Aft Pharmaceuticals Ltd. · NZX:AFT
Aft Pharmaceuticals — H1 FY2022 Earnings Presentation
27 slides from Aft Pharmaceuticals's earnings presentation, Nov 18, 2021
Slide 1: 1H FY2022 Investor presentation
Working to improve your health 1H FY2022 Investor presentation 18 November 2021 Page 1
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 ended 30 September 2021. It is not prepared for any other purpose and must not be provided to any person other than the intended reci
Slide 3: Delivering growth in a COVID-19 headwind
Delivering growth in a COVID-19 headwind Total revenue from operations 1H $120.0 $113.1 $105.6 $100.0 $85.1 $80.0 $80.0 NZ$ Millions $64.0 $69.0 $60.0 $40.0 $48.8 $55.5 $20.0 $0.0 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 1H 2022 Operating profit Net profit before tax 1H INVESTOR PRESENTATION NOVEMB
Slide 4: Extending the foundations for AFT's future growth
Extending the foundations for AFT’s future growth • Core Australasian markets supported by new product launches and consolidation of leadership position across therapeutic focus areas. • Maxigesic® commercialisation momentum continues ‒ Sustained market leadership in Australia ‒ Maxigesic IV® licens
Slide 5: Strategic and operational update
Strategic and operational update Page 5
Slide 6: Australia grows despite lockdowns
Australia grows despite lockdowns Australia total revenue Australia channel $80.0 1H $70.0 $68.3 $61.4 $60.0 29% $49.2 $50.3 30% $50.0 NZ$ Million 1H 2022 1H 2021 $40.0 59%59% $30.0 11% 12% $20.0 $28.5 $29.2 2% $10.0 $0.0 FY2018 FY 2019 FY2020 FY2021 1H FY22 OTC Prescription Hospital • Maxigesic and
Slide 7: New Zealand benefits from fewer restrictions
New Zealand benefits from fewer restrictions New Zealand total revenue New Zealand channel $35.0 $30.5 1H $30.0 $30.1 $27.1 $26.8 17% $25.0 16% 1H 2022 NZ$ Millions $20.0 1H 2021 $15.0 55% 54% 29% 29% $10.0 $13.7 $15.8 15% $5.0 $0.0 FY2018 FY 2019 FY2020 FY2021 1H FY22 OTC Prescription Hospital • Gr
Slide 8: Hospital/Rx channel underpins Asian result
Hospital/Rx channel underpins Asian result Asia total revenue Asia channel $6.0 1H $5.0 $4.9 9% $4.4 10% $4.0 22% NZ$ Million $3.0 28% 1H 2022 1H 2021 $2.1 62% $2.0 $1.3 $2.9 32% 70% $1.0 $2.2 $0.0 FY2018 FY 2019 FY2020 FY2021 1H FY22 OTC Prescription Hospital • Hospital/Rx sales rise 32% due to str
Slide 9: Maxigesic drives international licensing and sales revenue
Maxigesic drives international licensing and sales revenue International total revenue International channel $12.0 1H $9.9 $10.0 $9.1 3% $8.0 39% $NZ Millions $6.0 $5.9 1H 2021 1H 2022 74% 61% $4.0 $3.6 $7.6 97% $2.0 $4.4 $0.0 FY2018 FY 2019 FY2020 FY2021 1H FY22 OTC Hospital • Maxigesic IV licensin
Slide 10: Maxigesic Global Update
MAXIGESIC GLOBAL UPDATE Ire la n d – Tablets launched IV licensed [Oral Dose Forms & IV] U n ite d K in g d o m – Tablets la u n c h e d IV licensed Russia – Orals licensed Netherlands – IV licensed S in g a p o re & B ru n e i – Tablets la u n c h e d Austria – IV licensed & launched 2021 China - l
Slide 11: Maxigesic roll out continues across the world
Maxigesic roll out continues across the world TARGETED MAXIGESIC FY 2022-2023 FY 2022 progress to date: • Tablets: Launched in Maxigesic countries sold and ordered* Switzerland, Greece and 90 84 Lithuania 80 70 60 53 • Maxigesic IV: launched in Germany and Austria Countries 50 43 40 28 30 20 • Oral
Slide 12: R&D investment lays foundation for future growth
R&D investment lays foundation for future growth Research and development expenditure* $14.0 $12.0 $2.5 $10.0 $NZ Million $8.0 $6.0 $6.0 $7.2 $9.5 $1.5 $4.0 $2.4 $2.0 $4.1 $3.4 $2.0 $2.8 $- FY2018 FY2019 FY2020 FY2021 1H 2022 Expensed R&D costs Capitalised R&D costs • Maxigesic dose forms: ‒ Maxiges
Slide 13: Financial performance
Financial performance Page 13
Slide 14: Licensing income lifts earnings; investments for growth
Licensing income lifts earnings; investments for growth 2021 2020 Change Six months to 30 September NZ$ (000) NZ$ (000) (%) Total revenue from operations $55,513 $48,821 13.7% Gross profit $26,705 $20,332 31.3% Gross profit/revenue 48.1% 41.6% Operating expenses and other income $(21,214) $(17,910)
Slide 15: Balance sheet highlights: debt reduces and cash and equity rise
Balance sheet highlights: debt reduces and cash and equity rise Unaudited Audited Unaudited NZ$ (000) 30 Sept ’21 31 March ’21 30 Sept ’20 Inventories $34,129 $33,654 $35,995 Cash and cash equivalents $5,907 $3,209 $5,870 Net debt $32,592 $35,152 $34,277 Total assets $105,708 $105,132 $93,983 Total
Slide 16: Cash flow highlights
Cash flow highlights 2021 2020 Six months to 30 September NZ$ (000) NZ$ (000) Net cash from/ (used in) operating activities $6,826 $(2,740) Net cash used in investing activities $(2,770) $(3,889) Net cash from/ (used in) financing activities $(1,326) $6,704 Net increase/(decrease) in cash $2,731 $75
Slide 17: Summary and outlook
Summary and outlook Page 17
Slide 18: A challenging half year but growth potential remains strong
A challenging half year but growth potential remains strong Positive achievements across all our key markets • Good growth in New Zealand, Asia • Good progress commercialising Maxigesic • Landmark licensing agreements with Hikma for Maxigesic IV in the US and FDA acceptance of the New Drug Applicati
Slide 19: Focus for the remainder of FY22 and outlook
Focus for the remainder of FY22 and outlook Further drive international sales Accelerate number of new countries in which Maxigesic is launched Growing sales in newly launched markets such as Canada, Germany, Switzerland Launch new line extensions – Maxigesic IV, Hot Drink, Oral Liquid Extend
Slide 20: Working to improve your health
Working to improve your health Page 20
Slide 21: Appendix 1: Australasian product portfolio
Appendix 1: Australasian product portfolio AFT has the #1 selling product (Maxigesic) in the Australian para-ibu1 combo pain relief. AFT’s portfolio includes a combination of 125 proprietary, branded and generic products which address the following therapeutic areas: Maxigesic, ParaOsteo, ZoRub OA/H
Slide 22: Appendix 2: AFT Asian product portfolio
Appendix 2: AFT Asian product portfolio AFT’s Asia portfolio includes a range of proprietary, branded and generic products which address the following therapeutic areas: Pain Maxigesic Medicated Ferro-sachets, Lipo VitC, Lipo VitD and expanding pipeline – Vitamins T Mall Dermatology Crystawash Exten
Slide 23: Appendix 3: AFT Global product portfolio
Appendix 3: AFT Global product portfolio AFT is building the global presence of its proprietary and patented products through its network of licensees and distributors. It continues the development of its portfolio of repurposed medicines: Maxigesic, Pascomer, NasoSURF, Crystawash Extend and Crystad
Slide 24: Appendix 4: Maxigesic dose forms extend the market
Appendix 4: Maxigesic dose forms extend the market Maxigesic® family growth Maxigesic® DRY STICK SACHET Maxigesic® COLD & FLU Maxigesic® RAPID Revenue Maxigesic® HOT DRINK SACHET Maxigesic® ORAL LIQUID Maxigesic® IV Maxigesic® TABLETS Time • Estimated total analgesic market size • AFT is now leverag
Slide 25: Appendix 5: Detailed balance sheet
Appendix 5: Detailed balance sheet Unaudited Audited Unaudited NZ$ (000) 30 Sept ’21 31 March ’21 30 Sept ’20 Current assets $66,187 $67,902 $58,549 Non-current assets $39,521 $37,230 $35,434 Total assets $105,708 $105,132 $93,983 Current liabilities $25,422 $32,102 $25,948 Non-current liabilities $
Slide 26: Appendix 6: History of AFT Pharmaceuticals
Appendix 6: 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-m
Slide 27: Working to improve your health
Working to improve your health Page 27
AFT Pharmaceuticals — H1 FY2022 Earnings Presentation on 6ix