Mayne Pharma : Appendix 4E and Statutory Accounts

27 August 2021

Manager, Company Announcements

ASX Limited

Level 4

20 Bridge Street SYDNEY NSW 2000

Via E-Lodgement

Dear Sir/Madam

Mayne Pharma Group Limited

Preliminary Final Report and accompanying announcement

Please find attached the following documents relating to the results for the year ended 30 June 2021.

• Appendix 4E
• Annual Financial Statements

This announcement comprises the information required by ASX Listing Rule 4.3A.

Yours faithfully,

Mayne Pharma Group Limited

Laura Loftus

Company Secretary

RESULTS FOR ANNOUNCEMENT TO THE MARKET

APPENDIX 4E - PRELIMINARY FINAL REPORT

	%		30 JUNE		30 JUNE
		2021		2020
	CHANGE
		$'000		$'000
Revenue from ordinary activities	(12.3)		400,781		456,985
Profit / (loss) from ordinary activities before income tax expense			(263,887)		(135,367)
Profit / (loss) from ordinary activities after income tax expense			(209,082)		(94,535)
Attributable to:
Equity holders of the parent			(208,423)		(92,789)
Non-controlling interests			(659)		(1,746)
			(209,082)		(94,535)
Other comprehensive profit/(loss) after income tax expense			(69,345)		17,858
Total comprehensive profit/(loss) for the period			(278,427)		(76,677)
Attributable to:
Equity holders of the parent			(276,883)		(75,134)
Non-controlling interests			(1,544)		(1,543)
			(278,427)		(76,677)
Net tangible assets per ordinary share (1)		$0.08		$0.05
		2021		2020
			Cents		Cents
Basic earnings per share		(13.26)		(6.07)
Diluted earnings per share		(13.26)		(6.07)
Final dividend in respect of the financial year ended 30 June per share			Nil		Nil

No dividend has been declared in relation to the period ended 30 June 2021.

Refer to the Review of Operations and Likely Developments and the accompanying ASX announcement dated 27 August 2021 for a brief commentary on the results.

Note 1. Includes right-of-use lease assets

Financial Report 2021

MAYNE PHARMA GROUP LIMITED

ABN 76 115 832 963

FOR THE YEAR ENDED 30 JUNE 2021

(PRIOR CORRESPONDING PERIOD: YEAR ENDED 30 JUNE 2020)

CONTENTS

DIRECTORS' REPORT	2
REMUNERATION REPORT	15
AUDITOR'S INDEPENDENCE DECLARATION	22
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME	24
CONSOLIDATED STATEMENT OF FINANCIAL POSITION	25
CONSOLIDATED STATEMENT OF CASH FLOWS	26
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY	27
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS	28
DIRECTORS' DECLARATION	67
INDEPENDENT AUDITOR'S REPORT	68
GLOSSARY	74

DIRECTORS' REPORT

The Directors of Mayne Pharma Group Limited ('the Company') present their report together with the financial report of the Company and its controlled entities (collectively the 'Group' or 'Consolidated Entity' or 'Mayne Pharma') for the year ended 30 June 2021 and the Auditor's Report thereon. The information set out below is to be read in conjunction with the Remuneration Report set out on pages 15 to 21, which forms part of this Directors' Report.

DIRECTORS

The Directors of the Company during the financial year and up to the date of this report are:

Mr Roger Corbett, AO (Chairman)

Mr Scott Richards (Managing Director and Chief Executive Officer)

Mr Patrick Blake

Mr Frank Condella

Ms Nancy Dolan

Mr Bruce Mathieson

Prof Bruce Robinson, AC

Mr Ian Scholes

The Directors' qualifications, other listed company directorships, experience and special responsibilities are detailed on pages 11 and 12 of this report. The qualifications and experience of the Company Secretary are detailed on page 12 of this report.

DIRECTORS' MEETINGS

The number of Directors' meetings (including meetings of committees of Directors) and number of meetings attended by each of the Directors of the Company during the 2021 financial year are:

		BOARD	AUDIT & RISK COMMITTEE		NOMINATION	REMUNERATION & PEOPLE	SCIENCE, TECHNOLOGY &
						COMMITTEE		COMMITTEE	MEDICAL COMMITTEE
	HELD1	ATTENDED2	HELD1	ATTENDED2	HELD1	ATTENDED2	HELD1	ATTENDED2	HELD1	ATTENDED2
Mr R Corbett	11	10	-	-	3	3	6	6	-	-
Mr S Richards3, 4	11	11	-	-	-	-	6	4	3	3
Mr P Blake	11	11	9	9	-	-	6	6	-	-
Mr F Condella	11	11	-	-	3	3	-	-	3	3
Ms N Dolan	11	11	9	9	3	3	-	-	-	-
Mr B Mathieson	11	10	-	-	-	-	-	-	-	-
Prof Bruce Robinson	11	11	-	-	-	-	-	-	3	3
Mr I Scholes	11	11	9	9	-	-	6	6	-	-

1. This column shows the number of meetings held during the period the Director was a member of the Board or Committee.
2. This column shows the number of meetings attended.
3. Mr Richards is not a member of the Remuneration and People Committee however he attends meetings at the Chairman's invitation.
4. Mr Richards is not a member of the Science, Technology & Medical Committee however he attends meetings at the Chairman's invitation.

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

During the prior period, Mayne Pharma executed an exclusive long-term licence and supply agreement with Mithra Pharmaceuticals SA to commercialise a novel oral contraceptive NEXTSTELLIS® (E4/DRSP) comprising estetrol (E4) and drospirenone (DRSP) in the US and Australia. In April 2021, NEXTSTELLIS was approved by the US Food and Drug Administration (FDA) and launched into the US market in June 2021 following the recruitment of a new national women's health sales team.

These changes are discussed in the Principal Activities and Review of Operations and Likely Developments sections of this report.

PRINCIPAL ACTIVITIES

Mayne Pharma is an ASX-listed specialty pharmaceutical company focused on commercialising novel and generic pharmaceuticals. Mayne Pharma also provides contract development and manufacturing services to clients worldwide.

Mayne Pharma has a 40-year track record of innovation and success in developing new oral drug delivery systems and these technologies have been successfully commercialised in numerous products that continue to be marketed around the world.

Mayne Pharma has two product development and manufacturing facilities based in Salisbury, Australia and Greenville, North Carolina, US with expertise in the formulation of complex oral and topical dose forms including potent compounds, modified-release products and poorly soluble compounds.

REVIEW OF OPERATIONS AND LIKELY DEVELOPMENTS

Summary of financial performance

Set out below is a summary of the financial performance attributable to Mayne Pharma shareholders for the 2021 financial year (FY21) compared to the prior corresponding period (pcp).

This summary includes non-IFRS financial information that is stated excluding certain non-operating income and expense items. The results are set out this way as the Directors consider them to be a meaningful comparison from period to period. Key measures of earnings considered by management in operating the business and assessing performance are earnings before interest, tax, depreciation, amortisation and impairment ('EBITDA') and Adjusted EBITDA.

Mayne Pharma Group Limited Financial Statements for the year ended 30 June 2021

2