Alliance Pharma PLC (APH) 2022年年度報告「LSE」.pdf

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1、Alliance Pharma plc Annual Report and Accounts 2022WE AREALLIANCEAlliance Pharma plcAnnual Report and Accounts 2022For more information visit Company OverviewWho We Are 012022 Performance Overview 022022 A Year in Review 03Purpose,Vision,Strategy,Values 04Online Sustainability ReportOnline sustainab

2、ility report at Annual ReportView our report online at websiteVisit our main site for further information at AN ALLIANCE OF PEOPLE,PARTNERS AND BRANDS,WORKING TOGETHER TO ACHIEVE MOREHow we report to our stakeholdersC O N T E N T SCompany OverviewWho We Are 012022 Performance Overview 022022 A Year

3、in Review 03Purpose,Vision,Strategy,Values 04Strategic Report Chief Executives Review 06Market Overview 09 Our Strategy 12Spotlight on Marketing excellence 18Innovation and development 20ScarAway and Kelo-Cote US acquisition 22Culture,people and values 24Key Performance Indicators 27Sustainability 2

4、9Spotlight on Managing our packaging estate 31Developing our response to climate change 33TCFD 35Stakeholder Engagement 40Financial Review 42 Principal Risks and Uncertainties 47Governance Chairs Introduction 58Our Governance Structure 60Board of Directors 61Governance 63Nomination Committee Report

5、69Audit and Risk Committee Report 72Remuneration Committee Report 77ESG Committee Report 86Directors Report 88Financial StatementsIndependent Auditors Report 93Consolidated Income Statement 102Consolidated Statement of Comprehensive Income 103Consolidated Balance Sheet 104Company Balance Sheet 105Co

6、nsolidated Statement of Changes in Equity 106Company Statement of Changes in Equity 107Consolidated and Company Cash Flow Statements 108Notes to the Financial Statements 109Additional InformationUnaudited Information 148Five Year Summary 149 Advisers and Key Service Providers 150 Cautionary Statemen

7、t 151Glossary 152GovernanceStrategic ReportCompany OverviewFinancial StatementsAdditional InformationAlliance Pharma plc Annual Report and Accounts 2022Alliance Pharma plcAnnual Report and Accounts 2022For more information visit Company OverviewWho We Are 012022 Performance Overview 022022 A Year in

8、 Review 03Purpose,Vision,Strategy,Values 04Alliance Pharma plcAnnual Report and Accounts 2022For more information visit Company OverviewWho We Are 012022 Performance Overview 022022 A Year in Review 03Purpose,Vision,Strategy,Values 04W H O W E A R ETALENTED PEOPLE285A TEAM OFSTRATEGIC LOCATIONS8BASE

9、D INWE ARE ALLIANCEAn international consumer healthcare company,empowering people to make a positive difference to their health and wellbeing,through making our trusted and proven brands available around the world.Working together to deliver value for our stakeholders through maximising the value of

10、 our brands.as at 31 December 2022Outsourcing capital-intensive activities,such as manufacturing and logistics,to allow us to focus on what we do best.INVESTING IN OUR PRIORITY BRANDS AND CHANNELSINNOVATING TO ENSURE OUR BRANDS REMAIN RELEVANTSELECTIVELY EXTENDING THE GEOGRAPHIC REACH OF OUR BRANDSG

11、overnanceStrategic Report01Company OverviewFinancial StatementsAdditional InformationAlliance Pharma plc Annual Report and Accounts 2022GovernanceStrategic Report01Company OverviewFinancial StatementsAdditional InformationAlliance Pharma plc Annual Report and Accounts 2022Alliance Pharma plcAnnual R

12、eport and Accounts 2022For more information visit Company OverviewWho We Are 012022 Performance Overview 022022 A Year in Review 03Purpose,Vision,Strategy,Values 04Alliance Pharma plcAnnual Report and Accounts 2022For more information visit Company OverviewWho We Are 012022 Performance Overview 0220

13、22 A Year in Review 03Purpose,Vision,Strategy,Values 04Alliance Pharma plcAnnual Report and Accounts 2022For more information visit Company OverviewWho We Are 012022 Performance Overview 022022 A Year in Review 03Purpose,Vision,Strategy,Values 042 0 2 2 P E R F O R M A N C E O V E R V I E WREPORTED

14、PROFIT BEFORE TAX5.2m-71%(2021:18.2m)STATUTORY REVENUE167.4m+3%(2021:163.2m)REPORTED BASIC EPS0.17p-88%(2021:1.37p)FREE CASH FLOW*15.8m-48%(2021:30.2m)NET DEBT*102.0m+17%(2021:87.0m)UNDERLYING BASIC EPS*4.28p-33%(2021:6.39p)SEE-THROUGH REVENUE*172.0m+1%(2021:169.6m)UNDERLYING PROFIT BEFORE TAX*30.3m

15、-28%(2021:42.2m)*Non-IFRS Alternative Performance Measures(APMs),(see note 31).See-through revenue includes all sales from Nizoral as if they had been invoiced by Alliance as principal.For statutory accounting purposes the product margin relating to Nizoral sales made on an agency basis is included

16、within Revenue,in line with IFRS 15.GovernanceStrategic Report02Company OverviewFinancial StatementsAdditional InformationAlliance Pharma plc Annual Report and Accounts 2022GovernanceStrategic Report02Company OverviewFinancial StatementsAdditional InformationAlliance Pharma plc Annual Report and Acc

17、ounts 2022GovernanceStrategic Report02Company OverviewFinancial StatementsAdditional InformationAlliance Pharma plc Annual Report and Accounts 2022GovernanceStrategic Report02Company OverviewFinancial StatementsAdditional InformationAlliance Pharma plc Annual Report and Accounts 2022Alliance Pharma

18、plcAnnual Report and Accounts 2022For more information visit Company OverviewWho We Are 012022 Performance Overview 022022 A Year in Review 03Purpose,Vision,Strategy,Values 04Alliance Pharma plcAnnual Report and Accounts 2022For more information visit Company OverviewWho We Are 012022 Performance Ov

19、erview 022022 A Year in Review 03Purpose,Vision,Strategy,Values 04Alliance Pharma plcAnnual Report and Accounts 2022For more information visit Company OverviewWho We Are 012022 Performance Overview 022022 A Year in Review 03Purpose,Vision,Strategy,Values 04Alliance Pharma plcAnnual Report and Accoun

20、ts 2022For more information visit Company OverviewWho We Are 012022 Performance Overview 022022 A Year in Review 03Purpose,Vision,Strategy,Values 042 0 2 2 A Y E A R I N R E V I E WWhilst trading performance in 2022 was not as strong as had been anticipated at the start of the Year,Alliance successf

21、ully completed a highly strategic acquisition of ScarAway and the rights to Kelo-Cote in the US in March and delivered the first new product launch from its innovation and development platform.The Group has robust plans in place to support a return to growth in 2023.1 Non-IFRS Alternative Performanc

22、e Measure(APM),(see note 31).See-through revenue includes all sales from Nizoral as if they had been invoiced by Alliance as principal.For statutory accounting purposes the product margin relating to Nizoral sales made on an agency basis is included within Revenue,in line with IFRS 15.2 Constant exc

23、hange rates.Prescription Medicines performance stable,with revenues of 46.8m(2021:47.8m),down 2%CER2.Underlying PBT declined 28%largely due to less favourable product mix with a lower proportion of Kelo-Cote and Amberen sales.Reported PBT declined 71%due to higher non-cash impairment charges of 18.2

24、m,including 12.0m for Amberen.Free cash flow was lower by 48%at 15.8m,primarily reflecting the timing of sales and cash receipts.Cash from operations declined by 45%to 24.9m.Following the highly strategic US acquisition for$19.4m(14.8m),net debt increased to 102.0m moving Group leverage to 2.57 time

25、s at 31 December 2022(1.73 times at 31 December 2021).Integration of the US acquisition completed in just four months,successfully leveraging our established infrastructure,with revenues in line with expectations.Last remaining NizoralTM marketing authorisations transferred from Johnson&Johnson(J&J)

26、to Alliance in both China and Vietnam;new top-tier Chinese distributor appointed and manufacturing supply consolidation progressing well,which will result in improvements in cost efficiencies in the near future.Consumer Healthcare see-through revenue1 up 3%to 125.2m(2021:121.8m)(down 3%CER2)with 16%

27、growth in Other Consumer brands partially offsetting softer performance in key brands.Revenue growth impacted by lockdown in China,associated temporary business-to-business(B2B)disruption to the supply chain,slower recovery in B2B demand for Kelo-Cote and a one-off destocking effect,but boosted by t

28、he US acquisition and FX gains.See our Spotlight on ScarAway and Kelo-CoteTM US acquisition on page 22 See the Chief Executives Review on page 06 First new product launched from our innovation and development programme Kelo-Cote Kids.See our Spotlight on innovation and development on page 20 Scope 1

29、 and 2 emissions target set to achieve net zero in 2030,with an interim reduction of 65%by 2025.See our Spotlight on developing our response to climate change on page 33 Re-certified as a Great Place To Work(GPTW)in the UK,China and Singapore with new certifications in the US and France and a Trust

30、Index rating of 79%(2021:76%).See our Spotlight on culture,people&values on page 24 Updated and refined our Purpose,Vision and Strategy to better align with the evolving dynamics of the consumer healthcare market.See Our Strategy on page 12 GovernanceStrategic Report03Company OverviewFinancial State

31、mentsAdditional InformationAlliance Pharma plc Annual Report and Accounts 2022GovernanceStrategic Report03Company OverviewFinancial StatementsAdditional InformationAlliance Pharma plc Annual Report and Accounts 2022GovernanceStrategic Report03Company OverviewFinancial StatementsAdditional Informatio

32、nAlliance Pharma plc Annual Report and Accounts 2022GovernanceStrategic Report03Company OverviewFinancial StatementsAdditional InformationAlliance Pharma plc Annual Report and Accounts 2022Alliance Pharma plcAnnual Report and Accounts 2022For more information visit Company OverviewWho We Are 012022

33、Performance Overview 022022 A Year in Review 03Purpose,Vision,Strategy,Values 04Alliance Pharma plcAnnual Report and Accounts 2022For more information visit Company OverviewWho We Are 012022 Performance Overview 022022 A Year in Review 03Purpose,Vision,Strategy,Values 04Alliance Pharma plcAnnual Rep

34、ort and Accounts 2022For more information visit Company OverviewWho We Are 012022 Performance Overview 022022 A Year in Review 03Purpose,Vision,Strategy,Values 04Alliance Pharma plcAnnual Report and Accounts 2022For more information visit Company OverviewWho We Are 012022 Performance Overview 022022

35、 A Year in Review 03Purpose,Vision,Strategy,Values 04Alliance Pharma plcAnnual Report and Accounts 2022For more information visit Company OverviewWho We Are 012022 Performance Overview 022022 A Year in Review 03Purpose,Vision,Strategy,Values 04P U R P O S E,V I S I O N,S T R AT E G Y,VA L U E SA cle

36、ar purposeWe empower people to make a positive difference to their health and wellbeingOur refreshed purpose,and the refined vision that it supports,enable us to align ourselves more closely to changing market dynamics.Our strategy focuses on those categories in which we can add most value,to promot

37、e the successful evolution of our business and meet specific consumer needs.Our strong culture will enable us to implement the transformation needed to deliver our strategic priorities.Our values remain unchanged.Our VisionOur ValuesSee page 11See our websiteOur StrategySee our websiteSee page 12Our

38、 Business Model Our PurposeSee page 24See page 11Our Culture See our purpose and vision on page 11GuidesDeliversSupportsShapeEnablesDefinesGovernanceStrategic Report04Company OverviewFinancial StatementsAdditional InformationAlliance Pharma plc Annual Report and Accounts 2022GovernanceStrategic Repo

39、rt04Company OverviewFinancial StatementsAdditional InformationAlliance Pharma plc Annual Report and Accounts 2022GovernanceStrategic Report04Company OverviewFinancial StatementsAdditional InformationAlliance Pharma plc Annual Report and Accounts 2022GovernanceStrategic Report04Company OverviewFinanc

40、ial StatementsAdditional InformationAlliance Pharma plc Annual Report and Accounts 2022GovernanceStrategic Report04Company OverviewFinancial StatementsAdditional InformationAlliance Pharma plc Annual Report and Accounts 2022Alliance Pharma plcAnnual Report and Accounts 2022Strategic Report Chief Exe

41、cutives Review 06Market Overview 09 Our Strategy 12Spotlight onMarketing excellence 18Innovation and development 20ScarAway and Kelo-Cote US acquisition 22Culture,people and values 24Key Performance Indicators 27Sustainability 29Spotlight onManaging our packaging estate 31Developing our response to

42、climate change 33TCFD 35Stakeholder Engagement 40Financial Review 42 Principal Risks and Uncertainties 47For more information visit “As we continue on our growth trajectory journey,our portfolio continues to provide a robust platform from which to grow our consumer healthcare brands.”Strategic Repor

43、tAlliance Pharma plc Annual Report and Accounts 2022Peter Butterfield,Chief Executive Officer05Alliance Pharma plc Annual Report and Accounts 2022GovernanceCompany OverviewFinancial StatementsAdditional InformationStrategic ReportAlliance Pharma plcAnnual Report and Accounts 2022For more information

44、 visit Strategic Report Chief Executives Review 06Market Overview 09 Our Strategy 12Spotlight onMarketing excellence 18Innovation and development 20ScarAway and Kelo-Cote US acquisition 22Culture,people and values 24Key Performance Indicators 27Sustainability 29Spotlight onManaging our packaging est

45、ate 31Developing our response to climate change 33TCFD 35Stakeholder Engagement 40Financial Review 42 Principal Risks and Uncertainties 47 C H I E F E X E C U T I V E S R E V I E WTRADING PERFORMANCEOverviewWe recognise that 2022 didnt deliver the trading performance that we expected at the start of

46、 the year.This was largely due to underperformance in two discrete areas of our business,Kelo-Cote in the China business-to-business(B2B)channel,and Amberen in the bricks and mortar channel,and was set against a challenging economic backdrop with the war in Ukraine and COVID 19-related lockdowns in

47、China creating supply disruption.However,we were able to successfully leverage our existing infrastructure,by acquiring ScarAway and the US rights to Kelo-Cote in March 2022,to create our first truly global brand,bringing additional growth opportunities into the business.We also started to realise t

48、he benefits of our investment in innovation and development with the launch of Kelo-Cote Kids.We start 2023 in a good position,having refreshed our strategy,to better align our business with the evolving dynamics of the Consumer Healthcare market.Going forward,our efforts will be focused on those ma

49、rket segments in which we already have a strong presence and expertise in order to drive solid organic revenue growth above that of the broader Consumer Healthcare market.A challenging yearThe implementation of rigid lockdowns in China from March prevented the movement of Kelo-Cote across the border

50、 from Hong Kong,effectively closing the cross-border e-commerce(CBEC)channel and leading to declines in the CBEC scar treatment market in H1.During this period,consumer demand remained strong and the domestic online market grew,with Kelo-Cote gaining share.SEE-THROUGH REVENUE172.0m+1%(2021:169.6m)Wh

51、ilst the CBEC market returned to growth in H2,and Kelo-Cote delivered a strong performance in the business-to-consumer(B2C)channel,winning a prestigious Tmall global award for surpassing RMB100m(c.12m)in sales,the B2B market was slower to recover,with traders reluctant to restock Kelo-Cote for fear

52、that counterfeit product would be available at a lower price.This problem was compounded by a one-off destocking decision by our CBEC distributor.We continue to work with our CBEC distributor to further develop this channel,expand reach and optimise sales.Our B2C channel is well developed,and we hav

53、e refined our strategy to increase our presence in the significant B2B channel,which incorporates additional distributor support.In light of that,we anticipate that sales will build steadily through 2023.Amberen sales performance was impacted by declines in the underlying bricks and mortar market du

54、e to an increase in prevalence of cheaper,white-label alternatives and switching to online platforms,in addition to the loss of a leading discount store account.Alliance is committed to increasing the performance of Amberen in the higher growth e-commerce channel whilst optimising sales in bricks an

55、d mortar where appropriate.The brands packaging has been re-launched featuring stronger claims,and advertising investment continues focused on digital,video,social media and search engine optimisation to drive share gains.We were disappointed by the CMAs finding that four companies,including Allianc

56、e,infringed competition law in relation to the sale of prescription prochlorperazine between June 2013 and July 2018.We fundamentally disagree with the findings,and the proposed fine,and look forward to presenting our case at the Competition Appeal Tribunal,which is scheduled to commence on 5 June 2

57、023.Strengthening our Consumer Healthcare businessWe acquired ScarAway and the US rights to Kelo-Cote in March 2022 to create the Groups first fully global brand.The integration of both assets went very smoothly,with full transition completed in just four months and post-acquisition sales in line wi

58、th expectations.This successful integration was made possible by the implementation of our ERP system in 2021,and we have used the learnings from this project to create a blueprint for future acquisitions.See our operational performance on page 4306Alliance Pharma plc Annual Report and Accounts 2022

59、GovernanceCompany OverviewFinancial StatementsAdditional InformationStrategic ReportAlliance Pharma plcAnnual Report and Accounts 2022For more information visit Strategic Report Chief Executives Review 06Market Overview 09 Our Strategy 12Spotlight onMarketing excellence 18Innovation and development

60、20ScarAway and Kelo-Cote US acquisition 22Culture,people and values 24Key Performance Indicators 27Sustainability 29Spotlight onManaging our packaging estate 31Developing our response to climate change 33TCFD 35Stakeholder Engagement 40Financial Review 42 Principal Risks and Uncertainties 472022 was

61、 also the year in which we finally gained full control of the remaining marketing authorisations for Nizoral across the APAC region,securing China in March 2022 and Vietnam in May 2022,following the acquisition of the Nizoral brand from Johnson&Johnson(J&J)in 2018.The transfer of the marketing autho

62、risation in China allowed us to transition to a new top-tier local distributor at the end of H1 2022 to service the brands largest market.Our new distributor offers a larger sales team than the partner we inherited from J&J and has fewer products in its portfolio,which ensures more sales resources a

63、re dedicated to our account.Progressing our innovation and development programmeOur dedicated Innovation and Development(I&D)team was established in 2021 to support the organic growth in our Consumer Healthcare brands and in April 2022 we launched the first product from this initiative,Kelo-Cote Kid

64、s,into the CBEC channel.With only two other products in the childrens CBEC scar treatment market in China we were able to drive market share gains to 39%in December 2022,delivering incremental growth in the brand.We have a number of new products,line extensions and reformulations in our I&D pipeline

65、 and have since launched Canker-X,part of the Aloclair brand franchise,in the US in January 2023.With investment of 1m 2m per annum in I&D we aim to achieve 10%of Consumer Healthcare sales through products developed on our I&D platform in the next five years.Refining our Purpose,Vision and Strategy

66、Throughout 2022 we have worked to refine our Purpose and Vision to align with our transformation to a predominantly Consumer Healthcare company.We have also worked to evolve our strategy to better position the Company for the years ahead and in response to changing underlying market dynamics.Going f

67、orward,our aim is to drive solid organic revenue growth above that of the broader consumer healthcare market.This updated strategy provides a more targeted approach,identifying the key global categories in which we will operate,and more clearly defines the areas in which we would consider future acq

68、uisitions.Going forward,we will focus our resources on the global priority categories of helping damaged skin and supporting healthy ageing.See our Strategy on page 12Continuing our sustainability journeyWe made good progress against our environmental sustainability agenda in 2022,setting a target t

69、o reach net zero for all Scope 1&2 emissions by 2030.This year we also undertook an initial risk assessment and scenario analysis to support the publication of our first voluntary stand-alone TCFD report and more extensive voluntary TCFD disclosures on our journey to full TCFD compliance.See our Spo

70、tlight on developing our response to climate change on page 33We gained greater understanding of the constituents of our packaging estate,both primary and secondary,and the steps we need to take to promote recycling and reduce the use of single-use plastics.Our newly appointed sustainable sourcing l

71、ead is helping us to progress these initiatives in 2023 with a number of pilot projects planned.See our Spotlight on managing our packaging estate on page 31Building a strong alliance of colleaguesOur business,and the delivery of our strategy,is only possible due to our network of talented,dedicated

72、 colleagues.We currently employ more than 285 people in eight locations around the world.We created 18 new roles in 2022,across all our geographies,as we looked to meet our evolving business needs,increasing our capabilities in data analysis,sustainable sourcing and packaging,ERP and sales and marke

73、ting in the US.C H I E F E X E C U T I V E S R E V I E W C O N T I N U E DThe performance of this launch has exceeded our initial expectations;new product innovation approvals have been submitted to allow us to launch Kelo-Cote Kids in the UK and Germany in 2023.See our Spotlight on innovation and d

74、evelopment on page 2007Alliance Pharma plc Annual Report and Accounts 2022GovernanceCompany OverviewFinancial StatementsAdditional InformationStrategic ReportAlliance Pharma plcAnnual Report and Accounts 2022For more information visit Strategic Report Chief Executives Review 06Market Overview 09 Our

75、 Strategy 12Spotlight onMarketing excellence 18Innovation and development 20ScarAway and Kelo-Cote US acquisition 22Culture,people and values 24Key Performance Indicators 27Sustainability 29Spotlight onManaging our packaging estate 31Developing our response to climate change 33TCFD 35Stakeholder Eng

76、agement 40Financial Review 42 Principal Risks and Uncertainties 47We have also expanded our talent development programmes to ensure we attract and retain an appropriate mix of skilled professionals.In 2022 we launched our graduate and year in industry programmes to support those at the early stages

77、of their career development and to complement our existing apprenticeship programme in the UK.As COVID-19 restrictions eased around the world we were finally able to bring together colleagues from all our offices,with the exception of Shanghai,for our first global employee conference.The conference

78、provided an opportunity for colleagues to network,share ideas and discuss our updated purpose,vision and strategy.Due to continued COVID-19 lockdowns,we organised a parallel event to allow our team in Shanghai to participate and share the experience.Our investment in colleague engagement continues t

79、o pay dividends as evidenced by our re-certification as a Great Place to Work in the UK,China and Singapore.We were delighted to receive certification for the first time in the US and France meaning that all our qualifying offices are now certified.In the 2022 survey we were pleased to have received

80、 an overall Trust Index rating of 79%(2021:76%)with 82%of participants globally saying that Alliance was a Great Place to Work(2021:81%).See our Spotlight on culture,people and values on page 24On behalf of the Board,I would like to thank all those colleagues who helped us to deliver our achievement

81、s in 2022.Board and executive changesIn February 2023 we welcomed Jeyan Heper to Alliance,in the newly created position of Chief Operating Officer.Jeyan has a strong track record of strategic leadership in the international consumer health market,overseeing a number of global programmes and driving

82、growth in flagship brands.In his career spanning more than 25 years Jeyan has held senior executive roles at Procter&Gamble,Danone Group and Ansells sexual wellness global business,before it was spun-out to become Lifestyles Healthcare,a private equity/pharma-owned company where Jeyan became CEO.Jey

83、an will help to bolster the Groups operational capabilities,identify growth opportunities,and help drive the Companys strategy to expand its consumer health presence through leveraging his experience of e-commerce in China and the US,and improving operational effectiveness.Jeyan joined the Alliance

84、Board,which was strengthened further by the appointment of Martin Sutherland as an additional Independent Non-Executive Director(NED).Martin is a senior executive with over 30 years experience in global businesses and is currently a NED at Forterra plc and Reliance Cyber Ltd.Prior to this,Martin was

85、 CEO of De La Rue PLC.Martin has a proven track record of delivering growth through new product innovation,market diversification and international expansion.Martins experience will bring a new perspective to complement the strong consumer healthcare knowledge already present on the Board.See our Bo

86、ard of Directors on pages 61 and 62Outlook for 2023Our clear focus on the core Consumer Healthcare business in addition to our well-established,scalable platform across EMEA,APAC and the US,should support good organic growth in the near term.Whilst 2022 presented some challenges to the business,we h

87、ave robust plans in place to drive growth in 2023 and the Boards expectations for full year performance are unchanged.As indicated in the January trading update,Kelo-Cote revenues are expected to build through the year,supported by strong end-consumer demand.The China cross-border e-commerce market

88、for Kelo-Cote has shown early signs of recovery with in-market demand and sales orders increasing over the first two months of the year,and we expect total revenue growth for the entire Kelo-Cote franchise to be above 20%in 2023.We expect to see high single-digit revenue growth from Nizoral in 2023,

89、as we accelerate the roll-out of our tested strategic plan for the brand in partnership with our new distributors in China and Vietnam.Amberen faced some temporary headwinds in early 2023 due to supply challenges at Amazon which are being addressed.The underlying market conditions are positive and t

90、his,together with our revised marketing plans,mean that we still anticipate double-digit revenue growth for Amberen on a like-for-like basis.Our portfolio of other consumer brands is expected to deliver high single-digit revenue growth,substantially ahead of the broader consumer healthcare market.Pe

91、ter ButterfieldChief Executive Officer20 March 2023 C H I E F E X E C U T I V E S R E V I E W C O N T I N U E D08Alliance Pharma plc Annual Report and Accounts 2022GovernanceCompany OverviewFinancial StatementsAdditional InformationStrategic ReportAlliance Pharma plcAnnual Report and Accounts 2022Fo

92、r more information visit Strategic Report Chief Executives Review 06Market Overview 09 Our Strategy 12Spotlight onMarketing excellence 18Innovation and development 20ScarAway and Kelo-Cote US acquisition 22Culture,people and values 24Key Performance Indicators 27Sustainability 29Spotlight onManaging

93、 our packaging estate 31Developing our response to climate change 33TCFD 35Stakeholder Engagement 40Financial Review 42 Principal Risks and Uncertainties 47M A R K E T O V E R V I E WThe macro factors shaping our business4.Omni-channel retailWhilst there has been a rise in the purchase of health pro

94、ducts and services online,this is not the only way that consumers want to transact.A purchasing journey may include multiple or omni-channels,such as first seeking advice in a pharmacy but ultimately purchasing from a website via a mobile phone.Each channel must be optimised so that the consumer is

95、able to find what they want and complete their purchase easily.5.Environmental sustainabilityWith greater focus and scrutiny on sustainability,the way a business operates matters more than ever.Many consumers now actively seek companies and brands whose values align with their own,for example choosi

96、ng products containing sustainably sourced ingredients or with environmentally friendly packaging.6.Economic uncertaintyBusinesses operate in a volatile,uncertain,complex,and ambiguous world where being agile,resilient and managing cost is essential to success.Faced with a higher cost of living,cons

97、umers tend to look for brands and services that offer the best value to them,and with proven results,rather than risk using something unknown.Omni-channel retailEconomic uncertainty61Environmental sustainability54Digital health3Growth in self-care2Sixmacro factors impacting our business1.Ageing glob

98、al populationBy 2030,c.1.4 billion people globally will be over 60 years old,with an associated increase in demand for healthcare.Education and income advancement in emerging markets will also contribute to this trend.2.Growth in self-careThere is a growing trend towards more proactive management of

99、 health and wellbeing,rather than an individual just taking action when they feel unwell.The rising cost of providing public healthcare means governments are becoming more supportive of this,increasing the availability of OTC medicines and supporting pharmacists and nutritionists to provide more fir

100、st line care and support.3.Digital healthThe increasing adoption of digital health solutions is providing consumers,health practitioners and manufacturers with greater access to information on medical conditions,treatments,and outcomes.Regular feedback from a digital device can lead to a more engage

101、d consumer who is willing to take more actions to manage their health.By aggregating that feedback across many consumers,we can identify emerging needs or gaps in the market and develop new products and services to meet them.Ageing global population09Alliance Pharma plc Annual Report and Accounts 20

102、22GovernanceCompany OverviewFinancial StatementsAdditional InformationStrategic ReportAlliance Pharma plcAnnual Report and Accounts 2022For more information visit Strategic Report Chief Executives Review 06Market Overview 09 Our Strategy 12Spotlight onMarketing excellence 18Innovation and developmen

103、t 20ScarAway and Kelo-Cote US acquisition 22Culture,people and values 24Key Performance Indicators 27Sustainability 29Spotlight onManaging our packaging estate 31Developing our response to climate change 33TCFD 35Stakeholder Engagement 40Financial Review 42 Principal Risks and Uncertainties 47M A R

104、K E T O V E R V I E W C O N T I N U E DFormer paradigmA Reactive PatientA Proactive ConsumerNew paradigmPeople only took action when they felt unwell.Innovations and new technologies allow a more proactive management of health.Good healthPoor healthEating healthilyConnected health(wearables,mHealth,

105、telehealth,etc.)Practising sportFinding medicine/self-medicationAsking questions about health10Alliance Pharma plc Annual Report and Accounts 2022GovernanceCompany OverviewFinancial StatementsAdditional InformationStrategic ReportAlliance Pharma plcAnnual Report and Accounts 2022For more information

106、 visit Strategic Report Chief Executives Review 06Market Overview 09 Our Strategy 12Spotlight onMarketing excellence 18Innovation and development 20ScarAway and Kelo-Cote US acquisition 22Culture,people and values 24Key Performance Indicators 27Sustainability 29Spotlight onManaging our packaging est

107、ate 31Developing our response to climate change 33TCFD 35Stakeholder Engagement 40Financial Review 42 Principal Risks and Uncertainties 47M A R K E T O V E R V I E W C O N T I N U E DWe have considered these macro factors,in combination with our key areas of expertise,in order to refresh our purpose

108、 and refine our vision,which we believe places us in a stronger position to continue the successful evolution of our business.We use the word empower in recognition of the shift that we are witnessing from a reactive patient to a proactive healthcare consumer.The words positive difference refer to t

109、he maintenance,treatment or improvement of any aspect of a consumers health&wellbeing,so that they perceive it to be better than it was before.Over 70%of our sales currently come from our consumer healthcare products.We have the ability to develop these products further and this will be our focus go

110、ing forwards.In considering our future performance we will take account of:the rate of growth achieved by our priority brands,relative to their respective categories;external expectations of our sales and profit growth;how we are rated by our strategic partners;and how we are rated by our employees.

111、By leading,trusted and proven brands,we mean brands with a strong point of difference,that are leaders in their field,and have a proven track record of delivering on their claims.VisionPurposeTo be a high performing consumer healthcare company,built on a portfolio of leading,trusted and proven brand

112、sWe empower people to make a positive difference to their health and wellbeing11Alliance Pharma plc Annual Report and Accounts 2022GovernanceCompany OverviewFinancial StatementsAdditional InformationStrategic ReportAlliance Pharma plcAnnual Report and Accounts 2022For more information visit Strategi

113、c Report Chief Executives Review 06Market Overview 09 Our Strategy 12Spotlight onMarketing excellence 18Innovation and development 20ScarAway and Kelo-Cote US acquisition 22Culture,people and values 24Key Performance Indicators 27Sustainability 29Spotlight onManaging our packaging estate 31Developin

114、g our response to climate change 33TCFD 35Stakeholder Engagement 40Financial Review 42 Principal Risks and Uncertainties 47O U R S T R AT E G YEVOLVING OUR STRATEGY TO DELIVER AGAINST OUR REFINED VISION AND PURPOSEThroughout this year we have refined our purpose,vision and strategy to align with our

115、 transformation to a predominantly consumer healthcare company.We have also worked to evolve our strategy to better position the Company for the years ahead,and in response to changing underlying market dynamics.Our previous strategy focused on delivering organic growth in our key brands(broadly def

116、ined as our larger Consumer Healthcare brands)and complementary acquisitions,focused in the Consumer Healthcare space,whereas our updated strategy provides a more targeted approach.Weve now identified the key categories in which we want to focus,both from a category and geographical perspective,whic

117、h allows for a clearer definition of the acquisitions we will seek.Our strategy will now focus on the global priority categories of helping damaged skin and supporting healthy ageing.Helping damaged skinWithin the multi-billion-dollar global skincare category there are several skin health sub-catego

118、ries,such as scar management,medicated anti-dandruff shampoo and dry skin sub-categories which are both fast growing at present and have large future growth potential thanks to favourable demographics and high global prevalence of these conditions.Alliance already has brands,products,technology,and

119、expertise within these high-growth sub-categories brands that are grounded in science,which we can build and develop further,to make a positive difference to more peoples lives globally.Our vision is to be a high performing consumer healthcare company,built on a portfolio of leading,trusted and prov

120、en brands See our evolved strategy infographic on page 1512Alliance Pharma plc Annual Report and Accounts 2022GovernanceCompany OverviewFinancial StatementsAdditional InformationStrategic ReportAlliance Pharma plcAnnual Report and Accounts 2022For more information visit Strategic Report Chief Execut

121、ives Review 06Market Overview 09 Our Strategy 12Spotlight onMarketing excellence 18Innovation and development 20ScarAway and Kelo-Cote US acquisition 22Culture,people and values 24Key Performance Indicators 27Sustainability 29Spotlight onManaging our packaging estate 31Developing our response to cli

122、mate change 33TCFD 35Stakeholder Engagement 40Financial Review 42 Principal Risks and Uncertainties 47O U R S T R AT E G Y C O N T I N U E DSupporting healthy ageingThe favourable demographics of the ageing global population are expected to continue,with forecasts predicting that an additional quart

123、er of a billion people(or 40%of the global population)will be over the age of 45 by 2030.The 65+age group is growing consistently faster than any other age group,as medical advances facilitate longer lifespans.Brands falling within the categories of Helping damaged skin,and Supporting healthy ageing

124、 will be the focus of our innovation and future acquisition activities going forwards.In addition,we have a number of high performing local brands and critical medicines,which are central to the delivery of our purpose.High performing local brandsWe have a number of high performing local brands whic

125、h continue to provide a strong contribution to the business and so warrant specific local focus and investment.These brands deliver significant sales in a market or region and have the potential to deliver good regional growth.Critical medicinesCritical medicines are for conditions that are life-thr

126、eatening or where patients physical or mental health would be seriously impacted without the product and there are no viable alternatives.We see it as part of our social responsibility to ensure that our critical medicines continue to be made available to patients,and it is this,rather than financia

127、l returns or growth potential,which underpins our resource allocation decisions for this group of products.Foundation brandsWe continue to review the future of those smaller brands which have lower contribution to our bottom-line performance,and which may have higher associated risks and,if appropri

128、ate,will look to discontinue or divest these.As people become increasingly proactive in managing their health,we anticipate sustained growth in those healthcare categories that support healthy ageing.This includes managing conditions that arise as a result of the ageing process,such as menopause,or

129、age-related macular degeneration(AMD),and also long-term conditions which can occur at any age,where we can support an individuals health and wellbeing over a longer period of time.13Alliance Pharma plc Annual Report and Accounts 2022GovernanceCompany OverviewFinancial StatementsAdditional Informati

130、onStrategic Report12354678Alliance Pharma plcAnnual Report and Accounts 2022For more information visit Strategic Report Chief Executives Review 06Market Overview 09 Our Strategy 12Spotlight onMarketing excellence 18Innovation and development 20ScarAway and Kelo-Cote US acquisition 22Culture,people a

131、nd values 24Key Performance Indicators 27Sustainability 29Spotlight onManaging our packaging estate 31Developing our response to climate change 33TCFD 35Stakeholder Engagement 40Financial Review 42 Principal Risks and Uncertainties 47O U R S T R AT E G Y C O N T I N U E DCore priority marketsSince 2

132、016,and aligned with our period of expansion through acquisition,we have been building the optimal global office base to support our future growth.We remain fully committed to this global footprint.We will continue to manage and drive growth from our eight key regional offices located in Paris,Dssel

133、dorf,Madrid,Dublin,Cary,Singapore,Shanghai,and our headquarters in Chippenham.From this fixed base of offices,we will service and grow our business globally,with particular focus on our identified Core Priority markets:The US,China and UK will continue to be our highest priority geographies these ar

134、e markets where there remains significant growth potential and where we have existing scale.France and Germany offer attractive OTC markets,and whilst our revenue generation in these markets is relatively low at present,our direct presence and high-quality local teams provide the potential to drive

135、both scale and growth.Collectively,these five markets currently account for around 75%of our annual sales.Our remaining markets will continue to provide profitable incremental business.Core priority marketsOther marketsGlobal Head Office:Chippenham,UK1Dublin,Republic of IrelandParis,France234Dsseldo

136、rf,Germany5Madrid,SpainSingapore Shanghai,ChinaCary,North Carolina,USA678International officesGeographic key14Alliance Pharma plc Annual Report and Accounts 2022GovernanceCompany OverviewFinancial StatementsAdditional InformationStrategic ReportAlliance Pharma plcAnnual Report and Accounts 2022For m

137、ore information visit Strategic Report Chief Executives Review 06Market Overview 09 Our Strategy 12Spotlight onMarketing excellence 18Innovation and development 20ScarAway and Kelo-Cote US acquisition 22Culture,people and values 24Key Performance Indicators 27Sustainability 29Spotlight onManaging ou

138、r packaging estate 31Developing our response to climate change 33TCFD 35Stakeholder Engagement 40Financial Review 42 Principal Risks and Uncertainties 47T H E E V O L U T I O N O F O U R S T R AT E G YHelping damaged skinMarket(category)focus:Strategic priorities:Brand growthStrategic supply partner

139、shipsCommercial executionOrganisational agilityThese are the four focus areas that will enable the successful delivery of our strategyThese elements have now been embedded in our strategic prioritiesOur revised strategy focuses on the global priority categories of helping damaged skin and supporting

140、 healthy ageingPrevious strategy:Revised strategy:Supporting healthy ageingHigh performing local brandsSupported by:Critical medicinesCore strategy:Organic growth Key brandsComplementary acquisitionsUnderpinned by:Investing in peopleSustainability15Alliance Pharma plc Annual Report and Accounts 2022

141、GovernanceCompany OverviewFinancial StatementsAdditional InformationStrategic ReportAlliance Pharma plcAnnual Report and Accounts 2022For more information visit Strategic Report Chief Executives Review 06Market Overview 09 Our Strategy 12Spotlight onMarketing excellence 18Innovation and development

142、20ScarAway and Kelo-Cote US acquisition 22Culture,people and values 24Key Performance Indicators 27Sustainability 29Spotlight onManaging our packaging estate 31Developing our response to climate change 33TCFD 35Stakeholder Engagement 40Financial Review 42 Principal Risks and Uncertainties 47O U R S

143、T R AT E G I C P R I O R I T I E STo enable the successful delivery of our new strategy,we have identified four priorities for the business over the next three to five years:We will seek to enhance the attractiveness of our high value brands,through:insight-led,data-driven,measurable marketing inves

144、tment;acquisition and in-licensing of products or technologies to support our key brands;and innovation and development activity to keep our core brand portfolios ahead of their respective competitive sets.In 2022,we successfully rolled out our new,reinvigorated marketing strategy for Nizoral See ou

145、r Spotlight on marketing excellence on page 18We also saw 1.7m of sales generated from new innovation projects,including the expansion of our Kelo-Cote range with the launch of Kelo-Cote Kids.See our Spotlight on innovation and development on page 20And we completed the acquisition and successful in

146、tegration of ScarAway and the US rights to Kelo-Cote,widening the reach of this key brand franchise and bolstering our presence in the US See our Spotlight on ScarAwayTM and Kelo-CoteTM US acquisition on page 22Brand growthWe will build fast growing brands where consumer choice is driven by the posi

147、tive difference we makeWe will continue to look for omni-channel presence in our core markets whilst recognising that e-commerce represents our fastest growth channels in these markets,a trend which we expect to continue for many years to come.In 2022,more than a third of our consumer healthcare sal

148、es were via e-commerce,which is significantly more than the global average for consumer healthcare,of around 13%.Commercial executionWe will increase the impact of our commercial execution,with a major focus on eCommerce We believe that by 2027,this will have increased to around 40 45%of our total c

149、onsumer healthcare sales.Cross-border e-commerce(CBEC)continues to be an important contributor to Kelo-Cote sales in China,both through the B2B and B2C channels.See our CEO Review on page 0616Alliance Pharma plc Annual Report and Accounts 2022GovernanceCompany OverviewFinancial StatementsAdditional

150、InformationStrategic ReportAlliance Pharma plcAnnual Report and Accounts 2022For more information visit Strategic Report Chief Executives Review 06Market Overview 09 Our Strategy 12Spotlight onMarketing excellence 18Innovation and development 20ScarAway and Kelo-Cote US acquisition 22Culture,people

151、and values 24Key Performance Indicators 27Sustainability 29Spotlight onManaging our packaging estate 31Developing our response to climate change 33TCFD 35Stakeholder Engagement 40Financial Review 42 Principal Risks and Uncertainties 47O U R S T R AT E G I C P R I O R I T I E S C O N T I N U E D2022

152、was a challenging year for our operational teams,with inflation and the war in Ukraine impacting the costs and availability of raw materials,componentry,and transportation.This resulted in longer lead times,and challenged our ability to ensure on-time-in-full delivery to our customers.Going forward,

153、we are looking to consolidate our supply chain,moving to a smaller,high-performing network of strong partners with whom we can collaborate and invest for the future.Strategic supply partnershipsWe will transform our supply chain by investing in a network of strategic partnerships Partners who will s

154、upport us not just with the manufacture and supply of current products,but also with innovation and the delivery of our environmental sustainability strategy.A smaller network of partners will also facilitate efficiency gains.See our Sustainability overview on page 30It is the diverse combination of

155、 skills,experience and energy of Alliances people that help to create our strong culture.We will be harnessing this culture to enable the successful delivery of our new strategy with increased focus and pace.We recognise that new technologies,approaches,and opportunities enable companies to gain com

156、petitive advantage quickly innovation and e-commerce require us to excel in these fast-moving,competitive worlds.Change is continual and as the pace of change increases we need to ensure we maintain sufficient agility to respond appropriately.Organisational agilityWe will continue to cultivate an ag

157、ile organisation and culture that delivers our growth Agile businesses are tuned in to the dynamic external world and centred on their customers changing needs.They have a rapid cycle of ideas development a test,learn and adapt approach,which we believe is well-suited to areas such as innovation and

158、 e-commerce.In October 2022,we held our first ever global employee conference,at which we shared our new purpose,vision and strategy with our employees from around the world,as a precursor to the development of the detailed operational plans which will enable us to deliver our refined strategic prio

159、rities.See our Spotlight on culture,people and values on page 2417Alliance Pharma plc Annual Report and Accounts 2022GovernanceCompany OverviewFinancial StatementsAdditional InformationStrategic ReportAlliance Pharma plcAnnual Report and Accounts 2022For more information visit Strategic Report Chief

160、 Executives Review 06Market Overview 09 Our Strategy 12Spotlight onMarketing excellence 18Innovation and development 20ScarAway and Kelo-Cote US acquisition 22Culture,people and values 24Key Performance Indicators 27Sustainability 29Spotlight onManaging our packaging estate 31Developing our response

161、 to climate change 33TCFD 35Stakeholder Engagement 40Financial Review 42 Principal Risks and Uncertainties 47Nizoral,or Triatop as it is known in China,is a brand with over 40 years heritage in the Asia Pacific region.Marketing excellence Reinvigorating a heritage brandS P O T L I G H T O N c.$240mF

162、ORECAST MARKET GROWTH RATE TO 202514%p.a.VALUE OF THE MEDICATED ANTI-DANDRUFF MARKET IN APAC11 Nicholas Hall.Alliance Pharma plc Annual Report and Accounts 2022GovernanceCompany OverviewFinancial StatementsAdditional InformationStrategic Report18Alliance Pharma plcAnnual Report and Accounts 2022For

163、more information visit Strategic Report Chief Executives Review 06Market Overview 09 Our Strategy 12Spotlight onMarketing excellence 18Innovation and development 20ScarAway and Kelo-Cote US acquisition 22Culture,people and values 24Key Performance Indicators 27Sustainability 29Spotlight onManaging o

164、ur packaging estate 31Developing our response to climate change 33TCFD 35Stakeholder Engagement 40Financial Review 42 Principal Risks and Uncertainties 47S P O T L I G H T O N M A R K E T I N G E XC E L L E N C E C O N T I N U E DWhen Alliance acquired Nizoral in the APAC region in 2018,it had been

165、deprioritised by its former owners and had received little by way of marketing investment for several years.As a result,whilst it still had a loyal following amongst older consumers,a whole generation of younger consumers were largely unaware of the brand.Using the results from our extensive consume

166、r insight research,we developed a consumer-focused regional campaign,partnering with our local distributors and agencies to tailor the execution of this by country for example,using leading basketball players to promote the brand on social media in the Philippines,a greater reference to scientific e

167、vidence in China and a more light-hearted,humorous approach in Australia.As a result,we have seen double-digit revenue growth this year in China,Australia and the Philippines.“Our deep understanding of our target consumers attitude and behaviours allowed us to develop an effective campaign across al

168、l key markets.”Ambrose Peng,Global Marketing Manager Nizoral/TriatopMARKET LEADER WITH52%SHARE IN AUSTRALIA2The challenge for Alliance was therefore to design a new marketing approach to target this younger demographic,which promoted the product through an appropriate channel mix and emphasised key

169、points of differentiation over its competitors in a contemporary,culturally relevant way.2 Iqvia.19Alliance Pharma plc Annual Report and Accounts 2022GovernanceCompany OverviewFinancial StatementsAdditional InformationStrategic ReportAlliance Pharma plcAnnual Report and Accounts 2022For more informa

170、tion visit Strategic Report Chief Executives Review 06Market Overview 09 Our Strategy 12Spotlight onMarketing excellence 18Innovation and development 20ScarAway and Kelo-Cote US acquisition 22Culture,people and values 24Key Performance Indicators 27Sustainability 29Spotlight onManaging our packaging

171、 estate 31Developing our response to climate change 33TCFD 35Stakeholder Engagement 40Financial Review 42 Principal Risks and Uncertainties 47April 2022 saw the launch of Kelo-Cote Kids the first product from our new innovation platform and a great example of how,through thinking creatively,we were

172、able to extend the reach of our leading brand(Kelo-Cote scar gel)to a new audience parents with children.Innovation and developmentOur new I&D platform gets off to a strong start!1 CLEAR consumer research,China,September 2021.2 Brand value share Scar kids segment-China,Nint,December 2022.S P O T L I

173、 G H T O N 96%MARKET SHARE AT DECEMBER 2022239%OF PARENTS IN CHINA,WITH A CHILD WHO HAS EXPERIENCED SCARS,ARE LOOKING TO TREAT120Alliance Pharma plc Annual Report and Accounts 2022GovernanceCompany OverviewFinancial StatementsAdditional InformationStrategic ReportAlliance Pharma plcAnnual Report and

174、 Accounts 2022For more information visit Strategic Report Chief Executives Review 06Market Overview 09 Our Strategy 12Spotlight onMarketing excellence 18Innovation and development 20ScarAway and Kelo-Cote US acquisition 22Culture,people and values 24Key Performance Indicators 27Sustainability 29Spot

175、light onManaging our packaging estate 31Developing our response to climate change 33TCFD 35Stakeholder Engagement 40Financial Review 42 Principal Risks and Uncertainties 47S P O T L I G H T O N I N N O VAT I O N A N D D E V E L O P M E N T C O N T I N U E D1 CLEAR consumer research,China,September 2

176、021.2 Brand value share Scar kids segment-China,Nint,December 2022.Kelo-Cote Kids product launch April 2022Through our research1,we discovered that in China:60%of parents have children who have experienced scars in the last year Of those,96%are looking to treat Safety,quality and efficacy are the ke

177、y factors in parents purchasing decisions 24%of parents were already using Kelo-Cote to treat their childrens scarsNew packaging,with fun otter characters designed to appeal to parents and children,enabled us to highlight those product claims which were most relevant to this audience:Helps soften an

178、d flatten scars Helps reduce redness and itching Suitable for sensitive skin Suitable for 3+months Since its launch in April 2022,Kelo-Cote Kids has enjoyed rapid market share growth,to command a 39%share of the market by value2 in December 2022,with limited cannibalisation of core product sales.It

179、is now being marketed both through our Kelo-Cote CBEC flagship store in China and through local domestic channels.In 2023,we plan to roll out the product to more markets.This is a great example of how our new I&D platform has enabled us to deliver relevant consumer innovation,whilst also strengtheni

180、ng our lead brand,Kelo-Cote.“Since its launch,Kelo-Cote Kids has enjoyed rapid market share growth,to command a 39%share of the scar kids market in China.”Natalie Bayes,Global Senior Brand Manager Kelo-Cote21Alliance Pharma plc Annual Report and Accounts 2022GovernanceCompany OverviewFinancial State

181、mentsAdditional InformationStrategic ReportAlliance Pharma plcAnnual Report and Accounts 2022For more information visit Strategic Report Chief Executives Review 06Market Overview 09 Our Strategy 12Spotlight onMarketing excellence 18Innovation and development 20ScarAway and Kelo-Cote US acquisition 2

182、2Culture,people and values 24Key Performance Indicators 27Sustainability 29Spotlight onManaging our packaging estate 31Developing our response to climate change 33TCFD 35Stakeholder Engagement 40Financial Review 42 Principal Risks and Uncertainties 47Alliances acquisition of ScarAway,the second larg

183、est brand in the US scar treatment market,and the US rights to Kelo-Cote in March 2022 is a great example of how weve executed our strategy to deliver growth through selective,complementary acquisitions.ScarAway and Kelo-Cote US acquisitionA highly strategic acquisitionS P O T L I G H T O N c.$90mSC

184、ARAWAYS SHARE OF THIS MARKET128%VALUE OF US SCAR TREATMENT MARKET11 IRI and Jungle Scout.22Alliance Pharma plc Annual Report and Accounts 2022GovernanceCompany OverviewFinancial StatementsAdditional InformationStrategic ReportAlliance Pharma plcAnnual Report and Accounts 2022For more information vis

185、it Strategic Report Chief Executives Review 06Market Overview 09 Our Strategy 12Spotlight onMarketing excellence 18Innovation and development 20ScarAway and Kelo-Cote US acquisition 22Culture,people and values 24Key Performance Indicators 27Sustainability 29Spotlight onManaging our packaging estate

186、31Developing our response to climate change 33TCFD 35Stakeholder Engagement 40Financial Review 42 Principal Risks and Uncertainties 47S P O T L I G H T O N S C A R AWAY A N D K E L O-C O T E U S A C Q U I S I T I O N C O N T I N U E DThis acquisition created scale in the US,the largest consumer heal

187、thcare market in the world,enabling us to leverage the operating platform wed created following the Vamousse and Amberen acquisitions,and completed our ownership of the worldwide rights to Kelo-Cote,thereby creating our first global brand.ScarAway also provided the opportunity to offer a silicone sh

188、eet in addition to a gel formulation in the US both of which are universally considered first-line prophylactic and treatment options for hypertrophic scars and minor keloid scars.Following rapid integration of the acquired business in just four months,our subsequent focus has been on leveraging the

189、 brands existing distribution network,consolidating supply-side relationships,and increasing investment to drive further growth.New,modernised packaging is in development and is scheduled for launch in 2023,alongside a comprehensive consumer marketing campaign and new product development to accelera

190、te market share gains.“We were able to integrate the ScarAway acquisition in just four months,establishing a process which should make future integrations more efficient.”Amanda Sicvol,Head of North AmericaAlliance Pharma plc Annual Report and Accounts 2022GovernanceCompany OverviewFinancial Stateme

191、ntsAdditional InformationStrategic Report23Alliance Pharma plcAnnual Report and Accounts 2022For more information visit Strategic Report Chief Executives Review 06Market Overview 09 Our Strategy 12Spotlight onMarketing excellence 18Innovation and development 20ScarAway and Kelo-Cote US acquisition 2

192、2Culture,people and values 24Key Performance Indicators 27Sustainability 29Spotlight onManaging our packaging estate 31Developing our response to climate change 33TCFD 35Stakeholder Engagement 40Financial Review 42 Principal Risks and Uncertainties 47In 2022,we welcomed a record 80 new colleagues in

193、to the business,introduced new early careers schemes and held our first all-employee conference.Culture,people and valuesEnsuring our people and culture continue to support the businesss medium-term growth ambitionsS P O T L I G H T O N 285SAY THIS IS A GREAT PLACE TO WORK22021:81%82%TOTAL EMPLOYEES

194、12021:2451 As at 31 December.2 Based on findings from Great Place to Work survey,October 2022.24Alliance Pharma plc Annual Report and Accounts 2022GovernanceCompany OverviewFinancial StatementsAdditional InformationStrategic ReportAlliance Pharma plcAnnual Report and Accounts 2022For more informatio

195、n visit Strategic Report Chief Executives Review 06Market Overview 09 Our Strategy 12Spotlight onMarketing excellence 18Innovation and development 20ScarAway and Kelo-Cote US acquisition 22Culture,people and values 24Key Performance Indicators 27Sustainability 29Spotlight onManaging our packaging es

196、tate 31Developing our response to climate change 33TCFD 35Stakeholder Engagement 40Financial Review 42 Principal Risks and Uncertainties 47S P O T L I G H T O N C U LT U R E,P E O P L E A N D VA L U E S C O N T I N U E DORGANISATIONAL DEVELOPMENTThe continued expansion of our US team through 2022,in

197、itiated in response to the Amberen acquisition in 2020,followed by ScarAway and the US rights to Kelo-Cote in March 2022,means that we now have an experienced multi-functional team in the US,dedicated to supporting the growth of our growing portfolio of US-based brands,with a strong focus on innovat

198、ion.We also continued to support early career development,through the launch of our graduate development programme in the UK,bringing two graduates into our Commercial and Scientific Affairs teams,along with a year in industry placement student into our Group Finance function.STRENGTHENING OUR EMPLO

199、YER BRANDThis has been a major focus for us during 2022,as the competition for talent has intensified,leading to challenges in filling some specialist roles.We continue to provide a compelling career proposition and attract high calibre candidates with our strong positive culture and team ethos.MOVI

200、NG FORWARDSOur new focus on organisational agility as a key enabler to the delivery of our strategy will require an increase both in focus and in pace harnessing the skills,experience and energy that exists in our business,together with our culture of resilience,teamwork and collaboration,to enable

201、us to respond to new challenges as they arise.Throughout 2023,we will be focusing on building our innovation capability,processes and agility.Footnotes:1 As at 31 December.2 2022:n=9(2021:n=10).3 Defined as those running major divisions of departments,but not part of the management team;2022:n=29(20

202、21:n=27).4 Including NED and fixed-term contractors.5 As measured by the Great Place to Work survey.Progress in 2022:80 new joiners integrated into the business,18 of whom joined in newly created roles Improved GPTW survey outcomes,with additional certifications obtained in the US and France Supplie

203、r selection completed for our new HR systemFocus for 2023:Developing agile ways of working within our Innovation and Development team Continuing to strengthen our employer brand to attract and retain talent Enhancing our internal communications,to increase connection throughout the business Completi

204、ng the implementation of our new HR systemEMPLOYEES BY GENDER1BOARD&SENIOR LEADERSHIP TEAM78%22%MALEFEMALE(2021:80%Male 20%Female)SENIOR MANAGERS2,369%31%MALEFEMALE(2021:78%Male 22%Female)ALL EMPLOYEES442%58%MALEFEMALE(2021:42%Male 58%Female)EMPLOYEE ENGAGEMENT5SURVEY RESPONSE RATE87%(2021:74%)OVERA

205、LL TRUST INDEX RATING79%(2021:76%)25Alliance Pharma plc Annual Report and Accounts 2022GovernanceCompany OverviewFinancial StatementsAdditional InformationStrategic ReportAlliance Pharma plcAnnual Report and Accounts 2022For more information visit Strategic Report Chief Executives Review 06Market Ov

206、erview 09 Our Strategy 12Spotlight onMarketing excellence 18Innovation and development 20ScarAway and Kelo-Cote US acquisition 22Culture,people and values 24Key Performance Indicators 27Sustainability 29Spotlight onManaging our packaging estate 31Developing our response to climate change 33TCFD 35St

207、akeholder Engagement 40Financial Review 42 Principal Risks and Uncertainties 47S P O T L I G H T O N C U LT U R E,P E O P L E A N D VA L U E S C O N T I N U E DMaintaining cultural cohesion and connectivity has always been really important to us particularly following the adoption of hybrid working,

208、which rapidly became the norm post-pandemic.It was this desire for connection which led to the decision to hold our first global employee conference in 2022.In addition to giving all our colleagues around the world the opportunity to come together in person to network and share ideas,the conference

209、also enabled us to discuss our updated purpose,vision,and strategy with all our employees,listen to their feedback and start to build collective understanding around some of the operational challenges we will need to address as we look to implement this revised strategy.It was a great way to meet ne

210、w colleagues and strengthen personal connections across the business,particularly given the high number of new recruits over the past couple of years,and the limited opportunities for in-person connection during the global pandemic.Sustainability was very much front of mind,both in the conference co

211、ntent and organisation from a lunchtime pop up to increase employee awareness and engagement around our sustainability strategy,to the catering and travel arrangements for the conference itself.Our first global conference was very well received by colleagues,and were sure that the benefits in terms

212、of increased understanding,cultural alignment and connection,will continue to prevail through the organisation for many years to come.All together in Bath reconnecting post-pandemicCONFERENCE ATTENDEES246OF ELIGIBLE ATTENDEES90%26Alliance Pharma plc Annual Report and Accounts 2022GovernanceCompany O

213、verviewFinancial StatementsAdditional InformationStrategic ReportAlliance Pharma plcAnnual Report and Accounts 2022For more information visit Strategic Report Chief Executives Review 06Market Overview 09 Our Strategy 12Spotlight onMarketing excellence 18Innovation and development 20ScarAway and Kelo

214、-Cote US acquisition 22Culture,people and values 24Key Performance Indicators 27Sustainability 29Spotlight onManaging our packaging estate 31Developing our response to climate change 33TCFD 35Stakeholder Engagement 40Financial Review 42 Principal Risks and Uncertainties 47K E Y P E R F O R M A N C E

215、 I N D I C AT O R SFINANCIAL KPIsWe set out here our key financial performance measures.These are the primary measures used by management to monitor business performance,against both short-term budgets and forecasts and longer-term strategicplans.172.0m169.6m137.5m144.3m2022202120202019SEE-THROUGH R

216、EVENUE1172.0m+1%(2021:169.6m)UNDERLYING BASIC EPS4.28p-33%(2021:6.39p)DIVIDEND PER SHARE1.776p+5%(2021:1.691p)LEVERAGE22.57x(2021:1.73xx)UNDERLYING PROFIT BEFORE TAX30.3m-28%(2021:42.2m)FREE CASH FLOW115.8m-48%(2021:30.2m)NET DEBT1102.0m+17%(2021:87.0m)30.3m15.8m30.2m34.1m29.1m4.28p6.39p5.11p5.09p2.

217、57x1.73x2.43x1.48x1.776p1.691p1.610p0.536p102.0m87.0m109.4m59.2m2022202120202019UNDERLYING EBITDA139.2m-19%(2021:48.6m)39.2m48.6m38.6m39.4m2022202120202019202220212020201920222021202020192022202120202019202220212020201920222021202020191 These measures constitute Alternative Performance Measures(APMs

218、),as defined in note 31 to the Financial Statements.2 Leverage is defined as:Adjusted net debt/enlarged Group EBITDA,calculated using pro forma EBITDA on a trailing 12-month basis for acquired entities,in line with our banking covenants.3 Basis points.42.2m33.5m32.9m59.1%64.5%60.2%59.7%2022202120202

219、019GM%:(OVERALL)59.1%-540bp3(2021:64.5%)27Alliance Pharma plc Annual Report and Accounts 2022GovernanceCompany OverviewFinancial StatementsAdditional InformationStrategic ReportAlliance Pharma plcAnnual Report and Accounts 2022For more information visit Strategic Report Chief Executives Review 06Mar

220、ket Overview 09 Our Strategy 12Spotlight onMarketing excellence 18Innovation and development 20ScarAway and Kelo-Cote US acquisition 22Culture,people and values 24Key Performance Indicators 27Sustainability 29Spotlight onManaging our packaging estate 31Developing our response to climate change 33TCF

221、D 35Stakeholder Engagement 40Financial Review 42 Principal Risks and Uncertainties 47K E Y P E R F O R M A N C E I N D I C AT O R S C O N T I N U E DADDITIONAL KPIsOther measuresIn addition to the measures disclosed above,we also employ a broad range of other measures to help us manage business perf

222、ormance,including but not limited to:Brand revenues,margins and contribution,by management region and relative to marketing and innovation investment Post-acquisition performance evaluation measures On-time in-full delivery and out-of-stocks(to ensure continuity of product supply)Additional detail a

223、round inventory levels,provisioning and ageing profile;trade receivables and payables levels and ageing profiles(working capital management)We do not disclose the related metrics associated with these measures,on the basis that they are commercially sensitive and/or intended for internal use only.RE

224、SOURCING28579%24576%24579%214N/A20222021202020192022202120202019TOTAL HEADCOUNT5285+16%(2021:245)EMPLOYEE ENGAGEMENT:(GPTW Trust Index)79%+3%(2021:76%)PORTFOLIO EVOLUTION73%72%68%64%2022202120202019REVENUE:CONSUMER HEALTHCARE BRANDS4125.2m+3%(2021:121.8m)CONSUMER HEALTHCARE AS A%OF TOTAL REVENUE473%

225、+1%(2021:72%)125.2m121.8m93.0m92.4m20222021202020191 Month-end value of trade payables relative to the trailing 12 months cost of goods expressed as a days equivalent,averaged over the year.2 Month-end value of trade receivables relative to the trailing 12 months sales expressed as a days equivalent

226、,averaged over the year.3 Month-end value of inventory relative to the trailing 12 months cost of goods expressed as a days equivalent,averaged over the year.4 See-through basis.5 As at 31 December.SUPPLIER PAYMENT DAYS158+12 days(2021:46)WORKING CAPITAL MANAGEMENT584652412022202120202019DAYS SALES

227、OUTSTANDING271+10 days(2021:61)716161552022202120202019DAYS INVENTORY ON HAND3154-15 days(2021:169)154169138128202220212020201928Alliance Pharma plc Annual Report and Accounts 2022GovernanceCompany OverviewFinancial StatementsAdditional InformationStrategic ReportAlliance Pharma plcAnnual Report and

228、 Accounts 2022For more information visit Strategic Report Chief Executives Review 06Market Overview 09 Our Strategy 12Spotlight onMarketing excellence 18Innovation and development 20ScarAway and Kelo-Cote US acquisition 22Culture,people and values 24Key Performance Indicators 27Sustainability 29Spot

229、light onManaging our packaging estate 31Developing our response to climate change 33TCFD 35Stakeholder Engagement 40Financial Review 42 Principal Risks and Uncertainties 47S U S TA I N A B I L I T YOur approachWe are committed to operating our business in a responsible way,which minimises negative i

230、mpacts on people and planet,makes a positive contribution to society and promotes the sustainability of our business for the longer term.Our sustainability frameworkOur sustainability framework identifies the key areas we are focusing on,to deliver our purpose and to assure the future of our busines

231、s for the longer term.Prioritising people,planet and product Read about how we have delivered against our sustainability commitments on page 30 and in our Online Sustainability Report on our websiteVisit our Sustainability hubLearn more about how our framework has evolved,and our approach to materia

232、lity and governance on our website Read about Our Product Story on page 30PLANET Read about Our Planet Story on page 30PEOPLE Read about Our People Story on page 30PURPOSE Read about Our Purpose on page 1129Alliance Pharma plc Annual Report and Accounts 2022GovernanceCompany OverviewFinancial Statem

233、entsAdditional InformationStrategic ReportAlliance Pharma plcAnnual Report and Accounts 2022For more information visit Strategic Report Chief Executives Review 06Market Overview 09 Our Strategy 12Spotlight onMarketing excellence 18Innovation and development 20ScarAway and Kelo-Cote US acquisition 22

234、Culture,people and values 24Key Performance Indicators 27Sustainability 29Spotlight onManaging our packaging estate 31Developing our response to climate change 33TCFD 35Stakeholder Engagement 40Financial Review 42 Principal Risks and Uncertainties 47S U S TA I N A B I L I T Y C O N T I N U E DOvervi

235、ewPEOPLEContinued investment in capability development,to ensure our resourcing supports our growth ambitions.Continued focus on cultural development and employee engagement.Ensuring that our employees continue to have a good understanding of,and comply with,all relevant ethical business practices.8

236、0 new heads brought into the business in 2022 18 of which were in newly created roles New UK graduate and industry placement schemes rolled out High levels of employee engagement maintained with increased GPTW survey participation and trust index ratings;additional certifications achieved in US and

237、France First all-employee conference held More targeted approach to online compliance training,driving an increase in course completion rates Compliance training provision further enhanced through partnering with new external providersProgress in the year Increasing our organisational agility develo

238、ping the requisite capabilities through a combination of talent acquisition,training,and cultural change Maintaining and enhancing our high levels of employee engagement Launching our employee code of conduct,setting the benchmark for the ethical behaviours we expect from colleaguesFocus for 2023 Of

239、fset Scope 1&2 UK emissions for 2021 Set Scope 1&2 net zero targets Commenced initial engagement(fact find)with all our contract manufacturers(CMOs)and our top ten logistics partners to establish where they are on their climate change journeys Undertook scenario analysis and risk assessment to suppo

240、rt publication of first full TCFD report and disclosures Gained greater understanding of the constituents of our packaging estate(primary and secondary)and the steps we need to take to promote circularity and reduce our use of single-use plastics;pilot projects initiated to further understanding Con

241、tinuing to work towards developing our Scope 3 emissions reduction targets,through:embedding ownership of product-related emissions within the appropriate functional areas of the business;and continued methodology improvements to increase the accuracy of emissions measurement across all categories C

242、ontinuing to develop our packaging strategy,confirming and publishing sustainability improvement targets for both primary and secondary packagingPLANETEnvironmental strategy development developing our carbon action plan and our response to climate change.Packaging lifecycle management strategy devel

243、opment and target setting.Partner code of conduct published,setting out the ethical expectations we have of our partners be they CMOs,logistics service providers or distributors Obtaining formal confirmation from our CMOs that they comply with our ethical standards Tightening our processes around mo

244、dern slavery in our supply chainPRODUCTIncreasing the oversight we have of our supply chain;obtaining confirmation from our contract manufacturers and other suppliers that they comply with our ethical standards.Identified focus areas for 2022We have made good progress against our sustainability agen

245、da in 2022 below is a summary of our key achievements in the year and our main areas of focus for 2023.Further detail,including relevant metrics for all the areas of focus forming part of our sustainability framework,can be found in our Online Sustainability Report.30Alliance Pharma plc Annual Repor

246、t and Accounts 2022GovernanceCompany OverviewFinancial StatementsAdditional InformationStrategic ReportManaging our packaging estateAlliance Pharma plcAnnual Report and Accounts 2022For more information visit Strategic Report Chief Executives Review 06Market Overview 09 Our Strategy 12Spotlight onMa

247、rketing excellence 18Innovation and development 20ScarAway and Kelo-Cote US acquisition 22Culture,people and values 24Key Performance Indicators 27Sustainability 29Spotlight onManaging our packaging estate 31Developing our response to climate change 33TCFD 35Stakeholder Engagement 40Financial Review

248、 42 Principal Risks and Uncertainties 47S P O T L I G H T O N Developing and implementing a sustainable packaging strategy,supported by appropriate targets and delivery plans,was one of the key focus areas we identified for 2022 to reduce the environmental impact of our product packaging.We have mad

249、e good progress in 2022 to build a better understanding of our primary and secondary packaging estate,and the associated challenges and opportunities it presents,although we are not yet in a position to publish targets relating to packaging sustainability.Just over half of our packaging by weight is

250、 made up of paper,metal,and glass materials for which there are already established circularity channels.Our focus will therefore be on leveraging these channels,through better labelling of recycling instructions on packs and the use of recycled and/or FSC-certified paper for our secondary packaging

251、 and instructions for use sheets.The remainder of our estate comprises plastics primarily rigid plastics,such as bottles and jars.The recyclability of these varies both by product,and by country.WHAT DOES OUR PRODUCT PACKAGING CONSIST OF?THE DIFFERENT FORMATS THAT OUR PLASTIC PACKAGING TAKESGlass6%M

252、isc2%Plastic 46%Rigid 80%Metal 10%Blister 8%Paper 38%T ube 10%31Alliance Pharma plc Annual Report and Accounts 2022GovernanceCompany OverviewFinancial StatementsAdditional InformationStrategic ReportAlliance Pharma plcAnnual Report and Accounts 2022For more information visit Strategic Report Chief E

253、xecutives Review 06Market Overview 09 Our Strategy 12Spotlight onMarketing excellence 18Innovation and development 20ScarAway and Kelo-Cote US acquisition 22Culture,people and values 24Key Performance Indicators 27Sustainability 29Spotlight onManaging our packaging estate 31Developing our response t

254、o climate change 33TCFD 35Stakeholder Engagement 40Financial Review 42 Principal Risks and Uncertainties 47We have identified a number of avenues we will be exploring in 2023 to improve the environmental credentials of the plastics used in our packaging.These include:reducing overall consumption thr

255、ough right sizing of components;increasing component recyclability through better labelling and the switch to materials that are more widely recycled;replacing PVC/PVDC plastics with alternative materials,or formats;and maximising the use of PCR content.Blister packs present a particular challenge f

256、or us,and the pharmaceutical industry as a whole,as they comprise two different elements welded together,making them widely unrecyclable.These packs also contain harmful PVC.Elimination of polyvinylchloride(PVC)and polyvinylidene chloride(PVDC)PVC and PVDC are widely used in the forming material for

257、 blister packs,as theyre low cost,have good barrier properties,and are easy to use.However,they are non-recyclable and their presence pollutes plastics recycling streams.When incinerated,they release chlorine into the atmosphere or into the water table if sent to landfill.Maximising the use of post-

258、consumer recycled(PCR)plastics Whilst we will be looking to incorporate more PCR plastic in our packaging,the availability of PCR plastic suitable for use in consumer healthcare products is currently low,and what is available is of inconsistent quality and commands a higher price than the equivalent

259、 virgin material.Over time,the expectation is that progressive legislation will tax virgin materials to promote use of PCR,whilst high levels of investment in recycling technologies(mechanical and chemical)will improve the availability and competitiveness of high-quality PCR material.We are excited

260、by the potential to bring about positive change,through working in partnership with our suppliers to source new and better alternatives to some of our current packaging,in furtherance of our ambition to reduce our reliance on single-use plastics.Pilot studies have been initiated to look at more sust

261、ainable packaging options for plastic tubes,rigid packaging,and blister packs.We expect these to be completed during the first half of 2023 and the outputs from these projects will then inform the future development of our strategy.We remain mindful of the need to balance environmental benefits with

262、 broader sustainability considerations within our supply chain,including cost,security of supply,and the maturity of associated technologies.Whilst improving the environmental credentials of our packaging will help to reduce our end-to-end Scope 3 emissions both those associated with the end-of-life

263、 treatment of our packaging,and the more significant emissions associated with its manufacture collectively they only account for only c.10%of our total emissions and so will be a contributor to,rather than a key driver of,our wider Scope 3 product-related emissions reduction.S P O T L I G H T O N M

264、 A N A G I N G O U R PA C K A G I N G E S TAT E C O N T I N U E D32Alliance Pharma plc Annual Report and Accounts 2022GovernanceCompany OverviewFinancial StatementsAdditional InformationStrategic ReportDeveloping our response to climate changeAlliance Pharma plcAnnual Report and Accounts 2022For mor

265、e information visit Strategic Report Chief Executives Review 06Market Overview 09 Our Strategy 12Spotlight onMarketing excellence 18Innovation and development 20ScarAway and Kelo-Cote US acquisition 22Culture,people and values 24Key Performance Indicators 27Sustainability 29Spotlight onManaging our

266、packaging estate 31Developing our response to climate change 33TCFD 35Stakeholder Engagement 40Financial Review 42 Principal Risks and Uncertainties 47In our 2021 Annual Report,we highlighted our ambition to progress towards full disclosure,in line with the Task Force on Climate-related Financial Di

267、sclosures(TCFD)recommendations,in 2022.During the year we have worked with external consultants to support us with the evaluation of our business from a TCFD perspective and to undertake the scenario analysis and risk assessment required in order to determine our exposure to climate-related risks,co

268、nsidering both our own operations and the locations of our key supply partners.As part of our journey to full TCFD compliance,we are proud to publish our extended voluntary disclosures for 2022 as part of this Report,with additional detail to be provided in our first stand-alone TCFD report,to follo

269、w shortly on our website.The disclosures are being made on a voluntary basis because,as a UK-registered company,with securities admitted to AIM,with less than 500 employees,we are currently outside the scope of the mandatory disclosure requirements.As a result of this process,and the associated clim

270、ate scenario analysis and risk review,we have concluded that we should be recognising the impact of tackling climate change as a principal risk and it has therefore been added to our Principal Risks and Uncertainties coverage on pages 47-56.The scenario analysis and risk evaluation process has been

271、a valuable learning experience for us,as we included not just our own operational sites,but also those of our larger CMOs,enabling us to make use of insights gained in relation to the resilience of our supply chain through COVID-19,and disruptions to global supply chains as a result of the war in Uk

272、raine in our assessment of both physical and transition risks.In 2023,we will look to deepen our relationships with our partners,in order to support the mutual dissemination of knowledge around climate risks and opportunities,and to better understand their emissions management strategies,as a precur

273、sor to developing our Scope 3 emissions targets.We will also be looking to extend our climate risk analysis to include other key partners in our value chain.S P O T L I G H T O N 33Alliance Pharma plc Annual Report and Accounts 2022GovernanceCompany OverviewFinancial StatementsAdditional Information

274、Strategic Report201820202022202420262028201920212023202520272029203000200.200.10400.400.30600.600.50Electricity UKElectricity international sitesGas&other fuels UKGas&other fuels international sitesTargetProgressionEmissions intensity800.700.801000.901201.00tCO2tCO2/m revenueScope 1&2 emissions prog

275、ression and targetsAlliance Pharma plcAnnual Report and Accounts 2022For more information visit Strategic Report Chief Executives Review 06Market Overview 09 Our Strategy 12Spotlight onMarketing excellence 18Innovation and development 20ScarAway and Kelo-Cote US acquisition 22Culture,people and valu

276、es 24Key Performance Indicators 27Sustainability 29Spotlight onManaging our packaging estate 31Developing our response to climate change 33TCFD 35Stakeholder Engagement 40Financial Review 42 Principal Risks and Uncertainties 47S P O T L I G H T O N D E V E L O P I N G O U R R E S P O N S E T O C L I

277、 M AT E C H A N G E C O N T I N U E DSetting(and delivering against)our Scope 1&2 emissions targetsMidway through 2022,we set and published our Scope 1&2 emissions targets:To achieve a 65%reduction in our emissions(versus 2018 baseline)by 2025,and to achieve net zero(90%absolute reduction)by 2030.We

278、 used 2018 as our base year so we could demonstrate the significant reduction in emissions weve achieved already through environmental improvements to our Chippenham office HQ and to avoid using a base year in which use of the building was artificially low,due to COVID-19 restrictions.The graphic be

279、low shows the trajectory of our emissions from 2018 through 2021(the latest data available at the time the targets were set),and the further reductions needed to reach our targets.Our Scope 1&2 emissions for 2022 were 52 tCO2,a reduction of 26%versus those for 2021,due primarily to reduced consumpti

280、on at our Chippenham HQ and the non-renewal of the lease for our leased office in Chester mid-way through the year.We anticipate that further reductions in our UK emissions will be driven largely by own electricity generation at our Chippenham HQ,through the installation of PV roof panels,subject to

281、 receipt of all necessary consents.Reductions in emissions at our international sites where we control the supply will be driven principally by switching to renewable tariffs.We also expect to benefit from small reductions in consumption driven by energy-saving measures through increased colleague a

282、wareness and engagement across all our offices and from grid-driven reductions in electricity tariffs.Intensity reduction 20182021:55%Achieved to date:38%reductionInterim target:65%reductionNet zero target:90%absolute reductionRemaining 10%removed by offsets34Alliance Pharma plc Annual Report and Ac

283、counts 2022GovernanceCompany OverviewFinancial StatementsAdditional InformationStrategic ReportAlliance Pharma plcAnnual Report and Accounts 2022For more information visit Strategic Report Chief Executives Review 06Market Overview 09 Our Strategy 12Spotlight onMarketing excellence 18Innovation and d

284、evelopment 20ScarAway and Kelo-Cote US acquisition 22Culture,people and values 24Key Performance Indicators 27Sustainability 29Spotlight onManaging our packaging estate 31Developing our response to climate change 33TCFD 35Stakeholder Engagement 40Financial Review 42 Principal Risks and Uncertainties

285、 47TA S K F O R C E F O R C L I M AT E-R E L AT E D F I N A N C I A L D I S C L O S U R E S (T C F D)We recognise that we have a role to play in reducing our environmental impact and our contribution to climatechange.Whilst there is no current requirement for us to comply with the mandatory requirem

286、ents of TCFD,we welcome the recommendations,and having published partial disclosures in our 2021 Annual Report,we are pleased to report voluntarily on our progress in 2022 in integrating climate considerations into our existing business strategy and risk management processes.In addition to the discl

287、osures below,we plan to publish our first stand-alone TCFD report on the sustainability section of our website at the end of March 2023,to provide supplementary information around the risks and opportunities we face as a business as a result of climate change and how we plan to address these.Governa

288、nce taking responsibility for climate-related risks and opportunitiesClimate governance has been integrated into our existing corporate governance structures,with the Board having overall responsibility for Alliances response to climate change and providing oversight on climate-related risks and opp

289、ortunities,whilst ensuring suitable management processes are integrated into future financial planning,business strategy and operations.The CEO is the Board Director responsible for sustainability and for ensuring communication between stakeholders,the Board,management,and employees around our clima

290、te action is ongoing.The ESG Committee,which in 2022 comprised all Board members,is responsible for setting the Groups overarching sustainability strategy,and for identifying relevant ESG priorities that most significantly impact the Group,including those relating to climate change.The Committee is

291、also responsible for ensuring that climate change priorities are anchored as an integral part of the Companys business strategy.The ESG Committee has delegated management responsibility for climate-related risks and opportunities to the Senior Leadership Team(SLT),supported by the Corporate Sustaina

292、bility Lead.Collectively,they ensure the development and implementation of the Companys sustainability strategy,including climate action and TCFD reporting.Throughout the year,members of the ESG Board Committee,SLT and wider management worked with third-party ESG specialists to identify and assess t

293、he impact of climate change on our business operations.A series of workshops were held to build internal capability across all levels within the organisation,as a precursor to the creation of a climate risk register,which will be reviewed and updated annually,to ensure climate risks and opportunitie

294、s continue to be properly assessed,monitored,and reported.Strategy developing a resilient business strategyWe have a clear strategy to deliver sustainable business growth,through maximising the value of our core Consumer Healthcare business.Through implementing the recommendations of the TCFD,we hav

295、e been able to identify the climate risks which may prevent us from successfully delivering our business strategy,together with opportunities to strengthen our position and deliver increased value for stakeholders.This forward-looking analysis has helped us consider climate change in our long-term p

296、lanning,to ensure that our business strategy remains resilient to the impacts of climate change.Our climate risk management process identified the climate-related risks and opportunities,which could potentially impact our business.To strengthen this process,we utilised climate scenario analysis,inve

297、stigating the resilience of our business strategy across differing future projections of climate events.Climate scenario analysis was conducted for all our operational sites with the exception of Dublin(due to its size),allowing us to assess the impact of climate change on our future operations.The

298、outsourced nature of our business means that we rely heavily on third-party partners,such as our distributors,contract manufacturers(CMOs)and logistic service providers(LSPs).Any climate-related impacts on their operations could potentially present a significant risk to our business.We therefore wid

299、ened our assessment of physical risks,through carrying out climate scenario analysis on 24 of our key supplier sites,to begin to understand how climate change may impact our value chain.We plan to extend this analysis further in 2023.Climate scenarios We considered three climate change scenarios,whe

300、n evaluating the impact of each identified risk on our business operations and financial planning:Below 2C 23C Above 3CWith the warming pathways modelled over three time-horizons:Short-term(20222025)Medium-term(20252035)Long-term(20352050)35Alliance Pharma plc Annual Report and Accounts 2022Governan

301、ceCompany OverviewFinancial StatementsAdditional InformationStrategic ReportStrategic Report Chief Executives Review 06Market Overview 09 Our Strategy 12Spotlight onMarketing excellence 18Innovation and development 20ScarAway and Kelo-Cote US acquisition 22Culture,people and values 24Key Performance

302、 Indicators 27Sustainability 29Spotlight onManaging our packaging estate 31Developing our response to climate change 33TCFD 35Stakeholder Engagement 40Financial Review 42 Principal Risks and Uncertainties 47For more information visit Alliance Pharma plcAnnual Report and Accounts 2022For more informa

303、tion visit Strategic Report Chief Executives Review 06Market Overview 09 Our Strategy 12Spotlight onMarketing excellence 18Innovation and development 20ScarAway and Kelo-Cote US acquisition 22Culture,people and values 24Key Performance Indicators 27Sustainability 29Spotlight onManaging our packaging

304、 estate 31Developing our response to climate change 33TCFD 35Stakeholder Engagement 40Financial Review 42 Principal Risks and Uncertainties 47We considered both the short to medium-term risks and opportunities arising from the transition to a lower-carbon economy,together with our level of exposure

305、to the longer-term physical risks associated with global warming.Through this process,we identified eight transition risks and two climate-related opportunities,which are outlined in the table below,together with their potential impacts,to the extent that we are able to quantify these.We also identi

306、fied six physical risks which we will need to manage our exposure to in the longer term,which are also summarised below.Transition risksArea Risk Scenario(s)TimeframeImpact descriptionImpactPolicy&Legal Increased regulation due to climate changeBelow 2C and 23C Short to Medium Term(20222035)Expendit

307、ures Increased operating costs(e.g.higher compliance costs)Negligible/0.5mIncrease in carbon pricing23C Medium Term(20252035)Expenditures Increased direct costs Negligible/0.5mMandates on and regulation of existing products and servicesBelow 2C and 23C Short to Medium Term(20222035)Expenditures Incr

308、eased direct costs Negligible/3CShort to Medium Term(20222035)Expenditures Increased indirect(operating)costsSmall/0.5m1.5mChanging consumer preferences and increased sensitivity to ESGBelow 2C and 23C Short to Medium Term(20222035)Revenue Decreased revenue due to reduced demand for productsSmall/0.

309、5m1.5mReputationIncreased stakeholder concern damaging our reputationBelow 2C and 23C Short to Medium Term(20222035)Capital and Financing Decreased access to capitalSmall/0.5m1.5mTechnologySubstitution of existing products with lower emissions alternativesBelow 2C and 23C Short to Medium Term(202220

310、35)Capex Increased capital expenditure/investmentSmall/0.5m1.5mCosts to transition to lower emissions technologyBelow 2C and 23CShort to Medium Term(20222035)Capex Increased capital expenditure/investmentNegligible/70m of sales made via distributors in 2022Healthcare professionals are looking for:En

311、gagement,education,information,and resources Therapy area expertiseHow we delivered for healthcare professionals in 2022:Responses provided to more than 900 enquiries from HCPsOur lenders are interested in:Strong financial performance Ability to service&repay borrowingsHow we delivered for our lende

312、rs in 2022:15.8m of free cash flow generated Compliance with borrowing covenants maintainedThe wider community is interested in:Social impact strategy Local engagement Charitable and product donations How we delivered for the wider community in 2022:12,000 units of product donated to International H

313、ealth Partners,enabling 149,000 treatments to be sent to 10 countries around the world 50k donated to Ukraine humanitarian appeal Ongoing support of local charities and community eventsSUPPLY AND DISTRIBUTION PARTNERSHEALTHCARE PROFESSIONALSLENDERSWIDER COMMUNITIES41Alliance Pharma plc Annual Report

314、 and Accounts 2022GovernanceCompany OverviewFinancial StatementsAdditional InformationStrategic ReportAlliance Pharma plcAnnual Report and Accounts 2022For more information visit Strategic Report Chief Executives Review 06Market Overview 09 Our Strategy 12Spotlight onMarketing excellence 18Innovatio

315、n and development 20ScarAway and Kelo-Cote US acquisition 22Culture,people and values 24Key Performance Indicators 27Sustainability 29Spotlight onManaging our packaging estate 31Developing our response to climate change 33TCFD 35Stakeholder Engagement 40Financial Review 42 Principal Risks and Uncert

316、ainties 47F I N A N C I A L R E V I E W“Whilst 2022 presented challenges in two discrete areas of the business,we worked hard to control costs and minimise the impact on underlying operating profit,whilst developing robust mitigation plans.”Andrew Franklin,Chief Financial OfficerFREE CASH FLOW*15.8m

317、(2021:30.2m-48%)UNDERLYING EBITDA*39.2m(2021:48.6m-19%)*Non-IFRS alternative performance measures(see note 31).42Alliance Pharma plc Annual Report and Accounts 2022GovernanceCompany OverviewFinancial StatementsAdditional InformationStrategic ReportAlliance Pharma plcAnnual Report and Accounts 2022Fo

318、r more information visit Strategic Report Chief Executives Review 06Market Overview 09 Our Strategy 12Spotlight onMarketing excellence 18Innovation and development 20ScarAway and Kelo-Cote US acquisition 22Culture,people and values 24Key Performance Indicators 27Sustainability 29Spotlight onManaging

319、 our packaging estate 31Developing our response to climate change 33TCFD 35Stakeholder Engagement 40Financial Review 42 Principal Risks and Uncertainties 47F I N A N C I A L R E V I E W C O N T I N U E DSUMMARY UNDERLYING INCOME STATEMENTYear ended 31 December2022 m2021 mGrowth See-through revenue*1

320、72.0169.6+1%Statutory revenue167.4163.2+3%Gross profit101.7109.5-7%Operating costs(including share-based employee remuneration)62.560.9+3%Underlying EBITDA*39.248.6-19%Depreciation and underlying amortisation3.52.9+20%Underlying operating profit(EBIT)35.745.6-22%Finance costs5.43.4+57%Underlying pro

321、fit before taxation30.342.2-28%Reported profit before taxation5.218.2-71%Underlying basic earnings per share4.28p6.39p-33%Reported basic earnings per share0.17p1.37p-88%Proposed total dividend per share1.776p1.691p+5%*The performance of the Group is assessed using Alternative Performance Measures(AP

322、Ms),which are measures that are not defined under IFRS,but are used by management to monitor ongoing business performance against both shorter-term budgets and forecasts and against the Groups longer-term strategic plans.APMs are defined in note 31.Specifically,see-through revenue includes all sales

323、 from Nizoral as if they had been invoiced by Alliance as principal.For statutory accounting purposes the product margin on Nizoral sales made on an agency basis is included within Revenue,in line with IFRS 15.Underlying profitability metrics are presented as we believe this provides investors with

324、useful information about the performance of the business.In 2022,underlying results exclude the amortisation and impairment of acquired intangible assets;in 2021,underlying results exclude the amortisation and impairment of acquired intangible assets,the CMA provision and restructuring costs.Further

325、 detail can be found in note 5.REVENUE SUMMARYYear ended 31 December2022 m2021 mGrowth CER growthKelo-Cote franchise50.048.8+2%-6%Amberen14.919.2-22%-30%Nizoral*21.820.6+6%+3%Other Consumer brands38.433.2+16%+14%Total Consumer Healthcare125.2121.8+3%-3%Prescription Medicines46.847.8-2%-2%See-through

326、 revenue*172.0169.6+1%-3%LFL Consumer Healthcare see-through revenue*,excl.ScarAway&Kelo-Cote US118.9121.8-2%-7%LFL see-through revenue*,excluding ScarAway&Kelo-Cote US165.7169.6-2%-6%Statutory revenue Consumer Healthcare120.6115.4+5%+3%Statutory revenue Group167.4163.2+3%-2%LFL Consumer Healthcare

327、statutory revenue,excluding ScarAway&Kelo-Cote US114.3115.4-1%-6%LFL Group statutory revenue,excluding ScarAway&Kelo-Cote US161.1163.2-1%-5%REVENUESGroup see-through revenue increased 1%to 172.0m(2021:169.6m)and decreased 3%at constant exchange rates(CER).Like-for-like see-through revenue excluding

328、ScarAway and Kelo-Cote US,acquired in March 2022,decreased 2%(-6%CER).Group revenue benefited from exchange rate movements in 2022,principally the weakening of Sterling against the US Dollar and HK Dollar,which increased see-through revenue by approximately 6.7m.Statutory revenue increased 3%to 167.

329、4m(2021:163.2m)(-2%CER).43Alliance Pharma plc Annual Report and Accounts 2022GovernanceCompany OverviewFinancial StatementsAdditional InformationStrategic ReportAlliance Pharma plcAnnual Report and Accounts 2022For more information visit Strategic Report Chief Executives Review 06Market Overview 09

330、Our Strategy 12Spotlight onMarketing excellence 18Innovation and development 20ScarAway and Kelo-Cote US acquisition 22Culture,people and values 24Key Performance Indicators 27Sustainability 29Spotlight onManaging our packaging estate 31Developing our response to climate change 33TCFD 35Stakeholder

331、Engagement 40Financial Review 42 Principal Risks and Uncertainties 47REVENUES CONTINUEDConsumer Healthcare Total Consumer Healthcare revenues for the year were 125.2m(2021:121.8m),up 3%on the prior year(-3%CER)benefiting from the US acquisition in addition to currency tailwinds.On a statutory basis,

332、reported Consumer Healthcare revenues were 120.6m,up 5%from the previous year(2021:115.4m)and up 3%CER.Excluding the impact of the US acquisition,like-for-like see-through Consumer Healthcare revenue fell 2%(-7%CER)to 118.9m whilst on a statutory basis,like-for-like Consumer Healthcare revenues decr

333、eased 1%to114.3m(-6%CER).Kelo-Cote franchise scar prevention and treatment Kelo-Cote franchise revenues grew 2%to 50.0m(2021:48.8m)in the year,boosted by the US acquisition and currency gains(-6%CER).As previously reported,the cross-border e-commerce(CBEC)scar treatment market declined during H1 2022 as rigid lockdowns in China from March prevented the movement of product across the border from Ho