Slide 1: Investor Presentation 1H 24 Financial Results
INVESTOR PRESENTATION 1H 24 FINANCIAL RESULTS 23 NOVEMBER 2023
Slide 2: Important Notice
Important Notice This presentation has been prepared by AFT Pharmaceuticals Limited (“AFT”), to provide a general overview of the performance of AFT for the half year to 30 September 2023. It is not prepared for any other purpose and must not be provided to any person other than the intended recipie
Slide 3: Presenters: Dr Hartley Atkinson and Malcolm Tubby
Dr Hartley Atkinson Co-founder and Managing Director Malcolm Tubby Chief Financial Officer AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH 3
Slide 4: 1H 24 Highlights: Growth accelerates in Asia and International markets
1H 24 Highlights: Growth accelerates in Asia and International markets. • Strong growth outside Australasia. Asia (up 50% to $5.4m) and International up (172.3% to $12.8m) rising at the fastest rate • $2m of licensing income lifts already strong international result • Operating profit of $3.3m with
Slide 5: Australia: Sales Accelerating Underpinned By New Product Launches
Australia: Sales Accelerating Underpinned By New Product Launches • Sales in Australia rise 18% to $42.7m from $36m supported by organic and new product growth, although moderated by an easing of pandemic related demand. • Operating profit lower with investment for growth and product marketing, but
Slide 6: New Zealand: Organic Growth
New Zealand: Organic Growth • New Zealand revenue grows 7% to $22.7m from $21.3m. Hospital channel (up 15.4%) and OTC (up 6.8%) lifted by new and organic growth. Prescription channel up 2.1% • Operating profits lower in line with Australian marketing spend together with stronger sales of lower margi
Slide 7: Asia: Expanded OTC Presence and Moving into China
Asia: Expanded OTC Presence and Moving into China • Sales in Asia rose 50% to $5.4m with strong growth across all channels. OTC channel up 88.2% lifted by e-commerce growth off a low base • Prescription and hospital channels (up 98.2% and 36% respectively) benefit from Maxigesic IV launch in Korea •
Slide 8: 1H 24 International Revenue Ahead of FY 2023 Result
1H 24 International Revenue Ahead of FY 2023 Result INTERNATIONAL REVENUE $14.0 $13.1 $12.8 $11.7 $12.0 $2.0 $0.9 $9.9 $10.0 $9.1 $6.7 $2.1 $8.0 NZ$M $3.8 $5.9 $6.0 $1.2 $10.8 $10.8 $3.6 $4.0 $7.8 1.1 $6.4 $4.7 $5.3 $2.0 2.5 $0.0 FY2018 FY2019 FY2020 FY2021 FY 2022 FY2023 1H 2024 1H Other 1H Product
Slide 9: A Global Footprint
A Global Footprint Maxigesic is now available in 66 countries and will soon launch in the United States
Slide 10: Driving Growth With New Products
Driving Growth With New Products • During FY 23 AFT launched 22 new products • Product launches planned in Australasia FY24 - FY26 rises by 5 to 73 across all three channels • Some of these products also targeted for launch in Asian hubs (Singapore and Hong Kong) and UK • Several innovative products
Slide 11: Driving Growth Through Expanded Distribution Networks
Driving Growth Through Expanded Distribution Networks Tmall - a Gateway to China A Global Presence Online and in Market • Extended our online presence • Amazon (US AU); • China (CBEC) and with the registration of Crystaderm locally. • Australia (Direct) • New hubs • AFT Pharmaceuticals UK has a pipe
Slide 12: New Product Development and International Markets to Drive Growth
New Product Development and International Markets to Drive Growth REVENUE MIX BY REGION • Ongoing new product launches in Australia and New Zealand 8% 4% FY 2023 • The launch of Maxigesic IV and Rapid in the US 28% 60% • Growing presence in Asia • UK launches and pipeline • AFT ANZ pipeline expanded
Slide 13: Operating Cashflow Supports Continued R&D Investment
Operating Cashflow Supports Continued R&D Investment AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH 13
Slide 14: Earnings Reflect Investment for Growth
Earnings Reflect Investment for Growth NZ#039;000s 2023 Revenue 2022 Revenue Six months to 30 September % % Revenue 83,614 65,750 • Revenue growth of 27% Gross profit 35,936 43.0% 28,679 43.6% • Gross Profit growth of 25% Operating expenses and other income (32,686) 39.1% (25,222) 38.4% • Margin of 43%
Slide 15: Balance Sheet: Well Funded, Net Debt Steady
Balance Sheet: Well Funded, Net Debt Steady NZ#039;000 Six months to 30 September 2023 2022 Current assets 88,952 68,358 • Net debt at $30.6m in line with March 2023 Cash 6,172 8,795 and last half year with: Non-current assets 63,748 53,740* - investment in R&D and marketing Total assets 158,872 130,89
Slide 16: Cash Flow: AFT Remains Well Funded as Debt Reduction Continues
Cash Flow: AFT Remains Well Funded as Debt Reduction Continues NZ#039;000’s Six months to 30 September 2023 2022 • Operating cashflow growth Net cash from operating activities 7,468 5,982 Net cash used in investing activities (4,845) (4,853) • AFT fully funded growth investments from internally generat
Slide 17: Summary and Outlook: Growth momentum expected to continue in 2H 24
Summary and Outlook: Growth momentum expected to continue in 2H 24 • Ongoing rollout of Maxigesic and its line extensions in international markets and after this, products from our expanded R&D pipeline. • Targeting increased growth in International and Asia markets; expansion in the UK and e-commer
Slide 18: Questions
QUESTIONS /
Slide 19: Appendix
APPENDIX /
Slide 20: Maxigesic Distribution
Maxigesic Distribution Product Maxigesic tablets Maxigesic IV Maxigesic oral solution Maxigesic hot drink 30 Sept 31 March 30 Sept 31 March 30 Sept 31 March 30 Sept 31 March Territories 2023 2023 2023 2023 2023 2023 2023 2023 Licensed 100+ 100+ 100+ 100+ 100+ 100+ 100+ 100+ Registered 69 66 46 43 14
Slide 21: History of AFT Pharmaceuticals
History of AFT Pharmaceuticals AFT was founded 23 years ago by Dr Hartley and Marree Atkinson. Since then AFT has remained an Atkinson-family controlled business and has grown organically into Australia and internationally. The 2015 IPO raised funds to pursue a more aggressive (and loss-making) R&D-
Slide 22: Reconciliation of EBITDA to GAAP
Reconciliation of EBITDA to GAAP AFT’s standard profit measure prepared under New Zealand GAAP is net GAAP to Non-GAAP reconciliation profit after tax attributable to the owners of the parent NZ#039;000 2024 2023 Six months ended 30 September $(000) $(000) AFT has used the non-GAAP profit measures of E
Slide 23: www.aftpharm.com
www.aftpharm.com FOR MORE INFORMATION Dr Hartley Atkinson Managing Director Email: hartley@aftpharm.com Malcolm Tubby Chief Financial Officer Email: malcolm@aftpharma.com AFT Pharmaceuticals Limited Level 1, 129 Hurstmere Road Takapuna, Auckland 0622 New Zealand