AFT PHARMACEUTICALS LIMITED — AGM Information 2021

Aug 5, 2021

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Working to improve your health

Annual Shareholders Meeting Milford Cruising Club 6 August 2021

Page 1

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Important notice

This presentation has been prepared by AFT Pharmaceuticals Limited (“AFT”), to provide a general overview of the performance of AFT for the financial year ended 31 March 2021. It is not prepared for any other purpose and must not be provided to any person other than the intended recipient.

This presentation should be read in conjunction with AFT’s annual report, market releases and other periodic and continuous disclosure announcements, which are available at www.nzx.com and www.asx.com.au.

All amounts are disclosed in New Zealand dollars (NZ$) unless otherwise indicated.

All references to FY2021 appearing in this presentation are to the financial year ending 31 March 2021, unless otherwise indicated. This presentation is not a recommendation, offer or invitation to acquire AFT’s securities or other form of financial advice or disclosure document.

While reasonable care has been taken in compiling this presentation, none of AFT nor its subsidiaries, directors, employees, agents or advisers (to the maximum extent permitted by law) gives any warranty or representation (express or implied) of the accuracy, completeness or reliability of the information contained in it nor takes any responsibility for it.

The information in this presentation has not been and will not be independently verified or audited. This presentation may contain certain forward-looking statements and comments about future events, including with respect to the financial condition, results, operations and business of AFT.

These statements are based on management’s current expectations, which may involve significant elements of subjective judgement and assumptions as to future events which may or may not be correct, and the actual events or results may differ materially and adversely from these statements. Past performance information given in this presentation is given for illustrative purposes only and should not be relied upon (and is not) an indication of future performance.

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David Flacks

CHAIRMAN AND INDEPENDENT DIRECTOR

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Directors

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David Flacks

CHAIRMAN AND INDEPENDENT DIRECTOR

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Dr Douglas (Doug) WIlson INDEPENDENT DIRECTOR

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Hartley Atkinson

FOUNDER, EXECUTIVE DIRECTOR AND CHIEF EXECUTIVE OFFICER

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Jon Lamb INDEPENDENT DIRECTOR

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Marree Atkinson Anita Baldauf EXECUTIVE DIRECTOR AND CHIEF OF INDEPENDENT DIRECTOR STAFF

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Dr James (Jim) Burns INDEPENDENT DIRECTOR

Dr Ted Witek INDEPENDENT DIRECTOR

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Agenda

• Chair address

• Managing Director’s address

• Shareholder questions

• General business

• Meeting close

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Page 5

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AFT extended its growth record despite Covid-19

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120
10 year operating CAGR of 13% 113
100 106
80 85
80
69
60 64
56
49
40
40
33 34
28
20 26
23
17
12
8
-
'05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21
Operating Revenue ( NZ$M)
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Financial year ended 31 March

Operating profit¹

Profit after tax¹

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15 10
10 5
7.7
5 11.4 10.7 2.8
6.1 - (2.4)
-
(5)
(5) (9.0) (10.1) (13.2) (12.6)
(14.8) (10) (18.4)
(10)
(15) (15)
(20) (20)
FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 FY'16 FY'17 FY'18 FY'19 FY'20 FY'21
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1 FY20 normalised to exclude $9.8m gain on de-recognition of equity accounted investment and recognition of net assets acquired at fair value in a step acquisition

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AFT improved its financial strength and reduced debt

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$120.0
$105.1
$100.0
$87.1
FY2020 FY2021
$80.0
$60.0
$40.0 $37.1 $35.2 $36.6
$17.3
$20.0
$-
Total assets Net debt Shareholders equity
21% -5% 112%
NZ$M
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• Growth in assets follows inventory expansion to manage Covid-19 supply disruptions

• Significantly reduced funding costs achieved with the debt restructuring in early 2020

• Net debt reducing and when the $25-30m target is achieved AFT will assess the potential for a dividend policy

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Governance evolving as AFT extends its global reach

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New directors

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Anita Baldauf INDEPENDENT DIRECTOR

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Dr Ted Witek
INDEPENDENT DIRECTOR
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Retiring director

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Dr James (Jim) Burns INDEPENDENT DIRECTORPage 8

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Retirement speech of Jim Burns

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Retirement speech of Jim Burns

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Governance evolving as AFT extends its global reach

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New directors

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Anita Baldauf INDEPENDENT DIRECTOR

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Dr Ted Witek
INDEPENDENT DIRECTOR
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Retiring director

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Dr James (Jim) Burns INDEPENDENT DIRECTORPage 11

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Outlook – adapting to a post pandemic environment

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• We continue to monitor the economic and financial impacts of the pandemic

• Supply constraints remain for the foreseeable future necessitating increased inventory

• New Covid-19 variants, low vaccination rates and vaccination resistance lift risks of continuing disruption in local markets

• However significant vaccination rates in target markets of US/Canada, Europe and China are positive for a return to normal

• Travel restrictions are limiting the development of new markets and R&D clinical trials and encourage New Zealand authorities to give the question urgency especially in cases where business travellers have been vaccinated and present with a negative covid test

• Dividend policy remains on the agenda as we progress debt reduction to the target of $25 - $30 million, linked to underlying earnings progress.

• Targeting operating profit range remains between $18 million and $23 million.

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Dr Hartley Atkinson

FOUNDER AND MANAGING DIRECTOR

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Building on strengths to drive growth

Our strategy: Develop and distribute clinically-proven solutions to improve health outcomes in our markets

• OUR STRENGTHS OUR ACHIEVEMENTS IN FY2021 •

• Broad product portfolio of Supported the registration of new Maxigesic dose patented, proprietary and informs such as Maxigesic IV •

• licensed products with strong Extended our portfolio with in-licensing of new growth prospects products • Strengthened Australasian portfolio

• • Consolidated our position in core Australasian

• Strong Australasian Business markets e.g. moved to #2 in Austrlian eye lubricant market

• • Extended our reach in Asia with 4 new countries

• Growing Asian Distribution (Indonesia, Korea, Pakistan, Thailand)

• Networks • Opened our first T-Mall e-commerce site in China

• • Maxigesic IV licensed in 31 new markets including

• Global licensing relationships the US*, while tablets licensed in four new

• provide broad distribution countries

• networks • Extended Maxigesic sales to 43 from 28 countries

*US licence signed post balance date

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Leveraging our global networks to extend our reach

Our strategy: Develop and distribute clinically-proven solutions to improve health outcomes in our markets

OUR STRENGTHS

OUR ACHIEVEMENTS IN FY2021

• Completed pivotal Maxigesic IV study in NZ and USA (225 patients)

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Strong R&D capability: Innovation and successful global product development and registration. Global outsourced manufacturing relationships

• Maxigesic registrations progressed in 25 new countries

• NasoSURF advanced to enable first clinical studies to start this 2021 calendar year

• Pascomer research significantly advanced

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• Established new manufacturing relationships in Europe

• Extended our record of sales growth by recording our 23[rd] year of increases.

Decades-long, record of financial performance and execution on growth opportunities.

• Strengthened our Balance Sheet

• Significantly reduced interest costs

• Quickly adapted to COVID-19 challenges

Experienced and expert board and founder-led management team

• New management positions in Asia and Europe to increase regional focus

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• Introduced new Board members

~~Pag~~ e 15

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Australia benefits from product and channel diversity

AUSTRALIAN REVENUE

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$80.0
$68.3
$70.0
$61.4
$60.0
$49.2 $50.3
$50.0
$40.0
$30.0
$20.0
$10.0
$-
FY2018 FY2019 FY2020 FY 2021
NZ$M
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FY2021 highlights:

• COVID-19 disrupted OTC channel and new product introductions, but disruptions offset by growth in eyecare and the hospital channel

• Maxigesic consolidates leading position in combination pain relief medicine

• Eyecare and hospital products deliver strong growth

FY2022 focus areas:

• New product launches to drive growth, including Maxigesic line extensions

• Target 15 new medicine approvals across AU and expanding ongoing in licensing

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AUSTRALIAN SNAPSHOT

Sales of $68.3M represent 60.4% of total FY21 sales

Revenue CAGR of 11.6% since 2018

Branded proprietary and generic products focussed on seven pillars of therapeutic focus:

• Pain

• Eyecare

• Medicated vitamins

• Allergy

• Gastro intestinal

• • Dermatology

• • Hospital

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New Zealand sales growth slows due to Covid-19

NEW ZEALAND REVENUE

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$31.0 $30.5
$30.1
$30.0
$29.0
$28.0
$27.1
$26.8
$27.0
$26.0
$25.0
$24.0
FY2018 FY2019 FY2020 FY 2021
NZ$M
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FY2021 highlights

• COVID-19 disrupts OTC channel and new product introductions, offset by growth in the hospital channel and strong Vitamin-C Liposachet sales and the launch of Crystawash Extend long acting hand sanitizer

FY2022 focus areas:

• 16 new product launches to drive growth, including Maxigesic line extensions

• Target new medicine approvals and expanding ongoing in-licensing

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NEW ZEALAND SNAPSHOT

Sales of $30.5M represent 27.0% of total FY21 sales

Revenue CAGR of 4% since 2018

Branded proprietary and generic products focussed on seven pillars of therapeutic focus:

• Pain

• Eyecare

• Vitamins

• Allergy

• Gastro intestinal

• Dermatology

• Hospital

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Asian sales fall as forecast but margins improve

ASIAN REVENUE

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$6.0
$4.9
$5.0
$4.4
$4.0
$3.0
$2.1
$2.0
$1.3
$1.0
$-
FY2018 FY2019 FY2020 FY 2021
NZ$M
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FY2021 highlights

• Product portfolio transitions to higher margin hospital and prescription products

• Launched our T-Mall flagship store

FY2022 focus areas:

• Focus on launching OTC products

• Finalise Maxigesic licensing discussions in China and Japan.

• Extend launches across the region

• Extend our T-Mall flagship store to include OTC medicines

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ASIAN SNAPSHOT

Sales of $4.4M represent 3.9% of total FY21 sales

Revenue CAGR of 50.1% since 2018

Branded proprietary and generic products focussed on four therapeutic areas:

• Pain

• Vitamins

• Dermatology

• Hospital

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*Source:

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Maxigesic drives international licensing and sales revenue

INTERNATIONAL REVENUE

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$12.0
$9.9
$10.0 $9.1
$8.0
$5.9
$6.0
$3.6
$4.0
$2.0
$-
FY2018 FY2019 FY2020 FY 2021
$NZM
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FY2021 highlights

• Product sales growth of 52% driven by Maxigesic, offset by falls in licensing and royalty fees due to Covid-19 disruptions

• US licensing for Maxigesic IV (finalised post balance date)

• 31 new licensees signed for Maxigesic IV and 4 for tablets in 2021

• FY 21 Registrations for tablets increase by 5 for tablets and by 18 for Maxigesic IV

FY2022 focus areas:

• Continue research and development on other dose forms

• Grow licensing and registrations of new dose forms

• Assist licensees and distributors to grow sales as Covid effects recede

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INTERNATIONAL SNAPSHOT

Sales of $9.9M represent 8.8% of total FY21 sales

Revenue CAGR of 40.1% since 2018

Branded proprietary products focussed on three therapeutic areas:

• Pain

• Hospital

• Dermatology

Distribution:

• licensees and distributors

• • 100+ countries covered for Maxigesic tablets, IV and Oral Liquid

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MAXIGESIC GLOBAL UPDATE [Oral Dose Forms & IV]

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Ireland – Tablets launched
IV licensed
United K ing dom – Tablets launc hed R u s s i a – O r a l s l i c e n s e d
[Oral Dose Forms & IV]
I V lic e nse d
Netherlands – IV licensed S ing apore & B runei – Tablets launc hed
Austria – IV licensed & launched 2021
China - licensing negotiations underway
N ordic s – Tablets launc hed
I V lic e nse d
Pola nd – I V a nd or a ls lic e nse d T a i w a n – T a b l e t s L i c e n s e d
Canada- Tablets launched 2021
Eastern-Tablets launched Europe & Balkans K orea – IV licensed
Eastern Europe I V - Licensed
Iraq – K urdistan launc hed
Japan - licensing
discussions
are underway
USA- IV Licensed
Indonesia - distributor appointed for IV
Mexico – Tablets launched 2021 Pakistan - N ZMaxigesic– Maxigesic , Maxigesic PE,IV launched
IV Licensed
distributor
appointed
for IV
CACM – Tablets launched
IV licensed
United Arab Emirates –
Tablet sales strong
Greece – Orals and IV
licensed
Italy – Tablet sales growing
IV Licensed
Germany – Orals Launched 2020 A ustralia – No. # 1 Para-Ibu C ombo.
Germany - IV Launched 2021 Growing market share
Columbia, Peru, Chile - Switzerland – Tablets licensed 2019, launched 2021 - Maxigesic IV launched
distributor appointed Orals Brazil – licensing
Launched IV Licensed 2021 negotiations underway Belgium, Luxembourg- Tablets launching 2021
IV licensed July 2021
AvailableLaunch Pending France - Tablets launching 2021 Philippinesregistration via distributor– AFT to sell post
Spain & Portugal – I V L ic e nse dTablets launched Thailand – Malaysia – Tablets launc hed
IV licensed IV licensed
Vietnam – distributor appointed for I V and Orals
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Maxigesic roll out continues across the world

TARGETED MAXIGESIC FY 2022-2023

FY 2022 progress to date:

MAXIGESIC COUNTRIES SOLD AND ORDERED

• Tablets: Launched in Switzerland and CACM

0 10 20 30 40 50 60 70 80 90 Countries	2 3 4 7 9 20 28 43 54 85 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Switzerland and CACM • Maxigesic IV:launched in Germany and Austria in July • Oral Liquid:Registered in Italy and Malta.	2 3 4 7 9 20 28 43 54 85 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Switzerland and CACM • Maxigesic IV:launched in Germany and Austria in July • Oral Liquid:Registered in Italy and Malta.	2 3 4 7 9 20 28 43 54 85 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Switzerland and CACM • Maxigesic IV:launched in Germany and Austria in July • Oral Liquid:Registered in Italy and Malta.	2 3 4 7 9 20 28 43 54 85 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Switzerland and CACM • Maxigesic IV:launched in Germany and Austria in July • Oral Liquid:Registered in Italy and Malta.	2 3 4 7 9 20 28 43 54 85 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Switzerland and CACM • Maxigesic IV:launched in Germany and Austria in July • Oral Liquid:Registered in Italy and Malta.	2 3 4 7 9 20 28 43 54 85 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Switzerland and CACM • Maxigesic IV:launched in Germany and Austria in July • Oral Liquid:Registered in Italy and Malta.	2 3 4 7 9 20 28 43 54 85 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Switzerland and CACM • Maxigesic IV:launched in Germany and Austria in July • Oral Liquid:Registered in Italy and Malta.
Product		Maxigesic Tablets		Maxigesic IV		Maxigesic Oral Solution
Territories		31 July 2021	31 March 2021	31 July 2021	31 March 2021	31 July 2021	31 March 2021
Licensed		100+	100+	100+	100+	100+	100+
Registered		49	49	24	21	2	0
Sold in		45	43	5	3	0	0

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Maxigesic dose forms extend the addressable market

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Maxigesic® family growth Maxigesic® DRY STICK SACHET Maxigesic® COLD & FLU Maxigesic® RAPID Maxigesic® HOT DRINK SACHET Maxigesic® JUNIOR ORAL LIQUID Maxigesic® IV Maxigesic® TABLETS

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Time

• AFT is now leveraging the brand goodwill into Maxigesic variants, including:

• Estimated total analgesic market size $6.2 billion, oral dose forms US5.4 billion and injectable forms US724 million**

• Maxigesic PE (2034 patent)

• Maxigesic Hot Drink Sachet (2025-2028 patent)

• Maxigesic Dry Stick Sachet (2036 patent)

• Maxigesic tablets are patent protected out to 2025-2028, beyond which the brand name is expected to cement Maxigesic’s OTC position in the market

• Maxigesic IV (2031-2034, 2035, 2037 patents)

• Maxigesic Oral Liquid (2025-2028 patents)

• Maxigesic Cold & Flu (2025-2028 patents)

• Maxigesic Rapid (2039 patents)

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Maxigesic IV is a prescription product for hospital use Management estimates

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R&D investment lays foundation for future growth

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AFT R&D EXPENDITURE

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$14.0
$12.0
$2.5
$10.0
$8.0
$6.0
$6.0
$7.2
$9.5 $1.5
$4.0
$2.0 $4.1
$3.4
$2.0
$-
FY2018 FY2019 FY2020 FY2021
Expensed R&D costs Capitalised R&D costs
NZ$M
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• Maxigesic dose forms:

• Maxigesic Cold & Flu final studies underway this year

• Pascomer: Treatment of facial angiofibromas

• Licensed for North America to Timber Pharmaceuticals and Europe to Desitin

• Global Phase II/III study patient enrolment close to completion despite pandemic

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• NasoSURF: Intranasal drug delivery instead of an injection

• Clinical studies of the first dose form to commence this year

• Other products:

• Other products in development: Medicinal Cannabis, Crystawash Extend, Crystaderm

• Research and development costs also include new market development costs.

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Underlying profit rises – higher sales, lower interest costs

NZ$'000's year ended 31 March	2021	% of 2020 % of revenue revenue
MAY 2020 Revenue Gross Profit Underlying Operating Expenses and Other Income Underlying Operating Profit ¹ Non-recurring Gain Operating Profit Financing expenses and income Tax Expense	113,105 48,741 (38,033) 10,708 - 10,708 (2,821) (105)	105,597 43.1% 48,265 45.7% 33.6% (36,843) 34.9% 9.5% 11,422 10.8% 9,784 21,206 (8,329) (185)
ON Profit after tax	7,782	12,692
INVESTOR PRESENTATI Underlying Profit after tax ¹ Revenue from product sales & royalties Gross Profit from product sales & royalties	7,782 2,908 110,980 101,772 46,754 42.1% 44,440 43.7%
	110,980 46,754

¹ Adjusted for the $9,784 non-recurring gain on acquisition

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Working capital expands mitigating supply disruptions

NZ$'000's year ended 31 March	2021	2020
Current assets Cash Non-current assets	64,693 3,209 37,237	49,217 6,119 31,716
Total assets	105,139	87,052
MAY 2020 Current liabilities Current interest bearing liabilities Non-current liabilities Non-current interest bearing liabilities	26,941 5,161 3,242 33,200	23,102 2,000 3,495 41,200
ATION Total liabilities	68,544	69,797
PRESENT Total equity	36,595	17,255
INVESTOR Total liabilities and equity	105,139	87,052

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Operating cashflow invested in inventory

NZ$'000's year ended 31 March	2021	2020
Net cash from operating activities Net cash used in investing activities Net cash (used) / generated from financing activities	757 (6,231) 2,515	14,878 (6,562) (9,118)
ATION MAY 2020 Net increase / (decrease) in cash Impact of foreign exchange on cash and cash equivalents Opening cash and cash equivalents	(2,959) 49 6,119	(802) 5 6,916
RESENT Closing cash and cash equivalents	3,209	6,119
INVESTOR P Financing cash inflow reflects $12 million capital raising offset by $6.5 million debt repayment

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A challenging year but growth potential remains strong

Positive achievements across all our key markets

• Continued growth in key Australian market

• Significant growth in product sales to Rest of the World

• Significant margin improvement in Asia on forecast lower FY21 revenue

But Covid-19 has impeded our progress

• Supply disruptions

• Delays to product launches and regulatory approvals

• Negotiations on licensing and distribution agreements have taken longer

• Lockdowns, travel restrictions and foreign government-imposed limits to medicine supply disrupted sales

AFT remains very confident about its future and remains very excited about its potential to grow in its core Australasian markets and the potential of its intellectual property around the world

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Summary and outlook

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Further drive international sales

• Accelerate number of new countries in which Maxigesic is launched such as Russia

• Growing sales in newly launched markets such as Canada, Germany, Switzerland

• Launch new line extensions – Maxigesic IV and Maxigesic Oral Liquid

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Extend international licensing

• Finalise Maxigesic licensing agreement discussions in China and Japan

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Bank increased licence payments

• Maxigesic IV upfront and milestone payments

• Additional territories such as China or Japan

• Other milestone payments such as Pascomer

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Drive Australia and New Zealand sales

• Drive Maxigesic sales and line extensions in AU & NZ such as hot drink sachets

• Targeting 31 new approvals across ANZ.

• Ongoing in-licensing to expand ANZ business

• New launches in AU & NZ.

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Shareholder questions

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Resolutions

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Resolutions

Resolution 1: That the directors are authorised to fix the fees and expenses of Deloitte as auditor for the 2022 financial year.

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Resolutions

Resolution 2: That Mr David Flacks be re-elected as a director of AFT Pharmaceuticals Limited.

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Resolutions

Resolution 3: That Ms Anita Baldauf be elected as a director of AFT Pharmaceuticals Limited.

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Anita Baldauf

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Resolutions

Resolution 3: That Ms Anita Baldauf be elected as a director of AFT Pharmaceuticals Limited.

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Resolutions

Resolution 4: That Dr Ted Witek be elected as a director of AFT Pharmaceuticals Limited

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Dr Ted Witek

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Resolutions

Resolution 4: That Dr Ted Witek be elected as a director of AFT Pharmaceuticals Limited

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Proxies for the resolutions

Resolution	For	Against	Discretionary	Abstain
1. Auditor fees and expenses	84,488,629	11,972	458,363	20
2. Re-election David Flacks	84,495,521	3,900	459,563	0
3. Election Anita Baldauf	84,486,696	1,351	470,917	20
4. Election Dr Ted Witek	84,495,747	0	463,217	20

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Voting

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General business

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Meeting close

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APPENDIX 1: Australasian product portfolio

AFT has the #1 selling product (Maxigesic) in the Australian para-ibu[1] combo pain relief. AFT’s portfolio includes a combination of 125 proprietary, branded and generic products which address the following therapeutic areas:

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Pain Maxigesic, ParaOsteo, ZoRub OA/HP, Fenpaed, Combolieve Day/Night	Pain Maxigesic, ParaOsteo, ZoRub OA/HP, Fenpaed, Combolieve Day/Night
Eyecare Hylo, Novatears, CromoFresh, Opti-soothe Wipes/Mask, VitAPOS
Vitamins	Ferro-liquid, FerroTab, Ferro-F, Ferro-sachets, Lip VitC, CalciTab
Allergy Loraclear, Histaclear, Fexaclear, Levoclear, Allersoothe, Lorapaed, Becloclear, Steroclear
Gastrointestinal Gastrosoothe/Forte, LaxTab, Micolette, Nausicalm, DiaRelieve
Dermatology Crystaderm, Crystawash Hand Sanitizer, Crystasoothe, ZoRub anti-chafing, Decazol, MycoNail, RestoraNail
Hospital Maxigesic IV, Injectables

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1 Paracetamol and Ibuprofen

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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:

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Pain Maxigesic	Pain Maxigesic
Medicated Vitamins	Ferro-sachets, Lipo VitC, Lipo VitD and expanding pipeline – T Mall
Dermatology Crystawash Extend Hand Sanitizer, Hemptuary
Hospital Maxigesic IV, Injectables

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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 Crystaderm

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Maxigesic oral dose forms – tablets, solution, hot drink sachet, Pain rapid, cold and flu Maxigesic IV (intravenous) Hospital NasoSurf – nasal nebuliser drug delivery Pascomer – primarily North America & Europe Crystawash extend – selected territories such as Canada & Dermatology Middle East Crystaderm – selected territories such as Canada

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• 1 Paracetamol and Ibuprofen

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APPENDIX 4: 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-led growth strategy. AFT has now returned to profitability as intended, as the company was prior to IPO

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----- Start of picture text -----

AFT returns to
profitability following a
AFT launches the sale significant investment
Development of Maxigesic registered
Maxigesic in New Zealand and of products into the period funded by the
commences sales commence SE Asian market 2015 IPO
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----- Start of picture text -----

AFT founded by Dr First sales into Maxigesic Maxigesic sales $33m IPO to fund In FY20 AFT delivers
Hartley and Marree registered in commence in new R&D over $100m of
Australia
Atkinson Australia Australia development revenue and
programmes for operating profit
Maxigesic and other growth of 87%
proprietary products
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APPENDIX 5: GAAP TO NON-GAAP RECONCILIATION

AFT has used non-GAAP measures when discussing financial performance in this document including underlying profit after tax and underlying operating profit. The directors and management believe that these measures provide useful information as they are used internally to evaluate performance of business units, to establish operational goals and to allocate capital.

Definitions:

Underlying profit after tax:	Profit after tax less significant one-off non-recurring gain.
Underlying operating profit:	Operating profit less significant one-off non-recurring gain.

Non-GAAP measures are not prepared in accordance with NZ IFRS (New Zealand International Financial Reporting Standards) and are not uniformly defined, therefore the non-GAAP measures reported in this document may not be comparable with those that other companies report and should not be viewed in isolation or considered as a substitute for measures reported by AFT Pharmaceuticals in accordance with NZ IFRS.

The non-GAAP measures are not subject to audit or review.

GAAP to Non-GAAP Reconciliation:

	Year Ended 31 March
	2021 $’000 220 $’000
Underlying profit after tax	7,782 2,908
Add back/(subtract): Gain on derecognition of equity accounted investment and recognition of net assets acquired at fair value in a step acquisition1	- 9,784
Profit after tax	7,782 12,692
Underlying operating profit	10,708 11,422
Add back/(subtract): Gain on derecognition of equity accounted investment and recognition of net assets acquired at fair value in a step acquisition1	9,784
Operating profit	10,708 21,206

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