Annual Shareholders Meeting Address and Presentation

Working to improve yourhealth
Annual Shareholders Meeting
2 August2019

ASM AUG
2019
ImportantNotice
2
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 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 and the actual events or results may differ materially and adversely from these expectations. Recipients are
cautioned not to place undue reliance on forward-lookingstatements.
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.

ASM AUG
2019
CHAIRMAN’S
INTRODUCTION
3
David Flacks

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2019
DIRECTORS AND EXECUTIVES
INTRODUCTIONS
4

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AGENDA
5
Chairman’s address
Chief Executive Officer’s Presentation
Shareholder Questions
Ordinary Resolutions
Special Resolution

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FY 2019Highlights
42
countries Maxigesic registeredin
20
countries Maxigesic launchedin
$85.1m
operating revenueforFY2019
$6.1m
operating profit and $16.2m improvement onFY2018
$6.9m
available cash as at 31 March 2019 –up from $6.7m end ofFY2018
6

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Product development
Balance sheet and funding
Governance
7

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CEO’s
PRESENTATION
8
Hartley Atkinson

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RevenueGrowth
FY2018FY2019
Australia
NewZealand
Rest of World
SoutheastAsia
9
10 year operating CAGR of13%
Operating
revenue
(NZ$m)

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2019
Financial performance -Revenue by region and
channel
Over thecounter
Hospital
Prescription
AustraliaNewZealandRest ofWorldSoutheastAsia
NZ$000’sFY2017% oftotalFY2018% oftotalFY2019% oftotal
Australia
37,063
53.6
%
49,193
60.6
%
50,304
59.1
%
YoYgrowth
32.7
%
2.3
%
/12.6
%
NewZealand
29,167
42.1
%
27,096
33.4
%
26,796
31.5
%
YoYgrowth
-7.1
%
-1.1
%
/5.4
%
Rest of World
1,968
2.8
%
3,601
4.4
%
5,885
6.9
%
YoYgrowth
82.9
%
63.4
%
Southeast Asia
1,005
1.5
%
1,286
1.6
%
2,142
2.5
%
YoYgrowth
27.9
%
66.5
%
Total OperatingRevenue
69,205
100
%
81,176
100
%
85,127
100
%
YoYgrowth
8.1
%
17.3
%
4.9
%
/13.5
%
10

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2019
NZ$'000's year ended 31March2019%of
revenue
2018%of
revenue
Revenue85,12781,176
Cost ofSales(44,397)52.2%(45,880)56.5%
GrossProfit40,73047.8%35,29643.5%
OtherIncome2,2372.6%1,1301.4%
Selling and distributionexpenses(26,540)31.2%(28,533)35.1%
General and administrativeexpenses(7,202)8.5%(8,308)10.2%
Research and developmentexpenses(2,588)3.0%(8,230)10.1%
Equity accounted loss of jointventure entity
(521)0.6%(1,494)1.8%
OperatingProfit /(Loss)6,116(10,139)
Finance Income42125
Finance Costs(8,417)(2,652)
Loss beforetax(2,259)(12,666)
Taxbenefit/(expense)(168)(58)
Loss aftertax(2,427)(12,724)
11
Profit andLoss

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2019
Balance Sheet
12
NZ$'000's year ended 31March20192018
Current Assets51,26148,312
Non Current Assets
12,334
8,291
Total Assets
63,595
56,603
Current Liabilities58,50418,607
Non Current Liabilities-30,654
Total Liabilities
Equity
58,504
5,091
49,261
7,342
Total Liabilities and Equity63,59556,603
Notes:
1.Since year end a NZ$15m BNZ facility has been used to reduce the CRG facility by around 33%,
which saves circa $900,000 p.a.
2.We are in discussion with local commercial banks for a three year facility to replace the CRG
facility from 31 March 2020

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2019
Cashflow
13
NZ$'000's year ended 31March20192018
Net cash used in operating activities1,067(9,167)
Net cash used in investingactivities(4,884)(5,855)
Net cash generated from financingactivities3,7235,863
Net increase in cash(94)(9,159)
Impact of foreign exchange on cash and cashequivalents24024
Opening cash and cashequivalents6,77015,905
Closing cash and cashequivalents6,9166,770

ASM AUG
2019
Operating profit progress
0
5
10
15
FY20FY19FY18FY17FY16FY15FY14FY13FY12FY11FY10FY09
(15)
(10)
(5)
14

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15
Selling date dependent on successful R&D and registration

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2019
Maxigesic Tablets •registered across all of EU
Maxigesic IV •first registration achieved 2019 in AU
•sales predicted to start late 2019/2020
Maxigesic Oral Liquid •filings in 23 countries
•sales anticipated to start 2020
Maxigesic Hot Drink Sachets•regulatory filings to commence 2019
•sales anticipated to start 2020
Maxigesic Rapid •formulation completed successfully
•sales anticipated to start 2021
Maxigesic Cold & Flu •new development underway
•sales anticipated to start 2022
MaxigesicDevelopmentProgress
16

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Maxigesic Countries sold andordered
17

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2019
Maxigesic goingforward
ProductMaxigesicTabletsMaxigesicIVMaxigesic oralsolution
Territories201920182019201820192018
Licensed125+125-%686210%1221184%
Registered423228%1-+ +%---%
Soldin2010100%---%---%
19

ASM AUG
2019
Pascomer development
Market-30,000 patients in US alone represents a US$300m market
opportunity
Knowledge–12 published trials and published case reports
on 425 patients using compounded rapamycin show that it
successfully treats the condition
Pascomer development –two trials using proprietary commercial
product. First trial in 120 patients in eight sites around the world
underway. Results mid 2020
Funding -provided by out licensed partner, Timber LLC-US based
experts in commercialising similar products involved with AFT on
this product from the outset
Launch–provided trials successful, launch late 2022/early 2023
AFT Opportunity –peak annual revenue in excess of NZ$100m
20

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2019
Medium TermPlans
21
Further drive InternationalSales
-Accelerate countries launchedin
-Start to launch new line extensions [MaxigesicIV]
Extend InternationalLicensing
-Achieve licensing agreement in USA/Canada, Germany
andLATAM
-Explore previously unplanned territories: China
and Japan LicensingAgreements
Drive Increased UpfrontPayments
-Maxigesic IV licensing agreements
-Larger territories such as US, JP,CN
Drive Local ANZ and SE AsiaSales
-Drive Maxigesic sales in AU &NZ
-New OTC launches in AU &NZ
-Double SE Asiasales
Drive ImprovedFinancials
-Break-even in SEAsia
-Meet profitprojections
-Refinance to lower interest costs and repaydebt
-Increase cash position

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QUESTIONS AND
ANSWERS
22

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Resolutions
23

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Ordinary Resolution 1
24
1.That the directors are authorised to fix the fees and expenses of
Deloitte as auditor for the 2020 financial year.

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Ordinary Resolution 2
25
2.That Dr Hartley Atkinson be re-elected as a director of AFT
Pharmaceuticals Limited.

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2019
Ordinary Resolution 3
26
3.That MrJon Lamb be re-elected as a director of AFT
Pharmaceuticals Limited.

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Ordinary Resolution 4
27
4.That Dr John Douglas Wilson be re-elected as a director of AFT
Pharmaceuticals Limited.

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2019
Special Resolution 5
28
5.That the existing constitution of the Company is revoked, and the
constitution tabled at the meeting, and referred to in the
explanatory notes, is adopted as the constitution of the
Company.

ASM AUG
2019
Voting
29

ASM AUG
2019
Close of Meeting
Thanks for attending
30

---

AFT Pharmaceuticals Limited, Level 1, 129 Hurstmere Road, Takapuna, Auckland, 0622, New Zealand
Incorporated in New Zealand ARBN: 609 017 969





Market release 2
nd
August 2019
Chairman’s address delivered at AFT Pharmaceutical Limited’s 2019 Annual
Meeting, Milford Cruising Club, 24 Craig Road, Auckland, New Zealand, at
10.30am (NZT) on Friday 2 August 2019
The financial year ending 31 March 2019 has been a very good year for AFT. We
have achieved what we have been saying we would achieve – so that we made
an operating profit in FY19 and we have continued to expand our pipeline of growth
opportunities.
Revenue for the year to 31 March 2019 was $85.1m. An increase of 5% over FY18 –
and if we adjust that for the divestment of our lower margin hospital products to
Baxter Healthcare, our revenues increased 14%.
Our operating profit rose strongly to positive $6.1m – as compared to last year’s
$10.1m operating loss – a $16.2m turnaround.
The result reflected a number of factors – firstly – growth in sales. Secondly, tight
control of operating costs – and thirdly – lower research and development
expenditure following successful completion of key clinical trials - for example on our
Maxigesic IV product and on other Maxigesic extension products.
Australia is our largest market and sales increased by 2% - but adjusting for the
divestment to Baxters – revenue growth was 13%. Operating profit rose from $1.2m
to $5.3m.
In New Zealand, revenue fell by 1% but again adjusting for the divestment to Baxters,
revenues rose by 5%. SE Asia and International both showed significant growth and

AFT Pharmaceuticals Limited, Level 1, 129 Hurstmere Road, Takapuna, Auckland, 0622, New Zealand
Incorporated in New Zealand ARBN: 609 017 969
we anticipate continued strong growth internationally as Maxigesic licences and
registrations lead to sales in due course.
Maxigesic development over the past year has been significant – both in tablet form
and in various other forms such as Maxigesic intravenous which I mentioned
previously – and which has now been registered by the Therapeutic Goods
Administration – the TGA – in Australia; and also, other line extensions such as
Maxigesic oral liquid, hot drink sachets and Maxigesic Rapid. Hartley will explain
more about these products.
Maxigesic tablets are now licensed in more than 125 countries, they are registered in
42 countries and now sold in 20 countries - that is double the number of countries
that were selling Maxigesic tablets a year ago.
We also announced a month ago that we have signed a licensing agreement for a
drug called Pascomer. Pascomer is a drug which treats a disfiguring hereditary skin
condition. This is a potentially large market and we are now undertaking clinical
trials – in a deal which means that those trials are being funded by our licensee. As I
mentioned earlier, Ioana Stanescu, our head of drug development, is in the United
States currently assisting a number of hospitals preparing to undertake those trials.
Again, Hartley will go into more detail on this.
AFT remains well funded. Our total assets are up from $56.6m a year ago to $63.5m
and our cash balance at year end was $6.9m up from $6.7m for the previous year
end.
Shareholders will have seen that our current liabilities have risen significantly – and
that is because the loan we took from CRG has become a current liability as it is
repayable on 31 March 2020.
CRG’s funding has been of great assistance to us as we moved through our
significant R&D expenditure. The interest rate is however 13.5% and as announced
to the market in May we have already repaid NZ$14m of that with a facility from
Bank of New Zealand at a significantly lower interest rate. We are confident that we
will have facilities in place to repay the CRG loan in full with lower cost facilities in
March next year.

AFT Pharmaceuticals Limited, Level 1, 129 Hurstmere Road, Takapuna, Auckland, 0622, New Zealand
Incorporated in New Zealand ARBN: 609 017 969
We also expect to return to bottom line profitability this financial year and currently
we are continuing to forecast an operating profit for the FY20 year of between $9m
and $12m.
We have three directors coming up for re-election this meeting – Hartley, Jon Lamb
and Doug Wilson – and you will hear from them as the resolutions are put to the
meeting. I do however just want to comment on our board and on both our
governance and some of the initiatives AFT has undertaken in the last year.
The board is unchanged from when we listed 4 ½ years ago. We work very well
together and have a strong mix of skills across the pharmaceutical industry, sales
and marketing, finance and governance – and with a significant international focus.
The board goes through an annual evaluation process and a skills matrix exercise –
and we will continue to do so. Our 2019 corporate governance statement is
available on our website and it sets out the principles your board adheres to, and
we review governance issues throughout the year.
In considering the re-election of the directors – Dr Doug Wilson is incredible – he is
the author of a new book on how to age well, and also writes children’s books. He is
acknowledged globally as an expert within the pharmaceutical industry – and still is
in great demand internationally for his advice. Doug chairs our Regulatory and
Product Development Oversight Committee.
Jon Lamb has incredibly valuable experience in global sales and marketing in the
pharmaceutical industry – and also in a number of other industries - and has led
strategic planning across a number of companies he has worked with. Jon’s
experience has been invaluable to Hartley and the team. Jon chairs the Audit and
Risk Committee and the Remuneration and Nominations Committee.
Hartley Atkinson you will hear from very shortly – he is of course our CEO and his
family trust is the major shareholder in AFT. Hartley’s commitment to AFT is
extraordinary and his knowledge and understanding of this industry is second to
none.
You can read all of our directors profiles in the annual report and of course on our
website.

AFT Pharmaceuticals Limited, Level 1, 129 Hurstmere Road, Takapuna, Auckland, 0622, New Zealand
Incorporated in New Zealand ARBN: 609 017 969
As part of our governance responsibilities we are strongly committed to sustainability
and contributing positively to development goals – and in our annual report we set
out our initiatives in relation to SDG’s - sustainable development goals. As part of
these initiatives we provide products to a number of groups and agencies
representing under-privileged peoples including groups in Australia and Vietnam
through the AusViet charity foundation. We are also supporting 3 local charities –
HeartKids, Lifeline and Look Good Feel Better - through donations of $1 from each
pack of Maxigesic and Maxigesic PE sold from participating pharmacies.
We are at a pivotal point in the development of AFT. We are pleased that our share
price has climbed steadily and your board feels that this simply reflects the hard
work we said we would do and that we are doing. But it hasn’t stopped and we are
focused on pressing ahead with the ongoing development of our key products. So,
thank you shareholders for your ongoing support and patience.
Thank you also to all our staff at AFT and to the management team and my fellow
board members – we are all looking forward to the year ahead.

ENDS
For investor relations queries please contact:
Malcolm Tubby
CFO, AFT Pharmaceuticals Ltd
Phone +64 9 488 0232
Email: malcolm@aftpharm.com