FY2018 H1 Updated Presentation

AFTPHARMACEUTICALS
InvestorPresentation: H1 FY2018
November2017

Investor Presentation
November 2017
1
IMPORTANT NOTICE
This presentation has been prepared by AFT Pharmaceuticals Limited (“AFT”), to provide a general overview of AFT. It is not
prepared for any other purpose and must not be provided to any person other than the intended recipient.
All amounts are disclosed in New Zealand dollars (NZ$) unless otherwise indicated. All references to FY20XX appearing in this
presentation are to the financial year ending 31 March, unless otherwise indicated.
This presentation is not a recommendation or other form of financial advice. 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 contai ned in
it nor takes any responsibility for it. The information in this presentation has not been and will not be independently verifiedor
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
and the actual events or results may differ materially and adversely from these expectations. Recipients are cautioned not toplace
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.

Investor Presentation
November 2017
H1 FY2018 HIGHLIGHTS
2
124
countries that Maxigesicis licensed in – up from 110 at the end of FY2017
10
countries that Maxigesicis launched and sold in
10
number of clinical studies AFT have running in FY2018
$37.4m
total income for H1 FY2018*
$7.2m
available cash as at 30 September 2017 –down from $16.0m at
the end of FY2017. $14.5m facility available for drawdown
* Total income comprises Operating Revenue of $36.6m and Other Income of $0.8m

MAXIGESICUPDATE
Australia – significant sales potential
with codeine rescheduling
New Zealand – increasing
market share and
possible codeine
rescheduling
Singapore/Brunei – launched
Malaysia – launch pending
UAE – sales doubled in
second year of sales
Kuwait and Iraq launc
pending
Italy – successful launch and
sales increasing significantly
Eastern Europe and Balkans –
launches pending
Nordics – launch pending
BE/LX & FR– launches pending
UK – launched
IE – launch pending
ES/PT – launch pending
CACM – launch pending

Investor Presentation
November 2017
MAXIGESIC HIGHLIGHTS
Additional out-licensing and distribution agreements for Maxigesicoral dose forms have been
secured to increase the number of countries to 124.
Numerous Maxigesic registrations underway which are required before many launches can occur
EU registrations confirmed in 25 countries
Most of the remaining countries use EU registration as a reference standard
Additional dose forms will also be launched
Maxigesic file accepted by FDAand post successful clinical trial results Maxigesic IV filings to
commence prior to end 2017
AdditionalIP technology has been licensed and two further Maxigesic dose forms have been
developed. Planned to complete developments and file in FY2019
SUMMARY: Drive sales by
[1] Increasing sales in Australia through codeine switch
[2] Increasing sales in existing territories
[3] Launch in new territories
[4] Launch additional dose forms
4

Investor Presentation
November 2017
MAXIGESIC: Australian growth strategy
•Prior to the re-scheduling of codeine-based analgesics, our growth estimates were for
sales increasing in Australia from 13 to 26 million tablets in FY2018.
•Codeine switch confirmed for 1st February 2018.
•Codeine tablet market is now circa 710 million tablets per annum.
•Consumer market research indicates 40-47% codeine patients will switch to an OTC
alternative analgesic.
•Potential switch market is 284 - 333 million tablets.
•
5

Investor Presentation
November 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
•First drug delivery indication a significant potential
market – US$1.2B in USA alone [Based upon market
research studies in USA and UK]
Current status
•Registered as Class I Device with FDA as planned
•Engineering scale production completed
Ourmedium
term plans
•Human Factor Studies in USA completed
•FDA Pre-IND meeting completed
•Development pathway clarified with FDA
•Distribution studies underway
•Open IND in FY2018 - FY2019
•First Drug PK studies targeted to commence in
FY2018-FY2019
•First Drug Clinical Studies targeted to start FY2018-
FY2019
•Licensing negotiations during FY2018-2019
NASOSURFNEBULISER: Future growth strategy
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
6

Investor Presentation
November 2017
•23% growth in Group
operating revenue
•Strong Over-the-counter
growth in Australia
•Strong Hospital sales in
Australia with successes
in tenders
•Good Over-the-counter
growth in New Zealand
•C rystaderm line
extensions launched in
New Zealand
•Good Hospital sales in
New Zealand and several
new products
•Maxigesic growth in Rest
of W orld and new
launches
•Southeast Asia growth
from Singapore Over-the-
counter sales
REVENUE BY REGION AND CHANNEL
7
Operatingrevenue by region, H1 FY2018versus H1 FY2017
Operating revenueby channel by region, H1 FY2018
Australia New Zealand Rest of World Southeast Asia
10.8%
33.6%
55.6%
38.8%
20.0%
41.2%
1.5%
65.2%
33.3%
Over-the-counterHospitalP re s c rip t io n
NZ$000's Half Year to 30 September
H1 FY2018% of totalH1 FY2017% of total
Australia20,206 55.3%14,569 49.2%
YoY growth38%
New Zealand14,113 38.6%13,498 45.3%
YoY growth5%
Rest of World1,624 4.4%1,177 3.7%
YoY growth38%
Southeast Asia618 1.7%543 1.8%
YoY growth14%
Total Operating Revenue36,561 100%29,787 100%
YoY growth23%
-
4.1%
95.9%

Investor Presentation
November 2017
-
5.0
10.0
15.0
20.0
$ m
•Australian growth 38%
•Au s tra lia n o w 5 5 % o f
Group revenues
•New Zealand growth 5%
•New Zealand Prescription
d e c lin e w ith tra n s itio n
away from
Metoprolol
tender
•Rest of World growth
48%
•Rest of World 4.4% of
group revenue with
Maxigesicselling in 10
C ountries
•Southeast Asia growth
14%
REVENUE GROWTH
8
Operating revenue by region, H1 FY2017– H1 FY2018
H1 FY2017
FY2017 Annual
H1 FY2018
-
5.0
10.0
15.0
20.0
$ m
-
10.0
20.0
30.0
40.0
$ m
38% 5%38% 14%
Au s tra liaNew ZealandRe s t o f Wo rldSoutheast Asia
1.8%
3.7%
45.3%
49.2%
1.5%
2.8%
42.1%
53.6%
1.7%
4.4%
38.6%
55.3%

Investor Presentation
November 2017
•Margins reflect increasing
% of higher margin over
the counter products
•Sales and Marketing
lowers to 35% of revenue
•Research and
development has
increased to $5m plus
$0.6m – we are well
advanced in our program
•Other finance gains are
primarily unrealised
foreign currency on the
stronger A$ to NZ$ at 30
Sept
•The tax benefit of the
losses is not recognised
in the P&L
SUMMARY P&L
9
NZ$'000's Half Year to 30 SeptemberH1 FY2018
% ofH1 FY2017
% of
revenuerevenue
Revenue36,561 29,787
Cost of Sales
(22,256)
60.9%(19,018)
63.8%
Gross Profit14,305 39.1%10,769 36.2%
Other Income1,014 2.8%1,007 3.4%
Selling and distribution expenses(12,771) 34.9%(12,575)42.2%
General and administrative expenses(3,618) 9.9%(3,135)10.5%
Research and development expenses(4,982) 13.6%(4,276)14.4%
Equity accounted loss of joint venture entity(616) 1.7%(210)0.7%
Operating Loss(6,668) (8,420)
Finance Income96 291
Finance Costs(1,590) (1,560)
Other gains / (Losses)1,589 (1,260)
Loss before tax(6,573) (10,949)
Tax benefit/(expense)(300) (51)
Loss after tax(6,873) (11,000)

Investor Presentation
November 2017
•Inventory stock build for
larger sales volumes in
summer months
•Cash holding of $7.2m
reflecting investment into
research and
development and
working capital increase
•Financial flexibility to
increase cash reserves
with further draw downs
available on the long term
facility
•Intangible Assets are
primarily capitalised
patents and trademarks
10
SUMMARY BALANCE SHEET
UnauditedAuditedUnaudited
NZ$'000's 31 Sept '1731 March '1731 Sept '16
ASSETS
Current Assets
Inventories21,137 18,718 21,451
Trade and other receivables16,640 19,362 12,748
Cash and cash equivalents7,197 15,980 16,054
Current income tax asset - - 19
Derivative assets127 - -
Total current assets45,101 54,060 50,272
Non-current Assets
Property, plant and equipment374 386 421
Intangible assets2,744 2,548 2,450
Deferred income tax assets342 610 490
Investment in joint venture entity1,808 627 177
Total assets50,369 58,231 53,810
LIABILITIES
Current liabilities
Trade and other payables10,685 11,069 11,131
Provisions3,110 3,950 1,841
Current income tax liability - 112 -
Derivative liabilities - 204 745
Total current liabilities13,795 15,335 13,717
Non-current liabilities
Interest bearing liabilities23,244 23,426 22,039
Total liabilities37,039 38,761 35,756
Equity
Share Capital63,743 62,944 53,902
Retained earnings(51,349)(44,025) (36,637)
Share options reserve399 295 182
Redeemable Preference Share Reserve291 - -
Foreign currency translation reserve246 256 607
Total equity13,330 19,470 18,054
Total liabilities and equity50,369 58,231 53,810

Investor Presentation
November 2017
•Investment into R&D and
marketing spend behind
O ver-the-counter revenue
growth
•Financial flexibility to
increase cash reserves
with further draw downs
available on the long term
facility
11
SUMMARY CASHFLOW STATEMENT
NZ$'000's Half Year to 30 SeptemberH1 FY2018H1 FY2017
Net cash used in operating activities(7,678) (10,270)
Net cash used in investing activities(2,144) (686)
Net cash generated from financing activities745 -
Net increase in cash(9,077) (10,956)
Impact of foreign exchange on cash and cash equivalents294 (1,045)
Opening cash and cash equivalents15,980 28,055
Closing cash and cash equivalents7,197 16,054

Investor Presentation
November 2017
SUMMARY OF NEAR TERM PLANS
Drive Increased International Sales
Phased launches of Maxigesicin over 110 countries including North America
Add additional Maxigesicdose forms to the initial launches to extend sales
Drive Increased Upfront Payments
Further licensing agreements for Maxigesicand Maxigesic IV in larger markets
including North America
Drive Value of NasoSURFand Pascomer Projects
Completing the key development targets of engineering development and
clinic trails
Drive Local Australian Key Market Sales
Build Maxigesicsignificant market share pre and post codeine changes and
register and launch line extensions
Build further revenues of OTC product sales in Australia
12
Drive Revenues to Achieve Break Even
Break even targeted in the FY2018/FY2019 time frame from increased higher
margin product sales in home markets; increased licensing income from
existing and new agreements; increased Maxigesicsales from existing and
new markets