Alliance Pharma : Final Results for the year ended 31 December 2023 Presentations

FY 2023 Results Presentation

Camillo Pane, Chair

Andrew Franklin, CFO

Jeyan Heper, COO

19 June 2024

Disclaimer

This presentation ("Presentation") contains information which is not audited. This Presentation is for personal use only and is provided for information purposes and is not intended for distribution to any person or entity, or for use by any person or entity, in any jurisdiction in any country where such distribution or use would be contrary to any laws or regulations, or which would subject Alliance Pharma Plc or any member of the Alliance Group to any legal or regulatory registration requirement.

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All statements in this Presentation reflect the knowledge and information available to the Alliance Group at the time of its preparation. Certain statements included or incorporated by reference within this Presentation may constitute "forward-looking statements" in respect of the Group's performance, operations, financial condition and/or prospects. By their nature, "forward-looking statements" will involve a number of risks, uncertainties and assumptions and therefore actual results or events may differ materially from those which are either expressed or implied by those "forward-looking statements". Accordingly, no guarantees or assurance can be given that any particular expectation will be met, and reliance cannot and should not be placed on any "forward-looking statement".

Furthermore, all "forward-looking statements" regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. No responsibility is accepted, and the Alliance Group does not undertake any obligation, to update or amend any "forward-looking statement" resulting from any new information, future events or otherwise. Nothing in this Presentation should be construed as a profit forecast.

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Introduction

Camillo Pane, Chair

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Contents

01	FY 2023	Overview
02	Key Brand Overview
03	FY 2023	Results
04	Summary & Outlook
05	Appendices

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01

FY 2023

Overview

Andrew Franklin, CFO

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Audit delay

Strengthen current and future reporting

• This year's audit highlighted weaknesses in our internal control environment.
• • In particular, errors and key assumptions used in our intangible valuation model, predominantly related to Amberen
• A thorough review of our processes and more detailed work on intangibles has been undertaken
• We have reassessed the FY22 carrying value of our brands which results in a £28.3m non-cash increase in impairment in 2022
• • £20.0m relates to Amberen
  • £8.3m comprises other assets, including Flamma
• We have worked collaboratively with Deloitte during the audit, have improved our processes and will continue to do so, to ensure delays in our reporting are not repeated.

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2023 Results

Non-underlying items

• Our enhanced review is now more robust and has led to a further £79.3m non-cash impairment booked for FY23 (2022 restated £46.5m), including:
• • Amberen (£46.4m), Nizoral (£10.3m) and
  • £22.6m relating to other products, incl Vamousse (£4.7m) and Optiflo (£4.5m)
• Annual amortisation charge £7.2m (2022: £7.2m)
• Reversal of the CMA provision (£7.9m) following successful appeal

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FY 2023 Overview

Record revenues on strong H2 recovery

	6% growth in Group see-through revenues
	Kelo-Cote recovered significantly in H2 as in-market demand recovered
	Solid performance in Nizoral
	Amberen affected by challenging market conditions
	Other Consumer Healthcare brands performed well
	Prescription Medicines stable
	H2 restocking of the products that were affected by temporary supply issues
	in H1

Other
prescription
Medicines
20%	Kelo-cote
	franchise
	35%

Hydromol

5%

Other consumer
brands
17%	Amberen

MacuShieldNizoral

5%12%

6%

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FY 2023 Overview

Positioning our business to deliver sustainable growth for the longer term

Brand developments

• Strong performance from ScarAway
• New, award winning, marketing campaigns launched
• Continued progress from internal I&D
• • £3.5m revenues in 2023, >2x that in 2022
  • Kelo-Cotesheets launched in China
  • ScarAway sheets and Canker-X launched in the US

Operational developments

• Invested in our people
• • New Graduate and Year-in-Industry programs
  • Strengthened executive team and Board
  • Great Place To Work® re-certifications in UK, US, China and Singapore
• Continued development of ERP platform
• • Successful roll-out in the APAC region (ex China)
  • Preparing to launch in China in 2024

• Nizoral manufacturing moved from Belgium to Thailand
• • Lower COGS
  • Moving closer to customer, reducing carbon emissions
  • Improved on-time-in-full order delivery

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FY 2023 Overview

Positioning our business to deliver sustainable growth for the longer term

Financial developments

• Underlying EBITDA growth exceeding revenue growth
• Robust cash generation
• Reduced net bank debt
• Re-financeddebt as expected

Sustainability developments

• 48% reduction in Scope 1 & 2 (location-based) emissions
• • Achieved carbon neutrality in 2023
• Photovoltaic panels installed at our UK headquarters
• New target to be net zero for Scope 3 emissions by 2044
• • Interim reduction of 25% by 2030
• Partnered with Slave Free Alliance
• Partner Code of Conduct compliance enforced
• Introduced a new Employee Code of Conduct

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