Aspen Pharmacare Holdings Limited

Good morning, ladies and gentlemen. A very warm welcome to Aspen's 2025 Annual Results Presentation. Thank you for joining us. To kick things off this morning, we'll start with Stephen Saad, our Group CEO, who will take us through the group's performance overview and highlights. Sean Capizorio, our Group CFO, will then take us through the financial results in some detail. Following that, Stephen will return to share Aspen's strategy, prospects, and guidance. Once the presentations have been concluded, we'll then move over to the question and answer session, and we encourage you to participate by typing in your questions at the top left side of the webcast page. With that, it's my pleasure to hand over to Stephen. Stephen, over to you.

Thank you, Sunny. Thank you. Good morning, everyone. Good to be here and good to be talking to you. It's interesting and the car journey down here, I just made a few notes actually from there because you get a chance to reflect. We're so focused on what we're going to do in the next court and you sometimes have to wind back and think, well, listen, what happened in the past year? And I've been around a while and many of us have been around a while and the one thing that's indisputable I think is that Your journey of life, journey in business is always, it's never going to be a straight road. They always have some turns. But I would think that the events in the last three to four months of this year, to call what we're seeing a turn here is probably an understatement. You know, we've, the macro factors, within our world, I would call it extreme turbulence and actually it's not over and certainly not for the pharma industry, not over and it's continuing. So what we have focused on and what you'll see now is a plan which is one in which we've built our plan around those levers we can control. We've had to change. I mean, anecdotally, I mean, you all know that I love rugby. And I saw it this way really. It's like being in a rugby game and being really, if I look at this last year behind us, it was being well up at half time. And then you go into the shed and the ref comes into the room and he's the second half. You know, instinctively your first reaction is this can't be real. Then you find out it is real and you go into shock. Then you want to curse the ref and probably do curse the ref a bit. You want to walk off the field and you want to call it quits. And certainly there were times that we felt like that organization with what was going on around us. But, you know, this is Aspen and we live by a mantra and it's carried us through the past and that is really that rest is rest. And that means looking your teammate in the eye, knowing they've got talent, seeing their commitments there, and knowing that they've still got fight in there. And then you can't just go on that passion alone. You have to look at changing your plan. And simply moving from rugby to soccer, you're going to have to not play the bomb squad, and you're going to have to put eight backs onto the second part of the game. And it's a painful change, but we have... We have the team to win. We have the assets to win with. But we have to win differently from the plan that we initially envisaged. And as much as things change, they do stay the same for us. And for us to win, we have to do what we've always done. No time for rest. Keep moving and leave no place for the rust to settle. So with that, I'd like you to look very carefully at what I said. and see how our plans have changed and how we're trying to manage what we can see in front of us. So let's look a little bit at how we're performing over the last 12 months. It's just a quick overview of what we see as good, what was bad, and what is our plan from what we've seen out of this. So what's really good is the very biggest part of our business that makes up 70, 80% of our turnover and now a much bigger portion of our profitability. We've had really strong momentum in the commercial pharma and it's sustained. You know, we've got over the bumps that we've had in China and Russia and we had double digit constant exchange rate in revenue and EBITDA growth. We've had revenue growth across all our segments. Segments, that's prescription medicines, OTC medicines, injectables. And the China business, which was under a lot of pressure and we have acquired the Sandos business, has been consolidated and reshaped. We've got material near-term pipeline realization, which we're going to take you through in commercial. Commercial, a lot of it is around what we have achieved and hope to achieve in GLP-1s. And manufacturing is the sort of the commercialization of key contracts around Biles. And as has been traditional for Aspen, we've had very strong operating cash flow conversions. What was bad? We had an unanticipated loss of a material contract. And, you know, when you don't anticipate things, you're not braced for them. You know, a lot of that EBITDA reduction just fell straight through to the profit line. We not only faced new global tax regimes, but they were also implemented retrospectively. and that obviously impacted both tax rates and impairments, which are measured off tax rates, and Sean will talk to you about that. And then the relative strength of the RAND versus a basket of currencies, and you'll see that is that the RAND has been incredibly strong, and Sean will take you through a lot more detail of how those currencies have impacted us. But, you know, currency, one year it works for you, one year it doesn't. It's not a factor we can control. but it certainly diluted the strong growth in commercial pharma. So what is our plan? Our plan is to sustain the momentum in commercial pharma. There's a lot of cost, a lot of rituals in our existing base business that performed well coming out of the China restructure. And so China properly restructured, is expected to contribute more positively to EBITDA than revenue. We have to reshape our finished dose facility with regards to steriles. You know, if we take the income out of the contracts that we've lost, we have 1.7 billion loss embedded in these results. And as I said to you earlier, we are focused on restructuring for what we have certainty over and those variables that we can control. You will also see from our CapEx expenditure over the last period in manufacturing and development, we spent a lot of money to put ourselves into a really good position in GLP-1s. You can never be sure where you are with registrations and regulatory process, but I think one of the things that have given us incredible confidence and made us very pleased is that the Canadian regulator is a very stringent regulator and they go through a process called screening, which is to, is your dossier, they screen it to say, can it go to the next phase in the regulatory process? As you know, we compete against, in this space you're going to compete against many, many competitors, many globally large generic competitors as well. And I'm very pleased to tell you that we're one of only three dossiers that are through screening in Canada as we speak. So, We're right in the front of the queue, and, you know, we can never promise and deliver anything, but certainly you'd rather be there than not being screened at all or being told you've got deficiencies and come back for screening. The focus on the business now is going to shift to pre-cash flows. And Sean will work in capital investment. And also, we have to be candid about where we are and how do we unlock the sum of the parts of the valuations of Aspen. And what does that mean? How do you unlock value? From our perspective, we see the world, we see our manufacturing assets and they have value. We have assets that make a big profit that are offset by assets that make a loss. But the assets that make a profit are worth money. And if we say, we as a group that are manufacturing assets are worth more in value than our debt. If you believe that, And we believe that. Then you turn around and you say, the whole of Aspen, the commercial capitalization, and given the profitability we make in commercial farming, the forecast we've given you, that gives you a multiple of EBITDA on our business of somewhere between four to five times. And When you look at assets that perform like ours across our industry at that level, the assets we believe would have a solid double digit multiple. So that is what we see as what we have to demonstrate is how we unlock that value for you as shareholders. It's because we see that value and because I saw that value that I invested so heavily in Aspen recently. It's because I believe that we have the team to unlock and the assets to unlock this value for Aspen shareholders. And with that, Sean, I'll hand over to you and you can take everyone through the numbers. Thank you. Thank you, Stephen.

Yep, it's been a really, very, very challenging year, particularly the second half following the loss of that material contract. So really, as Stephen was saying, we've had to adapt our strategies, but we're very excited for where the journey is going forward. And Stephen will take you through some of that in his later section. What I will do now is just take you through the key financial elements of our results and a little bit of guidance into the future as well, which we'll then link into later. some of the messages that you'll hear from Stephen in his presentation. So if we first start with the first financial highlights, I'll take you through revenue and normalised EBITDA and our earnings trends year on year. You will notice on these bars we've put both the reported and the constant exchange rate numbers. The constant exchange rate numbers are the ones in the white digits. And we've done that deliberately because it has been quite a significant impact from the strength of the RAN. I'll take you through that in a little bit of detail later on. But certainly the constant exchange rate and the strength of the RAN has diluted our reported performance. So if we look at the first graph on the left, our revenue ended the year at $43 billion. In terms of constant exchange, that was 1% up, 3% down in reported. And the very strong performance we had in our commercial pharma business was offset by a decline in our manufacturing revenue, and I'll unpack some of that detail in a later slide. If we then look to our normalized EBITDA, we ended the year at a normalized EBITDA of $9.6 billion relative to constant exchange rate EBITDA of $10.4 billion, a reduction of 8%. If you look at the reported EBITDA last year, it was $11.3 billion. So you can see the delta is about $800 million between reported and constant exchange rate EBITDA. So it just gives you a sense of the impact of the strong RAND on our results this year. Looking at that 9.6, the big impact there has been the loss of that material contract. And as you recall, that has been around 2 billion of loss. So if you add that back on to the 9.6 billion, you'll be sitting at around 11.6 billion of EBITDA, which will be a lot more, a very good result if we hadn't lost that contribution from that contract. So You know, that's the way we, unfortunately, we've had that fork in the road and we've had to regroup our strategies, but certainly an overall tough year. But I think the commercial farmer underpinned a very strong result and supported most of that EBITDA strength in the year. Moving across to our normalised headline earnings, there we ended the year at 10.56, a 22% reduction relative to the constant exchange rate earnings. The gap there is wider than what we had in our constant exchange rate EBITDA of 8%. And the reasoning for that, which we'll also talk to you in subsequent slides, we did have an increase in our interest costs of around 21%. The interest costs themselves, we did anticipate and we did guide that increase. So it's not a surprise that that has gone up this year. We've also had an increase in our tax rates, which I'll take you through also in a later slide. So those are both anticipated increases. The thing we didn't anticipate was the foreign exchange volatility, and particularly in the last quarter of the year, the RAND weakened quite significantly against the euro, specifically, and caused quite a lot of foreign exchange losses in our last quarter, which then elevated our finance costs. So those are the factors that have caused the gap between earnings to be wider than the gap on normalised EBITDA. I think also just to give context to the constant exchange rate value difference on the earnings, again, 7% difference doesn't sound like a lot between constant and reported, but when you put it in value, it's a 600 million earnings difference. We could have banked the extra 600 million rand of earnings if the rand had stayed at the same level as it had in FY2024. Looking forward to the other highlight metrics, and I'll start with the graph on the left, networking capital to revenue ratio. We ended the year at 47%. It slightly elevated from where we ended in 24 or 45, and much better than what we had in 23 or 55%. Our internal target for this year was 45%. Unfortunately, with the loss of the material contract, which you will recall is very working capital-like, we weren't able to recover the lower working capital with the loss of revenue, unfortunately, but certainly still had a very strong working capital performance in the second half as anticipated. This led to a very strong operating cash conversion ending for the year. And so if you look at that second row, we ended the year with an operating cash conversion rate of 147%. I think it's one of the highest that I've seen definitely in the last five years. And way up on 103% last year and 88% in FY23. So strong cash conversion performance for the year. Looking to financing costs, there are two elements that I'd like to talk through there. Firstly, the interest. If you look at the numbers in white, our interest increased to about $1.3 billion from $1.2, around about a 10% increase. That was anticipated, and so it's not something that we were surprised by. However, if you look at the shaded section, you can see our foreign exchange losses increased from around $60 million in 2024 to over $200 million in the FY25 financial year, and it all came in the last quarter of this financial year following the US tariff-led global volatility, something out of our control, and that caused the overall finance costs to move from an interest increase of 10% to an overall increase of 21%. Looking to the far right on our net debt, the weaker rand at the end of the year relative to the Euro caused quite a lot of foreign exchange impact our level of net debt at around about 2 billion of that. So if we look at our overall net debt, we ended the year at 31 billion. However, 2 billion of that is related to foreign exchange and closing rate restatement of debt. If you look at constant exchange rate debt, it's around 29 billion versus 27 for the prior year. So that's an increase of around 2 billion rand. And a lot of that was driven by our investment in CapEx. particularly in the GLP-1 section, which we hope to drive strong returns in the year ahead. From a covenant perspective, we ended the year 3.2 times and below our covenant ratio of 3.5. Then what I thought I would do is just unpack the strength of the RAND, and I know it looks like quite a daunting slide, so if I can ask you just to cast your eyes to the bottom right graph. And it's very simple once you understand all the moving parts. If you look at the black dotted line, that is where we rebased our RAND back to June 2023 rates. And then what we've done is we've compared the relative rates from June 23 for all our major trading currencies in the financial year 2025. And all of the currencies that are trading currencies, you can see for most of the year, have been below the black dotted line. In other words, weaker relative to the RAND. And the only two currencies that sort of lifted above the dotted line were the euro and the pound. You'll see there the yellow line and the dark line. Those are the only two currencies that strengthened towards the end of the year. But over the year, the average rates were well below the RAND from a strength perspective. If you then look, you'll see the blue and the red line at the bottom. That's the Brazilian real and the Mexican peso. Those were particularly weaker against the RAND this year. And I will take you through the revenue performance in later slides. But you will notice that in the Americas, that significantly impacted reported performance versus constant exchange rate performance and around about a billion RAND of revenue impact because of the weaker RAND relative to those currencies and also the other Latin American currencies. If you then look to the graph on the left, it's the same rebased exchange rate to the RAND to June 2023, but it's for the FY24 financial year. And there you'll see the lines are all well scattered around the black dotted line, meaning that the exchange rates were a lot more aligned last year and not volatile. And so you can see the year-on-year impact of the strength of the RAND in the FY25 period. What does this mean? If you look at the table in the top left, You can see that I've got the reported numbers on the left and the constant exchange numbers on the right. And you can see that from a revenue perspective, there was a 4% delta between reported growth and constant exchange rate, minus 3 to plus 1. And if you go down the table, you'll see at the EBITDA level, we moved from a minus 15 to a minus 8, which if you remember is about an 800 million EBITDA impact. And NHIPS goes from minus 29 to minus 22, a 7% impact and a 600 million impact on earnings. So certainly a big something outside of our control and has been a big dilute of reported performance. We do measure ourselves on constant exchange rates, so that is the way we measure the business from an operating perspective. I'd like to then just unpack the group revenue performance for the year. If we look at the overall revenue, what I've got on this slide, we've got the FY25 revenue in dark blue. then followed by the FY24 reported revenue, and then I've got both the reported and the constant exchange rate performances on the right. Looking to the bottom, our group revenue of $43 billion ended 3% below reported, but 1% above in constant currency. You will remember that last year we had the benefit of our Heparin business, and I think you will remember it quite vividly because it gave us a very strong cash flow benefit in the prior where we converted our heparin business to a working capital light toll model. And so there was quite a significant one-off revenue boost in last year's number from heparin, albeit at low margin. So if we do exclude the heparin one source distortion in the numbers and take that out, then our overall group sales growth is actually plus 7% relative to the plus 1%. And then looking at the factors driving that plus 7% growth, commercial pharma, healthy growth of 10%, double digit. And underpinned, if you look at all those segments, I think Steven mentioned it earlier on, all three segments showing growth, prescription, OTC, and injectables. And it's also supported by organic growth as well. So that's organic growth and acquisitional growth underpinning those growths. And in our manufacturing segment, if you exclude the impact of heparin, around about a 3% revenue decline in manufacturing. Looking then under the hood to commercial pharma and how that is performed across the regions. Again, just to sort of talk you through the slide, we ended the year with R32 billion of turnover for commercial pharma. In reported terms, it was a 5% growth. In constant exchange, as I've said earlier on, a nice 10% growth. If we exclude the LATAM acquisition, which is an acquisitional growth, our underlying organic growth is a solid 7%. And so that's certainly our sort of north star in the business. If you're getting that strong organic growth, you know it's going to be driving strong cash flows going forward. So we're very pleased to announce that 7% growth is an underlying growth. If you then look across the regions, we've had solid growth across all the regions. The only one that's showing a negative growth there is Europe. However, Europe, And Asia, if you recall, were impacted by the product swap deal we did with Sandoz. And so if you exclude the divested products in the Europe region, the underlying growth is a healthy 3% growth in constant exchange rate. Yeah, our shining star, our biggest region in commercial pharma, Africa, Middle East, had a healthy 13% growth with strong organic growth and then also boosted by the successful launch and rollout of Munjara, the Lilly product Munjara, and Stephen will take you through some exciting statistics there to show you how well we perform in a very, very short time. You'll see that America's growth, one of the highest value growth there, 17% growth in constant exchange rate, and you'll notice your last while I highlighted that in red. If you cast your eye to the left of the 17, you'll see that the reported growth, is only 2%. So that is where, if you go back to my exchange rate slide that I spoke to you about earlier on, the Latin American currencies were the hardest hit in terms of weakening against the RAND. So quite a big delta there, 15% between reported and constant exchange rate growth. And if you do the math, that's about a billion RAND revenue impact that we start to take because of the strength of the RAND. We're also very proud of our Australasia growth. If you remember from the half year where they were sitting at a minus two and happy to report that ended the year with a 2% plus constant exchange rate growth with a very, very strong second half growth of 6%. So a good recovery from Australia and they are very well poised going forward, particularly with their shift of their business towards a more OTC based model. and I have got slides in the appendix which go through the three different segments, and you'll be very interested to see how the Australian business has performed in terms of the OTC segment. Then looking at the group EBITDA, I think I'd just like to just talk you through the mechanics of the slide. So what we've got here, we've got revenue, gross profit, all the way down to EBITDA, and I'm comparing FY25 numbers, I've put the reported numbers in there. So you'll see I reported EBITDA there of 11.2 billion. And then I've also included the constant exchange rate EBITDA numbers because of the massive delta that we spoke about earlier on. And all my commentary will be around the constant exchange rate trends because those are the ones that are relevant to the performance of the operational units. So looking first to revenue. We've already covered this, but a 1% growth in revenue with a big growth in commercial pharma offset by a decline in manufacturing, but bearing in mind that manufacturing has had that heparin distortion in the prior year. On the gross margin, we've actually gone up 4% relative to revenue growth of 1%, and our margin has increased from 42.6% up to 44%, and that is a function of the higher commercial pharma sales mix in the current year. and also the fact that the heparin sales in the prior year were at a very low margin, and so there were also distorted margins last year. So a nice increase in our gross profit margin percentage. However, the underlying segments we'll unpack later on in terms of the performance of the two segments, but 4% growth in gross profit. Looking then to expenses, you'll see that the expense growth is elevated at around 13%, and our ratio to revenue has gone up from 22.7% up to 25%. That has been elevated primarily because of the absorption of the Sandosh China business into our commercial farmer business. And so this year we had the benefit of the revenue in China, but we also had double expenses in China for most of this year. We have, however, completed the restructure and reshaping of that business in China. And so going forward, it is well poised for growth in the year ahead. But for this year, we had to absorb duplicate expenses for China. for quite a large part of this financial year. However, it will be poised for strong growth in the year ahead, and I think Stephen will talk through that in some detail in his section later on. Last year, you will remember we had a one-off compensation in our books of about half a billion rand. There's no equivalent for that this year, so that had a dilutionary effect on EBITDA performance in the current year. And if we then look to EBITDA, we ended the year at 9.6 billion rand. 8% down on the 10.5 billion in constant exchange rate. And the big factor there was the loss of the MRNA contract. And as I said earlier on, you know, the impact of that was around 2 billion rand. So if you put that back on top, then you would have seen a very different picture here. And going forward, I think Stephen will talk you through that later on. We've got strategies in terms of recovering that lost profitability in our manufacturing business. We've got a strong commercial pharma base. and growth going forward. So we do expect our EBITDA margins to lift back to normal levels from FY2076 onwards. Right then, what I've done is I've then put together a commercial farmer EBITDA slide. And again, very similar format to the group one. We've got the FY25 numbers in dark blue. I've got the reported numbers there just for reference back to your booklet. And then next to that, we've got the constant exchange rate numbers and followed by the reported and constant exchange rate percentage changes. If we look at the standout features here, you can see that we've grown our revenue and constant exchange rate by 10%. And very pleasing is that that's fallen all the way through to profit growth or EBITDA growth of 10%. So growing our EBITDA from 8.1 billion up to 8.9 billion. You will see if you look at the reported number, It's a big delta that the strong rand has impacted EBITDA from 8.1 to 8.8 billion, quite a large impact from the stronger rand. In terms of expenses, they have been elevated this year with the absorption of the China expenses, which you've covered already. In terms of gross profit percentage, we have had a little bit of a dilution in gross profit percentage this year, down to 58.1 versus 58.5 last year. That was impacted by lower injectables gross margins, specifically with higher stock write-offs in China. So we do expect gross margins to rebound in commercial farming in the year ahead. And we do have a nice section in the appendix where you can unpack all the segmental gross margins. And it's only really the injectable gross margin that's taken a little bit of a hit this year, but we expect to rebound in the year ahead. So putting that into context, you know, growing our gross margins back to 59% odd, Getting our expense base right in China, we do see that EBITDA growth in FY26 will outstrip the mid-single-digit commercial farmer revenue growth that we've got for FY26, and I think Stephen will talk through some of that in detail in his section. So I think the commercial farmer, in summary, a good performance for this year and well-poised for strong growth in the year ahead. Looking then to the manufacturing performance, there we ended the year at around EBITDA just under $700 million at $668 million, which is around 38% of the EBITDA for 2024 constant exchange rate, i.e. 62% down year on year. The big impact there was unfortunately the loss of contribution from the MR&A contract. That has been the big impact in terms of dropping that number. Underneath that, the API business did have a little bit of a decline because it had lost the onerous contract benefit that we enjoyed last year. However, looking forward for the manufacturing business, our API business is a very strong profit contributor to the group. I think the EBITDA there is north of $1.5 billion, and the losses are sitting in our FDF sterile, and the challenge and the strategy that we're going to be implementing going forward is to recover the loss in our sterile FDF by FY27. So we do see with the recovery plan in the FDF sterile and also supported by very strong and consistent growth in our API business, we do see that the manufacturing EBITDA will grow quite well over the next two years and be in a much better place. Unfortunately, we've lost two years of traction with the loss of the contract. In terms of tax rates... I know we don't normally talk a lot about tax rates, but this year it has been something, and we did speak about it at the half year. We've had quite a lot of action here. I think all the technical people got very excited. I mean, all the big four auditing companies and all the tax consultants had lots to do this year. But South Africa announced their participation in global minimum tax legislation this year, and they did it retrospectively, so that unfortunately impacted our FY25 year. And then Mauritius decided to put them at the post and introduce their own minimum tax legislation just before the end of our financial year and also retrospective to FY25. And so these two announcements have had the impact of increasing our current year tax rate to a level of 22%. You'll see in the graph below that historically we've run it around 18% quite consistently. And that's something that we did guide at the half year as well. It was expected. People will then ask, what do you think your future tax rate is going to be? Well, it always does depend on profit mix. It also does depend on how the actual implementation of this global minimum tax, what the outcome actually is, because there's quite a lot of complexity in that legislation. So we'll just see once we've gone through tax assessments, et cetera, what the actual impact will be. But for now, we've gone with the most conservative approach, and we've accounted for it fully in terms of our tax rates. The knock-on impact of these taxes has also impacted our intangible asset valuations, and so I will then, in the next slide, take you through that impact. So in terms, if you look at the graph on the right, our intangible asset impairments, which historically have been around 1.6 billion or 1.1 in 2023, have lifted up to 4.1 billion in the current year, quite a significant lift. What has caused that? Well, the tax rate that we just spoke about earlier on, what that does is has reduced our after-tax cash flows when we do our valuations of our intangible assets. And so that has had an impact on assets that had very low headroom, putting them into an impairment position. And on top of that, we've also had to impair MRNA-related intellectual property. So combined, those two have given you an overall impairment of around $2.4 billion. If you strip out that $2.4 billion, the residual impairment is around $1.7 billion, and that is very comparable to last year's impairment of $1.6 billion. and slightly elevated over 2023 of 1.1. But the big storyline is the tax rate, the impact on impairments from a tax rate perspective. Positively, if you look at our overall international asset portfolio, and even with the higher tax rate built into valuing all of our intellectual property, we've still got more than 50% headroom above carrying amounts. Unfortunately, for accounting, you can only write down and not write up, so we can't write the assets that are above 50% up. Otherwise, you would have seen a very different picture here. Moving then on to our capital expenditure, I'd just like to explain the graph, and then we can unpack it. But if you look at the graph, we've basically put our capital expenditure in FY24, and we've broken it into what is property plant and equipment and intellectual property. and then what the total spend is. And if you look at the total spend in 2024, we were around $5.5 billion. 2025, we've ended the year just under $5.1 billion. Our plan for 2026 is to come in around $3.8 billion, so a nice $1.3 billion reduction that we planned for CapEx in the year ahead, which will free up and improve and increase our free cash flow. Looking on the right of those graphs, you'll see there are depreciation and amortization numbers there. And if you look at that, it sort of goes from around $2 billion in 2024 to $2.3 billion in 2026. What our target is as a group is to try and get our capex to equal our depreciation amortization charge. And we're trying to target that for 2027. but definitely by 2028 to get those two equal. So if you look at the gap over time, you can see that in 2024, the gap between depreciation and total cash outflow was around $3.5 billion, and the plan for 2026 is $1.5 billion gap with the objective to close that gap by 2027-2028. Just looking at the individual components there of CAPEX, if we look at the 2025 CAPEX on the PPE, we ended the year, which is the dark blue, at 2.6 billion. You will recall at the half year, we guided a number of 2.9. So we've come in under our guided number for PPE CAPEX. And the main reason for that is we've had some delay in our packing, GLP-1 packing capacity, which we'll implement in early FY26. So that's shifted into the 26 CapEx plan. And then on the intellectual property, we had a $2.5 billion cash investment in intellectual property, this current year, of which 1.8 was related to GLP-1 and sterile IP-related investments. And so, as Stephen was saying, that's where we hope to unlock some of that value in future years. And you will see that the IP CapEx then in 2026 is coming in a lot lower at 1.2 billion versus the 2.5. Maybe the last point to make on the slide is of that $3.8 billion, we've still got about $0.9 billion of planned CapEx for GLP-1 packing and intellectual property investment for the year ahead. And then that should drop quite significantly thereafter. Looking at the saving that we're going to be generating from CapEx of around $1.3 billion in the year ahead, We're also targeting working capital reductions in FY26, particularly in inventory reduction programs. And that together with this reduction, we are planning to go, you know, drive at least 2 billion rand of additional free cash flow between CapEx and working capital for the year ahead. On to ESG program. This is part of Aspen's DNA. We always pride ourselves on balancing between, you know, making good returns and at the same time making sure we balance, you know, our objectives in terms of ESG. You will recall that in interim results we announced that we had 16 sustainability goals and we prioritized four of those goals in the current financial year. We set ourselves KPIs. And I'm very pleased to announce that we've done good progress against those four goals. So perhaps just to talk you through how we've performed against the specific goals that we've set ourselves in terms of the four. In terms of access to medicines, we want to increase the access of critical medicines to patients across emerging markets. And I'm very happy to announce we've achieved an 8% increase in that over FY24, obviously supported by South Africa, China, and products launched in Latin America. In terms of people, by 2030, we want to get a full gender balance in top management positions. And we've based ourselves around against 2020 levels. And as I'm pleased to announce that we're sitting at 32% relative to 19% in FY20. So a nice performance there. And while on a target to get to the 50% by 2030. In terms of compliance and governance and ethics programs, We committed to 100% completion there, and that we've achieved very comfortably this year. And then on the environment, our target is to get to 50% carbon reduction by 2030 for scope 1 and 2 carbon emissions. And at this stage, relative to FY20, we've achieved 24% reduction. So we're just under halfway there and another half to go by 2030. So very proud to announce the achievement of all of these goals. And thank you for listening to me. And I'm happy to hand over to Stephen to take us through a very exciting future and strategy.