of the innovative products in semaglutide. But I think that it's going to be very interesting to see how many -- and for those of you that aren't a lot of -- there's a lot of copy products and not even registered even take South Africa. I'm sure you've all read where the people are compounding these products, just putting -- going to the gym instructor, the beauty salon, wherever -- everyone is an expert in giving our products unregistered. And I believe a lower cost profile will actually -- will mean a lot of switch out of those products. I mean the nonregistered product is thought to be significantly bigger than the registered market. So there's really a sort of black market out there, but also people who will take and say, look, I feel safe and confident with this medicine. So I think there's going to -- the market is going to grow substantially, but will it be competitive? Of course, it will be competitive. But we're used to competing. And we're well positioned to compete with ultimately being able to move all products into our own sterile facilities.

Apologies. Previously, it was from Sean that Ankor asked the question. Sean, does the ZAR 1.2 billion lower finance costs take into account ZAR 2 billion share buyback already done, you from Laorian.

Yes, it does because you generate cash during the year. I mean it might -- if we bought up to 20% for example, then there might be a shift into interest paid but then you've got a lot less shares. So it's a good question from that point of view. It does take account of share buybacks at this level. But as you go more and more, then you might be buying back more shares than you than cash generated.

Jan from PSG. Just a bit more detail, please, on the ZAR 923 million inventory impairments included in restructuring costs.

Sean, a lot of that -- so do you want to come in, Sean?

Yes.

Sorry. Sorry, I'm busy answering all your questions.

No, no worries. So yes, that's part of our overall efficiency enhancement projects. So there are -- obviously, as we're changing processes and structuring those various businesses, we are looking at the inventory that supports that and those will come. So an example would be, for example, the eye drop unit where we had to impair all of that inventory, we had to close down the eye drop. So that's part of it. So it's a mix of products.

Okay. Thank you, Sean. Maybe if you can just remind the market just in terms of what we have for general approval for share buybacks.

20%.

20%, yes. ust refreshing. Right. I think I have covered all the questions. Sorry, Tshepo was asking from Umthombo Wealth, he was just asking about if there's any -- referring to China and the reshape, whether there's any expansion opportunities in that region. I think he was referring to that region.

Yes. So if you're referring to China, yes, there are. But you -- I don't want to bore everyone with a lot of information, but you've got to be very, very careful where you expand and what IP you get. But the very big positive is China itself is producing unbelievable early research. And one of the advantages Aspen has is to say to a developer, we can take your product, and we'd like to take it for China. It's always quite difficult sometimes to get China from Chinese developers, but we can also take it globally and put it into our market. So there are opportunities, but we will -- and we do look and find them, but it would be to increase your portfolio. It would be a slightly different review of portfolio compared to, say, what we do in other markets, but probably the most exciting market in terms of developing IP. I think the second now only to the U.S. I'm incredible from almost nowhere clinically to where they've got in.

Good. I think I've covered all the questions that have come through. So congratulations. I think if there is anything else that anybody does want, please feel free to get in touch with myself or Sean. Stephen and Sean, I'll hand it over to you just to close off the presentation.

Well, thank you. Thanks, everyone, and thanks for your attendance. It's been a tough year, but we're really pleased with where we are. Obviously, we're nearly 1/4 of the way through the next year, and that's -- and so I sort of got to wind back in time to get here, but you are great. And -- but just to let you know, we're really positive quarter of the way through this year. What we're telling you is we're very comfortable with what we're going to deliver on. So thank you so much. Thank you.

Thank you.