Aspen Pharmacare Holdings Limited

1. Aspen Pharmacare Holdings Limited GROUP ANNUAL RESULTS FOR THE YEAR ENDING 30 JUNE 2002

2. Financial Highlights 1999 to 2002 2002 Revenue from continuing operations Operating profit before amortisation (from continuing operations) Headline EPS Headline EPS from continuing operations Attributable net profit 41% 45% 34% 36% 27%

3. Consolidated Income Statement

4. Segmental AnalysisYear Ended 30 June 2002 Revenue from continuing operations Operating Profit before amortisation from continuing operations

5. Segmental AnalysisYear Ended 30 June 2002 93% Other – offshore 1% Revenue from continuing operations Operating Profit before amortisation from continuing operations

6. Consolidated Balance Sheet

7. Shareholding Spread

8. Novartis Transaction • Period: 12 years • Products: Anafranil, Dynacirc, Estracombi, Estraderm, Etomine, Melleril, Sandomigran, Slow-K, Symmetrel, Syntocinon, Syntometrine and Voltaren • Phase 1: • Years 1 to 4 • Commitment to pay R138.3 million in product participation fees for product rights • Receive marketing fees based on performance in promoting products • Phase 2: • Years 5 to 12 • Rights to promote and market the products for Aspen’s benefit • Sourcing from Novartis • Amortisation of capatalised rights: • Over the full period of the agreement • Front end loaded to match expected revenue streams

9. Consolidated Operating Cash Flow

10. Industry Overview • Pharmaceutical industry subject to unprecedented legislative and market pressures • Medscheme issues restrictive re-imbursement listing • Increased burden continues on public sector: • Population trends • Unemployment, and • HIV/AIDS • Legislative pressures: • Intention to gazette Act 90 in 2003 • Legislated generic substitution • Introduction of a professional fee, and • One exit price policy 7m Insured 14m Employed but uninsured 20m Public / State sector

11. Industry Overview • Pfizer/Pharmacia merger could trigger multinational consolidation • Chain store ownership of pharmacies • Clicks purchases UPD • Over a billion rand of molecules coming off patent within 5 years • Chronic medication unaffected by cellphone and lottery • Shadow of HIV/AIDS, TB and Malaria hangs over the industry

12. Industry Size and Players Total Private Market (R10.9 b) • Two distinct markets: • high volume/lower value public; and • high value private • Public sector barometer of cost competitiveness: • Aspen share 21%, next generic competitor 6% • The total private market (TPM) comprises ethicals, generics and consumer SOURCE: IMS HEALTH - SANDS

13. Private Market Growth Rates Total Private Marekt (TPM) The TPM has grown 15% this year (18% last year) Growth rates of the individual market components include: * Aspen Ethical growth excludes co-promotions with multinationals

14. Industry Overview Ethical vs Generic Market Shares July 2001 – June 2002 SOURCE: IMS HEALTH - SANDS

15. Industry Overview Private Generic Market MAT Rand Shares as at June 2002 SOURCE: IMS HEALTH - SANDS

16. Group Operational Review • After disposals ± R120m operating income purchased from SAD in 1999 • Today over R400m of operating income • Strong organic growth in 2002 will continue into 2003 • Successful product launches include: • AP Loratadine – generic of Clarityne • Minerva – generic of Diane 35 • Pharmacare Acycovir injection 250mg – generic of Zovirax • Ketazol Cream – generic of Nizcreme • Pharmacare-Cefotaxime 500mg/1g vials – generic of Claforan • Kidcomplete – ADD • Menograine tablets – Clonidine 25mcg

17. Myprodol vs Mybulen Continued success for Mybulen (in the same patent category as Myprodol * Mybulen already has a ± 25% volume market share

18. Group Operational Review • Multinational relationships continue to improve: • Merck – full access to generic portfolio of generic pipeline for SA • Novartis – 12 year marketing agreement on Voltaren, Anafranil, Dynacirc, Estracombi, Estraderm, Etomine, Melleril, Sandomigran, Slow-K, Symmetrel, Syntocinon and Syntometrine • GSK – voluntary licenses on anti-retrovirals 3TC, AZT, and Combivir • AZ – deal extended to include Plendil • Effect of free falling rand: • Cushioned by local manufacture – represents 50% of cost of goods • Significant increase in tender awards to local manufacturers • Operationally a stressful year: • Volumes undercalled by the private sector and in particular the public sector • Pressure on factory and supply chain • OSD ran at 3 shifts 7 days a week – Sundays 2 shiftsTo avoid buy-outs low margin State orders supplied ahead of private market • Strategic decision to pull back from some high volume / low value tenders until capacity is increased

19. Manufacturing Review • Aspen is SA’s largest pharmaceutical manufacturer • Low cost demonstrated by tender market shares • Focus needed on technology improvements • New oral solid dose facility: • Current volume constraints • Projected future SA volume growth • To manufacture for offshore subsidiaries • To create export opportunities • To ensure GMP compliance in the medium/long term • Will more than double OSD capacity

20. Manufacturing Review Example of technology saving demonstrated by Stilpane: • Raw materials weighed once not 3 times • Lab does one set of tests not 3 sets • Cost reductions from yield improvements • Time saved in granulation will improve capacity

21. Strategic Advantages • 50% of cost rand based • Capacity enhancement costs significantly less, given no replication needed: • QC • QA • Laboratory • Stability • Finished Goods Warehousing • Regulatory • Current economies of scale – conversion costs of raw material to bulk tablets at a significant discount to international competitors • Unshackled from volume constraints • Challenges: • To continue growing domestic volumes • Create export markets, and • Manage transition into new facility to Q1/Q2 2004

22. The Pipeline : New Business Development • Management priority area • Limit to Generic and OTC price and volume increases on existing products • Lifeblood of business – commitment and success as reflected SOURCE: IMS HEALTH - SANDS

23. The Pipeline : New Business Development Aspen has numerous competitive advantages: • An A to Z basket of generics • Ability to be a one-stop shop • Largest sales force in both public and private sector reach into all market segments • Leading supplier to inter alia: • Mines • Parastatals • Private hospitals (excluding LVP’s) • Public hospitals

24. The Pipeline : New Business Development • Pipeline created by deals with international multinationals and generic companies, and our own development capacities • The result of the above is SA’s largest pipeline of generic products • Impressive pipeline will maintain our lead position in medium to longer term • Significant challenges exist. “Gap list” for next 10 years over R3 billion at current market prices in private market alone

25. Aspen - Offshore Co-Pharma • UK generic market commodity in nature • Co-pharma results above expectations • Return on turnover low until Aspen manufactures • Medium term export destination • Has access to IP through Merck subsidiary GUK • Needs additional products • Prospects for 2003 are good with an improvement on 2002 anticipated Aspen Australia • First full year from start up 14 months ago • Range of acquired OTC and Generic products • Management team have laid a solid foundation • New opportunities with multinationals being investigated • Larger critical mass needed: • focussed NBD team for organic growth, and • leverage off group’s resource base • Results for 2002 pleasing with improvements expected for 2003 Aspen Europe • Set-up to review potential multinational initiatives • To date deal offered by multinationals deemed too risky • Until profitable, initiatives to be pursued out of Aspen Corporate in SA

26. Social Responsibility Diseases • HIV/AIDS, Malaria and TB • Drugs under patent, co-operation with multinationals needed • Aspen has successfully accessed the following ARV products: • Further agreement signed – to be announced once Competition Board approval is received

27. Social Responsibility Diseases • To develop products: • formulate • prepare and test trial batches • stability • biostudies • dossier compiled • Products then submitted to the MCC for approval to sell • Approaches to multinationals for IP in other social responsibility areas • Offers hope to all SA, increased turnover and volume, profitability limited

28. Summation and Prospects • Strong growth reflected in key financial indicators • Turnover growth of 41% • Operating profit up 45% • Headline EPS growth of 36% • Cash flow per share exceeds EPS for fourth consecutive year • Debt reduced to R30m from ±R900m in 1999 • Outperformed industry again • Dominant position in generics maintained • Large player in OTC • Ethicals growing: • successful launches, and • strengthened multinational relationships • Industry stresses at legislative and private market level have benefitted and should continue to benefit Aspen in short to medium term

29. Summation and Prospects • Operational and marketing strengths demonstrated by successful launches into competitive markets viz Mybulen and Kestine • Aspen to assist with social responsbility diseases including HIV/AIDS • Positioned for further strong growth both domestically and offshore through: • impressive pipeline to bolster medium and longer term • good multinational relationships; and • increase capacity offers additional opportunities • Headline EPS growth targeted at more than 20%