AFT Pharmaceuticals Presentation – Business Update

AFTPHARMACEUTICALS
Business Update and Redeemable Share Issue
17 March2017

Business Update
17 March 2017
1
IMPORTANT NOTICE
This presentation has been prepared by AFT Pharmaceuticals Limited (“AFT”), to provide a general overview of AFT to selected recip ie n ts in Ne w Ze a la n d .
It is not prepared for any other purpose and must not be reproduced or provided to any person other than the intended recipient.It mus t not be dis tributed
outside of New Zealand.
This presentation is not a product disclosure statement or other offering document under the laws of New Zealand or any otherju r is d ic tio n o r la w . Th is
presentation has not been and will not be filed with or approved by any regulatory authority in New Zealand or any other jurisdiction. This presentation is not
and should not be construed as an offer to sell or a solicitation of an offer to buy financial products and may not be reliedupon in connection with any
purchase of financial products. Accordingly, no money is currently being sought, and no person can currently apply for any financial products of AFT. If an
offer is made, the offer will be made in accordance with the Financial Markets Conduct Act 2013. No legal or other obligation will arise between a recipient
of this presentation and any of AFT, its related companies, or any other person, in relation to the information contained in this presentation.
All amounts are expressed in New Zealand dollars (NZ$) unless otherwise indicated. All references to FY[year] appearing in th ispresentation are to the
relevant financial year ending 31 March, unless otherwise indicated.
This presentation is not a recommendation or other form of financial, legal, tax or other advice. While reasonable care has beent a ke n in c o m p ilin g t h is
presentation, none of AFT, its subsidiaries, directors, employees, agents, advisers or any other person (to the maximum extent pe r m itte d b y la w ) g ive s a n y
warranty, representation or undertaking (express or implied) of the accuracy, completeness or reliability of the information contained in it nor takes any
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should not rely on it without independent verification.
This presentation may contain certain forward-looking statements and comments about future events, including with respect to thefin a n c ia l c o n d it io n ,
results, operations and business of AFT. These statements are based on management’s current expectations and the actual events or res ults may differ
materially and adversely from these expectations. AFT gives no assurance that the assumptions upon which AFT based its forward-looking statements on
will be correct, or that its business and operations will not be affected in any substantial manner by other factors not currently foreseeable by AFT or beyond
its control. Recipients are cautioned not to place undue reliance on forward-looking statements.
Past performance information given in this presentation is provided for illustrative purposes only, should not be relied upon, and is not an indication of future
performance.
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Business Update
17 March 2017
PROGRESS UPDATE
2
111
Countries that Maxigesicis licensed in – up from 98 at the end of
FY2016. Negotiations underway for North America (MX & US/CA
to follow) & EU
6
Countries that Maxigesichas launched and is sold in with at
least 20 further launches expected during this calendar year
2
Additional dose forms of Maxigesicunder development
– Dry powder sachets and Rapid Formulation
$69 - 71m
expected total income for FY2017, up from $65.8m in FY2016
$7.6m
available cash as at 28 February 2017 – down from $16.1m at the
end of H1 FY2017
10
Number of studies AFT expects to complete during this calendar
year – 8 Clinical and 2 Pharmacokinetic

MAXIGESICUPDATE
Italy – successful launch and
sales increasing significantly
Kuwait launch pending soon
Singapore – launched in July
2016
New Zealand – increasing
market share
Australia – rescheduled to S2 – TV
advertising underway – codeine
rescheduling decision due –
Pharmacy Guild pack launched
Israel – launch pending
Eastern Europe – launched in
2017 and pending
UAE – sales doubling in
second year of sales
UK – successfully launched
Malaysia – launch in 2017
CACM – launches in 2017
Nordics – launches in 2017

Business Update
17 March 2017
MAXIGESICSALES PROGRESS TO DATE
4
MaxigesicTablets Sold Per Year
•* Note FY2017 sales es timate is bas ed upon actual first 10 months (s hown in darker blue), current
orders and licensee / AFT estimated orders for the remainder of FY2017
•Maxigesictablet sales for the FY2017 financial year are expected to increase to 74 million tablets per annum,
representing a 339% increase on FY2016
•Additional out-licensing and distribution agreements for Maxigesicoral dose forms have been secured to increase
the number of countries to 111 as at 30 September 2016, with additional out-licensing agreements expected to be
negotiated during 2017, including in markets of significant size (e.g. the US, MX, CA, FR, DE)
•In Australia, Maxigesiccan now be advertised directly to consumers and is more readily available in pharmacy
stores. Also, the Australian regulatory authority confirmed the rescheduling of codeine OTC analgesics to become
prescription medicines (from February 2018) which presents a significant opportunity for consumer conversion
•Sales in existing markets such as Italy, the UK and UAE have to date exceeded initial expectations. Sales in over
20 new countries (EU, CACM, Middle East, Asia) expected to commence in 2017
-
20
40
60
80
FY2010FY2011FY2012FY2013FY2014FY2015FY2016FY2017*
Millio n s

Business Update
17 March 2017
Sales will be generated
from:
1)device sales;
2)a per use charge
administered through
RFID (radio frequency
identifier) cards; and
3)consumables
Product
description
A handheld ultrasonic nasal mesh nebuliser for the
intranasal delivery of medication and treatment of chronic
sinusitis
Rationale for
investment in
product
•To expand our existing allergy and hospital product ranges
locally
•Significant global potential for drug delivery
•Sinusitis and Post Sinus Surgery to be established with
clinical data (in vitro shows vastly improved sinus
penetration cf. standard therapies)
Current status
•Engineering batches under production now
•Registered with the FDA in the US as a Class I Medical
Device
•Clinical studies now commenced, with completion
expected during the next 12 – 15 months
Ournear term
plans
•An IND Application will be made with the FDA in the first
half of 2017
•Distribution studies
―healthy volunteers in calendar year 2016-2017
―Patients in calendar years 2017-2018
•Conscious sedation PK studies calendar year 2017
•Conscious sedation clinical studies start calendar year
2017
•Licensing negotiations planned for FY2018, including in
the US once some clinical data has been generated and
IND finalised
NASOSURFNEBULISER
DRUG DELIVERY AND TREATMENT OF SINUS CONDITIONS
The NasoSURFNebuliser has desirable features
over currently marketed nebulisers, which are not
approved for delivery of specific drugs
intranasally and do not possess a number of the
advantages of the NasoSURFNebuliser
5

Business Update
17 March 2017
6
OTHER KEY INNOVATIVE PRODUCTS
ProductsStatus
Pascomer(originally
called Pascaderm)
Pascomercurrently being developed, with an IND Application to be opened in
US during 2017 to enable the pivotal clinical study to be undertaken
Successfully obtained ODD from FDA. EMAunder application after successful
meeting
FDA meeting scheduled for late March 2017 to finalise development plan
including pivotal clinical study
Market studies byUS development partner indicate potential for keyindication of
US$600-800M, mid to high teens royalties and significant milestones. Note AFT
share is 50%
Licensing negotiations for the US and EU markets have been initiated during
2017
MaxiclearPE
MaxiclearPEnow licensed in 21 countries with the pivotal Phase 3 study
currently underway in Cardiff, Wales, and was expected to be completed by the
end of Q1 2017but will need to be completed in NZ winter (Q3 2017)
Fibroleve
Registrationunderway in Malaysia as first country
Crystaderm
Successfullylaunched in AU
Under Registration in Middle East
Study completed in Russia and filing preparations underway

Business Update
17 March 2017
7
R&D / MARKETING EXPENDITURE SINCE IPO
Purpose
Asexpected at time
of IPO (Dec 2015)
Spent to Dec‘16
Spendto Mar ‘18
(15 months)
ProductDevelopment
-Ma xig e s ic
-Nas oS urf
-Ma xic le a r
-F ib ro le ve
-C rys ta d e rm
-SteroclearNasal Spray
-Pascomer
-Ma xig e s ic S US
-Ma xig e s ic O r o d is p e rs ib le
-Project M
Total Product Development
$13.2m
$2.9m
$1.5m
$0.4m
$0.5m
$0.5m
$2.5m
-
-
-
$21.5m
$4.7m
$1.1m
$0.3m
$0.3m
$0.3m
$0.3m
$1.4m
-
-
-
$8.4m
$8.0m
$1.1m
$0.2m
completed
$0.4m
completed
$2.3m
$1.3m
$0.4m
$0.3m
$14.0m
Marketing
Un d e rlyin g
Incremental/New Launches
Total Marketing
$4.7m
$3.3m
$8.0m
$4.7m
$5.7m
$10.4m
$5.5m
$7.0m
$12.5m

Business Update
17 March 2017
8
FUNDING
Redeemable Shares
•In order to provide additional balance sheet capacity enabling AFT to pursue its planned R&D programme, AFT is
undertaking a capital raise involving an issue of redeemable shares
•CRG is participating for approximately NZ$7.1m of redeemable shares
•The Atkinson Family Trust is participating for approximately NZ$2m
•The redeemable share issue is expected to be settled 24 March
•The redeemable shares will not be listed
•Approximately NZ$9.1m of redeemable shares in total will be issued
Share Purchase Plan
•In addition to the redeemable share issue, AFT intends to make an offer of ordinary shares to eligible shareholders
through a Share Purchase Plan (SPP)
•The SPP is expected to give eligible shareholders of AFT an opportunity to subscribe for at least NZ$15,000 of
shares
•The terms of the SPP are expected to be announced in more detail in late May 2017 upon release of the FY2017
financial results

Business Update
17 March 2017
9
REDEEMABLE SHARE ISSUE – KEY TERMS
Issue Price
Thevolume weighted average price of AFT’s ordinary shares on the NZX over the five business days prior
to the announcement of the redeemable share issue
Dividend
9.4% per annum
AFTmay determine at its absolute discretion whether or not to pay a full or partial cash dividend on any
dividend payment date. Dividends not paid in cash shall accumulate and capitalise on a compounding basis.
Voting Rights
No votingrights
Redemption by AFT
Redeemableat the option of AFT at any time two years or more after the issue date
Conversion at Holder’s
Election
Following the three year anniversary of this issue, the holder has the right to convert each redeemable share
into one ordinary share (and will be issued ordinary shares for the accrued dividend) in multiples of 100,000
Optionalconversion events arise if:
−AFT raises any equity capital of NZ$20m or more in a transaction or series of transactions
−The price of ordinary shares on the NZX exceeds the issue price by 20% or more, or ordinary shares are
issued by AFT at a premium of 20% or more to the issue price
−AFT issues equity interests (or debt securities or similar equity or convertible securities) in AFT in one or
a series of related transactions, the principal purpose of which is to raise capital, and which are listed on
any exchange in the US, the EU or the UK
−A takeover, amalgamation or scheme of arrangement in respect of AFT occurs
−Following the issue date a person other than the trustees of the Atkinson Family Trust, either alone or
together with its associates, acquires directly or indirectly beneficial ownership of more than 20% of the
voting rights in AFT
−AFT offers or takes steps to offer shares which rank in respect of dividends and in liquidation in priority to
the redeemable shares
−AFT enters into any transaction or series of linked or related transactions to sell, transfer or otherwise
dispose of assets of AFT or any subsidiary of AFT which would either change the essential nature of the
business, in respect of which the gross value is in excess of 50% of the average market capitalisation, or
which is a major transaction
−A resolution of shareholders to liquidate the company is proposed or an application is made for the High
Court of the liquidation of AFT in circumstances where AFT is solvent
Escro w
No sale or transferof the ordinary shares issued (for any accrued dividend or in connection with a capital
change event) shall take place within a 12 month period after the issue of those ordinary shares unless off-
market to certain qualified investors and the buyer provides an equivalent covenant to AFT
Liquidation Priority
In a liquidation of AFT eachredeemable share Holder shall be entitled to receive, in priority to any payment
to the holders of ordinary shares or any other shares in AFT that by their terms are expressed to rank behind
the redeemable shares, the redeemable share amount (issue price plus any accrued dividend) in respect of
each redeemable share

Business Update
17 March 2017
•AFT had $7.6m cash as
at 28 February 2017,
down from $16.1m as at
30 September 2016
•AFT’s cash balance will
increase to approximately
$16.7m once NZ$9.1m of
redeemable shares are
issued
10
SUMMARY BALANCE SHEET
NZ$000's
Restated Unauditedas at 30
Sep 2016
Restated Unaudited as at 30
Sep 2015
ASSETS
Current assets
Inventories21,451 15,072
Trade and other receivables12,748 12,224
Cash and other equivalents16,054 10,016
Current income tax asset19 113
Total current assets50,272 37,425
Non-current assets
Property, plant and equipment421 449
Intangible assets2,450 1,853
Deferred income tax assets490 45
Derivative assets-917
Investment in joint venture entity177 -
Total assets53,810 40,689
LIABILITIES
Current liabilities
Trade and other payables11,131 9,684
Provisions1,841 2,326
Derivative liabilities745 -
Total current liabilities13,717 12,010
Non-current liabilities
Interest bearing liabilities22,039 24,721
Total liabilities35,756 36,731
Equity
Share capital53,902 21,736
Retained earnings(36,637)(17,748)
Share options reserve182 -
Foreign currency translation reserve607 (30)
Total equity18,054 3,958
Total liabilities and equity53,810 40,689