Condensed consolidated interim financial statements

Condensed
Consolidated Interim
Financial Statements
FOR THE SIX MONTHS ENDED
30 SEPTEMBER 2019
Working to improve your health

AFT PHARMACEUTICALS LIMITED
Condensed Consolidated Interim Financial Statements
2

This review report relates to the unaudited condensed consolidated interim financial statements of AFT Pharmaceuticals Limited for
the six months ended 30 September 2019 included on AFT Pharmaceuticals Limited’s website. The Board of Directors is responsible
for the maintenance and integrity of AFT Pharmaceuticals Limited website. We have not been engaged to report on the integrity of the
entity’s website. We accept no responsibility for any changes that may have occurred to the unaudited condensed consolidated interim
financial statements since they were initially presented on the website. The review report refers only to the unaudited condensed
consolidated interim financial statements named above. It does not provide an opinion on any other information which may have been
hyperlinked to/from these unaudited condensed consolidated interim financial statements. If readers of this report are concerned with
the inherent risks arising from electronic data communication they should refer to the published hard copy of the unaudited condensed
consolidated interim financial statements and related review report dated 21 November 2019 to confirm the information included in
the unaudited condensed consolidated interim financial statements presented on this website. Legislation in New Zealand governing
the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

INDEPENDENT REVIEW REPORT
TO THE SHAREHOLDERS OF AFT PHARMACEUTICALS LIMITED

We have reviewed the condensed consolidated interim financial statements of AFT Pharmaceuticals
Limited and its subsidiaries (‘the Group’) which comprise the consolidated balance sheet as at 30
September 2019, and the consolidated income statement, consolidated statement of comprehensive
income, consolidated statement of changes in equity and consolidated statement of cash flows for the
six months ended on that date, and a summary of significant accounting policies and other explanatory
information on pages 4 to 24.

This report is made solely to the company’s shareholders, as a body. Our review has been undertaken
so that we might state to the company’s shareholders those matters we are required to state to them
in a review report and for no other purpose. To the fullest extent permitted by law, we do not accept
or assume responsibility to anyone other than the company’s shareholders as a body, for our
engagement, for this report, or for the opinions we have formed.

Board of Directors’ Responsibilities
The Board of Directors are responsible for the preparation and fair presentation of the condensed
consolidated interim financial statements, in accordance with NZ IAS 34 Interim Financial Reporting
and IAS 34 Interim Financial Reporting and for such internal control as the Board of Directors
determine is necessary to enable the preparation and fair presentation of the condensed consolidated
interim financial statements that are free from material misstatement, whether due to fraud or error.

Our Responsibilities
Our responsibility is to express a conclusion on the condensed consolidated interim financial
statements based on our review. We conducted our review in accordance with NZ SRE 2410 Review of
Financial Statements Performed by the Independent Auditor of the Entity (‘NZ SRE 2410’). NZ SRE
2410 requires us to conclude whether anything has come to our attention that causes us to believe
that the condensed consolidated interim financial statements, taken as a whole, are not prepared, in all
material respects, in accordance with NZ IAS 34 Interim Financial Reporting and IAS 34 Interim
Financial Reporting. As the auditor of AFT Pharmaceuticals Limited, NZ SRE 2410 requires that we
comply with the ethical requirements relevant to the audit of the annual financial statements.

A review of the condensed consolidated interim financial statements in accordance with NZ SRE 2410 is
a limited assurance engagement. The auditor performs procedures, primarily consisting of making
enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical
and other review procedures.

The procedures performed in a review are substantially less than those performed in an audit
conducted in accordance with International Standards on Auditing (New Zealand). Accordingly we do
not express an audit opinion on these financial statements.

Other than in our capacity as auditor and the provision of taxation services, we have no relationship
with or interests in AFT Pharmaceuticals Limited or its subsidiaries. These services have not impaired
our independence as auditor of the Company and Group.

Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed
consolidated interim financial statements of the Group do not present fairly, in all material respects,
the financial position of the Group as at 30 September 2019 and its financial performance and cash
flows for the six months ended on that date in accordance with NZ IAS 34 Interim Financial Reporting
and IAS 34 Interim Financial Reporting.


This review report relates to the unaudited condensed consolidated interim financial statements of AFT Pharmaceuticals Limited for
the six months ended 30 September 2019 included on AFT Pharmaceuticals Limited’s website. The Board of Directors is responsible
for the maintenance and integrity of AFT Pharmaceuticals Limited website. We have not been engaged to report on the integrity of the
entity’s website. We accept no responsibility for any changes that may have occurred to the unaudited condensed consolidated interim
financial statements since they were initially presented on the website. The review report refers only to the unaudited condensed
consolidated interim financial statements named above. It does not provide an opinion on any other information which may have been
hyperlinked to/from these unaudited condensed consolidated interim financial statements. If readers of this report are concerned with
the inherent risks arising from electronic data communication they should refer to the published hard copy of the unaudited condensed
consolidated interim financial statements and related review report dated 21 November 2019 to confirm the information included in
the unaudited condensed consolidated interim financial statements presented on this website. Legislation in New Zealand governing
the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

INDEPENDENT REVIEW REPORT
TO THE SHAREHOLDERS OF AFT PHARMACEUTICALS LIMITED

We have reviewed the condensed consolidated interim financial statements of AFT Pharmaceuticals
Limited and its subsidiaries (‘the Group’) which comprise the consolidated balance sheet as at 30
September 2019, and the consolidated income statement, consolidated statement of comprehensive
income, consolidated statement of changes in equity and consolidated statement of cash flows for the
six months ended on that date, and a summary of significant accounting policies and other explanatory
information on pages 9 to 25 .

This report is made solely to the company’s shareholders, as a body. Our review has been undertaken
so that we might state to the company’s shareholders those matters we are required to state to them
in a review report and for no other purpose. To the fullest extent permitted by law, we do not accept
or assume responsibility to anyone other than the company’s shareholders as a body, for our
engagement, for this report, or for the opinions we have formed.

Board of Directors’ Responsibilities
The Board of Directors are responsible for the preparation and fair presentation of the condensed
consolidated interim financial statements, in accordance with NZ IAS 34 Interim Financial Reporting
and IAS 34 Interim Financial Reporting and for such internal control as the Board of Directors
determine is necessary to enable the preparation and fair presentation of the condensed consolidated
interim financial statements that are free from material misstatement, whether due to fraud or error.

Our Responsibilities
Our responsibility is to express a conclusion on the condensed consolidated interim financial
statements based on our review. We conducted our review in accordance with NZ SRE 2410 Review of
Financial Statements Performed by the Independent Auditor of the Entity (‘NZ SRE 2410’). NZ SRE
2410 requires us to conclude whether anything has come to our attention that causes us to believe
that the condensed consolidated interim financial statements, taken as a whole, are not prepared, in all
material respects, in accordance with NZ IAS 34 Interim Financial Reporting and IAS 34 Interim
Financial Reporting. As the auditor of AFT Pharmaceuticals Limited, NZ SRE 2410 requires that we
comply with the ethical requirements relevant to the audit of the annual financial statements.

A review of the condensed consolidated interim financial statements in accordance with NZ SRE 2410 is
a limited assurance engagement. The auditor performs procedures, primarily consisting of making
enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical
and other review procedures.

The procedures performed in a review are substantially less than those performed in an audit
conducted in accordance with International Standards on Auditing (New Zealand). Accordingly we do
not express an audit opinion on these financial statements.

Other than in our capacity as auditor and the provision of taxation services, we have no relationship
with or interests in AFT Pharmaceuticals Limited or its subsidiaries. These services have not impaired
our independence as auditor of the Company and Group.

Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed
consolidated interim financial statements of the Group do not present fairly, in all material respects,
the financial position of the Group as at 30 September 2019 and its financial performance and cash
flows for the six months ended on that date in accordance with NZ IAS 34 Interim Financial Reporting
and IAS 34 Interim Financial Reporting.

3

This review report relates to the unaudited condensed consolidated interim financial statements of AFT Pharmaceuticals Limited for
the six months ended 30 September 2019 included on AFT Pharmaceuticals Limited’s website. The Board of Directors is responsible
for the maintenance and integrity of AFT Pharmaceuticals Limited website. We have not been engaged to report on the integrity of the
entity’s website. We accept no responsibility for any changes that may have occurred to the unaudited condensed consolidated interim
financial statements since they were initially presented on the website. The review report refers only to the unaudited condensed
consolidated interim financial statements named above. It does not provide an opinion on any other information which may have been
hyperlinked to/from these unaudited condensed consolidated interim financial statements. If readers of this report are concerned with
the inherent risks arising from electronic data communication they should refer to the published hard copy of the unaudited condensed
consolidated interim financial statements and related review report dated 21 November 2019 to confirm the information included in
the unaudited condensed consolidated interim financial statements presented on this website. Legislation in New Zealand governing
the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Material uncertainty related to going concern
We draw attention to the going concern disclosure in note 3 in the condensed consolidated interim
financial statements, which indicates there is a material uncertainty concerning the Group’s ability to
repay its existing interest bearing liabilities which mature on 31 March 2020. Note 3 sets out the
Group’s plans to repay these interest bearing liabilities through a combination of new financing,
generating sufficient operating cash flows and raising additional funds from issuing new shares if
necessary. As stated in note 3, these events or conditions, along with other matters as set forth in
note 3, indicate that a material uncertainty exists that may cast significant doubt on the Group’s ability
to continue as a going concern. Our opinion is not modified in respect of this matter.







Jason Stachurski, Partner
for Deloitte Limited
Auckland, New Zealand
21 November 2019

This review report relates to the unaudited condensed consolidated interim financial statements of AFT Pharmaceuticals Limited for
the six months ended 30 September 2019 included on AFT Pharmaceuticals Limited’s website. The Board of Directors is responsible
for the maintenance and integrity of AFT Pharmaceuticals Limited website. We have not been engaged to report on the integrity of the
entity’s website. We accept no responsibility for any changes that may have occurred to the unaudited condensed consolidated interim
financial statements since they were initially presented on the website. The review report refers only to the unaudited condensed
consolidated interim financial statements named above. It does not provide an opinion on any other information which may have been
hyperlinked to/from these unaudited condensed consolidated interim financial statements. If readers of this report are concerned with
the inherent risks arising from electronic data communication they should refer to the published hard copy of the unaudited condensed
consolidated interim financial statements and related review report dated 21 November 2019 to confirm the information included in
the unaudited condensed consolidated interim financial statements presented on this website. Legislation in New Zealand governing
the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

INDEPENDENT REVIEW REPORT
TO THE SHAREHOLDERS OF AFT PHARMACEUTICALS LIMITED

We have reviewed the condensed consolidated interim financial statements of AFT Pharmaceuticals
Limited and its subsidiaries (‘the Group’) which comprise the consolidated balance sheet as at 30
September 2019, and the consolidated income statement, consolidated statement of comprehensive
income, consolidated statement of changes in equity and consolidated statement of cash flows for the
six months ended on that date, and a summary of significant accounting policies and other explanatory
information on pages 9 to 25 .

This report is made solely to the company’s shareholders, as a body. Our review has been undertaken
so that we might state to the company’s shareholders those matters we are required to state to them
in a review report and for no other purpose. To the fullest extent permitted by law, we do not accept
or assume responsibility to anyone other than the company’s shareholders as a body, for our
engagement, for this report, or for the opinions we have formed.

Board of Directors’ Responsibilities
The Board of Directors are responsible for the preparation and fair presentation of the condensed
consolidated interim financial statements, in accordance with NZ IAS 34 Interim Financial Reporting
and IAS 34 Interim Financial Reporting and for such internal control as the Board of Directors
determine is necessary to enable the preparation and fair presentation of the condensed consolidated
interim financial statements that are free from material misstatement, whether due to fraud or error.

Our Responsibilities
Our responsibility is to express a conclusion on the condensed consolidated interim financial
statements based on our review. We conducted our review in accordance with NZ SRE 2410 Review of
Financial Statements Performed by the Independent Auditor of the Entity (‘NZ SRE 2410’). NZ SRE
2410 requires us to conclude whether anything has come to our attention that causes us to believe
that the condensed consolidated interim financial statements, taken as a whole, are not prepared, in all
material respects, in accordance with NZ IAS 34 Interim Financial Reporting and IAS 34 Interim
Financial Reporting. As the auditor of AFT Pharmaceuticals Limited, NZ SRE 2410 requires that we
comply with the ethical requirements relevant to the audit of the annual financial statements.

A review of the condensed consolidated interim financial statements in accordance with NZ SRE 2410 is
a limited assurance engagement. The auditor performs procedures, primarily consisting of making
enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical
and other review procedures.

The procedures performed in a review are substantially less than those performed in an audit
conducted in accordance with International Standards on Auditing (New Zealand). Accordingly we do
not express an audit opinion on these financial statements.

Other than in our capacity as auditor and the provision of taxation services, we have no relationship
with or interests in AFT Pharmaceuticals Limited or its subsidiaries. These services have not impaired
our independence as auditor of the Company and Group.

Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed
consolidated interim financial statements of the Group do not present fairly, in all material respects,
the financial position of the Group as at 30 September 2019 and its financial performance and cash
flows for the six months ended on that date in accordance with NZ IAS 34 Interim Financial Reporting
and IAS 34 Interim Financial Reporting.

AFT PHARMACEUTICALS LIMITED
Condensed Consolidated Interim Financial Statements
4
Revenue
Cost of sales
Gross Profit
Other income
Selling and distribution expenses
General and administrative expenses
Research and development expenses
Equity accounted loss of joint venture entity
Gain on derecognition of equity accounted investment and recognition
of net assets acquired at fair value in a step acquisition
Operating Profit/(Loss)
Finance income
Interest expense
Other finance costs
Profit/(Loss) before tax
Tax credit / (expense)
Profit/(Loss) after tax attributable to owners of the parent
Basic and diluted earnings/(loss) per share ($)

13

12
4



46,946
(25,598)
21,348
336
(12,938)
(4,536)
(223)
(81)
9,785
13,691
14
(3,425)
(369)
9,911
(5)
9,906
0.10
Unaudited
6 Mths Ended
30-Sep-19
$NZ000’sNote
Unaudited
6 Mths Ended
30-Sep-18
38,441
(20,292)
18,149
2,034
(14,234)
(3,489)
(2,225)
(344)
-
(109)
16
(2,481)
(1,690)
(4,264)
76
(4,188)
(0.04)
Consolidated Income Statement
For the Six Months Ended 30 September 2019

5
Profit/(Loss) after tax
Other comprehensive (loss)/income
May be subsequently reclassified to profit and loss:
Foreign currency translation reserve
Other comprehensive profit/(loss) for the period, net of tax
Total comprehensive profit/(loss) for the period
attributable to owners of the parent
9,906
(245)
(245)
9,661
Unaudited
6 Mths Ended
30-Sep-19
$NZ000’s
Unaudited
6 Mths Ended
30-Sep-18
(4,188)
(224)
(224)
(4,412)
Consolidated Statement of Comprehensive Income
For the Six Months Ended 30 September 2019

AFT PHARMACEUTICALS LIMITED
Condensed Consolidated Interim Financial Statements
6
Balance as at 31 March 2018
Unaudited
Six months to 30 September 2018
Loss after tax
Other comprehensive loss
Movement in share options reserve
Preference dividends accumulated
Dividends paid and provided*
Balance as at 30 September 2018
Unaudited
Six months to 31 March 2019
Profit after tax
Other comprehensive income
Movement in share options reserve
Preference dividends accumulated
Dividends paid and provided*
Balance as at 31 March 2019
Unaudited
Six months to 30 September 2019
Profit after tax
Other comprehensive loss
Movement in share options reserve
Preference dividends accumulated
Dividends paid and provided*
Balance as at 30 September 2019

11
483
-
-
-
396
-
879
-
-
-
362
-
1,241
-
-
-
254
-
1,495
63,743
-
-
-
-
-
63,743
-
-
-
-
-
63,743
-
-
-
-
-
63,743
(57,644)
(4,188)
-
-
-
(457)
(62,289)
1,761
-
-
-
(478)
(61,006)
9,906
-
-
-
(492)
(51,592)
Share
capital
Share
options
reserve
Redeemable
preference
share
reserve
Foreign
currency
translation
reserve
Retained
earnings
Total
equity
$NZ000’sNote
330
-
(224)
-
-
-
106
-
325
-
-
-
431
-
(245)
-
-
-
186
430
-
-
91
-
-
521
-
-
161
-
-
682
-
-
68
-
-
750
7,342
(4,188)
(224)
91
396
(457)
2,960
1,761
325
161
362
(478)
5,091
9,906
(245)
68
254
(492)
14,582
Consolidated Statement of Changes in Equity
For the Six Months Ended 30 September 2019
* Dividends paid and provided relate to the Redeemable preference shares

7
ASSETS
Current assets
Inventories
Trade and other receivables
Cash and cash equivalents
Derivative assets
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Right of use assets
Deferred income tax assets
Investment in joint venture entity
Total non-current assets
Total assets
LIABILITIES
Current liabilities
Trade and other payables
Provisions
Lease liabilities
Current income tax liability
Derivative liabilities
Interest bearing liabilities
Total current liabilities
Non-current liabilities
Lease liabilities
Interest bearing liabilities
Total liabilities
EQUITY
Share capital
Retained earnings/(losses)
Share options reserve
Redeemable preference share reserve
Foreign currency translation reserve
Total equity
Total liabilities and equity
Net tangible assets per ordinary share
14

4
5
12


14
8
8
9
26,835
19,998
7,308
665
54,806
350
23,410
3,954
710
-
28,424
83,230
16,071
2,602
534
-
-
45,808
65,015
3,633
-
68,648
63,743
(51,592)
750
1,495
186
14,582
83,230
($0.09)
Unaudited
As at
30-Sep-19
$NZ000’sNote
Audited
As at
31-Mar-19
Unaudited
As at
30-Sep-18
25,158
19,187
6,916
-
51,261

357
8,239
-
705
3,033
12,334
63,595



15,098
1,270
-
145
241
41,750
58,504

-
-
58,504

63,743
(61,006)
682
1,241
431
5,091

63,595
($0.03)
27,815
12,993
7,400
481
48,689
335
7,0 8 9
-
800
2,493
10,717
59,406
13,245
1,263
-
-
-
-
14,508
-
41,938
56,446
63,743
(62,289)
521
879
106
2,960
59,406
($0.04)
Consolidated Balance Sheet
As at 30 September 2019
For and on behalf of the Board who authorised these financial statements for issue on 21 November 2019
Hartley Atkinson
Managing Director and Chief Executive Officer
David Flacks
Chairman

AFT PHARMACEUTICALS LIMITED
Condensed Consolidated Interim Financial Statements
8
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Payments to suppliers and employees
Tax paid
Net cash from/(used in) operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment
Investment in Joint Venture
Investment in intangible assets
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Interest received
Interest and finance cost paid
Right of use lease interest paid
Right of use lease liability paid
Borrowings repaid
New Borrowings
Dividends paid
Net cash from/(used in) financing activities
Net increase/(decrease) in cash
Impact of foreign exchange on cash and cash equivalents
Opening cash and cash equivalents
Closing cash and cash equivalents

11
12

5
5
5
8
8
10

46,833
(40,548)
(150)
6,135
(50)
-
(2,720)
(2,770)
14
(2,618)
(152)
(292)
(14,493)
15,000
(237)
(2,778)
587
(195)
6,916
7,308
Unaudited
6 Mths Ended
30-Sep-19
$NZ000’sNote
Unaudited
6 Mths Ended
30-Sep-18
44,621
(46,670)
(134)
(2,183)
(57)
(702)
(2,062)
(2,821)
16
(1,640)
-
-
-
7,417
-
5,793
789
(159)
6,770
7,400
Consolidated Statement of Cash Flows
For the Six Months Ended 30 September 2019

9
Notes to the Financial Statements
For the Six Months Ended 30 September 2019
1. GENERAL INFORMATION
AFT Pharmaceuticals Limited (the ‘Company’) is a company which is incorporated and domiciled in
New Zealand. It is registered under the Companies Act 1993. These financial statements comprise
AFT Pharmaceuticals Limited and its subsidiaries (together referred to as the Group). The Group is a
pharmaceutical distributor and developer of pharmaceutical intellectual property.
These condensed consolidated interim financial statements were approved by the Directors on 21
November 2019, and are not audited, but have been reviewed by Deloitte Limited in accordance with the
New Zealand Standard on Review Engagements 2410.
2. BASIS OF PREPARATION
These general purpose financial statements for the six months to 30 September 2019 have been prepared
in accordance with New Zealand Generally Accepted Accounting Practice (NZ GAAP). They comply with
NZ IAS 34 and IAS 34, Interim Financial Reporting. The Group is a for-profit entity for the purposes of
complying with NZ GAAP.
These condensed consolidated interim financial statements do not include all the notes normally included in
an annual financial report. Accordingly, this report should be read in conjunction with the audited financial
statements for the year ended 31 March 2019, which have been prepared in accordance with the New
Zealand equivalents to International Financial Reporting Standards (NZ IFRS) and International Financial
Reporting Standards (IFRS).
The same accounting policies and methods of computation are followed in the condensed consolidated
financial statements as compared to the audited financial statements for the year ended 31 March 2019, as
described in those annual financial statements, with the exception of the treatment of lease contracts as
required under the adoption of NZ IFRS 16 Leases. Further detail is presented in note 5
3. GOING CONCERN ASSUMPTION
At 30 September 2019, the Group has an interest bearing loan from CRG of $30.8m ($41.8m at 31 March
2019), an interest bearing loan of $15.0m from Bank of New Zealand (BNZ) ($Nil at 31 March 2019) and
held a cash balance of $7.3m ($6.9m as at 31 March 2019). The movements in the CRG loan during the year
came from a repayment of $14.5m, capitalised interest of $0.7m and the balance from movement in foreign
currency exchange rates. The borrowing from BNZ was used for the principal repayment amount of the
CRG loan.
The Group generated an operating profit for the 6 months ended 30 September 2019 of $13.7m, (30
September 2018, loss of $0.1m) and a net operating cash inflow for the 6 months ended 30 September 2019
of $6.1m (30 September 2018, outflow of $2.2m).
The CRG and BNZ loans are due for repayment in full on 31 March 2020 (refer to note 8).
The Directors have a reasonable expectation that the Group will be in a position to repay these loans on or
before 31 March 2020 from a combination of positive operating cash flows, refinancing from debt market
sources and issuance of new equity, if required. Accordingly, the Directors have adopted the going concern
assumption for the purposes of the preparation of these financial statements. The directors are conscious
that their reasonable expectations are based on what they consider to be the likely outcomes of these

AFT PHARMACEUTICALS LIMITED
Condensed Consolidated Interim Financial Statements
10
Notes to the Financial Statements (continued)
For the Six Months Ended 30 September 2019
future events and for this reason they consider that a material uncertainly exists which may cast significant
doubt on the Group’s ability to continue as a going concern and therefore may result in the Group’s inability
to realise its assets and settle its liabilities in the normal course of business.
Positive operating cash flows
The Directors have approved internal forecasts for the 18 months through to 31 March 2021, considered
achievability of the assumptions under these forecasts, tested for sensitivity, reviewed the existing working
capital against Group requirements and considered forecast compliance with applicable and anticipated
debt covenants. The forecasts for both financial years 2020 and 2021 indicate the continuation of positive
operating cash flow surpluses and profit after tax. The key revenue assumptions, which like all assumptions,
are subject to a degree of uncertainty are:
- The launch of Maxigesic into further new licensed markets. It is currently sold in 24 countries and
there are currently confirmed orders for a further nine countries. It is licensed for 125+ countries.
- the continued sales growth for the Group’s range of products in Australia. Sales growth in Australia
for the six months ended 30 September 2019 was 19%.
In addition, the Group is confident of its ability to execute further licensing agreements and to generate
future international revenues for the key innovative products: Maxigesic, Pascomer and NasoSurf. Given the
uncertainty on the timing of these, they have not been included in the forecast assumptions other than for a
small amount of upfront license income for Maxigesic.
Refinancing from debt market sources
The Group expects to have a new long term facility in place with a local commercial bank prior to or on 31
March 2020 which, together with the positive operating cash flow surpluses, will enable full repayment of
the CRG & BNZ loans on 31 March 2020. The Group is currently in discussion with local commercial banks,
and has received indicative term sheets.
As an interim step towards this and in order to reduce the cost of interest, the Group on 21 May 2019
established a $15m interim facility, which matures on 31 March 2020, from the BNZ utilising the existing
security arrangements and has repaid $14.5m (US$9.5m) of the CRG loan, as noted above in discussing the
movements in the CRG loan.
Issuance of new equity
The Directors are confident that having raised capital most recently in May 2017, new capital could be
accessed through the Company’s listing on NZX and ASX, if required.
4. SIGNIFICANT TRANSACTIONS AND EVENTS FOR THE CURRENT PERIOD
The joint venture, Dermatology Specialties Limited Partner (“DSLP”), was originally formed in June 2015
for the development and commercialisation of the product, Pascomer, which uses the active ingredient
Rapamycin for the topical treatment of indications commencing with facial angiofibromas in tuberous
sclerosis. DSLP has been equity accounted prior to acquisition with the investment at 31 March 2019 being
carried at $3.0m.
GOING CONCERN ASSUMPTION (continued)

11
The Group acquired the remaining 50% of DSLP and its general partner DSGP Limited, from its joint venture
partner Tardimed Sciences LLC on 5 July 2019 and these have been fully consolidated from this date.
As a result of the transaction, the Group retained the rights to the intellectual property, future product sales
and royalties. Timber Pharmaceuticals LLC (“Timber”), of which Tardimed Sciences LLC is the shareholder,
acquired the North-American distribution rights. This transaction did not require any cash payment by the
Group.
The Group has also entered into an out-license agreement with Timber, under which the Group has received
revenues from the upfront milestone and expects to receive future revenues from development, registration
and commercial milestones as well as product sales and royalties.
The Group has engaged external independent valuers to assist in determining the fair value of the Pascomer
intellectual property. Taking into account the inherent uncertainties of both the successful conclusion of
clinical trials and the successful registration with orphan status, the Group has determined the provisional
fair value of the Pascomer intellectual property to be $12.5m.
The following provisional fair values have been recognised in the consolidated condensed interim financial
statements in respect of DSLP:
Intangible asset – Pascomer IP $12.5m
Inventory $0.3m
Trade marks $0.1m
Gain on derecognition of equity accounted investment and $9.8m
recognition of net assets acquired at fair value in a step acquisition

As a result of this transaction, intangible assets have increased by $12.5m. The remaining increase in
intangible assets relate to capitalised registration and development costs, patents and trademarks acquired
which are not connected with the transaction described above.
5. ADOPTION OF NEW AND REVISED STANDARDS
NZ IFRS 16: LEASES
General impact of the new NZ IFRS 16
NZ IFRS 16 provides a comprehensive model for the identification of lease arrangements and their
treatment in the financial statements for both lessors and lessees. NZ IFRS 16 supersedes the previous
lease guidance including NZ IAS 17 Leases and the related interpretations when it became effective for
accounting periods beginning on or after 1 January 2019. The date of initial application of NZ IFRS 16 for the
Group was 1 April 2019.
The Group has chosen not to adopt the full retrospective application of NZ IFRS 16 in accordance with NZ
IFRS 16:C5(a). Consequently, the Group will not restate the comparative information. For the adoption
of NZ IFRS 16 the Group has used practical expedients to not reassess whether a contract is, or contains,
a lease at the date of initial application. Also it made use of the practical expedient to not make any
adjustment on transition for leases for which the underlying assets are of low value.

AFT PHARMACEUTICALS LIMITED
Condensed Consolidated Interim Financial Statements
12
Notes to the Financial Statements (continued)
For the Six Months Ended 30 September 2019
SIGNIFICANT TRANSACTIONS AND EVENTS FOR THE CURRENT PERIOD (continued)
Impact of the new NZ IFRS 16 definition of a lease
The change in definition of a lease mainly relates to the concept of control. NZ IFRS 16 distinguishes
between leases and service contracts on the basis of whether the use of an identified asset is controlled by
the customer. Control is considered to exist if the customer has, throughout the period of use
– The right to obtain substantially all of the economic benefits from the use of an identified asset; and
– The right to direct the use of that asset.
Impact on Lessee Accounting
NZ IFRS 16 changes how the Group accounts for leases previously classified as operating leases under NZ
IAS 17, which were off-balance sheet.
At transition date, the Group recorded right-of-use assets of $4,119k (at balance date $3,954k) and lease
liabilities of $4,260k (at balance date $4,167), with the previously held lease incentive of $141k written off
against the right-of-use assets. There was no impact on retained earnings.
On initial application of NZ IFRS 16, for all leases (except as noted below), the Group has:
a) Recognised right-of-use assets and lease liabilities in the consolidated balance sheet, initially
measured at the present value of the future lease payments;
b) Recognised depreciation of right-of-use assets and interest on lease liabilities in the consolidated
income statement;
c) Separated the total amount of cash paid into a principal portion and interest, both presented within
financing activities in the consolidated statement of cash flows.
Lease incentives (e.g. rent-free period) have been recognised as part of the measurement of the
right-of-use assets whereas under NZ IAS 17 they resulted in the recognition of a lease liability incentive,
amortised as a reduction of rental expenses on a straight-line basis.
Under NZ IFRS 16, right-of-use assets are tested for impairment in accordance with NZ IAS 36 Impairment
of Assets. This replaces the previous requirement to recognise a provision for onerous lease contracts.
For short-term leases (lease term of 12 months or less) and leases of low-value assets (such as personal
computers and office furniture), the Group has opted to recognise a lease expense on a straight-line basis
as permitted by NZ IFRS 16. This expense is presented within general and administrative expenses in the
consolidated income statement.

13
Impact on income statement
Impact on profit (loss) for the period
Increase/(decrease) in general and administration expenses
Increase/(decrease) in interest expense
Increase (decrease) in profit for the year
Impact on earnings per share
Basic
Diluted
$NZ000’s
Unaudited 6
months ended
30-Sep-19
(80)
152
(72)
-
-
The table below shows the amount of adjustment for each financial statement line item affected by the
application of NZ IFRS 16 for the current reporting period.
The application of NZ IFRS 16 has an impact on the consolidated statement of cash flows of the Group.
Under NZ IFRS 16:
• Payments for short-term leases and leases of low-value assets and variable leases payments not
included in the measurement of the lease liability have been included in payments to suppliers and
employees within the operating activities.
• Cash payments for the interest portion of lease liability are included as part of financing activities.
• Cash payments for the principal portion of lease liability are included as part of financing activities.
Under NZ IAS 17, all lease payments for operating leases were presented as part of cash flows from
operating activities. Consequently, the net cash generated by operating activities has increased by
$444,000 and net cash used in financing activities has increased by the same amount.
AFT have examined its current borrowing structure and taken into account both current and forecast
economic conditions, costs of capital and a premium for its risk profile. This has resulted in differing
Incremental borrowing rates (IBR) for premises and other leases, and different rates in NZ and AU, as per
the following table:
NZ – Buildings – 7.00%
NZ – Vehicles and equipment – 8.00%
AU – Buildings – 7.30%
AU – Vehicles and equipment – 8.50%
These IBR were used by the Group to calculate the lease liability at the date of initial application. The
Group used different rates due to the difference in nature of the assets and their geographic location. The
weighted average incremental borrowing rate is 7.27%.

AFT PHARMACEUTICALS LIMITED
Condensed Consolidated Interim Financial Statements
14
SIGNIFICANT TRANSACTIONS AND EVENTS FOR THE CURRENT PERIOD
Notes to the Financial Statements (continued)
For the Six Months Ended 30 September 2019
The Group has used the practical expedient of applying a single discount rate to a portfolio of assets in
each country where it holds right-of-use assets. In determining the discount rate to use, Management
reviewed publicly available rates for Government bonds, BNZ Swap rates and Treasury risk free discount
rates and then applied an adjustment to these rates to allow for a company specific credit risk. The Group
does not consider any of its leases to be onerous.
At 31 March 2019, AFT disclosed lease commitments of $3,243,000. As at 1 April 2019, the value of leases
discounted at the incremental borrowing rate at the date of initial application was $4,119,000. The IFRS
inclusion of likely future lease renewals has impacted due to a longer lease being envisaged.
6. SIGNIFICANT ACCOUNTING POLICIES
The Group as lessee
The following accounting policy has been adopted since 1 April 2019.
The Group assesses whether a contract is or contains a lease at inception of the contract. The Group
recognises a right-of-use asset and a corresponding lease liability with respect to all lease arrangements
in which it is the lessee, except for short term leases (leases less than 12 months duration), and leases of
low value assets. For these leases the group recognises the lease payments as an operating expense on a
straight-line basis over the term of the lease.
The lease liability is initially measured at the present value of the lease payments that are not paid at
the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily
determined the Group uses its incremental borrowing rate.
The lease liability is presented as a separate line in the consolidated balance sheet.
The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the
lease liability (using the effective interest rate method) and by reducing the carrying amount to reflect the
lease payments made.
The Group re-measures the lease liability (and makes a corresponding adjustment to the related right-of-
use asset) whenever:
• The lease term has changed or there is a change in the assessment of exercise of a purchase option,
in which case the lease liability is re-measured by discounting the revised lease payments using a
revised discount rate
• The lease payments change due to changes in an index or rate or a change in expected payment
under a guaranteed residual value, in which cases the lease liability is re-measured by discounting the
revised lease payments using the initial discount rate (unless the lease payments change due to a
change in a floating interest rate, in which case a revised discount rate is used)
• A lease contract is modified and the lease modification is not accounted for as a separate lease, in
which case the lease liability is re-measured by discounting the revised lease payments using a revised
discount rate.

15
The Group did not make any such adjustments during the periods presented.
The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease
payments made at or before the commencement day and any initial direct costs. They are subsequently
measured at cost less accumulated depreciation and impairment losses.
Whenever the Group incurs an obligation for costs to dismantle and remove a leased asset, restore the site
on which it is located or restore the underlying asset to the condition required by the terms and conditions
of the lease, a provision is recognised and measured under NZ IAS 37. The costs are included in the related
right-of-use asset.
Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying
asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects
that the Group expects to exercise a purchase option, the related right-of-use asset is depreciated over the
useful life of the underlying asset. The depreciation starts at the commencement date of the lease.
The right-of-use assets are presented as a separate line in the balance sheet.
The Group applies NZ IAS 36 to determine whether a right-of-use asset is impaired and accounts for
any identified impairment loss as described in the “property, plant and equipment” policy in the financial
statements dated 31 March 2019.
Variable rents that do not depend on an index or rate are not included in the measurement of the lease
liability and the right-of-use asset. The related payments are recognised as an expense in the period in
which the event or condition that triggers those payments occurs and are included in the line “general and
administrative expenses” in the income statement.
7. SEASONALITY OF OPERATIONS
The Group currently earns most of its incomes from the Australian and New Zealand markets.
Seasonal factors means that revenues and operating profits are expected to be higher in the second half,
than those of the first 6 months. In the financial year ended 31 March 2019, 45% of revenues accumulated in
the first half and 55% accumulated in the second half.

AFT PHARMACEUTICALS LIMITED
Condensed Consolidated Interim Financial Statements
16
The repayment terms for all CRG facilities were amended in September 2017 to interest only until maturity,
and the principal to be repaid in full on 31 March 2020.
In May 2019, the Group entered a term loan agreement with BNZ for $15.0m, repayable on 31 March 2020.
This enabled the Group to repay $14.5m (US$9.5m) of the CRG principal owed.
The loans have a general security over the assets of the Group together with a group guarantee. Interest
is fixed at 13.5% p.a. on the CRG loan, and at base + margin for the BNZ loan which floats every renewal
period (generally two months). The CRG loans are denominated in United States dollars (USD) and during
the period NZ$2.876m was recognised as unrealised foreign exchange loss. The carrying amount of the
CRG loans are substantially in line with the fair market value as at balance sheet date. At 30 September
2019 the CRG loan balance owing was $30.808m (H1 FY2019 $41.938m).
9. SHARE CAPITAL
Ordinary shares
No ordinary or redeemable preference shares have been issued in the six months ended 30 September
2019.
Staff share options are exercisable at the price of $2.80 each, being the issue price of a share at the time of
the company’s initial listing on NZX and ASX. The vesting period is generally up to four years however this
varies according to various performance criteria. Other than in limited circumstances options are forfeited if
an employee leaves the group before the options vest. The options are valued at the grant date at fair value
as calculated independently using the Black Scholes model. The options vest over up to four years from
date of issue.
Redeemable preference shares
The redeemable preference shares, issued in March 2017, attract a dividend of 9.4% accruing quarterly,
which may be satisfied in cash either in full or in part or deferred indefinitely at the Company’s absolute
discretion.
They do not carry any right to vote except at meetings of an ‘interest group’ of holders of redeemable
shares.
They may be redeemed at the option of the Company at any time two years or more after issue. On
redemption, the Company would pay the issue price plus unpaid dividends accrued to the date of
Notes to the Financial Statements (continued)
For the Six Months Ended 30 September 2019
8. INTEREST BEARING LIABILITIES
Bank of New Zealand
CRG (Capital Royalty Group) loans
Total
$NZ000’s
Unaudited
As at
30-Sep-18
Audited
As at
31-Mar-19
Unaudited
As at
30-Sep-19
-
41,938
41,938
-
41,750
41,750
15,000
30,808
45,808

17
redemption. The redemption can only be settled in cash.
After three years from issue, they may be converted to ordinary shares at the option of the holder in
multiples of 100,000. The holder would receive one ordinary share for every redeemable share held and a
number of ordinary shares calculated by dividing the amount of any accumulated dividends by the issue
price. Conversion of the redeemable preference shares may only be settled through the issuance of shares.
Once the holder has elected to convert, neither the issuer nor the holder can be obligated to settle in any
other manner.
10. DIVIDENDS PAID
Ordinary shares
No dividends have been paid or declared for the ordinary shares.
Redeemable preference shares
The redeemable preference shares issued on 24 March 2017 attract a dividend rate of 9.4% per annum, or
25.8 cents per share per annum and fall due on a quarterly basis. For the 30 June 2019 and 30 September
2019 quarter ends, a total of $237,310 of dividends were paid (inclusive of withholding taxes) and $254,716
has been accumulated in the Redeemable Preference Share Reserve.
11. RECONCILIATION OF LOSS AFTER TAX WITH NET CASH FLOW FROM OPERATING
ACTIVITIES
Profit/(Loss) after tax
Non-cash items:
Depreciation
Amortisation
Impact of Foreign Exchange on cash and cash equivalents
Share options expense
Interest and finance expenses
Unrealised FX (gains) / losses
Share of JV Loss
Gain on derecognition of equity accounted investment
and recognition of net assets acquired at fair value in a step acquisition
Interest income
Movement in working capital:
Decrease/(increase) in inventories
Decrease/(increase) in trade and other receivables
Increase/(decrease) in trade and other payables
Net cash from/(used in) operating activities
9,906
417
109
195
68
3,425
2,824
81
(9,785)
(14)
(1,678)
(1,477)
2,063
6,134
Unaudited
As at
30-Sep-19
$NZ000’s
Unaudited
As at
30-Sep-18
(4,188)
51
90
159
91
2,470
2,236
344
-
(16)
(3,404)
3,996
(4,014)
(2,183)

AFT PHARMACEUTICALS LIMITED
Condensed Consolidated Interim Financial Statements
18
12. INVESTMENT IN JOINT VENTURE PARTNERSHIP
Interest in joint venture company at cost
Equity accounted earnings of joint venture partnership
Net equity investment in joint venture partnership
Balance at start of period
Investment during the period
Share of current period loss
Derecognition on acquisition of controlling interest
Balance at end of period
Dermatology Specialties LP
Principal activities: Development and distribution of pharmaceuticals
Dermatology Specialties LP was incorporated on 22 June 2015. Movements in investment in the joint
venture partnership during the 6 months comprise:
-
-
-
3,033
(81)
(2,952)
-
100%
Unaudited
As at
30-Sep-19
% Interest Held
$NZ000’s
Unaudited
As at
30-Sep-18
% Interest Held
5,046
(2,553)
2,493
2,135
702
(344)
-
2,493
50%
The joint venture partnership of the Group and its activities are as follows:
Notes to the Financial Statements (continued)
For the Six Months Ended 30 September 2019

19
Unaudited
Sep-19
Revenue – sale of goods
Revenue – royalty income
Revenue - licensing
Revenue
Other income
Depreciation and amortisation
Equity accounted loss of joint venture entity
Gain on derecognition of equity accounted
investment and recognition of net assets
acquired at fair value in a step acquisition
Operating profit/(loss)
Finance income
Interest expense
Other gains/(losses)
Gain / (Loss) before tax
Total Assets
Property, plant and equipment
Intangible assets
RTU assets
Investment in joint venture entity
Capital expenditure
Unaudited
Sep-18
Revenue – sale of goods
Revenue – royalty income
Revenue - licensing
Revenue
Other income
Depreciation and amortisation
Equity accounted loss of joint venture entity
Operating profit/(loss)
Finance income
Interest expense
Other gains/(losses)
Gain / (Loss) before tax
Total Assets
Property, plant and equipment
Intangible assets
Investment in joint venture entity
Capital expenditure
2,369
-
-
2,369
-
(2)
-
-
98
-
-
102
200
215
13
-
-
-
3
1,118
-
-
1,118
-
(3)
-
(187)
-
-
35
(152)
96
15
-
-
-
13,691
-
-
13,691
142
(292)
-
-
1,651
14
(3,382)
273
(1,444)
47,558
291
10,910
2,868
-
2,760
12,566
-
-
12,566
-
(128)
-
881
16
(2,481)
(1,278)
(2,862)
33,158
269
7,089
-
2,098
25,697
-
-
25,697
-
(232)
-
-
1,861
-
(43)
(744)
1,074
22,957
46
-
1,086
-
7
21,601
-
-
21,601
1,860
(10)
-
(72)
-
-
(447)
(519)
23,659
51
-
-
21
Southeast
Asia
New ZealandAustralia
$NZ000’s
Rest of WorldTOTAL
2,533
124
2,532
5,189
194
-
(80)
9,784
10,081
-
-
-
10,081
12,500
-
12,500
-
-
-
2,659
101
396
3,156
174
-
(344)
(731)
-
-
-
(731)
2,493
-
-
2,493
-
44,290
124
2,532
46,946
336
(526)
(80)
9,784
13,691
14
(3,425)
(369)
9,911
83,230
350
23,410
3,954
-
2,770
37,944
101
396
38,441
2,034
(141)
(344)
(109)
16
(2,481)
(1,690)
(4,264)
59,406
335
7,089
2,493
2,119
13. OPERATING SEGMENTS

AFT PHARMACEUTICALS LIMITED
Condensed Consolidated Interim Financial Statements
20
Notes to the Financial Statements (continued)
For the Six Months Ended 30 September 2019
14. FINANCIAL RISK MANAGEMENT
(a) Managing financial risk
The Group’s activities expose it to various financial risks as detailed below.
• Market risk
Management is of the opinion that the Group’s exposure to market risk at balance date is defined as:
Risk Factor Description Sensitivity
(i) Foreign exchange risk Exposure to changes in foreign exchange rates on
assets and liabilities of the subsidiary, and
USD denominated borrowings As below
(ii) Interest rate risk Exposure to changes in interest rates on borrowings As below
(iii) Other price risk No commodity securities are bought, sold or traded Nil
• Foreign exchange risk
The Group benefits from the use of derivative financial instruments to manage foreign currency exposures.
The fair value of forward exchange contracts is calculated by reference to current forward exchange rates at
period end and the contract exchange rates, considered level 2 of the fair value hierarchy.
The Group purchases goods and services from overseas suppliers in a number of currencies, primarily
AUD, USD, EUR and GBP and has borrowings that are denominated in US dollar amounts. This exposes
the Group to foreign currency risk. The Group manages foreign currency risk through use of derivative
arrangements, in particular forward exchange contracts. The exposure is monitored on a regular basis based
on Group foreign exchange policies. Future revenues from markets outside Australasia will be denominated
primarily in USD and EUR which will provide a natural hedge against these costs.
In the current period for the six months to 30 September 2019 (H1 FY2020) net foreign exchange losses
totaled $368,637 (H1 FY2019: $1,700,357 gain) of which $2,875,747 (H1 FY2019: $3,063,766 gain) were
unrealised losses on the USD denominated CRG loan. Future revenues derived in USD and EUR will be used
towards repaying this debt as it falls due. The balance of the gains/losses are derived from the restatement
of the cash balances at the spot rate on the period end balance date of 30 September 2019 and the change
in spot rates during the time between when expenses are recorded in the general ledger and when they are
paid.
In total, the group had assets and liabilities denominated in the following currencies, as at 30 September
2019:
Assets NZD$’000 Currency Liabilities NZD$’000
8,771 AUD 2,009
4,768 USD 32,169
700 MYR 1
1,618 SGD 227
1,095 EUR 1,707
- GBP 128

21
The following forward foreign exchange contracts were held at 30 September 2019:
The following forward foreign exchange contracts were held at 31 March 2019:
The following forward foreign exchange contracts were held at 30 September 2018:
All contracts mature within one year from 30 September 2018.
Buy Currency
EUR
GBP
USD
Buy Currency
EUR
GBP
USD
Buy Currency
EUR
GBP
USD
Sell Currency
AUD
Buy Currency
Amount (‘000)
3,665
252
6,590
Buy Currency
Amount (‘000)
3,300
155
4,205
Buy Currency
Amount (‘000)
2,250
123
3,070
Sell Currency
Amount (‘000)
2,000
Sell Amount
NZD (‘000)
6,372
486
9,304
Sell Amount
NZD (‘000)
5,735
302
6,192
Sell Amount
NZD (‘000)
3,886
239
4,250
Buy Amount
NZD (‘000)
2,224
Fair Value
NZD (‘000)
70
10
585
Fair Value
NZD (‘000)
(228)
(3)
(10)
Fair Value
NZD (‘000)
115
5
320
Fair Value
NZD (‘000)
41
Mark to Market 30/9/19
Sell amount NZD (‘000)
6,302
476
8,719
Mark to Market 31/3/19
Sell amount NZD (‘000)
5,963
305
6,202
Mark to Market 30/9/18
Sell amount NZD (‘000)
3,771
234
3,930
Mark to Market 30/9/18
Sell amount NZD (‘000)
2,265
Total benefit as at 30 September 2019: 665
Total liability as at 31 March 2019: (241)
Total benefit as at 30 September 2018: 481
All contracts mature within one year from 30 September 2019.
All contracts mature within one year from 31 March 2019.
Forward Foreign Exchange Contracts
Forward Foreign Exchange Contracts
Forward Foreign Exchange Contracts

AFT PHARMACEUTICALS LIMITED
Condensed Consolidated Interim Financial Statements
22
Liquidity profile
• Interest rate risk
USD borrowings are at a fixed interest rate, which exposes the Group to fair value interest rate risk. There
are no specific derivative arrangements to manage this risk. The BNZ loan is priced at base + margin which
floats every renewal period (generally two months).
• Credit risk
Financial instruments, which potentially subject the Group to credit risk, principally consist of accounts
receivable. Regular monitoring is undertaken to ensure that the credit exposure remains within the Group’s
normal terms of trade.
The Group has one significant concentration of credit risk at 30 September 2019 with the largest debtor
being $2,966,000 (H1 FY 2019: $3,604,000). There has been no past experience of default and no
indications of default in relation to this debtor.
The Group’s cash and short-term deposits are placed with high credit quality financial institutions.
Accordingly, the Group has no significant concentration of credit risk other than bank deposits, with 4.3%
of total assets at the Bank of New Zealand (H1 FY2019: 11.4%), 4.3% at NAB Bank (H1 FY2019: 1.1%). The
carrying value of financial assets represents the maximum exposure to credit risk.
• Liquidity risk
Liquidity risk is the risk that the Group may encounter difficulty in raising funds at short notice to meet
its commitments and arises from the need to borrow funds for working capital. The directors monitor the
risk on a regular basis and actively manage the cash available to ensure the net exposure to liquidity risk is
minimised.
The liquidity/maturity profile of the liabilities is as follows:

30 September 2019
Trade and other payables
Lease liabilities
Borrowings (including interest)
Derivative instruments (outbound)
Derivative instruments (inbound)
Totals
30 September 2018
Trade and other payables
Borrowings (including interest)
Derivative instruments (outbound)
Derivative instruments (inbound)
Totals
< 1 year
$000
(18,673)
(534)
(47,640)
(16,162)
16,827
(66,182)
$000
(14,508)
(3,785)
(8,375)
8,815
(16,590)
1-2 years
$000
-
(438)
-
-
-
(438)
$000
-
(48,776)
-
-
(48,776)
2-5 years
$000
-
(1,065)
-
-
-
(1,065)
$000
-
-
-
-
-
> 5 years
$000
-
(2,130)
-
-
-
(2,130)
$000
-
-
-
-
-
TOTAL
$000
(18,673)
(4,167)
(47,640)
(16,162)
16,827
(69,815)
$000
(14,508)
(52,561)
(8,375)
8,815
(65,366)
(b) Fair Values
The carrying value of financial assets and liabilities (trade receivables and trade payables) approximates
their fair value. Trade receivables are valued net of provision and trade payables are valued at their origi-
nal amounts by contract.
Notes to the Financial Statements (continued)
For the Six Months Ended 30 September 2019
FINANCIAL RISK MANAGEMENT (continued)

23
15. RELATED PARTIES
The Group had related party relationships with the following entities:
Related party Nature of relationship
CRG (Capital Royalty Group) Shareholder of both ordinary and redeemable preference shares
Atkinson Family Trust Shareholder of both ordinary and redeemable preference shares
The following transactions were carried out with these related parties:
(i) Loans
(iv) Key management compensation
CRG 8 30,808 41,750 41,938
Total loan balances 30,808 41,750 41,938
(ii) Interest expense
CRG
8 2,803 5,238 2,481
(iii) Dividends on redeemable preference shares
CRG 383 726 356
Atkinson Family Trust 108 209 101
Directors fees 146 292 146
Executive salaries 551 1,078 540
Short term benefits 230 190 187
Share Options Expense 16 126 15
Key management compensation 943 1,686 888
Unaudited
As at
30-Sep-19
Unaudited
As at
30-Sep-19
$NZ000’s
$NZ000’s
Note
Audited
As at
31-Mar-19
Audited
As at
31-Mar-19
Unaudited
As at
30-Sep-18
Unaudited
As at
30-Sep-18
Key management includes external Directors, the Chief Executive Officer, the Chief of Staff, the Chief
Financial Officer and the Director of International Business Development. These positions are mainly
responsible for planning, controlling and directing the activities of the business. The Chief of Staff is the
spouse of the Chief Executive Officer.
16. CONTINGENT LIABILITIES
In May 2015, AFT Pharmaceuticals Ltd signed as guarantor of AFT Pharmaceuticals Pty Ltd for its 5-year
lease contract for the premises occupied in Sydney, Australia. AFT Pharmaceuticals Pty Ltd has placed
AU$75,000 on term deposit with NAB in favour of the landlord of the business premises to support this
guarantee. The company has placed NZ$75,000 on term deposit with the BNZ. This sum is security for a
guarantee issued by the BNZ in favour of the NZX, should the company ever default on any of its payment
obligations to NZX.

AFT PHARMACEUTICALS LIMITED
Condensed Consolidated Interim Financial Statements
24
17. CAPITAL COMMITMENTS

The Group has no capital commitments at 30 September 2019 (31 March 2019: nil: 30 September 2018: nil).
18. SUBSEQUENT EVENTS
There were no material events occurring after balance date and before the date of approval of the financial
statements requiring recognition or disclosure.
Notes to the Financial Statements (continued)
For the Six Months Ended 30 September 2019

Working to improve your health
AFT PHARMACEUTICALS LIMITED
Condensed Consolidated Interim Financial Statements