Aft Pharmaceuticals Ltd. · NZX:AFT
Aft Pharmaceuticals — Shareholder Meeting (August 2023)
40 slides from Aft Pharmaceuticals's shareholder meeting presentation, Aug 4, 2023
Slide 1: Annual Shareholder Meeting
For personal use only ANNUAL SHAREHOLDER MEETING MILFORD CRUISING CLUB AUCKLAND 4 AUGUST 2023
Slide 2: Important Notice
Important Notice For personal use only This presentation has been prepared by AFT Pharmaceuticals Limited (“AFT”), to provide a general overview of the performance of AFT for the year to 31 March 2023. It is not prepared for any other purpose and must not be provided to any person other than the int
Slide 3: David Flacks, Chairman and Independent Director
David Flacks Chairman and Independent Director For personal use only AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH 3
Slide 4: Directors
Directors For personal use only Dr Hartley Atkinson Marree Atkinson Anita Baldauf CO-FOUNDER, EXECUTIVE CO-FOUNDER, EXECUTIVE INDEPENDENT DIRECTOR DIRECTOR AND CHIEF EXECUTIVE DIRECTOR AND CHIEF OF STAFF OFFICER Jon Lamb Dr Ted Witek INDEPENDENT DIRECTOR INDEPENDENT DIRECTOR AFT PHARMACEUTICALS WORK
Slide 5: Agenda
Agenda • Chair's address For personal use only • Managing Director's address • Shareholder questions • Resolutions & general business • Meeting close AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH 5
Slide 6: AFT Extends Strong Record of Growth, Declares Maiden Dividend
AFT Extends Strong Record of Growth, Declares Maiden Dividend A Global Company AFT TOTAL OPERATING REVENUE For personal use only $180 Australasia: $157 .0 • 150+ products across seven $160 therapeutic areas distribution via 7,700 pharmacies. $140 14.5% $130 .0 CAGR Asia: $120 $113 .0 $106 .0 • A bro
Slide 7: Solid Financial Performance
Solid Financial Performance AFT OPERATING PROFIT Consistent Earnings Growth from a Growing Portfolio For personal use only • Operating profit excluding licensing income up 38% $20 $0.9 $6.7 • Total operating profit slightly lower impacted by lower $15 licence fees $10 $3.8 $2.1 $18.8 • Net debt of $
Slide 8: Sustainability – Establishing a Baseline as the Next Step of Our Evolution
Sustainability – Establishing a Baseline as the Next Step of Our Evolution Environmental Social and Governance Highlights For personal use only We have moved to the measurement of the material ESG matters that impact our business as we refine our priorities and establish strategies for improvement.
Slide 9: Dr Hartley Atkinson, Co-Founder and Managing Director
Dr Hartley Atkinson Co-Founder and Managing Director For personal use only AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH 9
Slide 10: FY23 Highlights: Strong growth across all territories and channels
FY23 Highlights: Strong growth across all territories and channels • Revenue grew in all regions with the core Australasian business making the largest contribution to growth ($26.3 million ) For personal use only • International revenue (ex-licensing income) up 71% to $10.8 million; licensing incom
Slide 11: Driving Growth With New Products
Driving Growth With New Products • During FY 23 AFT launched 22 new products • Planning ~68 product launches in Australasia FY24 - FY26 across all For personal use only three channels • Some of these products also targeted for launch in Asia Hubs (Singapore and Hong Kong) and UK • A number of innova
Slide 12: Driving Growth Through International Partnerships
Driving Growth Through International Partnerships For personal use only • Maxigesic IV development partner and expect to expand our collaboration • Hyloris follows a similar strategy to AFT of reformulating and repurposing approved pharmaceuticals • Belgium-based listed on Euronext Brussels, • Marke
Slide 13: Driving Growth Through Expanded Distribution Networks: E-Commerce
Driving Growth Through Expanded Distribution Networks: E-Commerce TMALL A GATEWAY TO CHINA For personal use only A Global Presence Online and in Market • Extended our online presence • Amazon (US AU); • China (Tmall Global); • Australia (Direct) AMAZON USA AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR
Slide 14: Driving Growth Through Expanded Distribution Networks
Driving Growth Through Expanded Distribution Networks AFT Pharmaceuticals UK Ltd For personal use only Increasing Geographic Expansion • 4 Launches planned for FY24 • Established entity - 70% AFT Owned and 30% Edge Pharma • Significant number regulatory filings underway and planned • CEO appointed,
Slide 15: New Product Development and International Markets to Drive Growth
New Product Development and International Markets to Drive Growth For personal use only REVENUE MIX BY REGION • Ongoing new product launches 8% 4% FY 2023 • Growing R&D pipeline and launches in later years 28% 60% • Leveraging Maxigesic launches and line extensions • Growing presence in Asia (OTC an
Slide 16: Australia: Sales Accelerating Underpinned By New Product Launches
Australia: Sales Accelerating Underpinned By New Product Launches • Sales in Australia rise 22.8% to $94.1 million from $76.7 million in FY22 For personal use only • OTC channel the standout performer, up 29.7% to $61.2 million • Investment of $8 million in new GP focused sales force and promotions
Slide 17: New Zealand: Strong Organic Growth Across All Channels
New Zealand: Strong Organic Growth Across All Channels • New Zealand revenue grows 25% to $44.0 million from $35.1 million lifted by strong post Covid OTC growth and continued For personal use only growth in revenue from the Maxigesic family of medicines. • Future growth driven again by organic grow
Slide 18: Asia: Expanded OTC Presence and Moving into China
Asia: Expanded OTC Presence and Moving into China • Sales in Asia rose 24% to $6.8 million from $5.5 million in prior year For personal use only • OTC channel leading growth; contribution from the new Tmall global site growing; AFT to run the site post 1 Aug 23 • Targeting accelerating growth in Asi
Slide 19: International: Strong Organic Growth of Product Sales and Royalties
International: Strong Organic Growth of Product Sales and Royalties INTERNATIONAL OPERATING REVENUE COUNTRIES WHERE MAXIGESIC IS SOLD AND ORDERED For personal use only $14.0 $13.1 70 61 $11.7 $12.0 60 $9.9 $10.0 $9.1 50 46 43 NZ$ Million $8.0 40 Countries $5.9 $6.0 30 28 $3.6 $4.0 20 $2.0 20 9 $0.0
Slide 20: Maxigesic Global Update
land - Tablets launched MAXIGESIC GLOBAL UPDATE [Oral Dose Forms & IV] Cambodia and Myanmar — tv and Tablets licensed Austria - IV licensed and launched 2023 china - licensing negotiations underway Nordics - Tablets launched 1V launched [anne iaeee (oeeree ae Poland -1v and orals licensed ‘Taiwan -
Slide 21: Operating Cashflow Supports Continued R&D Investment
Operating Cashflow Supports Continued R&D Investment Research and development expenses For personal use only $14.0 $12.0 $2.5 $10.0 $6.2 NZ$ Million $8.0 $4.9 $6.3 $6.0 $5.8 $2.9 $9.5 $4.0 $5.5 $5.6 $2.0 $4.1 $3.6 $3.4 $- FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Expensed R&D Costs Capitalised
Slide 22: Operating Profit Lower on Reduced Licence Income
Operating Profit Lower on Reduced Licence Income NZ$'000s 2023 Revenue 2022 Revenue For personal use only Year ended 31 March % % Revenue 156,641 130,314 Gross profit 72,983 46.6% 61,775 47.4% • Strong growth in operating revenue and Operating expenses and other income (53,314) 34.0% (41,386) 31.8%
Slide 23: Balance Sheet: Well Funded, Net Debt Steady
Balance Sheet: Well Funded, Net Debt Steady For personal use only NZ$'000 Year ended 31 March 2023 2022 (restated*) • Net debt in line with last year, but higher than Current assets 89,851 69,602 1X EBITDA target due to: Cash 4,749 7,940 - investment in for growth Australian sales Non-current assets
Slide 24: Cash Flow: AFT Remains Well Funded as Debt Reduction Continues
Cash Flow: AFT Remains Well Funded as Debt Reduction Continues For personal use only NZ$'000’s Year ended 31 March 2023 2022 (restated*) • Lower operating cashflow reflecting higher Net cash from operating activities 11,629 14,152 working capital applied in line with revenue Net cash used in investi
Slide 25: Summary and Outlook: Growth momentum expected to continue in FY24
Summary and Outlook: Growth momentum expected to continue in FY24 • Ongoing rollout of Maxigesic and its line extensions in international markets and after this, products from our For personal use only expanded R&D pipeline. • Targeting increased growth in International and Asia markets • Expansion
Slide 26: Shareholder Questions
For personal use only QUESTIONS SHAREHOLDER
Slide 27: Resolutions
For personal use only RESOLUTIONS
Slide 28: Resolutions
Resolutions For personal use only Resolution 1: That the directors are authorised to fix the fees and expenses of Deloitte as auditor for the 2024 financial year. AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH 28
Slide 29: Resolutions
Resolutions For personal use only Resolution 2: That Marree Atkinson be re-elected as a director of AFT Pharmaceuticals Limited. AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH 29
Slide 30: Proxies for the resolutions
Proxies for the resolutions For personal use only Resolution For Against Discretionary Abstain 1. Auditor fees and expenses 86,170,160 15,003 473,171 11,501 2. Re-election Marree Atkinson 86,182,671 16,490 466,267 4,407 AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH 30
Slide 31: Voting
For personal use only VOTING
Slide 32: General Business
For personal use only BUSINESS GENERAL
Slide 33: Meeting Close
For personal use only MEETING CLOSE
Slide 34: www.aftpharm.com
For personal use only www.aftpharm.com
Slide 35: Australasian Product Portfolio
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 150 proprietary, branded and generic products which address the following therapeutic areas: For personal use only Pain Maxigesic, ParaOs
Slide 36: AFT Asian Product Portfolio
AFT Asian Product Portfolio AFT’s Asia portfolio includes a range of proprietary, branded and generic products which address the following therapeutic areas: For personal use only Pain Maxigesic Medicated Vitamins Ferro-sachets, Lipo VitC, Lipo VitD and expanding pipeline – T Mall Dermatology Crysta
Slide 37: AFT Global Product Portfolio
AFT Global Product Portfolio AFT is building the global presence of its proprietary and patented products through its network of licensees and distributors. For personal use only It continues the development of its portfolio of repurposed medicines: Maxigesic, Pascomer, NasoSURF, Crystawash Extend a
Slide 38: 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 For personal use only controlled business and has grown organically into Australia and internationally. The 2015 IPO raised funds to pursue a more aggressive
Slide 39: Reconciliation of EBITDA to GAAP
Reconciliation of EBITDA to GAAP For personal use only 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$'000 Year ended 31 March 2023 2022 AFT has used the non-GAAP profit measures of EBI
Slide 40: For More Information
For personal use only 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
AFT Pharmaceuticals — Shareholder Meeting (August 2023) on 6ix