| Thu 1 Mar 2018, 8:00 | | ASCENDIS HEALTH LIMITED - Interim Results for the six months ended 31 December 2017 |
|
ASC 201803010012A
Interim Results for the six months ended 31 December 2017
Ascendis Health Limited
(Incorporated in the Republic of South Africa)
Registration number 2008/005856/06
JSE share code ASC
ISIN ZAE000185005
("Ascendis" or "the group" or "the company")
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2017
KEY HIGHLIGHTS FROM CONTINUING OPERATIONS
Revenue up 27% to R4.0 billion
Gross margin strengthened to 44.2%
Comparable organic revenue growth of 7%
Comparable organic EBITDA growth of 5%
Normalised headline earnings up 20% to R353 million
Normalised HEPS up 7% to 75.8 cents
EPS up 24% to 52.8 cents
Balance sheet strengthened as R1.1 billion debt settled
COMMENTARY
Group profile
Ascendis Health is a South African-based global health and care group which owns a portfolio of market-leading brands for
humans, animals and plants.
The brands are housed in the Pharma-Med, Consumer Brands and Phyto-Vet divisions, with revenue diversified across
products, channels, geographic regions and currencies.
- Pharma-Med: prescription and over-the-counter (OTC) drugs; medical devices
- Consumer Brands: nutraceuticals; complementary medicines; derma-cosmeceuticals and sports nutrition
- Phyto-Vet: animal and plant health and care.
The international acquisitions of pharmaceutical manufacturer Remedica in Cyprus, European sports nutrition specialist
Scitec (both in 2016) and nutraceuticals business Sun Wave Pharma (2017) in Romania has transformed Ascendis Health into
a global healthcare business. Products are exported to over 120 countries globally and 59% of the group's earnings are now
generated outside of South Africa.
Financial performance
Note: The group is reporting normalised results from continuing operations which have been adjusted for once-off transaction
costs in the current and prior financial years.
Group revenue for the six months increased by 27% to R4.0 billion (H1 2017: R3.1 billion).
Revenue generated outside of South Africa increased by 50% to R1.9 billion and comprises 48% (H1 2017: 41%) of the group's
total sales.
The group's gross margin strengthened by 160 basis points to 44.2%. This was driven by the acquisitions of Sun Wave Pharma,
Cipla Vet and Cipla Agrimed in June 2017.
Normalised earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 28% to R653 million. The EBITDA
margin improved by 10 basis points to 16.5% despite increased investment in marketing and new markets.
Normalised operating profit for the six months rose by 28% to R602 million. Normalised headline earnings increased by 20%
to R353 million, with normalised HEPS 7% higher at 75.8 cents. The weighted average number of shares in issue increased by
12% during the reporting period, mainly in relation to the rights issue and vendor placements in November and December 2017.
Cash flow of R327 million was generated from operations, with a cash conversion rate of 50%, mainly impacted by strong
growth in the cash intensive businesses like Remedica and Medical Devices.
Vendor debt of R1.1 billion was settled during the reporting period, which included an accelerated payment of EUR50 million to
the sellers of Remedica to reduce the group's overall debt position.
The directors have elected not to declare an interim dividend and to retain the cash to settle debt obligations.
Segmental performance
Pharma-Med Consumer Brands Phyto-Vet
Revenue R1 989m R1 345m R628m
Revenue growth 20% 39% 28%
Revenue contribution 50% 34% 16%
EBITDA R425m R165m R107m
EBITDA growth 24% 24% 43%
EBITDA margin 21.4% 12.3% 17.0%
EBITDA contribution 61% 24% 15%
Growth in Pharma-Med was driven mainly by the pharma business of Remedica and the Medical Devices business, with
Remedica experiencing better than expected turnover growth of 16.5% and EBITDA growth of 14.3%. The division continues
to benefit from synergy projects in progress in Europe and South Africa.
Consumer Brands benefited from the acquisition and strong growth of Sun Wave Pharma which increased revenue by 29.9% and
EBITDA by 97.7%. EBITDA margins were however impacted by the sports nutrition businesses in South Africa and Europe owing
to higher global whey protein prices and low infill rates to customers in South Africa. In addition, Scitec's lack of
direct online presence weighed on sales, which declined by 7.8%, and margins. Remedial strategies have been implemented,
with Scitec launching a new sales and marketing programme, building digital capabilities, online strategies and specific
plans for core markets and entering new selective markets.
Phyto-Vet experienced good growth in revenue and EBITDA but was impacted in part by the ongoing drought in the Eastern
and Western Cape, the availability of funds and foreign exchange risk in some of its export markets, especially Zimbabwe.
The performance was boosted by the recently acquired Cipla business which was successfully integrated into Phyto-Vet,
and reported sales growth of 17.9% and EBITDA growth of 12.4% on a comparable basis.
Management changes
As advised to shareholders on 27 February 2018, Thomas Thomsen has been appointed as chief executive officer (CEO)
and an executive director of Ascendis Health with effect from 1 March 2018. Thomas (48) succeeds Dr Karsten Wellner(57)
who has been the CEO since the founding of the group in 2011. Karsten will work with Thomas over the next four months
to ensure a smooth transition. Karsten will stand down as CEO on 1 March 2018 and as a board director on 30 June 2018.
Outlook
The group will continue to pursue organic and more focused synergistic growth strategies across the South African and
international businesses to increase revenue growth and profitability.
After synergy benefits realised EBITDA of R19 million in the past six months, the group is targeting to accelerate
synergy savings in the next 12 to 18 months, mainly in the South African pharma and Medical Devices businesses.
Management is targeting to improve the EBITDA margin to 17% - 18% in the short to medium term. Reducing gearing levels and
improving cash generation remain priorities. Projects are underway to optimise inventory levels in the Pharma-Med and
Consumer Brands segments and to improve debt collection from private sector and government debtors in Pharma-Med.
Operationally the key focus will be on the Scitec turnaround strategy and implementation, extracting synergies from the
recent acquisitions of Remedica, Scitec, Sun Wave Pharma and Cipla, effectively driving higher organic growth, while also
ensuring an efficient leadership transition following the appointment of the new CEO.
A strategic business review has been initiated to create a sustainable market position for Ascendis Health and to accelerate
organic growth following the completion of several acquisitions locally and offshore since the company's listing in 2013.
The review is expected to be completed late in the 2018 financial year.
Dr Karsten Wellner Thomas Thomsen Kieron Futter
Executive Director Chief Executive Officer Chief Financial Officer
Johannesburg
1 March 2018
UNAUDITED CONDENSED GROUP STATEMENT OF FINANCIAL POSITION
at 31 December 2017
Unaudited six
Unaudited six months ended
months ended 31 December Audited
31 December 2016 30 June 2017
2017 Restated Restated
R'000 R'000 R'000
Property, plant and equipment 1 029 873 1 022 594 991 668
Intangible assets and goodwill 9 038 862 7 674 272 9 112 429
Derivative financial assets 1 136 - 2 760
Investments accounted for using the equity method 11 185 747 -
Other financial assets 31 239 51 053 29 168
Deferred income tax assets 50 450 18 403 40 109
Non-current assets 10 162 745 8 767 069 10 176 134
Inventories 1 751 572 1 407 801 1 597 726
Trade and other receivables 2 018 951 1 428 542 1 881 591
Other financial assets 23 470 66 028 32 761
Current tax receivable 36 819 60 423 39 824
Derivative financial assets 6 575 221 53 012
Cash and cash equivalents 502 426 562 670 634 719
Assets held for sale as part of a discontinued operation 68 320 - 68 320
Current assets 4 408 133 3 525 685 4 307 953
Total assets 14 570 878 12 292 754 14 484 087
Stated capital 6 560 751 5 479 404 5 447 899
Other reserves (932 953) (867 004) (782 088)
Retained earnings 692 139 468 697 475 645
Equity attributable to equity holders of parent 6 319 937 5 081 097 5 141 456
Non-controlling interest 155 848 103 853 154 886
Total equity 6 475 785 5 184 950 5 296 342
Borrowings and other financial liabilities 4 480 532 3 724 716 4 002 769
Deferred income tax liabilities 458 009 396 036 459 289
Deferred vendor liabilities 640 101 1 130 424 1 437 394
Put-option on equity instrument 113 967 107 750 113 055
Derivative financial liability 12 651 27 668 6 444
Finance lease liabilities 23 615 2 987 20 486
Long-term employee benefits 9 120 - 15 188
Investments accounted for using the equity method - - 1 066
Non-current liabilities 5 737 995 5 389 581 6 055 691
Trade and other payables 1 229 493 786 948 1 250 209
Derivative financial liability 38 247 11 893 38 156
Borrowings and other financial liabilities 512 076 270 992 1 027 037
Current tax payable 12 628 51 185 21 239
Deferred vendor liabilities 373 903 424 632 651 374
Long-term employee benefits 2 730 - -
Provisions 25 775 15 128 26 595
Finance lease liabilities 9 728 2 079 9 900
Bank overdraft 152 518 155 366 107 544
Current liabilities 2 357 098 1 718 223 3 132 054
Total liabilities 8 095 093 7 107 804 9 187 745
Total equity and liabilities 14 570 878 12 292 754 14 484 087
UNAUDITED CONDENSED GROUP STATEMENT OF COMPREHENSIVE INCOME
for the six months interim period
Unaudited six Unaudited six
month ended month ended Audited
31 December 31 December 2016 30 June 2017
2017 Restated Restated
R'000 R'000 R'000
Revenue 3 962 098 3 110 275 6 435 027
Cost of sales (2 212 449) (1 786 488) (3 622 025)
Gross profit 1 749 649 1 323 787 2 813 002
Other income 8 834 21 354 41 579
Selling and distribution cost (363 734) (279 265) (615 324)
Administrative expenses (681 407) (540 412) (1 087 417)
Other operating expenses (236 737) (171 043) (403 517)
Operating profit 476 605 354 421 748 323
Finance income 2 502 40 310 40 734
Finance expense (193 984) (164 207) (346 728)
Gains/(losses) from equity accounted investments 13 164 (1 136) (1 452)
Profit before taxation 298 287 229 388 440 877
Taxation (36 730) (27 142) (62 581)
Profit from continuing operations 261 557 202 246 378 296
Loss from discontinued operation (28 810) (3 313) (70 976)
Profit for the period 232 747 198 933 307 320
Other comprehensive income
Items that may be reclassified to profit and loss
Foreign currency translation reserve (162 749) (295 313) (255 101)
Effects of cash flow hedges (3 445) (11 860) 27 803
Items that will not be reclassified to profit and loss
Revaluation of property, plant and equipment - - 1 149
Other comprehensive loss for the year net of tax (166 194) (307 173) (226 149)
Total comprehensive income/(loss) for the year 66 553 (108 240) 81 171
Profit attributable to:
Owners of the parent 216 494 173 499 283 131
Non-controlling interest 16 253 25 434 24 189
232 747 198 933 307 320
Total comprehensive income/(loss) attributable to:
Owners of the parent 65 591 (58 904) 110 907
Non-controlling interest 962 (49 336) (29 736)
66 553 (108 240) 81 171
Earnings from continuing operations
Basic and diluted earnings per share (cents) 52.8 42.7 85.9
Total earnings
Basic and diluted earnings per share (cents) 46.6 41.9 68.7
Earnings before interest, tax, depreciation and amortisation
(EBITDA) 652 611 510 916 1 085 564
UNAUDITED CONDENSED GROUP STATEMENT OF CHANGES IN EQUITY
for the six months ended 31 December 2017
Put option Total
non- attributable
Foreign controlling to equity Non-
Stated translation Revaluation Hedging interest Total other Retained holders of controlling Total
capital reserve reserve reserve reserve reserves* income the group interest equity
Balance as at 30 June 2016 2 138 684 (91 782) 14 699 (37 958) (117 744) (26 706) 396 949 2 276 142 179 302 2 455 444
Profit for the period - - - - - - 173 499 173 499 25 434 198 933
Other comprehensive(loss)/ income - (220 543) - 26 098 - - (37 958) (232 403) (74 770) (307 173)
Total comprehensive (loss)/income for the year - (220 543) - 26 098 - - 135 541 (58 904) (49 336) (108 240)
Issue of ordinary shares 3 446 239 - - - - (450 114) - 2 996 125 - 2 996 125
Raising fees capitalised (41 717) - - - - - - (41 717) - (41 717)
Purchase of own/treasury shares (63 802) - - - - - - (63 802) - (63 802)
Dividends - - - - - - (52 459) (52 459) - (52 459)
Foreign currency translation reserve - 2 873 - - 14 512 (3 068) - 14 317 (14 317) -
Statutory reserve: Farmalider allocaiton to reserve - - - - - 23 130 (11 334) 11 796 (11 796) -
Total contributions by and distributions to owners of
the group recognised directly in equity 3 340 720 2 873 - - 14 512 (430 052) (63 793) 2 864 260 (26 113) 2 838 147
Balance as at 31 December 2016 5 479 404 (309 452) 14 699 (11 860) (103 232) (456 758) 468 697 5 081 498 103 853 5 185 351
Profit for the period - - - - - - 109 632 109 632 (1 245) 108 387
Other comprehensive income/(loss) - 112 475 1 149 1 705 - - (55 150) 60 179 20 845 81 024
Total comprehensive income for the year - 112 475 1 149 1 705 - - 54 482 169 811 19 600 189 411
Issue of ordinary shares (13 994) - - - - - - (13 994) - (13 994)
Raising fees capitalised 17 408 - - - - - - 17 408 - 17 408
Purchase of own/treasury shares (34 919) - - - - - - (34 919) - (34 919)
Dividends - - - - - - (60 299) (60 299) 13 384 (46 915)
Reclassification of reserve into retained earnings - - - - - (13 280) 13 280 - - -
Foreign currency translation reserve - (13 346) - - (8 562) 3 322 - (18 586) 18 586 -
Statutory reserve: Farmalider allocation to reserve - - - - - 1 052 (515) 537 (537) -
Total contributions by and distributions to owners of
the group recognised directly in equity (31 505) (13 346) - - (8 562) (8 906) (47 534) (109 853) 31 433 (78 420)
Balance as at 30 June 2017 5 447 899 (210 323) 15 848 (10 155) (111 794) (465 664) 475 645 5 141 456 154 886 5 296 342
Profit for the period - - - - - - 216 494 216 494 16 253 232 747
Other comprehensive loss - (147 458) - (3 445) - - - (150 903) (15 291) (166 194)
Total comprehensive (loss)/ income for the year - (147 458) - (3 445) - - 216 494 65 591 962 66 553
Issue of ordinary shares 1 035 027 - - - - - - 1 035 027 - 1 035 027
Raising fees capitalised (519) - - - - - - (519) - (519)
Purchase of own/treasury shares 78 344 - - - - - - 78 344 - 78 344
Foreign currency translation reserve - 5 765 - - 5 746 (11 473) - 38 - 38
Total contributions by and distributions to owners of
the group recognised directly in equity 1 112 852 5 765 - - 5 746 (11 473) - 1 112 890 - 1 112 890
Balance as at 31 December 2017 6 560 751 (352 016) 15 848 (13 600) (106 048) (477 137) 692 139 6 319 937 155 848 6 475 785
* Other reserves include a Farmalider statutory reserve of R37.2 million. In terms of Spanish legislation a portion of the periods profits should be recognised in a non-distributable reserve.
During the 2017 financial period Ascendis raised equity capital by means of a Rights Offer. Also included in other reserves is the difference between the R22,00 subscription price and the presiding
fair value on the date of issue.
UNAUDITED CONDENSED GROUP CASH FLOW STATEMENT
for the six months ended 31 December 2017
Unaudited six
Unaudited six months ended
months ended 31 December Audited
31 December 2016 30 June
2017 Restated 2017
R'000 R'000 R'000
Cash inflow from operating activities 327 099 406 197 787 383
Interest income received 2 502 22 999 40 734
Finance costs paid (172 460) (143 233) (299 172)
Income taxes paid (63 303) (85 627) (160 232)
Net cash inflow from operating activities 93 838 200 336 368 713
Cash flows from investing activities
Purchase of property, plant and equipment (88 340) (59 020) (117 885)
Proceeds on the sale of property, plant and equipment 5 400 14 304 3 623
Purchase of other intangibles assets (106 938) (44 615) (119 062)
Proceeds on the sale of intangible assets 4 473 - 767
Payment for acquisition of subsidiaries - net of cash - (4 583 000) (5 454 161)
Repayments on deferred vendor liabilities (1 093 193) (204 692) (246 343)
Payment for settlement of foreign exchange contracts (96 427) - (119 513)
Repayment of loans advanced to related parties - 91 794 46 932
Loans advanced to related parties - (90 075) (9 199)
Loans advanced to external parties - - (16 854)
Repayment of loans advanced to external parties 7 220 9 794 14 072
Net cash utilised in investing activities (1 367 805) (4 865 510) (6 017 623)
Cash flows from financing activities
Proceed from issue of shares 1 035 027 2 890 608 2 981 281
Proceed on the sale of treasury shares 67 357 3 828 37 888
Payments made to acquire treasury shares - (65 978) (137 678)
Proceeds from borrowings raised 388 880 3 920 760 5 140 675
Repayment of borrowings (395 240) (1 582 688) (1 663 244)
Repayment of loans from related parties - - (26 290)
Finance lease raised 9 500 - -
Finance lease payments (7 582) (2 310) (1 803)
Dividends paid - (52 458) (112 758)
Net cash inflow from financing activities 1 097 942 5 111 762 6 218 071
Net (decrease)/increase in cash and cash equivalents (176 025) 446 588 569 161
Cash and cash equivalents at beginning of period 527 175 (22 396) (22 396)
Effect of exchange difference on cash balances (1 242) (16 888) (19 590)
Cash and cash equivalents at end of period 349 908 407 304 527 175
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
Corporate information
Ascendis Health Limited is a health and care brands company. The group operates through three health care areas: Consumer
Brands, Pharma-Med and Phyto-Vet. Consumer Brands consists of health and personal care products sold to the public,
primarily at the retail store level. The group offers over the counter (OTC) medicines and consumer brands products, including
vitamins and minerals, homeopathic, herbal products, dermaceuticals, functional foods, functional super foods, sports
nutrition, health beverages, weight management and therapeutic cosmetics. Pharma-Med consists of the sale of prescription
and selected OTC pharmaceuticals, and includes medical devices. Phyto-Vet supplies health and care products to the plant
and animal markets. Phyto-Vet manufactures and supplies over 3 500 different products supplied to over 4 500 retail stores.
These consolidated condensed group interim financial results as at 31 December 2017 comprise of the company and its
subsidiaries (together referred to as the group) and the group's interest in equity accounted investments.
Going concern
The directors consider that the group has adequate resources to continue operating for the foreseeable future and that it
is therefore appropriate to adopt the going-concern basis in preparing the group's financial statements. The directors have
satisfied themselves that the group is in sound financial position and that it has access to sufficient borrowing facilities to
meet its foreseeable cash requirements.
Basis of preparation
The interim consolidated financial statements are prepared in accordance with the requirements of the JSE Limited Listings
Requirements for interim reports, and the requirements of the Companies Act applicable to interim financial statements.
The Listings Requirements require interim reports to be prepared in accordance with the framework concepts and the
measurement and recognition requirements of International Financial Reporting Standards ("IFRS") and the SAICA Financial
Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by the Financial
Reporting Standards Council and also, as a minimum, contain the information required by IAS 34 Interim Financial Reporting.
The accounting policies applied in the preparation of the interim consolidated financial statements are in terms of IFRS and are
consistent with those accounting policies applied in the preparation of the previous consolidated annual financial statements.
The unaudited condensed group interim financial results for the six-month period ended 31 December 2017 have been
prepared under the supervision of Chief Financial Officer, Kieron Futter (CA)SA. The interim financial statements have been
prepared on the historical cost basis, except for the measurement of certain financial instruments and land and buildings at
fair value. The financial statements are prepared on the going concern basis using accrual accounting.
Items included in the annual financial statements of each entity in the group are measured using the functional currency of
the primary economic environment in which that entity operates. The interim financial statements are presented in Rand. This
represents the presentation and functional currency of Ascendis Health Limited. The group owns the following entities which
operate in primary economic environments which are different to the group:
Akusa - United States of America Heritage Resources Limited - Isle of Man
Ascendis Australia - Australia Nimue UK - United Kingdom
Ascendis International - Malta Remedica - Cyprus
Ascendis Wellness - Romania Scitec - Hungary
Farmalider - Spain
For each of these entities a functional currency assessment has been performed. Where the entity has a functional currency
different to that of the group they are translated upon consolidation in terms of the requirements of IFRS.
Judgement and estimates
In preparing these unaudited condensed group interim financial results, management made judgements, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income
and expenses.
The significant judgements made by management in applying the group's accounting policies and the key source of
estimation uncertainty were the same as those applied to the audited group annual financial statements for the year ended
30 June 2017.
1. Group Segmental Analysis
Ascendis Health owns a portfolio of brands within three core health care areas, namely Consumer Brands, Pharma-Med
and Phyto-Vet. Within these healthcare areas the group has five reportable segments.
The group executive committee (EXCO) considers the three core health care areas, as well as the reportable segments
to make key operating decisions and assess the performance of the business. The EXCO is the group's chief operating
decision maker.
The reportable segments were identified by considering the nature of the products, the production process, distribution
channels, the type of customer and the regulatory environment in which the business units operate. In addition to the
above, similar economic characteristics such as currency and exchange regulations, trade zones and the tax environment
were also considered to incorporate and assess the different markets in which the group operate. The reportable
segments included in the groups divisions are:
- Consumer Brands (human health), incorporating Sports Nutrition, Skin and all of the Ascendis Over The Counter
(OTC) and Complementary and Alternative Medicines Consumer Brands products. This division includes two
reportable segments:
- Consumer Brands Africa segment: Operating predominantly in the South African market.
- Consumer Brands Europe segment: Operating predominantly in the European market.
- Phyto-Vet (animal and plant health), incorporating all of the Ascendis animal and plant health and care products.
- Pharma-Med (human health), incorporating Ascendis' pharmaceutical and medical devices products. This division
includes two reportable segments:
- Pharma-Med Africa segment: Operating predominantly in the South African market.
- Pharma-Med Europe segment: Operating predominantly in the European market.
Restated
The December 2016 unaudited results have been restated in terms of IFRS 5 for the purposes of the discontinued
operations disclosure. Please refer to the restatement note (Note 3) for more information.
(a) Statement of comprehensive income measures applied
Unaudited six Unaudited six
months ended months ended Audited
31 December 31 December 2016 30 June 2017
2017 Restated Restated
Revenue split by segment R'000 R'000 R'000
Consumer Brands 1 345 464 968 306 1 953 521
Africa 374 490 357 342 515 943
Europe 970 974 610 964 1 437 578
Phyto-Vet 628 100 491 041 922 991
Pharma-Med 1 988 534 1 650 928 3 558 515
Africa 1 072 138 1 000 456 2 093 175
Europe 916 396 650 472 1 465 340
Total revenue 3 962 098 3 110 275 6 435 027
Revenue generated by geographical location
South Africa 2 074 727 1 848 838 3 675 806
Cyprus 643 194 438 986 987 762
Spain 273 202 211 487 477 578
Other Europe 894 333 541 920 1 284 175
Other 76 642 69 044 9 706
Total revenue 3 962 098 3 110 275 6 435 027
There has been no inter-segment revenue during the financial period. All revenue figures represents revenue from
external customers.
The group has an expanding international footprint and currently exports products to 120 countries, mainly in
Africa and Europe.
51% of the group's revenue is generated through the wholesale and retail market (2017: 54%). In this market, 4%
(2017: 4%) of the total group revenue is derived from a single customer and 12% (2017: 13%) of the group's revenue
is generated from government institutions (local and international).
The group evaluates the performance of its reportable segments based on EBITDA (earnings before interest, tax,
depreciation and amortisation). The financial information of the group's reportable segments is reported to the
EXCO for purposes of making decisions about allocating resources to the segment and assessing its performance.
The percentage disclosed represents the EBITDA/sales margin.
Unaudited six months
Unaudited six months ended Audited
ended 31 December 2016 30 June 2017
31 December 2017 Restated Restated
EBITDA split by segment R'000 R'000 R'000
Consumer Brands 164 969 12% 132 670 14% 290 024 15%
Africa 35 333 9% 71 855 20% 115 721 22%
Europe 129 636 13% 60 815 10% 174 303 12%
Phyto-Vet 106 957 17% 74 835 15% 140 543 15%
Pharma-Med 424 558 21% 343 085 21% 730 743 21%
Africa 170 019 16% 148 561 15% 328 550 16%
Europe 254 539 28% 194 524 30% 402 193 27%
Head Office (43 873) (39 674) (75 746)
Total EBITDA 652 611 510 916 1 085 564
Non-controlling interest proportionate share (14 835) (32 759) (39 502)
Total EBITDA attributable to the parent 637 776 478 157 1 046 062
Unaudited six Unaudited six
months ended months ended Audited
31 December 31 December 2016 30 June 2017
2017 Restated Restated
Reconciliation of EBITDA to consolidated results R'000 R'000 R'000
Consolidated operating profit 476 605 354 420 748 323
Total impairment, amortisation and depreciation 146 917 95 497 228 453
Business combination costs 21 804 54 089 89 722
Restructuring costs 7 285 6 910 19 066
Non-controlling interest proportionate share (14 835) (32 759) (39 502)
Total EBITDA attributable to the parent 637 776 478 157 1 046 062
* Restructuring and business integration costs excluded from EBITDA for performance measurement purposes.
Unaudited six Unaudited six
months ended months ended Audited
31 December 31 December 2016 30 June 2017
2017 Restated Restated
Net finance cost split by segment R'000 R'000 R'000
Consumer Brands Africa
Finance income 590 3 196 1 449
Finance expense (5 005) (582) (11 347)
Consumer Brands Europe
Finance income 212 207 2 952
Finance expense (78 677) (32 131) (84 747)
Phyto-Vet
Finance income 820 479 1 320
Finance expense (5 917) (911) (11 751)
Pharma-Med Africa
Finance income 753 1 778 3 890
Finance expense (397) (9 070) (2 300)
Pharma-Med Europe
Finance income 10 133 418
Finance expense (12 399) (18 214) (41 216)
Head Office
Finance income 117 34 517 30 705
Finance expense (91 589) (103 299) (195 367)
Total consolidated net finance cost (191 482) (123 897) (305 994)
Finance income and costs are managed centrally through the group's Treasury function housed within Ascendis
Financial Services (included in Head Office) and Scitec (Consumer Brands Europe). The EXCO evaluates the finance
income and expenses based on utilisation within subsidiaries as illustrated above.
The European debt facilities are housed within Consumer Brands Europe.
Unaudited six Unaudited six
months ended months ended Audited
31 December 31 December 2016 30 June 2017
2017 Restated Restated
Tax expense split by segment R'000 R'000 R'000
Consumer Brands (17 611) (9 604) (1 592)
Africa (4 512) (10 563) 3 706
Europe (13 099) 959 (5 298)
Phyto-Vet (4 158) (10 761) (8 992)
Pharma-Med (14 526) (4 953) (50 457)
Africa (23 022) (13 108) (42 352)
Europe 8 496 8 155 (8 105)
Head Office (435) (1 824) (1 540)
Total consolidated tax expense (36 730) (27 142) (62 581)
The EXCO monitors taxation expenses per segment to ensure optimal tax practices are being adhered to.
(b) Statement of financial position measures applied
Unaudited six months ended Audited
Unaudited six months ended 31 December 2016 30 June 2017
31 December 2017 Restated Restated
Assets and liabilities split R'000 R'000 R'000
by segment Assets Liabilities Assets Liabilities Assets Liabilities
Consumer Brands 5 288 879 (3 837 746) 3 929 809 (2 955 857) 5 558 299 (4 494 222)
Africa 1 139 574 (97 664) 990 276 (138 303) 1 526 655 (751 425)
Europe 4 149 305 (3 740 082) 2 939 533 (2 817 554) 4 031 644 (3 742 797)
Phyto-Vet 1 429 559 (326 867) 929 773 (300 534) 1 505 728 (472 121)
Pharma-Med 7 355 048 (3 838 688) 6 741 632 (2 113 219) 7 405 499 (2 433 957)
Africa 2 573 268 (427 426) 2 243 214 (531 983) 2 620 118 (555 912)
Europe 4 781 780 (3 411 262) 4 498 418 (1 581 236) 4 785 381 (1 878 045)
Head Office 497 392 (91 792) 691 540 (1 738 194) 14 561 (1 787 445)
Total consolidated assets
and liabilities 14 570 878 (8 095 093) 12 292 754 (7 107 804) 14 484 087 (9 187 745)
The fixed assets presented below represents the material non-current assets held in various geographic locations.
Unaudited six Unaudited six
months ended months ended Audited
31 December 31 December 2016 30 June 2017
2017 Restated Restated
Fixed assets by geographic location R'000 R'000 R'000
South Africa 317 219 323 572 278 204
Cyprus 486 961 488 213 499 447
Other Europe 225 693 210 809 214 017
Total Fixed assets per geographic location 1 029 873 1 022 594 991 668
2. Earnings per share, diluted earnings per share and headline earnings per share (cents)
The calculation of headline earnings per share is based on the profit attributable to equity holders of the parent, after
excluding all items of a non-trading nature, divided by the weighted average number of ordinary shares in issue during
the year. The presentation of headline earnings is not an IFRS requirement, but is required by JSE Listings Requirements
and Circular 2 of 2015.
Weighted average number of shares in issue is calculated as the number of shares in issue at the beginning of the period,
increased by shares issued during the period weighted on a time basis for the period during which they have participated
in the profit of the group. Shares which are held by a subsidiary company as treasury shares have been adjusted on a
time basis when determining the weighted average number of shares in issue.
The group has determined no instruments exist in the interim period that will give rise to the issue of ordinary shares that
results in a dilutive effect. Based on this assessment, basic earnings per share also represents diluted earnings per share.
The results below represent the unaudited earnings, diluted and headline earnings for the six months ended:
Unaudited six months ended Audited year ended
Unaudited six months ended 31 December 2016 30 June 2017
31 December 2017 Restated Restated
R'000 R'000 R'000
Continuing Discontinued Continuing Discontinued Continuing Discontinued
operations operations Total operations operations Total operations operations Total
(a) Basic earnings per share
Profit attributable to owners of the parent 245 304 (28 810) 216 494 176 812 (3 313) 173 499 354 107 (70 976) 283 131
Earnings 245 304 (28 810) 216 494 176 812 (3 313) 173 499 354 107 (70 976) 283 131
Weighted average number of ordinary shares in
issue 464 796 223 413 810 040 412 323 054
Earnings per share (cents) 52.8 (6.2) 46.6 42.7 (0.8) 41.9 85.9 (17.2) 68.7
(b) Headline earnings per share
Profit attributable to owners of the parent 245 304 (28 810) 216 494 176 812 (3 313) 173 499 354 107 (70 976) 283 131
Adjusted for:
Loss/(profit) on the sale of property, plant and
equipment 4 923 - 4 923 (1 999) - (1 999) 937 - 937
(Profit)/ loss on investment disposal - - - (2 456) - (2 456) 165 - 165
Goodwill and intangible asset impairment - - - - - - 21 730 26 860 48 590
IFRS 3 bargain purchase - - - - - - (1 938) - (1 938)
Non-controlling interest portion allocation (429) - (429) 2 002 - 2 002 (340) - (340)
Tax effect (1 442) - (1 442) 211 - 211 (269) - (269)
Headline earnings 248 356 (28 810) 219 546 174 570 (3 313) 171 257 374 392 (44 116) 330 276
Weighted average number of shares in issue 464 796 223 - 413 810 040 - 412 323 054
Headline earnings per share (cents) 53.4 (6.2) 47.2 42.2 (0.8) 41.4 90.8 (10.7) 80.1
(c) Normalised headline earnings per share
Since Ascendis Health is a health and care company and not an investment company, normalised headline earnings is calculated by excluding amortisation and certain costs from the
group's earnings. Costs excluded for normalised headline earnings purposes include restructuring costs to streamline, rationalise and structure companies in the group. It also includes the
cost incurred to acquire and integrate the business combinations into the group and the listed environment.
Reconciliation of normalised headline earnings
Headline earnings 248 356 (28 810) 219 546 174 570 (3 313) 171 257 374 392 (44 116) 330 276
Adjusted for
Business combination costs 21 804 - 21 804 54 089 - 54 089 89 722 - 89 722
Refinancing costs - - - 12 365 - 12 365 27 730 - 27 730
Restructuring costs 7 286 - 7 286 6 910 - 6 910 19 066 - 19 066
Tax effect thereof (1 834) - (1 834) (836) - (836) (6 272) - (6 272)
Amortisation 95 646 - 95 646 55 519 - 55 519 115 857 - 115 857
Tax effect thereof (18 727) - (18 727) (8 175) - (8 175) (23 328) - (23 328)
Normalised headline earnings 352 531 (28 810) 323 721 294 442 (3 313) 291 129 597 167 (44 116) 553 051
Weighted average number of shares in issue - 464 796 223 - 413 810 040 - 412 323 054
Normalised headline earnings per share (cents) 75.8 (6.2) 69.6 71.2 (0.8) 70.4 144.8 (10.7) 134.1
Normalised diluted headline earnings per share is calculated on the same basis used for calculating diluted earnings per share, other than normalised headline earnings being
the numerator.
Restatement
Normalised headline earnings per share has been restated to exclude the interest on deferred vendors of R18.8 million and R47.6 million respectively. Upon further consideration,
management has decided this item does not meet the definition of integration costs and should not be added back for normalised headline earnings.
3. Restatement
Restatements relating to the 30 June 2017 audited results:
Statement of financial position: IFRS 3 re-measurement
At 30 June 2017, the Cipla purchase price allocation was provisional due to the complexity of the business and the
timing of the Cipla acquisition.
On completion of the acquisition take-on working capital assessments, and the finalisation of the purchase price
allocation, the following adjustments to the initial day one take-on balances as disclosed in the June 2017 financial
period were required: Goodwill increased by R27.9 million, intangible assets reduced by R30.5 million, deferred tax
liability reduced by R8.5 million and deferred vendor liability increased by R6 million.
The restatement did not have a material impact on profit and loss.
Normalised headline earnings: Interest on deferred vendor liabilities.
During the June 2017 financial period, the group adjusted it's normalised headline earnings for interest on deferred
vendor liabilities. Upon further consideration and following engagement with various stakeholders, management has
concluded that even though the interest on deferred vendor liabilities does not result in the flow of cash to vendors, it
is similar in nature to the finance costs of debt raised with financial institutions, and normalised earnings should not be
adjusted for this cost.
This restatement affects the June 2017 (R47.6 million) and December 2016 (R18.8 million) comparative periods.
Restatements relating to the 31 December 2016 unaudited results:
Statement of financial position: Put-option on equity instrument
This balance was previously presented as part of the deferred vendor liability on the face of the balance sheet. However,
since the put-option relates to a future acquisition, the nature is considered to be different from the deferred vendors
listed. It is therefore considered to be more appropriate to be disclosed as a separate line item.
Statement of comprehensive income: Discontinued operations
In the 2017 annual financial statements, Ascendis presented discontinued operations. The 2016 unaudited
financial statements have been restated in terms of IFRS 5 for the purposes of the discontinued
operations disclosure.
4. Events after reporting period
Capital repurchase
In terms of the group's share repurchase programme that has been registered with the JSE, Ascendis Financial Services
acquired 2.8 million shares in Ascendis Health Limited subsequent to 31 December 2017.
These shares are considered to be treasury shares for the group and the total value invested in treasury shares is
R41.3 million.
5. Stated capital
Unaudited six
months ended Unaudited six
31 December months ended Audited
2017 31 December 2016 30 June 2017
Stated capital R'000 R'000 R'000
Opening balance 5 447 899 2 138 684 2 138 684
Issue of ordinary shares 1 035 027 3 446 239 3 432 245
Listing fees capitalised to stated capital (519) (41 717) (24 309)
Movement in treasury shares on hand 78 344 (63 802) (98 721)
Closing balance 6 560 751 5 479 404 5 447 899
General issue of shares for cash
The group raised R750 million equity capital by way of a rights offer to qualifying shareholders that concluded
in December 2017. 37.5 million shares were offered for subscription to the qualifying shareholders on the basis of
18.25 rights offer shares for every 100 shares held, at a subscription price of R22.00 per rights offer share.
The group also raised further capital through the general issuance of shares through private placements. The Group
uses a 30-day volume weighted average price to determine the discount at which the shares were issued. The total
number of shares issued during the course of the financial period was 16 million shares, issued at share prices ranging
between R15 and R19 per share, depending on the share price on the date of issue.
The total number of shares issued as part of the above mentioned transactions were 53.5 million raising a total of
R1 305 million in equity capital.
Treasury shares
The unissued shares are under the control of the directors of the company subject to the provisions of the Companies
Act 2008, as amended, and the Listings Requirements of the JSE Limited. The reserve for the company's treasury shares
comprises the cost of the company's shares held by the group.
Total listing fees of R42.2 million have been capitalised to share capital. All shares issued were fully paid up.
Unaudited six Unaudited six
months ended months ended Audited
31 December 31 December 30 June
2017 2016 2017
Reconciliation of number of shares in issue: '000 '000 '000
Opening balance reported 431 344 298 608 298 608
Issue of shares - ordinary shares 53 531 137 066 137 066
Treasury shares
Held at the beginning of the period 4 596 266 266
Held at the end of period (1 172) (3 109) (4 596)
Closing balance 488 299 432 831 431 344
6. Borrowings and other financial liabilities
For the purposes of financing the acquisition of international businesses, as well as to allow for a structure that supports
growth and an integrated treasury function, Ascendis implemented a new debt structure arranged and underwritten by
ABSA Bank Limited and HSBC Bank Plc. The structure consists of a syndicated facility denominated in local currency
and Euro currency. During the year, the total remaining debt related to the former local debt
structure was fully paid off.
In terms of the existing debt structure, the total facilities drawn down on amounts to R1 519 million and EUR221 million.
International loans
The group has a EUR180 million facility, of which EUR173 million remains outstanding. This facility matures in August 2021.
The debt balance consists of the ZAR translated amount of R2 573 million net of debt capitalisation costs of R59.5 million.
Capital repayments commenced on 30 June 2017 and is payable on a bi-annual basis. Interest is charged at 4% and is
repayable quarterly. The group has access to a EUR47 million revolving credit facility.
Syndicated South African facility
The syndicated facility is administered through ABSA Bank with various local registered financial institutions.
The R1 519 million debt consists of two facilities of R850 million and R669 million each. The R850 million facility matures
in 2021 with the full capital amount due at the maturation date. Interest is charged at JIBAR plus 4.2% and is payable
quarterly. The R669 million facility is payable bi-annually with a maturation date of December 2020. Interest is charged
at JIBAR plus 3.75% and is payable quarterly. Included with this balance is debt capitalisation fees of R42.2 million.
Additional facilities relating to letter of credit and performance guarantees exist.
Borrowings are recognised initially at fair value net of transaction costs incurred and thereafter at amortised cost.
The fair value (determined using the discounted cash flow model) approximates the carrying value. The key valuation
inputs in the fair value assessment are the interest rate (observable) and credit risk (unobservable), making this a level
2 fair value assessment. The above facilities are subject to financial covenants based on key financial ratios. For the six
months ended 31 December 2017, the lenders required that the group maintain a normalised leverage ratio below 4.0,
a minimum of 1.2 cash cover ratio and a minimum of 3.0 interest cover ratio. No events of default occurred during
the period.
The table below provides the detailed breakdown of the individual balances making up the total balance .
Unaudited six
months ended Unaudited six
31 December months ended Audited
2017 31 December 2016 30 June 2017
R'000 R'000 R'000
Borrowings at amortised cost
Term loan- South African Debt 1 385 777 3 849 280 1 537 366
Term loan- European Debt 3 025 893 - 2 588 437
Revolving credit facility 157 591 - 533 586
Farmalider: Government finance 36 228 40 386 37 775
Short- term loans with financial institutions 293 188 - 247 000
Other financial liabilities at amortised cost
Other South African borrowings 8 746 2 800 4 177
Farmalider: Caixa Bank 23 612 24 816 18 169
Farmalider Populat Bank Limited 47 551 39 025 48 014
Farmalider: Other 14 022 13 111 15 282
Gane Holdings - 26 290 -
4 992 608 3 995 708 5 029 806
The following table represents the split between current and non-current for borrowings and other financial liabilities:
Non-current 4 480 532 3 724 716 4 002 769
Current 512 076 270 992 1 027 037
4 992 608 3 995 708 5 029 806
7. Deferred vendor liabilities
The group structures its acquisitions to include contingent and deferred consideration that is included in the cost of the
business combination at the fair value on the date of the acquisitions. Subsequent changes in the fair value of contingent
consideration is recognised in profit and loss. Deferred consideration is subsequently measured at amortised cost.
All deferred vendor liabilities raised relate to business combinations. No new businesses were acquired in the December
2017 interim period.
The table below includes a detailed breakdown of the individual vendor liabilities for the period:
Unaudited six Unaudited six
months ended months ended Audited
31 December 31 December 2016 30 June 2017
2017 Restated Restated
R'000 R'000 R'000
Remedica Group 558 512 1 201 543 1 245 288
Scitec Group - 265 628 298 009
Sunwave Group 266 729 - 263 897
Cipla Group 67 421 - 138 709
Ortho Xact 54 600 - 68 400
Klub M5 Proprietary Limited 53 677 46 183 51 032
Ortus Proprietary Limited - 4 078 10 956
Afrikelp Group 9 913 32 063 9 408
Umecom Proprietary Limited 3 152 3 561 3 068
Respiratory Care Africa Proprietary Limited - 2 000 -
1 014 004 1 555 056 2 088 768
Non-current 640 101 1 130 424 1 437 394
Current 373 903 424 632 651 374
1 014 004 1 555 056 2 088 768
Deferred consideration 693 631 1 504 796 1 762 883
Contingent consideration 320 373 50 260 325 885
1 014 004 1 555 056 2 088 768
The group acquired the Remedica Group in August 2016. The initial deferred consideration of EUR90 million (R1.245 million)
which was payable in August 2019 was amended following renegotiations with the previous owners. The renegotiated
terms stipulated the total deferred consideration to be EUR86million, of which EUR46million became payable in August
2017 and the remaining EUR40 million will be settled in August 2019.
The group acquired the Scitec Group in August 2016. The deferred consideration of EUR20million (R298 million) was
settled in July 2017.
In April 2017 the group acquired the Cipla Group. R73.2 million of the remaining consideration was paid in July 2017.
The liability as presented in the June 2017 audited results has been restated as a result of an IFRS 3 measurement period
adjustment with R 6 million, for more information please refer to the restatement note (Note 3).
In April 2017 the group acquired the Ortho-Xact business. The remaining consideration payable is classified as deferred
consideration, R13.8 million has been settled since June 2017.
The group acquired Ortus in May 2015. The final settlement of the contingent consideration (R10.9 million) was paid in
December 2017.
Restatement: The liability balance as presented in the December 2016 unaudited financial statements and the June
2017 financial statements has been restated. Please refer to the restatement note (Note 3) for more information.
8. Discontinued operations
On 17 May 2017, the Board made a decision to consolidate the Supply Chain manufacturing activities into the Ascendis
Pharma plant based in Isando. As part of this restructuring, redundant assets will be disposed of to external third parties
in a piecemeal sale within the next 12 months. This is considered to be a discontinued operation. As a result assets and
liabilities which will not be consolidated into Ascendis Pharma will be classified as held for sale.
The associated assets and liabilities were consequently classified as held for sale in the 2017 financial period and
continues to be presented in this manner.
Financial performance and cash flow information
Financial performance and cash flow information presented for the interim reporting period:
Unaudited six
months ended Unaudited six
31 December months ended Audited
2017 31 December 2016 30 June 2017
R'000 R'000 R'000
Loss before income tax (30 607) (4 435) (83 783)
Income tax 1 797 1 122 12 807
Loss after income tax expense of discontinued operation (28 810) (3 313) (70 976)
Total comprehensive (loss)/income (28 810) (3 313) (70 976)
Net cash (outflow)/inflow from operating activities (4 742) 3 003 (59 068)
Net cash outflow from investing activities (1 948) (1 399) (15 968)
Net cash inflow/(outflow) from financing activities 11 106 (3 749) 64 337
Net increase/(decrease) in cash generated by the discontinued operation 4 416 (2 145) (10 699)
Assets of disposal group classified as held for sale
The following assets were classified as held for sale in relation to the discontinued operation.
Unaudited six
months ended Unaudited six
31 December months ended Audited
2017 31 December 2016 30 June 2017
R'000 R'000 R'000
Property, plant and equipment 68 320 - 68 320
68 320 - 68 320
No liabilities are held as part of the disposal group. Liabilities will either be settled or transferred into Ascendis Pharma.
9. Income tax expense
Current and deferred taxes are recognised as income or an expense and included in profit or loss for the period, except
to the extent that the tax arises from:
- a transaction or event which is recognised, in the same or a different period, to other comprehensive income, or
- a business combination.
The current income tax charge is calculated on the basis of the tax laws that are enacted or substantially enacted at
the reporting date in the countries where the group operates and generates taxable income. Management periodically
evaluates positions taken in our tax returns with regards to situations in which applicable tax regulations is subject to
interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the relevant
tax authority.
Unaudited six
Unaudited six months ended
months ended 31 December Audited 30 June
31 December 2016 2017
2017 Restated Restated
R'000 R'000 R'000
Major components of the tax expense
South African Taxation
Current Tax
Current tax on profits for the period 43 360 54 757 92 637
Recognised in current tax for prior periods (1 579) (1 869) 3 882
41 781 52 888 96 519
Deferred
Originating and reversing temporary differences (1 638) (10 925) (27 879)
Increase in tax loss (12 949) (3 239) (38 726)
Prior year adjustments 758 - -
(13 829) (14 164) (66 605)
South African income tax expense 27 952 38 724 29 914
Foreign Taxation
Current Tax
Current tax on profits for the period 14 338 13 545 29 677
Recognised in current tax for prior periods (96) (664) (8 245)
14 242 12 881 21 432
Deferred
Originating and reversing temporary differences (9 473) (24 393) (1 623)
Tax loss utilised/(increase) in tax loss 22 (1 192) 51
Prior year adjustments 2 190 - -
(7 261) (25 585) (1 572)
Foreign income tax expense 6 981 (12 704) 19 860
Total income tax expense 34 933 26 020 49 774
Income tax expense attributable to:
Profit from continuing operations 36 730 27 142 62 581
Profit from discontinued operations (1 797) (1 122) (12 807)
34 933 26 020 49 774
Unaudited six
Unaudited six months ended
months ended 31 December Audited 30 June
31 December 2016 2017
2017 Restated Restated
R'000 R'000 R'000
Tax at the South Africa tax rate 28.00% 28.00% 28.00%
Amortisation and impairments 1.45% 5.39% 8.89%
Disallowable charges - Consulting fees / legal 1.95% 3.68% 5.43%
Disallowable charges - Donations / sponsorships 0.90% 0.04% 1.73%
Effect of prior year 1.88% (0.99%) 3.49%
Exempt dividend income (15.32%) 0.00% 0.00%
Fines and penalties 0.18% 0.00% 0.15%
Foreign exchange differential 1.41% (0.19%) 0.00%
Foreign tax incentives (0.94%) (12.07%) (11.00%)
Increase in /(utilisation of) tax losses 11.94% 0.10% (8.14%)
Local tax incentives (1.41%) (2.62%) (1.13%)
Lower foreign tax rates (16.99%) (4.06%) (14.61%)
Other disallowable charges 0.00% 0.00% 1.49%
Exempt income 0.00% (5.71%) (0.37%)
Average effective tax rate 13.05% 11.57% 13.93%
Reduction in effective tax rate
The decline in the effective corporate tax rate is predominantly as a result of more favourable corporate tax rates and tax
incentives available to foreign subsidiaries.
Research and development tax credits
Spanish tax legislation provide tax incentives to entities who incur research and development costs. The incentive is
akin to an investment tax credit. The Research and development innovation credit is received and recognised annually
since the research and development expenses to which the tax credit relates are key to and part of the normal business
operations of Farmalider (Spanish subsidiary).
10. Tax paid
Unaudited six
months ended Unaudited six
31 December months ended Audited 30 June
2017 31 December 2016 2017
R'000 R'000 R'000
Balance at beginning of the year 18 585 (22 868) (7 470)
Current tax for the year recognised in profit or loss (57 697) (68 302) (135 315)
Adjustment in respect of businesses sold and acquired - 14 781 1 138
during the year including exchange rate movements
Balance at end of the year (24 191) (9 238) (18 585)
(63 303) (85 627) (160 232)
11. Liabilities from financing activities
This section sets out the analysis of the movements in net Financing Activities:
Liabilities from financing activities Other
Deferred
Finance lease vendor
Borrowings liabilities liabilities*
Closing balance as at 30 June 2017 5 029 806 30 386 2 088 768
Cash flows (6 360) 1 918 (1 093 193)
New loans raised 388 880 9 500 –
Capital repayments made (395 240) (7 582) (1 093 193)
Non-cash movements (30 838) 1 039 18 429
Foreign exchange adjustments (32 920) 773 (3 091)
Interest capitalised 2 082 266 21 520
Closing balance as at 31 December 2017 4 992 608 33 343 1 014 004
* The group notes that the cash flows from deferred vendor liabilities are included as investing activities in the cash flow statement,
however, this information is considered to be useful to the users of the financial statements since deferred vendor liabilities are included
in the group's net debt position and is therefore included in the above disclosure.
12. Dividend
The directors have elected not to declare an interim dividend and to retain cash to settle debt obligations.
Andy Sims
Company Secretary
1 March 2018
GENERAL INFORMATION
Country of incorporation and domicile South Africa
Directors JA Bester
MS Bomela
CD Dillon
K Futter
B Harie
Dr KS Pather
GJ Shayne
CB Sampson
TB Thomsen
Dr KUHH Wellner
Registered office 31 Georgian Crescent East
Bryanston
Gauteng
2191
Business address 31 Georgian Crescent East
Bryanston
Gauteng
2191
Postal address PostNet Suite #252
Private Bag X21
Bryanston
2021
Bankers The Absa Bank Limited (acting through its Corporate and Investment Banking division)
HSBC Bank plc
Nedbank Limited (acting through its Corporate and Investment Banking division)
Standard Chartered Bank
Auditors PricewaterhouseCoopers Inc
Chartered Accountants (S.A.)
Sponsors Questco Corporate Advisory (Pty) Ltd
Secretary A Sims CA(SA)
Tax reference number 9810/017/15/3
Preparer The interim financial statements were internally compiled by: K Futter CA(SA)
ASCENDIS HEALTH LTD
31 Georgian Crescent East
Bryanston
Gauteng
South Africa
t: +27 11 036 9600
e: info@ascendishealth.com
www.ascendishealth.com
Date: 01/03/2018 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
