Annual Report revision

2022
ANNUAL
REPORT

Developing innovative
products that
make a real difference
to your health.

AFT is a growing multinational
pharmaceutical company that develops,
markets and distributes a broad portfolio
of pharmaceutical products across a
wide range of therapeutic categories
around the world.

Contents
At a Glance 4-5
Chairman and CEO’s Report 6-10
Business Focus:
- Regional Performance 11-13
- Maxigesic 14-17
- Research and Development 18-19
Sustainability 20-33
Directors 34-35
Management Team 36-37
Independent Auditor’s Report 39-41
Financial Statements 42-71
Statutory Disclosures 72-80
Directory 81
This report provides a summary review of AFT’s operational and
financial performance for the year to 31 March 2022 and should
be read in conjunction with the company's financial statements
on pages 42 to 71 of this report.
The information provided in this report has been compiled in
accordance with relevant law, rules and corporate governance
recommendations for investor reporting. Financial information
has been prepared in accordance with appropriate accounting
standards and has been audited by Deloitte.
Throughout this report we have focused on what we believe
matters most to our stakeholders and our business. We have
endeavoured to ensure all information is accurate through
internal verification and other approval processes.
AFT PHARMACEUTICALS ANNUAL REPORT 2022
3
WORKING TO IMPROVE YOUR HEALTH
2

FY22 Operational Highlights
An Outstanding Record of Growth
1 Excluding head office costs
AUSTRALIA
Sales $76.7 million
UP 12.3%
Operating profit
up 9.8%
to $15.7 million
Key drivers
Broad-based growth
New product launches
NEW ZEALAND
Sales $35.1 million
GROWTH 14.9%
Operating profit
1

rose 30%
to $5.2 million
Key drivers:
Covid recovery
New products
ASIA
Sales $5.5 million
GROWTH 24.4%
Operating profit
$0.6 million,
down 57%
Key drivers:
Strong anti-bacterial sales,
but offset by product mix
INTERNATIONAL
Sales $13.1 million
GROWTH 32.2%
Operating profit
of $4.2 million rose from
the prior year’s $1.4 million
Key drivers:
Licence revenue
from the US offset
by Covid pressures
AT A GLANCE
$140.00
$120.00
$100.00
$80.00
$60.00
$40.00
$20.00
$-
NZ$ MILLION
FY21 RevenueFY22 Revenue
Australia 60%
New Zealand 27%
Asia 4%
International 9%
Australia 59%
New Zealand 27%
Asia 4%
International 10%
$8.0
$12.0
$17.0
$23.0
$26.0
$28.0
$33.0
$34.0
$40.0
$49.0
$56.0
$64.0
$69.0
$80.0
$85.0
$106.0
$113.1
$130.3
AFT Operating Revenue
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
FINANCIAL YEAR
10-YEAR COMPOUND ANNUAL GROWTH RATE 14.4%

Growing Globally from a Strong
Australasian Core
FY22 Highlights
$56.7 million
Total equity rises 54.9%
from $36.6 million
$20.4 million
Operating profits rose 90.6%
from $10.7 million
$19.8 million
Net profit after tax rose 153.8%
from $7.8 million
WORKING TO IMPROVE YOUR HEALTH
4
$130.3 million
Annual operating revenue grew
by 15.2% from $113.1 million
$29.3 million
Net debt down from
$35.2 million
AFT PHARMACEUTICALS ANNUAL REPORT 2022
5
WORKING TO IMPROVE YOUR HEALTH
4

.|
“Our Australasian portfolio
is the product of more
than two decades of careful
and deliberate analysis of
clinical need and then the
identification of medicines
that will improve patient
health outcomes.”
David Flacks | Chairman (left),
Dr Hartley Atkinson | Founder & CEO
CHAIRMAN AND CEO’S REPORT
Looking Confidently to the Future
Offering Investors Highly Defensive Revenue Streams
with Strong Growth Prospects
Dear shareholders,
If there is one message that investors should take from our performance during the 2022 financial
year, it is AFT Pharmaceuticals’ resilience and its ability to continue to grow in the face of adversity.
WORKING TO IMPROVE YOUR HEALTH
6
Yet again we have grown our business amongst
the turmoil in international markets, enabled by
the strength of our growing and highly defensible
Australasian business, which is founded on a
broad portfolio of more than 130 clinically proven
products for a diverse spectrum of therapeutic
applications.
This portfolio, which we continue to expand, is the
product of more than two decades of careful and
deliberate analysis of clinical need and then the
identification of medicines that will improve patient
health outcomes.
We have worked to meet these needs with
international partners to in-license medicines to
our home markets. However, in several important
instances we have either developed new medicines
or found novel applications for existing molecules
that we are now commercialising at home as well
as taking to international markets.
Of these medicines Maxigesic®, our novel non-
opioid family of pain relief medicines, is the
standout success. But we have a broad portfolio of
IP across a spectrum of therapeutic applications.
Importantly for shareholders, our consistent record
of success in both domains - in-licensing and the
development and commercialisation of our own
IP - has this year continued to offer investors a rare
proposition in New Zealand capital markets,
highly defensive revenue streams with strong
growth prospects.
Our Australasian business has grown steadily
year-on-year since the early 2,000s and delivered
consistent and attractive margins even in the
face of adversity such as we have seen since the
outbreak of the Covid pandemic more than two
years ago.
This consistent earnings stream is supported by a
growing Asian business. Meanwhile, our portfolio of
unique IP is delivering the company an additional
and rapidly growing source of high-margin revenue
both in Australasia and further afield.
It is thanks to these strengths – a strong defensible
and growing core and a growing international
business built on our unique IP – that directors have
announced, that they are introducing a dividend
policy and expect to declare a maiden dividend
to shareholders for the 2023 financial year .
Our move to setting a dividend policy is a strong
statement of confidence in AFT’s future.
The Board believes this policy (see below) allows
the company sufficient headroom to fund the
ongoing significant growth opportunities we
continue to see. It also helps signal to shareholders
our expectations of the returns they can expect
from their investment in the company and
demonstrates the discipline they expect
in the company’s allocation of capital.
Financial Results
Annual operating revenue for the 2022 financial
year grew by 15.2% to $130.3 million from $113.1
million in the same period a year ago. This is a highly
creditable performance given the disruption we
have seen in all markets at the hands of both the
Covid pandemic and the continuing congestion and
disruption in the international supply chain.
All regions posted strong revenue growth, with
Australia and New Zealand delivering growth of
12.3% and 14.9% respectively, despite Covid lagging
sales particularly in the third quarter. Meanwhile,
our faster growing Asian and international business
saw growth of 24.4% and 32.2% respectively,
although the pandemic still represented a
significant headwind in all markets. Further detailed
discussion of each of our core markets is included
on pages 11 to 13 of this report.
In line with our expectations, we benefited from
a traditionally stronger second half of the year
as Covid became endemic around the world and
we benefited from previously delayed product
launches in the second half of the year.
AFT PHARMACEUTICALS ANNUAL REPORT 2022
7
WORKING TO IMPROVE YOUR HEALTH
6

.|
Research and Development
We have continued to invest in the future of the
business. Research and development expenditure,
which includes new market development costs,
rose to $10.4 million from $9.4 million in the same
period a year ago. We expect it to remain at
this level for the future reflecting the size of our
programme and our intentions to continue research
and development work.
Key projects include the continued expansion
of the Maxigesic family of medicines, Nasosurf®
our patented nasal drug nebuliser, as well as a
number of confidential trials for applications
in dermatology, gastro-intestinal health, and
medicinal CBD products.
The one setback this year was the success of a
competitor which registered with the US FDA a
version of our Pascomer compound. It also gained
the lucrative ‘orphan status’ for its version of the
medicine for an exclusive period of seven years.
Still, we remain confident about the prospects for
the medicine in a variety of other applications.
The clinical trial program of the medicine for
non-orphan applications is ongoing and we are
looking forward to reporting the first findings
of the study later this year.
Further detail on our R&D programme is included
on page 18 of this report.
³Normalised net profit after tax is non-GAAP financial measure, which adjust the GAAP measure
of net profit after tax for extraordinary one-off gains and losses.
“Our move to setting a
dividend policy is a strong
statement of confidence
in AFT’s future.”
Balance Sheet and Dividend
AFT remains well funded. Net debt at the end
of the half year was $29.3 million, down from
$35.2 million a year ago. The company has met
its targeted net debt of $25 million to $30 million
outlined at the half year.
We have retained higher than normal inventory
levels as a buffer against ongoing disruption in
the global supply chain. This approach despite the
additional holding costs has provided considerable
support to the company over the last year,
largely ensuring continuity of supply across
our distribution networks and ongoing sales.
Now, reflecting our confidence in the business’
ability to build on its decades long record of growth,
we have today announced the commencement
of a dividend policy. Commencing in relation to
the 2023 financial year, the Board intends, all
other things being equal, to pay a dividend in the
20 – 30% range of normalised net profit after tax³
on an ongoing basis.
The declaration of any dividend remains at the
Board’s discretion and is subject to the usual
caveats including AFT’s earnings, overall financial
condition, the outlook for the industry in which
AFT operates and future capital requirements
or research and development investment
expectations.
.|
CHAIRMAN AND CEO’S REPORT
The result was also underpinned by revenue
generated from our unique IP, including growth
in product royalties, and licensing income and
income from the licensing of the intravenous
form of Maxigesic in the US market.
Gross profit increased by 26.7% to $61.8 from
$48.7 million in the same period a year ago while
margins improved 4.4 percentage points to 47.4%.
In some measure this reflected the strong growth
in licensing income following the licensing of
Maxigesic IV in the US but stripping out this high
margin licensing revenue, gross profit margins
still increased, primarily due to favourable
product mix and currency.
Operating profits have rose 90.6% to $20.4 million
from $10.7 million in the prior half year, a figure in
the middle of the guidance we issued in May last
year. Net profit after tax increased to $19.8 million
from $7.8 million in the same period a year ago.
Maxigesic
Maxigesic, the flagship of AFT’s IP commercialisation
programme, has delivered another strong
contribution to the company.
At the end of March, we had started selling the
tablet form of the medication in 46 countries up
from 43 at the same time last year. Maxigesic IV is
now sold in seven countries up from three last year,
while the programme to commercialise the oral
liquid formulation is still in its infancy.
Key successes in the still nascent programme have
included the licensing of Maxigesic IV for the US,
the FDA’s acceptance of our filing application to
register the medicine in that market, and its first
launches in European markets.
Maxigesic tablets are meanwhile now sold across
the major markets of Europe, and we are hopeful
of regulatory approval for tablets in the US
later this year. We continue to pursue licensing
agreements and registration across multiple
markets in Asia and South America.
We also launched Maxigesic hot drink sachets in
Australia. It is the first product of its kind in the
combined paracetamol/ibuprofen market, and
it has been well received by Pharmacies. The
medicine will be rolled out to additional markets.
These gains have been tempered by ongoing Covid
restrictions, which have both lagged sales and the
commercialisation programme in multiple markets.
Further detail is covered on pages 16 to 17
of this report.
AFT Operating and Net Profit
$25.00
$20.00
$15.00
$10.00
$5.00
$-
$(5.0)
$(10.0)
$(15.0)
FY2018FY2019FY2020*FY2021FY2022
Operating profit Profit after tax
AFT PHARMACEUTICALS ANNUAL REPORT 2022
9
WORKING TO IMPROVE YOUR HEALTH
8

Building AFT’s Brand Presence
Maxigesic Cold & Flu Hot Drink, which has been
launched in Australia and we believe is to launch
in New Zealand later in the current financial year,
is the first line extension of the Maxigesic range
in the over-the-counter pharmacy market.
The new product is an important achievement for
AFT. It is firstly the only product of its type in the
paracetamol/ibuprofen combination market,
and it is attracting premium pricing.
Additionally, the product enhances and expands
the Maxigesic brand presence on pharmacy shelves
and will leverage existing investments in the
marketing of other Maxigesic brands.
The product has been well received by Australian
pharmacists who are especially interested as this
product is only available in the Pharmacy channel
whilst its main competitor (a paracetamol only
product) is available in the grocery channel.
The powder for an oral liquid hot drink is a unique
combination of paracetamol and ibuprofen in
the same patented synergistic 3.3:1 ratio as other
Maxigesic dose forms.
It has two strengths being Paracetamol 1000mg
+ Ibuprofen 300mg and Paracetamol 500mg +
Ibuprofen 300mg per sachet and expands the
choices available to customers combatting the
symptoms of cold and flu.
New Product Launches Drive
Australian Growth
Sales in Australia grew by 12.3% to $76.7 million
from $68.3 million in the prior year and now
represent 59% of group operating revenue.
Operating profit rose to $15.7 million from
$7.9 million in the prior year.
The OTC channel has been hindered by Covid
lockdowns and restrictions but has grown at 10.9%
and is generating 61.5% of total Australian revenue.
Revenue growth for the year was assisted by new
launches already planned and deferred launches.
Key product launches included our preservative
free treatment for eye infections, Ocuzo, our allergy
product, Allerclear, our Hemptuary dermatology
range and our new Optisoothe 3-in-1 eyecare
treatment kit for dry eye. The company has a
strong programme of at least 20 product launches
planned for the coming year.
Maxigesic sales were impacted by Covid
restrictions but have regardless grown over the
year. The brand maintains its leadership of the
paracetamol/ibuprofen combination section of
the pain management market. We also launched
the hot-drink sachet line extension, and it has
been well received.
Meanwhile, our success in a comparative
advertising case against Reckitt & Benckiser
has now released us from a number of onerous
advertising constraints on Maxigesic. We are now
well positioned to drive Maxigesic volume growth
with more effective advertising.
Our eyecare range continues to deliver good
growth. We retain the number two position in the
lubricating eyecare category in Australia and the
number one selling product.
The Hospital channel grew by 15.4%, due to the
return to more usual levels of antibiotic sales,
with the return to business as usual in hospitals,
together with strong growth in newly launched
products. Further new product launches in this
sector are anticipated to continue to drive growth
going forward.
The Prescription channel grew at 12.9% with
the launch of further new products, with other
products, such as penicillin oral liquid, returning
to more usual sales levels.
REGIONAL PERFORMANCE: AUSTRALIA
AUSTRALIAN SNAPSHOT
DISTRIBUTION
6,000
PHARMACIES
PRODUCTS
70
across seven therapeutic categories:
pain, eyecare, medicated vitamins,
allergy, gastrointestinal health,
dermatology, and hospital
REVENUE
$76.7m
40 STAFF
Sustainability and People
Building on the prior year’s stock take of our
environmental, social and governance (ESG)
performance, we have this year undertaken a
detailed analysis of the ESG matters that are
material to our business.
We have also established a framework that will
drive our efforts to realise the opportunities
we see, manage the risks to our business and
ensure we are meeting the expectations of
stakeholders. Our progress and our priorities are
set out on pages 20 to 33 of this report.
While the process has demonstrated opportunities
for further development, it clearly shows, within a
well understood framework, that we are effectively
managing the relevant ESG issues.
A key element of this plan is looking after our
people and ensuring that we operate a culture that
ensures we can attract and retain the talent we
need. Covid has presented numerous challenges
for our people over the last year, including lock
downs, social distancing, and the ongoing limits
to face-to-face meetings and travel.
We have worked hard to ease the burden on our
people, but equally they have shown their usual
commitment and enthusiasm for the task at hand.
On behalf of shareholders, we thank them for their
ongoing efforts.
Outlook
We continue to see considerable opportunities
to accelerate growth and have significantly
increased both our in-licensing and product
R&D pipeline activities. We also believe the
gradual move worldwide to living with Covid
and our ability to now travel across borders
to meet with both existing and new customers
will allow a gradual return to a more normal
trading environment.
We have already identified a broad portfolio
of new products we have in-licensed into our
domestic and Asian markets, and additionally we
see considerable potential for our own intellectual
property in these markets and further afield.
We also see significant opportunities to accelerate
our growth with investments into sales and
marketing and e-commerce initiatives both at
home and offshore. The contribution of these
opportunities will be bolstered by the ongoing
roll out of Maxigesic and its line extensions in
international markets and after this, products from
our expanded R&D pipeline.
On this basis we now expect operating profit for
the year to 31 March 2023 to range between
$27 million and $32 million.
AFT continues with its customary practice of
setting a wide range for its guidance. The approach
recognises the wide range of outcomes that may
flow from the ongoing international supply chain
difficulties, uncertainty over the timing and success
of planned product launches, the pace of the
roll out of the Maxigesic family of medicines.
We look forward to providing a further update
at our annual meeting in August.
David Flacks Dr Hartley Atkinson
Chair Founder and
Chief Executive Officer
WORKING TO IMPROVE YOUR HEALTH
10
AFT PHARMACEUTICALS ANNUAL REPORT 2022
11

Sales to the rest of the world grew 32.2% to
$13.1 million from $9.9 million and represented
10% of group operating revenue.
License income of $6.7 million is up significantly
from the $2.1 million in the prior year. Royalties
earned from licensees’ in-market sales grew 96.7%
to $0.5 million from $0.2 million. A return to
stronger growth following the easing of restrictions
together with launches in new markets also helped.
Asian Sales Lifted by Hospital Channel Growth
Sales in Asia grew 24.4% to $5.5 million from $4.4
million and generated 4% of group operating revenue.
Operating profits declined to $0.6 million from $1.4
million primarily due to product mix, with hospitals
stockpiling lower margin injectable antibiotics
The OTC channel remained flat with growth in sales
in Malaysia offset by lower sales in Singapore which
had benefitted in the prior year from pandemic
stockpiling of Maxigesic.
The T-Mall flagship store consolidated this year
whilst preparing for the launch of our OTC products.
The store is part of a pilot scheme through Alibaba.
Our ‘Kiwi Health’ website will launch 10+ OTC
products before September 2022 and will be the
first New Zealand flagship store to do so. This will
allow AFT to leverage its unique positioning and
product registrations in New Zealand by making
them available to purchase by Chinese consumers
through cross-border e-commerce.
The Hospital and Prescription channels grew
32% due primarily to strong anti-bacterial sales.
Leveraging Partnerships
to Drive Growth
AFT Pharmaceuticals signed an exclusive distribution
agreement with ASX-listed McPherson’s.
The move is aimed at maximising the potential for
AFT’s OTC medicines in Singapore, where the OTC
market is worth approximately US$600 million
and is forecast to grow at around 5.45% to reach
US$800 million by 2026⁴. It is also part of AFT’s
broader strategy to grow its presence in Asia.
McPherson’s will distribute and market the tablet
form of AFT’s patented Maxigesic pain relief
medicine, launched in Singapore in 2018, AFT’s
premium Liposomal Products as well as a number
of other newly registered pharmaceuticals.
The agreement seeks to leverage McPherson’s
experienced sales and marketing teams in
Singapore and will ensure channel strategies and
product and merchandising activations are tailored
to the local market.
Additionally, the growth of licensee and distributor
sales of products AFT has developed has
kicked off with the launch of Maxigesic IV in the
Korean market by our local partner Kyongbo
Pharmaceuticals. Going forward we see a number
of launches of our products throughout Asia.
ASIA SNAPSHOT
DISTRIBUTION
Direct, agreements
McPherson’s and online
via T-Mall
PRODUCTS
Branded proprietary and generic
products focussed on four
therapeutic areas: pain; vitamins;
dermatology; hospital
REVENUE
$5.5m
2
STAFF
However, overall sales to partners decreased
due to prior year stockpiling and then significant
constraints to in-market sales due to the effects
of the Covid pandemic, primarily across Europe.
Despite these constraints in-market sales recovered
strongly toward the end of the financial year as
evidenced by greater royalties than the prior year.
Operating profit of $4.2 million was up significantly
on the prior year’s $1.4 million with the increase
in revenues partially offset by the additional
investment made into research and development.
REGIONAL PERFORMANCE ASIA AND GLOBAL
Maxigesic Licensing Drives Global
Revenue Growth
⁴https://www.marketdataforecast.com/market-reports/singapore-over-the-counter-drugs-market
New Zealand Enjoys Covid Recovery
Sales in New Zealand grew strongly by 14.9% to
$35.1 million from $30.5 million in the prior year
and represented 27% of group operating revenue.
Operating profit, excluding head office costs,
increased to $5.2 million from $4.0 million in
the same period a year ago.
The OTC channel grew by 18.4% to $20.1 million
from $16.8 million. This primarily reflects a return
to more normal sales and rates of growth as Covid
restrictions, most notably at the start of the prior
financial year, receded.
There was some drop off in general OTC sales
following the re-introduction of lockdowns in
Auckland in Spring 2021 with growth returning
as these eased. Growth has been aided by new
product launches including the Optisoothe 3 Step
Eyecare Pack, Crystamed First Aid Kit, Hemptuary
line extensions and Ferro Lipo-Sachets,
The Hospital channel grew at 6.3% to $5.1 million
from $4.8 million with the return of hospitals to
more business as usual. The prescription channel
grew at 11.0% to $9.8 million from $8.9 million with
sales growth of a number of existing products as
the easing of restrictions allowed more regular
GP visits. New products also assisted growth
in the channel.
Product Innovation: An Eyecare
Regime in a Single Packet
Opti-Soothe® 3 Step Eyecare Pack
- AFT Pharmaceuticals
Our Opti-Soothe® Eyecare Pack is a clear
demonstration of AFT’s ability to identify and
then deliver solutions to meet the healthcare
needs of our customers.
The kit, which has seen strong uptake in
New Zealand and is set to roll out in Australia
contains three preservative free, highly
effective products that are recommended by
optometrists and ophthalmologists.
The pack is tailored to address the cause
of, and treat all the symptoms of, Dry Eye
Disease with a 3-step approach that is
founded on best practice (soothing with
a heat mask, cleansing, and lubricating),
One in five people suffer from Dry Eye Disease
and the prevalence is increasing due to our
modern lifestyle and environmental factors
such as increased screen use, decreased
blink rate, air conditioning, climate change
and our aging population to name just a few.
Dry Eye occurs when the tear film that
coats our eyes is insufficient to keep them
adequately lubricated. This could be due to
reduced tear production (Aqueous Deficient
Dry Eye), excessive tear evaporation
(Evaporative Dry Eye), or a combination
of both. The lack of moisture can lead to
a range of symptoms, including irritation
of the eye, dryness, stinging and a scratchy
or gritty feeling.
NEW ZEALAND SNAPSHOT
DISTRIBUTION
900
PHARMACIES
PRODUCTS
130
across seven therapeutic categories:
pain, eyecare, medicated vitamins,
allergy, gastrointestinal health,
dermatology, and hospital
REVENUE
$35.1m
56
STAFF
REGIONAL PERFORMANCE: NEW ZEALAND
WORKING TO IMPROVE YOUR HEALTH
12
AFT PHARMACEUTICALS ANNUAL REPORT 2022
13

Belgium & Luxembourg - Tablets re-launching 2022
IV licensed
France - Tablets launching 2022
IV licensed
Spain & Portugal - Tablets launched 2019
IV licensed
EasternEurope&Balkans -
Tablets launched
Eastern Europe - IV licensed
Iraq & Kurdistan - Tablets launched
Australia-No.#1Para-IbuCombo.
Growing market share
-Maxigesic IVlaunched
United Arab Emirates -
Tablet sales strong
Maxigesic IV launched
Italy - Tablet sales growing
IV licensed
Greece - Tablets launched 2021
IV licensed
Germany - Tablets launched 2020
IV licensed
Switzerland - Tablets launched 2021
Brazil - licensing
negotiations underway
Columbia, Peru & Chile -
distributor appointed Orals
Mexico - Tablets launched 2021
IV licensed
CACM - Tablets launched
IV launched
USA - IV licensed
Canada - Tablets launched 2021
Singapore & Brunei - Tablets launched
Russia -
on hold
China - licensing negotiations underway
Taiwan - Tablets licensed
Korea - IV launched 2022
Japan-licensing
discussions
areunderway
Indonesia - IV registered
Pakistan -
distributor
appointed
for IV
Malaysia - Tablets launched
Phillipines - AFT to sell post
registration via distributor
Vietnam - distributor appointed for IV and Orals
Thailand - IV licensed
Austria - IV licensed and launched 2021
Netherlands - IV licensed
United Kingdom - Tablets launched
IV licensed
Nordics - Tablets launched
IV licensed
Ireland - Tablets launched
IV licensed
Poland - IV and Orals licensed
NZ - Maxigesic, Maxigesic PE,
Maxigesic IV launched
Maxigesic Hot Drink launched 2022
Launched
Launch Pending
Available
Belgium & Luxembourg - Tablets re-launching 2022
IV licensed
France - Tablets launching 2022
IV licensed
Spain & Portugal - Tablets launched 2019
IV licensed
EasternEurope&Balkans -
Tablets launched
Eastern Europe - IV licensed
Iraq & Kurdistan - Tablets launched
Australia-No.#1Para-IbuCombo.
Growing market share
-Maxigesic IVlaunched
United Arab Emirates -
Tablet sales strong
Maxigesic IV launched
Italy - Tablet sales growing
IV licensed
Greece - Tablets launched 2021
IV licensed
Germany - Tablets launched 2020
IV licensed
Switzerland - Tablets launched 2021
Brazil - licensing
negotiations underway
Columbia, Peru & Chile -
distributor appointed Orals
Mexico - Tablets launched 2021
IV licensed
CACM - Tablets launched
IV launched
USA - IV licensed
Canada - Tablets launched 2021
Singapore & Brunei - Tablets launched
Russia -
on hold
China - licensing negotiations underway
Taiwan - Tablets licensed
Korea - IV launched 2022
Japan-licensing
discussions
areunderway
Indonesia - IV registered
Pakistan -
distributor
appointed
for IV
Malaysia - Tablets launched
Phillipines - AFT to sell post
registration via distributor
Vietnam - distributor appointed for IV and Orals
Thailand - IV licensed
Austria - IV licensed and launched 2021
Netherlands - IV licensed
United Kingdom - Tablets launched
IV licensed
Nordics - Tablets launched
IV licensed
Ireland - Tablets launched
IV licensed
Poland - IV and Orals licensed
NZ - Maxigesic, Maxigesic PE,
Maxigesic IV launched
Maxigesic Hot Drink launched 2022
Launched
Launch Pending
Available
Maxigesic Reaching for US$59.5 Billion Market
5

5Source: www.expertmarketresearch.com/reports/analgesics-market
Belgium & Luxembourg - Tablets re-launching 2022
IV licensed
France - Tablets launching 2022
IV licensed
Spain & Portugal - Tablets launched 2019
IV licensed
EasternEurope&Balkans -
Tablets launched
Eastern Europe - IV licensed
Iraq & Kurdistan - Tablets launched
Australia-No.#1Para-IbuCombo.
Growing market share
-Maxigesic IVlaunched
United Arab Emirates -
Tablet sales strong
Maxigesic IV launched
Italy - Tablet sales growing
IV licensed
Greece - Tablets launched 2021
IV licensed
Germany - Tablets launched 2020
IV licensed
Switzerland - Tablets launched 2021
Brazil - licensing
negotiations underway
Columbia, Peru & Chile -
distributor appointed Orals
Mexico - Tablets launched 2021
IV licensed
CACM - Tablets launched
IV launched
USA - IV licensed
Canada - Tablets launched 2021
Singapore & Brunei - Tablets launched
Russia -
on hold
China - licensing negotiations underway
Taiwan - Tablets licensed
Korea - IV launched 2022
Japan-licensing
discussions
areunderway
Indonesia - IV registered
Pakistan -
distributor
appointed
for IV
Malaysia - Tablets launched
Phillipines - AFT to sell post
registration via distributor
Vietnam - distributor appointed for IV and Orals
Thailand - IV licensed
Austria - IV licensed and launched 2021
Netherlands - IV licensed
United Kingdom - Tablets launched
IV licensed
Nordics - Tablets launched
IV licensed
Ireland - Tablets launched
IV licensed
Poland - IV and Orals licensed
NZ - Maxigesic, Maxigesic PE,
Maxigesic IV launched
Maxigesic Hot Drink launched 2022
Launched
Launch Pending
Available
AFT PHARMACEUTICALS ANNUAL REPORT 2022
15
WORKING TO IMPROVE YOUR HEALTH
14

Maxigesic Commercialisation Progress
April 2021
Maxigesic IV licensed to Hikma (Maxigesic/Combogesic IV – USA)
Maxigesic tablets launched in Switzerland
May 2021
Maxigesic IV licensed to Pharma Bavaria (Maxigesic IV – Bolivia, Chile,
Columbia, Ecuador, Peru, Uruguay)
July 2021
Maxigesic IV launched in Germany and Austria
September 2021
Maxigesic Oral Liquid gets first regulatory approval in Europe (Italy and Malta
Maxigesic IV registered in South Korea and Panama
October 2021
Maxigesic IV registered in the UK and Ireland
Maxigesic tablets launched in Greece
November 2021
US FDA accepts new drug application for Maxigesic IV
US FDA confirms it will respond to Maxigesic IV filing by 30 June 2022
December 2021
Australian Federal Court upholds Maxigesic comparative advertising claims
in favour of AFT clearing the way for increased marketing investment
March 2022
Maxigesic IV launched in Korea
Maxigesic IV launched in Panama
MAXIGESIC COMMERCIALISATION
Product
Maxigesic
Tablet
Maxigesic IV
Maxigesic
Oral Solution*
Maxigesic
Hot Drink*
Territories
31 March
2022
31 March
2021
31 March
2022
31 March
2021
31 March
2022
31 March
2021
31 March
2022
31 March
2021
Licensed100+100+100+100+100+100+100+100+
Registered524937212-1-
Sold in464373--1-
.|
Maxigesic Roll Out Progresses
in Covid Headwind
Steady Progress, but Sales Lagged by Restrictions
Maxigesic continues its steady roll out around
the globe. The three initial dose forms in the
commercialisation programme, tablets, related
oral dose forms, and the intravenous form,
Maxigesic IV, have been licensed in the majority
of territories around the world.
Our focus with these products is moving them to
the next stages of the programme of registration
with local regulatory authorities and then to sale.
We have made good progress with all the dose
forms as the table on the page opposite shows.
Lockdowns, social distancing and severe restrictions
on customer movements in pharmacies have
lagged sales in the OTC market.
In hospital settings, where the hospital sales teams
need to access the clinicians to extol the merits of
the analgesic, have faced similar restrictions and
only now, as the virus becomes endemic, are much
needed face-to-face meetings resuming.
In the face of these challenges, an increase in the
number of countries where the tablets are sold
to 46 from 43 at the same time last year and
the accelerating roll out of Maxigesic IV is a
creditable result.
The commercialisation programme is still in its
infancy. In addition to the still substantial number
of countries that are yet to begin selling the three
initial dose forms, there is a long pipeline of new
dose forms that are still to be launched.
As we have detailed earlier (see Australia page 11),
we have launched the hot drink sachet dose form of
the medication and we expect to follow this with a
paediatric and rapid dose form, another treatment
kit for cold and flu and a dry stick sachet version.
The US remains a key target market for Maxigesic in
all its does forms. We were gratified at the start of
the financial year to license the intravenous form to
Hikma Pharmaceuticals, which is the third largest US
supplier of generic injectable medicines by volume,
with a growing portfolio of over 100 products.
We are expecting to receive FDA notification on
the progress of our registration application for
Maxigesic IV in late June of this year. Both the
license agreement and the FDA acceptance of
our application have led to progress payments
from our licensee.
All things going well, we expect our licensee to
commence sales of Maxigesic IV in the US later
this financial year.
We meanwhile continue to pursue registration
of the tablet form of the medication in the US.
We are confident of success as we were notified
by the FDA in 2020 that the only significant barrier
to the company obtaining registration was a
Good Manufacturing Practice (GMP) audit of the
company’s manufacturing facilities.
We are expecting notification on the success of
registration imminently, but are still considering
the best approach to market.
AFT PHARMACEUTICALS ANNUAL REPORT 2022
17
WORKING TO IMPROVE YOUR HEALTH
16

AFT Intellectual Property Projects
MAXIGESIC
Analgesic
• Analgesic market size US$59.5 billion⁷
• Maxigesic IV development partner Hyloris (EU)
• New Products
- Hot drink sachet (launched)
- Paediatric oral liquid (first approvals in Europe)
- Cold & Flu (filed registration in ANZ)
- Rapid (awaiting registration in US)
- Day & Night (seeking registration in ANZ)
- Dry stick sachet (slated for 2023 filing in ANZ)
PASCOMER D
Dermatology applications including the treatment of facial
angiofibroma associated with tuberous sclerosis complex
and and other indications.
• Clinical studies under way and due to
deliver first results in mid-2022
• Minimum addressable market US$27 million⁸
• Development partner Timber
Pharmaceuticals (US)
NasoSURF
Ultrasonic nasal mesh nebuliser used for the intranasal
delivery of medication and treatment of sinus conditions.
• Early research indicates that it has several
advantages over the existing market leading
nebulisers
• Pharmacokinetic proof of concept underway,
results due this financial year
• Addressable market, initial application
~ US$1 billion⁹
⁶ Source: https://www.expertmarketresearch.com/reports/analgesics-market
⁷ https://www.expertmarketresearch.com/reports/analgesics-market
⁸ Edison and company estimates covering facial Angiofibroma in EU and ANZ and undisclosed larger non-orphan indications.
⁹ Company estimate
PROJECT HS
Topical analgesic
• Looking to develop and license AFT IP
in new territories
• Low development risk
• Dossier due to be filed with ex-ANZ
regulators in 2022
• Addressable market US$30 million⁹
PROJECT BT
Gastrointestinal medicine
• Looking to develop and license AFT IP
in new territories
• Low development risk
• Dossier due to be filed in ANZ in 2022
• Addressable market circa US$200 million⁹
PROJECT KW
Gastrointestinal medicine
• Developing two formulations and AFT IP position
• Early-stage development
• Addressable market in excess of US$700 million⁹
PROJECT SD
Dermatology medicine
• Looking to develop and license AFT IP
in new territories
• Low development risk
• Dossier due to be filed in ex-ANZ in 2022
• Addressable market US$200 million⁹
Medicinal CBD
Application confidential
• Partner Setek
• Ongoing product development work
• Addressable market US$3 billion⁹
INNOVATION, RESEARCH AND DEVELOPMENT
Research and Development
A Strong Pipeline Supported by Research and Development
AFT’s intellectual property development pipeline
spans a broad range of therapeutic applications
and medicines.
Research and development expenditure, which
includes new market development costs, rose to
$10.4 million from $9.4 million in the same period
a year ago.
We expect it to remain at this elevated level for the
future reflecting the size of our programme which
we anticipate will be ongoing.
Maxigesic has attracted the lion’s share of
investment as we move into new markets and
new dose forms. However, we have added five
projects (HS, BT, KW, SD & Medicinal CBD) see
the table to the right to our pipeline, which now
includes three late-stage projects (HS, BT & SD)
and presently we are in discussions for a number
of additional projects as we actively seek to
strengthen our R&D pipeline and utilise our
R&D and clinical trial capabilities
4Merry et al (2010). “Combined acetaminophen and ibuprofen for pain relief after oral surgery in adults: a randomized controlled trial” British Journal of
Anaesthesia 104(1): 80-88. Result achieved in a trial of post-operative pain relief after removal of 1-4 wisdom teeth using 2 tablets MAXIGESIC® compared
with paracetamol 1000mg or ibuprofen 300mg alone 4 times a day (paracetamol 4000mg or ibuprofen 1200mg per day). Results assessed on the
Intention-to-treat (ITT) patient population, including data following the use of rescue medication. Research sponsored by AFT Pharmaceuticals
5Daniels et al (2018). “Analgesic Efficacy of an Acetaminophen/ibuprofen Fixed- dose Combination in Moderate to Severe Postoperative Dental Pain:
A Randomized, Double-blind, Parallel-group, Placebo-controlled Trial”, Clinical Therapeutics 40 (10): 1765-1776. Result achieved in a trial of post-operative
pain relief after removal of at least 2 wisdom teeth using MAXIGESIC® (paracetamol 975mg/ibuprofen 292.5mg) compared with paracetamol 975mg
or ibuprofen 292.5mg alone 4 times a day (paracetamol 3900mg or ibuprofen 1170mg per day). Study results assessed on the intent-to-treat (ITT)
population with adjustment for the use of rescue medication. MAXIGESIC® 975/292.5mg US combination is bioequivalent in fed/non-fasting conditions to
MAXIGESIC® 1000/300mg NZ combination at full dose (Aitken et al., J Bioequiv Availab 2018, 10:5). Research sponsored by AFT Pharmaceuticals.
Risk Sharing
Pascomer Partnership Delivers Protection
Research and development partnerships (Hyloris
for Maxigesic IV and Timber Pharmaceuticals for
Pascomer) ensure the risks associated with new
product development are not all borne by AFT.
The benefits of this approach were brought into
stark relief this year when Japan’s Nobelpharma
secured registration for a topical treatment for
facial angiofibromas (FA) associated with Tuberous
Sclerosis Complex (TSC).
Disappointingly, this was the initial indication we
were pursuing for Pascomer and it used the same
molecule (Rapamycin).
Nobelpharma’s medicine was also granted orphan
status for FA in TSC, which means it has gained
lucrative exclusivity in the US for the treatment of
the condition for a period of seven years. AFT and
its partner were always aware that a competitor
could beat us to the punch and the subsequent risk
sharing has ensured we have been protected from
the downside of our competitor’s success.
However, our enthusiasm for the product remains in
alternative and larger non orphan indications where
being first to market is not essential, not least
because we have an easier to use product.
Specifically, the Nobelpharma product is only
stable under refrigerated conditions for 12 months,
while the AFT proprietary formulation has resulted
in a product stable at room temperature for
36 months.
Our research trial of the medicine for FA in TSC
is continuing and is due to deliver results in the
middle of this year. With our partner we expect to
continue to extend the trial to examine its efficacy
in the treatment of a range of other ailments.
AFT PHARMACEUTICALS ANNUAL REPORT 2022
19
WORKING TO IMPROVE YOUR HEALTH
18

Working to Improve Your Health
AFT Pharmaceuticals has delivered a decades-long record of growth built on integrity and a clear
purpose of working to improve the health of its customers and the communities it serves.
It is a mission that has at its heart a commitment
to sustainability, the maintenance of corporate
governance practices that are aligned with
best practice and high ethical standards, and
a determination to contribute positively to
environmental and social outcomes.
Building on the prior year’s stock take of our
environmental, social and governance (ESG)
performance, we have this year undertaken a
detailed analysis of the ESG matters that are
material to our business. We have also established
a framework that will drive our efforts to realise
the opportunities we see, manage the risks to
our business and ensure we are meeting the
expectations of all our stakeholders.
Focusing on What Matters
Our analysis of the material sustainability issues
facing AFT was designed to help us better
understand the ESG issues that matter most to
our business and our stakeholders. It was also
designed to ensure we are focussed on those
areas where we can have the greatest impact.
10
Ethical and sustainable supply chains are categorised as a governance issue, as it encompasses the management
oversight of both environmental and social performance of contract manufacturers, license holders and other suppliers.
In the context of our status as a publicly listed
company, ‘material’ matters are those that
a reasonable person would consider having
an impact on the company’s valuation or the
sustainability of our operations. However, in
line with best practice ESG standards we also
considered those topics that reflect AFT’s most
significant impacts on the economy, environment,
and people.
The assessment commenced with a comprehensive
review of AFT’s current ESG activity. This work
was followed by a review of materiality in the
global pharmaceutical industry and a survey
of AFT leadership’s views on material matters.
From there we derived a long list of material topics
relevant to AFT. We then engaged with external
stakeholders to determine external views of what
mattered most. The stakeholders represented
investors; suppliers; retailers; corporate lawyers;
corporate bankers; New Zealand Government trade
officials; environmental member organisations; and
distribution and wholesale partners. The result of
this engagement is set out in the matrix below.
10

100
90
80
70
60
50
40
Business Priorities
Ethical & sustainable
supply chains
Product quality &
safety of medicines
Consumer/patient
good health
40 50 60 70 80 90 100
Product Innovation R&D
Employee Health,
Safety & Wellbeing
Access to medicines
Alternatives to opioids
& opioid addiction
Workforce: Diversity & Inclusion
Attraction & Retention
Climate change
Packaging: Consumer
& supply chain
Ethical business practices
including marketing
Corporate Governance,
compliance & transparency
Stakeholders Priorities
Environmental
Social
Governance
ESG matters material to AFT’s business
SUSTAINABILITY:
AFT Pharmaceuticals is built
on integrity and a clear purpose
of working to improve the health
of its customers and the
communities it serves.
AFT PHARMACEUTICALS ANNUAL REPORT 2022
21
SUSTAINABILITY
WORKING TO IMPROVE YOUR HEALTH
20

ENVIRONMENT
Minimising the
environmental impact
of our business and
supply chain
SOCIAL
Enhancing the
health and wellbeing
of people
GOVERNANCE
Best practice governance,
stakeholder transparency
and an ethical and
sustainable value chain
Packaging (consumer
and supply chain)
Climate change
Consumer/patient
good health
Product innovation/R&D
Product quality and
safety of medicines
Access to medicines
Alternatives to opioids
and opioid addiction
Employee health,
safety and wellbeing
Workforce
Diversity and inclusion
Attraction and retention
Corporate governance,
compliance, and
transparency
Ethical and sustainable
supply chains
Ethical business
practices
5.
Waste
minimisation
1.
Improving health
and wellbeing
2.
Best practice
corporate governance
6.
Understanding our
climate-related risks
and taking action
4.
Supporting
and developing
AFT people
3.
Ethical
and sustainable
value chains
Our Mission:
Working to Improve Your Health
AFT is committed to enhancing the health and wellbeing of people and communities
in the markets we serve and operating a sustainable business.
Material topics
(As identified in the Materiality

Assessment of January 2022)
ESG priorities
AFT PHARMACEUTICALS ANNUAL REPORT 2022
23
Setting our Priorities
Based on our materiality assessment we have
developed our first ESG framework opposite.
The framework clearly sets out the material issues
and identifies what we see are the six ESG priorities
for the business and the areas where we will focus.
Underneath each of the six priorities we have
identified areas of focus, which set out what we
will do to deliver on our priorities. The framework
is used to guide internal decision making and
investment and track progress and report publicly.
This process has given us confidence that we
are focussed on priority ESG matters that will
have the greatest impact and represent our
stakeholder interests.
As in previous years, we continue to map our
business and community initiatives onto the
United Nation’s Sustainable Development Goals to
show how our efforts fit within a large and robust
vision for positive global change. This process has
resulted in a refinement of the goals to the six
where we believe we can make meaningful change.
UN SUSTAINABLE DEVELOPMENT GOALS
The UN sustainable development goals are
a collection of 17 interlinked global goals
designed to be a blueprint to achieve a
better and more sustainable future for all.
The goals were established in 2015 by the
United Nations General Assembly and are
intended to be achieved by the year 2030.
At AFT we believe we can meaningfully
contribute the six of the goals.
More information on the goals can be
found here: https://sdgs.un.org/goals
Good Health and Wellbeing
Ensure healthy lives and promote
well-being for all at all ages.
Gender Equality
Achieve gender equality and
empower all women and girls.
Decent Work and
Economic Growth
Promote sustained, inclusive,
and sustainable economic
growth, full and productive
employment, and decent work
for all.
Reduced Inequalities
Reduce inequality within and
among countries.
Responsible Production
and Consumption
Ensure sustainable consumption
and production patterns.
Climate Action
Take urgent action to combat
climate change and its impacts.
.|
AFT PHARMACEUTICALS ANNUAL REPORT 2022
23
WORKING TO IMPROVE YOUR HEALTH
22
SUSTAINABILITY

Product Safety and Quality
Efficacy of a medicine means nothing without
the highest standards of product safety and
quality. We recognise them as being at the
foundations of our business, our financial
well-being, and our corporate reputation.
We also understand that the multiple national
regulators that approve our products for sale
around the world and our customers and sales
and distribution partners will accept nothing less.
Whenever we take a new medicine to market or
in-license a product we must meet the stringent
regulatory requirements set and administered by
national food and medicine regulators. Registration
of a medicine requires independent analysis and
approval of the therapeutic claims we make and
the evidence and research we have undertaken
to make those claims. Registration also requires
AFT to file and update safety information with
regulators and maintain product traceability
information. It also requires compliance with
Good Manufacturing Practice (GMP) to ensure our
products are consistently produced, controlled,
and shipped according to nationally mandated
quality standards.
A member of the executive team is dedicated
to managing and complying with regulatory
process while another oversees our research and
development processes.
We and our licensees monitor the markets in which
we operate to ensure counterfeits or copies of
our medicines are not being sold. Meanwhile our
brands and anti-tamper devices in our packaging
such as seals, and blister packs protect us against
product interference, and we continually review
new technologies and practices to ensure we
evolve with the industry.
We also operate a Board-level committee, the
Regulatory and Product Development Oversight
Committee, which oversees our regulatory and
risk management framework and the company’s
product labelling system. The committee charter
is available on the investor section of our website.
AFT relies on New Zealand educational and
research institutions to train the people we need
to grow and thrive. Recognising the immense
value these institutions generate through public
good research and cooperation with the private
sector, we this year contributed $100,000 to the
University of Auckland Medical Health Sciences
Foundation for anaesthesiology research.
AFT has a long-standing association with the
University’s Medical Health Science Professor
Brian Anderson, who specialises in paediatric
anaesthesia, paediatric intensive care paediatric
and pharmacology. The gift is aligned with the
company’s determination to work in partnership
with organisations and people who are involved
in the business and to gift to areas where we
believe we can have the greatest impact.
PRIORITY 1
Improving Health and Wellbeing
Focus areas:
BETTER HEALTH AND WELLBEING FOR PATIENTS AND COMMUNITIES
BEST PRACTICE QUALITY AND SAFETY SYSTEMS FOR MANUFACTURING AND DISTRIBUTING MEDICINES
INNOVATION IN RESPONSE TO PATIENT NEED
PROVIDING ALTERNATIVE PAIN RELIEF TO OPIOIDS
Improving the health of our customers is the reason
we exist, and we are determined to be good to our
word by researching, developing, commercialising,
and distributing medicines and other healthcare
products that are proven to deliver improvements.
We will never lean on pseudo-science or spin to
imply efficacy.
In the past year alone, we spent $10.4 million on
research and development. This level of spending
is in line with our spending over the last two
decades. These resources have been devoted to
tracking and responding to our customers’ needs,
funding clinical trials to prove the efficacy of our
Maxigesic family of pain relief medicines and other
products such as Pascomer, our treatment for a
disfiguring and distressing skin disease.
We are also reaching out to clinicians and other
healthcare professionals to inform them about,
and encourage the use of, our products.
We apply the same standards to the products
we in license from our networks around the world.
Leveraging our global partnerships, we identify
solutions to meet hitherto unmet needs in our
home markets of Australia, New Zealand and turn
only to those products where there is a body of
evidence that attests to the benefits they offer.
Finally, all research and clinical trials are conducted
and are subject to ethical and patient safety
standards that are administered by independent
oversight bodies such as the US Food and Drug
Administration, Australia’s Therapeutic Goods
Administration, New Zealand’s Medicines and
Medical Devices Safety Authority among many
others as well as ethical research oversight bodies
in the countries where we are conducting
clinical research.
Supporting Public Good Research
Professor Brian Anderson with student James Morse
WORKING TO IMPROVE YOUR HEALTH
24
AFT PHARMACEUTICALS ANNUAL REPORT 2022
25
SUSTAINABILITY

PRIORITY 2
Best Practice Corporate Governance
Focus Areas:
COMPLYING WITH ALL RELEVANT LEGAL AND LISTING REQUIREMENTS
ESG REPORTING AND TRANSPARENCY
AFT Pharmaceuticals is committed to maintaining corporate governance standards in line with best
practice and high ethical standards. This commitment recognises good governance is fundamental
to our business success. It puts in place clear standards of oversight and risk management
and ensures accountability to all our stakeholders.
We have continued to evolve our governance
framework notably with the steps we have taken to
report our performance on material ESG matters
within a robust framework. Our advances this
year represent a significant step forward for the
company, but it does not represent an endpoint.
Our focus in the coming year will be the further
development of the strategies in our six priority
areas and the development of objective metrics that
all stakeholders can rely on to assess our progress.
Finally, we have this year strengthened oversight of
our supply chain with the introduction of a Modern
Slavery Policy and Statement and introduced an
Anti-Bribery and Anti-Corruption Policy.
NZX and ASX Listing Rules
We meanwhile continue to ensure that our
governance framework is aligned with our
obligations as a listed company and the prevailing
standards of good corporate behaviour.
The AFT Board has had regard to the NZX Listing
Rules and a number of corporate governance
recommendations when establishing its governance
framework, including the Third and Fourth Editions
of the Australian Securities Exchange (ASX)
Corporate Governance Council Principles and
Recommendations (notwithstanding AFT is not
required to follow these recommendations due to
its ASX Foreign Exempt Listing) and the current
NZX Corporate Governance Code (NZX Code).
The NZX Listing Rules require AFT to formally
report its compliance against the recommendations
contained in the NZX Code. How AFT has
implemented these recommendations is set
out in AFT’s Corporate Governance Statement.
Except to the extent outlined in the Corporate
Governance Statement, the Board considers
that AFT’s corporate governance structures,
practices and processes have followed all of the
recommendations in the NZX Code in the financial
year to 31 March 2022.
AFT’s Corporate Governance Statement and
governance charters and policies can be found
on the investor centre of the Company’s website.
Providing an
Alternative to Opioids
A key motivation for AFT’s development of
our Maxigesic family of pain relief medicines
was to provide a better, faster alternative for
pain relief than other analgesics, particularly
those containing opiates, which have
become a global scourge.
According to the US Centres for Disease
Control, opioid overdoses have claimed the
lives of 100,000 people in the US in the past
12 months alone¹ and well over 800,000 since
1999². The New Zealand Drug Foundation has
found opioids are the second most frequently
identified drug in a drug-related death in New
Zealand after alcohol³. Meanwhile, according
to a 2019 survey by UNSW Sydney’s National
Drug & Alcohol Research Centre, excluding
alcohol and tobacco, opioids were the most
commonly identified substances in drug-
induced deaths (61%) in 2019. Opioids have
also been the main drug cited in drug-induced
deaths in Australia for over two decades⁴.
Maxigesic provides double-action pain relief
that is clinically proven to be more effective
than paracetamol or ibuprofen alone. Our
clinical peer-reviewed studies have shown
that the intravenous form of the medicine,
Maxigesic IV, reduces patient demand for
opioids to relieve more severe pain. Fewer
patients in the study, which compared the
efficacy and safety of Maxigesic IV to ibuprofen
and paracetamol, asked for opioid alternatives
such as oxycodone or morphine. Meanwhile,
the total amount of opioid medication
prescribed to patients using Maxigesic IV was
less than those patients that were administered
a placebo or ibuprofen and paracetamol⁵.
While the Maxigesic family of medicines will
never be a panacea to the epidemic, we are
proud and excited about the role it can play in
providing an alternative to prescription opioids,
which for thousands of people around the
world is the gateway to addiction and abuse.
1 https://www.cdc.gov/nchs/nvss/vsrr/drug-overdose-data.htm
² https://www.cdc.gov/opioids/data/index.html
3 https://www.drugfoundation.org.nz/assets/uploads/2022-uploads/State-of-the-Nation-2022-web.pdf
4 https://ndarc.med.unsw.edu.au/resource-analytics/trends-drug-induced-deaths-australia-1997-2019
5 Daniels et al Efficacy and Safety of an Intravenous Acetaminophen/Ibuprofen Fixed-dose Combination After Bunionectomy:
a Randomized, Double-blind, Factorial, Placebo-controlled Trial. Clinical Therapeutics, Vol 41, Number 10, 2019

Access to Medicines
We recognise access to medicines is an
important equity issue.
We have a strong history of working with
clinicians who engage regularly with our
business to identify countries, communities,
and charities that most need access to
our products.
This philanthropic work has included the
provision of medicines to the charities
working to improve eyecare in Nepal
(Eyes4Everest), delivering medicines to
communities in Vietnam (AusViet Charity
Foundation) and East Timor (Carmelite
Nuns) and providing medicine to help
combat scabies in Bougainville (Wesleyan
Medical Mission) among others. We also
provide medicines to firefighters involved in
combatting bushfires each season in Australia
and to support services during the recent
flooding across parts of the country.
This year we donated to a number of charities
including Liptember, a charity supporting
Women’s mental health and wellbeing and
the Women’s Refuge. AFT donated 5% of
sales of Maxigesic tablets over September
2021. We also worked with New Plymouth’s
Vivian Pharmacy to provide 50 First Aid packs
to Women’s Refuge, and this included the
donation of our Crystawash hand sanitiser
and Crystaderm antiseptic cream.
WORKING TO IMPROVE YOUR HEALTH
26
AFT PHARMACEUTICALS ANNUAL REPORT 2022
27
SUSTAINABILITY

PRIORITY 4
Supporting and Developing Our People
Employees by Gender Diversity
(%, as at 31 March 2022)
Employees by Age Diversity
(%, as at 31 March 2022)
Employees by Birth Country Diversity
(%, as at 31 March 2022)
Female 61%
Male 39%
Under 30 15%
30-44 38%
45 and over 47%
Australia 32%
New Zealand 32%
South Africa 5%
England 3%
China 3%
United Kingdom 2%
Phillipines 2%
Switzerland 2%
Focus Areas:
DEVELOPING OUR PEOPLE DIVERSITY AND INCLUSION HEALTH AND SAFETY
Malaysia 2%
Romania 1%
Poland 1%
Austria 1%
Germany 1%
Singapore 1%
Italy 1%
Canada 1%
Iraq 1%
Malta 1%
Iran 1%
India 1%
Brazil 1%
Macedonia 1%
Scotland 1%
Korea 1%
AFT is committed to ensuring equal opportunity
for all its people regardless of race, nationality,
gender, sexual orientation, age, religion, or
disability. We are also committed to developing
our people through education, training and
providing workplace flexibility, including
working from home.
We make these commitments recognising that
building a culture of diversity, accountability,
and fair reward will deliver improved business
performance and help to ensure we can attract
and retain highly skilled people.
These commitments are underpinned by Board-
level policies including a Code of Culture and
Ethics, Diversity & Inclusion, Remuneration and
Whistleblowing, all of which are available on the
investor section of the Company's website.
At a management level we have introduced an
anti-Bullying, Discrimination and Harassment policy.
PRIORITY 3
Ethical and Sustainable Value Chains
AFT is committed to operating an ethical and sustainable supply chain. Our supply chains are extensive
and sometimes complex, with a high proportion of products sourced from large and reputable
pharmaceutical companies and manufacturers based in regions including Europe, the United States
and India and Asia. Due to the extent of these networks, we recognise the supply chain represents
a reputational and financial risk to the business.
Focus Areas:
ESG PERFORMANCE IN OUR VALUE CHAIN
ETHICAL MARKETING AND SALES PRACTICES
This year the Board introduced a Modern Slavery
Policy to ensure that our supply chain was free
of intolerable practices such as slavery, servitude,
forced or compulsory labour and human trafficking.
The policy requires that the entities that AFT
controls: comply with all applicable laws and
regulations; address Modern Slavery risks in its
supply chain and business operations; and sets
minimum standards for employees and those who
work on AFT’s behalf.
Notably it requires that compliance with the
Modern Slavery Policy – and compliance with
applicable Modern Slavery laws and regulations
– be embedded within supplier contracts and
give AFT the capacity to cease dealing with a
counterparty, if it is found in breach of either. The
policy also requires AFT and its business units to
monitor suppliers to ensure compliance with the
policy and transparently report on the steps it takes
to address Modern Slavery risks in its operations
and supply chains.
The Modern Slavery Policy and AFT’s first
Modern Slavery Statement issued in compliance
with the Australian Modern Slavery Act 2018
(Ch) can be found in the Investor Centre on the
Company’s website.
We are committed to ethical and marketing sales
practices. Our Code of Culture and Ethics sets our
commitment to ethical and professional conduct,
requiring honesty, integrity at the forefront of our
business practices with all stakeholders including
clients, customers and consumers. It also prohibits
bribes or any improper inducements and requires
us to maintain the good reputation of the company.
We meanwhile continue to evolve our risk
management framework to account for these
supply chain risks.
AFT PHARMACEUTICALS
MODERN SLAVERY STATEMENT 2022
1
2022

MODERN
SLAVERY
STATEMENT
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SUSTAINABILITY
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Health and Safety in a Pandemic
The Covid pandemic and the disruption to the global supply chain has presented
as a significant challenge to the health and wellbeing of our people.
The move to remote working, for many of
our teams, our inability to travel offshore
for manufacturing site inspections and the
pressures of working across time-zones have
placed huge demands on our people.
We have adopted a flexible approach rather
than a blanket ‘one rule for all’ allowing flexible
working hours and offered support to ease
the extra stresses of the pandemic.
Meanwhile, we worked hard to prevent and
manage the spread of the virus. AFT has
ensured all government protocols were
followed throughout the various Covid
outbreaks. No employee was placed under
additional personal financial strain because
of Covid isolation rules.
We strongly encouraged full vaccination of
our employees, achieving 99% vaccination
rates. Our numbers of Covid positive cases in
our office workspace was less than 10%. These
cases were mainly related to family members
passing on the infection. Only one small
cluster of two, seemed to be from within our
workplace. We continue to encourage and fund
annual seasonal influenza vaccinations.
Our Health and Safety management is focussed
on prevention as accidents and injuries are
very rare. We have a series of annual checks for
workplace safety, including annual electrical
checks of all equipment and workplace
assessments by a team of Occupational
Therapists.
Our aim is to ensure compliance with health
and safety regulations both in our home
markets of Australia and New Zealand to
deliver on our commitments to the promotion
of a supportive and inclusive culture.
Diversity
We are proud to have a workforce consisting of many individuals with diverse skills, values,
backgrounds, ethnicities, and experiences. In year to 31 March 2022, AFT’s 97 employees came from
30 different cultural backgrounds and 24 birth countries, with a gender split of 61% women and
39% men and an age spread of employees ranging from 21 years to more than 70 years
(average age of 42 years 11 months old).
To continue to develop and
maintain a diverse and inclusive
working environment:
• We undertook an annual merits-based
remuneration review, which provided visibility
to management in relation to parity of working
conditions and pay across the workforce. We
also benchmarked ourselves against our peers.
These reviews did not highlight any material pay
disparity based on gender, considering experience
and accountabilities of comparable roles.
• We continued to actively monitor and review
gender and cultural diversity metrics on
a quarterly basis across the business by
department and geography and this showed
that AFT continues to attract and retain a
highly diverse workforce.
• We reviewed the reasons for any significant
deviations from company averages and targets
to seek to understand whether any unconscious
bias was occurring at the recruitment or
promotion stage. It was noted that in the few
cases where gender disparities were identified
within teams, there tended to be a much higher
applicant rate of that gender when recruiting
new members to those teams. This factor is taken
into consideration when making future hires,
aiming to correct the imbalance over time, where
possible.
• We continued to educate managers on the
importance of creating a diverse and inclusive
environment and providing awareness of
the potential for unconscious bias in people
management processes. We have a formal
managers’ training programme provided by an
external company for maintaining our current
diversity of culture, age, and gender across
departments.
• We continued to provide refresher training to all
staff annually on the importance of AFT’s Code of
Culture and Ethics. This training is also included
in the induction programme for all new staff.
Our Policy Manual was meanwhile updated
during the past year and training on the new
version was completed with every employee.
In the year ahead the company will continue to
monitor and benchmark against the same diversity
and inclusion objectives adopted in respect of the
year ended 31 March 2022 (as detailed above).
Gender composition of AFT’s workforce
The respective numbers and proportions of men
and women at various levels within the AFT
workforce as at 31 March 2021 and 31 March 2022
are set out in the table below:

Female Male

2022202120222021
Directors229%229%571%571%
Officers* 440%436%660%764%
Workforce 5961%5761%3839%3739%
*Officers are considered to be the CEO and his direct reports.
CEO Hartley Atkinson and Chief of Staff Marree Atkinson are
included in both the number of directors and the number of offices
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SUSTAINABILITY

AFT’s business model has a low environmental footprint relative to carbon-intensive industries,
due to our focus on the development and commercialisation of our intellectual capital.
The majority of emissions directly attributable to
the business are in the distribution of our products
via sea, land, and air freight modes of transport.
AFT has begun the preparation to report against
the new Financial Sector (Climate-related
Disclosures Act and Other Matters) Act in the
2024 financial year. We recognise this commitment
supports the UN’s drive to promote mechanisms
that will assist with climate change planning and
management and help the government integrate
climate change measures into national policies.
PRIORITY 6
Understanding Our Climate-Related
Risks and Taking Action
Focus Areas:
UNDERTAKING A CLIMATE-RISK ASSESSMENT
WORKING WITH SUPPLIERS AND PARTNERS TO TAKE CLIMATE ACTION
The Act is modelled on the global Task Force on
Climate Related Financial Disclosures (TCFD)
standard. When complete, our report will give
our stakeholders information about the financial
implications of climate change on our business and
what we are doing to mitigate the risks and take
advantage of the opportunities.
PRIORITY 5
Waste Minimisation
Focus Areas:
IMPROVING OUR CONSUMER PACKAGING
REDUCING WASTE IN THE SUPPLY CHAIN
AFT is determined to embrace, where possible and meaningful, opportunities to minimise waste.
Our immediate approach towards this vision is to take a life-cycle approach to packaging from
manufacture to disposal, particularly of supply-chain and distribution packaging, consumer
packaging, and hospital packaging.
We understand consumers and retail and wholesale
distribution partners want to buy products that
do not unnecessarily divert resources into landfill.
They also want confidence that we have explored
options to minimise our environmental footprint.
We also recognise that governments globally are
focussing on the responsible use of resources and
as a result we are driving initiatives that anticipate
regulatory change.
Since 2020 AFT has been a participant in the
Australian Packaging Covenant Organisation
(APCO), which partners with government and
industry to reduce the harmful impact of packaging
on the environment. It achieves this by promoting
sustainable design and recycling initiatives,
waste to landfill reduction activities and circular
economy projects.
APCO’s latest assessment has
recognised AFT’s improvements in
the way we are integrating packaging
sustainability into business strategies.
This reflects the quality of our
communication with wholesalers and
the warehouses of our distributors
over what elements of our packaging should
be recycled. We have also added the Australian
standard recycling logo (pictured) to all
our packaging.
APCO’s full report is due to be published at the end
of May 2022 and will be published on the investor
section of our website.
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SUSTAINABILITY

DIRECTORS
Dr John Douglas
(Doug) Wilson
INDEPENDENT DIRECTOR
Appointed 4 September 2012
Doug Wilson was a New Zealand
physician and academic. He joined a
major International pharmaceutical
company, Boehringer Ingelheim,
working in their US subsidiary,
becoming their Head of Medical
Research and Regulatory Affairs, the
interface with FDA, playing a major
role in steering 10 drugs through the
FDA to the US and global markets.
He moved to Head Office in Germany,
being responsible for those same
functions for worldwide drug
development. He chaired the
company’s International Medical
Committee overseeing the medical
aspects of all drugs in development
globally, and their Internal Labelling
Committee for the drugs on the
worldwide market.
He was the medical parent of Spiriva,
a drug for Chronic Obstructive
Pulmonary Disease (COPD), one of
the major global killers. The drug
last year sold $5 billion. He now
consults internationally on new
drugs in development, and for
pharmaceutical companies.
Jon Lamb
INDEPENDENT DIRECTOR
Appointed 4 September 2012
Jon has led the strategic planning,
marketing and restructuring of
various companies throughout
his career. He has held various
roles at Beecham (a multinational
pharmaceutical company that would
later merge with a predecessor
company to GlaxoSmithKline)
including CEO in New Zealand and
Marketing Manager in both Australia
and South Africa. He has also held
roles as CEO of Nylex in New Zealand,
Managing Director within the Rural
Division of Fletcher Challenge,
Director of Southland Frozen Meats
and Marketing Director of the New
Zealand Kiwifruit Marketing Board
(where he was responsible for
creating the Zespri brand of kiwifruit,
and restructuring Zespri into a retail
focussed operation).
More recently, Jon was a Director of
Virionyx, a New Zealand company that
developed an antiviral drug designed
to combat AIDS. He was Deputy Chair
of Australian diagnostic company
ATF Group that developed a real time
tool for measuring the Hepatitis B
virus in individual patients.
Jon has been involved with AFT
since 2004, firstly as a consultant,
and then in his current capacity
as a director. Jon is a Member of
the Institute of Directors and has a
Diploma from the Marketing Institute
of the UK (now the Chartered
Institute of Marketing).
Dr Ted Witek
INDEPENDENT NON-EXECUTIVE
DIRECTOR
Appointed 23 December 2020
Dr. Witek served Boehringer Ingelheim
Pharmaceuticals for nearly 25 years
where he held various pharmacology
and clinical research positions,
including Director of Respiratory and
Immunology Clinical Research leading
to his roles as President and CEO of
Boehringer Ingelheim’s Canadian
and Portuguese operations. He led
the Global Operating Team for Spiriva
serving as Co-Chair of the Global
Alliance with Pfizer.
Dr. Witek also was Chief Scientific
Officer & Senior Vice President,
Corporate Partnerships, at Innoviva
(Formerly Theravance, Inc.). He also
served on the Board of Directors
of Canada’s Research-Based
Pharmaceutical Companies (Rx&D)
including Chair of the Health
Technology Assessment and Public
Relations Committee. He was
appointed to the Ontario Health
Innovation Council and advisor to
the Design for Health Program at
OCAD University. He is currently an
Adjunct Professor & Senior Fellow at
the University of Toronto’s School of
Public Health & Leslie Dan Faculty of
Pharmacy. He serves as Director of the
DrPH program. Dr. Witek is the author
of more than 100 scientific papers as
well as several chapters and books.
Dr. Witek holds a Doctor of Public
Health from Columbia University and
a Master of Public Health from Yale
University and an MBA from Henley
Management College in the UK.
Directors
David Flacks
CHAIRMAN
Appointed 22 June 2015
David has a number of governance
roles and has been chair of AFT since
the IPO in 2015. David is also chair of
the Suncorp New Zealand group of
companies. He is also a director of
Todd Corporation, Harmoney Corp.
and a number of environmentally
focused pro bono organisations.
He is a former chair of the NZX
Markets Disciplinary Tribunal and
a former member of the Takeovers
Panel. He is also a director of
boutique corporate law firm
Flacks & Wong.
David was for many years a senior
corporate partner at Bell Gully
and was general counsel and
company secretary of Carter Holt
Harvey during the 1990’s. He is a law
graduate from Cambridge University.
Dr Hartley Atkinson
CHIEF EXECUTIVE OFFICER,
EXECUTIVE DIRECTOR AND
CO-FOUNDER
Appointed 4 September 1997
Hartley founded AFT in 1997. Before
founding AFT, Hartley worked at
Swiss multinational pharmaceutical
company, Roche, for eight years
where he held positions as
Sales & Marketing Director,
Medical Director, Product Manager
and Medical Manager.
Prior to his work at Roche, Hartley
was a Drug Information Pharmacist
and Researcher at the Department
of Clinical Pharmacology,
Christchurch Hospital. Hartley is
the author of a number of scientific
publications. Hartley’s work has
been published in the prestigious
The New England Journal of Medicine.
Hartley holds a doctorate
in Pharmacology, a Masters in
Pharmaceutical Chemistry with
distinction, and a Degree
in Pharmacy, all from the
University of Otago.
Marree Atkinson
CHIEF OF STAFF, EXECUTIVE
DIRECTOR AND CO-FOUNDER
Appointed 4 September 2012
Marree has been involved in all
aspects of AFT’s business since its
establishment in 1997, including
roles in sales, regulatory affairs,
customer services and logistics.
Marree’s role as Chief of Staff sees
her involved in the day-today running
of AFT’s head office including
managing staffing requirements
and special projects involving
AFT’s head and affiliate offices.
Marree is a registered nurse previously
practising at Waikato Hospital.
Anita Baldauf
INDEPENDENT DIRECTOR
Appointed 4 November 2020
Anita joins AFT with a broad and
international experience in FMCG
and Corporate Finance. Her 22
year career at Nestlé and L’Oréal
(Laboratoires innéov), mostly as
CFO in multiple developed and
developing countries, gave her
a rich expertise in finance and
investor relation, compliance and
governance, international business
as well as people development,
and value based leadership.
Anita is impassioned about driving
impact, particularly in the area of
Wellbeing and mental health. She is
an EHF Fellow, where she is advising
and supporting New Zealand and
international start-ups and impact
ventures as they navigate through
the challenges of exponential
change, rapid growth, and their
aim for impact and sustainability.
AFT has an experienced and balanced Board with a diverse range of skills. The Board comprises
an independent Chairman, three other independent directors, one non-executive director and two
executive directors. Their names and information about their skills, experience and background,
together with information about AFT’s management team, are set out below and on the following pages.
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34

MANAGEMENT TEAM
Scott Crawford
GENERAL MANAGER
PROMOTED PRODUCTS
Scott joined AFT in 2013 and is
responsible for over-the-counter
sales in New Zealand across all
retail channels including pharmacy,
supermarkets, petrol and convenience.
His role as General Manager of
Promoted Products involves account
management, field supervision and
trade marketing.
Scott has over 20 years’ experience in
fast-moving consumer goods in both
Australia and New Zealand and has
previously held roles with Red Bull
and Ferrero Rocher.
Murray Keith
GROUP MARKETING
MANAGER
Murray joined AFT Pharmaceuticals
in 2011 and has since been
responsible for managing our
marketing function, with a primary
focus on the Australian and
New Zealand markets.
His extensive marketing career prior
to joining AFT includes a range
of roles working across a number
of blue-chip brands and companies,
including Nestlé, Lion Nathan,
Bay of Plenty Rugby, Nestlé Purina,
New Zealand Lotteries and
Fonterra Brands (Tip Top).
Management Team
Malcom Tubby
CHIEF FINANCIAL OFFICER

Malcolm is a qualified Chartered
Accountant in the United Kingdom
and New Zealand with a wealth
of senior corporate governance
expertise in the commerce sector
including roles in significant public
companies as Chief Financial Officer.
He has experience in senior positions
in public and private companies
in pharmaceuticals, beverages,
insurance and aged care facilities
in Australia and New Zealand.
Malcolm has been involved in the
AFT Board since its foundation.
Malcolm is also the CFO for AFT
Pharmaceuticals.
Ioana Stanescu
HEAD OF DRUG DEVELOPMENT

Ioana has overall responsibility for
AFT’s R&D. She has over 20 years
experience in the pharmaceutical
industry, including positions as VP
QA & Regulatory Affairs and Head of
Vaccine Business Area at FIT Biotech
Ltd, and a WHO adviser within
Central and Eastern Europe.
She has also coordinated several
European FP6 and FP7 funded
research grants and was selected
as an Expert by the European
Health Committee – Council of
Europe to participate in a research
study in 1999.
Vladimir Illievski
REGULATORY AFFAIRS MANAGER

Born and raised in Macedonia,
Vladimir holds a Masters degree
in Pharmacy from the University
of Ljubljana, Slovenia, where he
started his career as a pre-clinical
researcher before moving to
New Zealand. Prior to joining AFT
in 2006, Vladimir worked for
Douglas Pharmaceuticals in various
roles including as QC and QA
analyst and regulatory/senior
regulatory associate.
Vladimir has responsibility for
product registrations in countries
in Australasia and Asia, Europe
and the US.
Louise Clayton
DIRECTOR
INTERNATIONAL BUSINESS
Having worked with brands within
the supplement, OTC, health and
beauty channels, Louise has
significant experience in driving
international brands through a
variety of roles encompassing sales,
brand marketing, product sourcing/
new product development, and
new market expansion.
With over 20 years’ experience with
international business, key accounts,
sales and marketing teams, Louise
has a core focus on brand growth
and development within local
and international markets.
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39
FINANCIAL STATEMENTS 2021-2022
AFT PHARMACEUTICALS ANNUAL REPORT 2022
39
INDEPENDENT AUDITOR’S REPORT
Financial Statements Contents
Independent Auditor’s Report 39-41
Consolidated Income Statement 42
Consolidated Statement
of Comprehensive Income 43
Consolidated Statement
of Changes in Equity 44
Consolidated Balance Sheet 45
Consolidated Statement of Cash Flows 46
Notes to the Financial Statements 48-71
Statutory Disclosures 72-80
AFT Pharmaceuticals Limited
Consolidated Financial Statements
for the Year Ended 31 March 2022
Opinion
We have audited the consolidated financial statements of AFT Pharamceuticals Limited and
its subsidiaries (the ‘Group’), which comprise the consolidated balance sheet as at 31 March
2022, and the consolidated income statement, consolidated statement of comprehensive
income, consolidated statement of changes in equity and consolidated statement of cash
flows for the year then ended, and notes to the consolidated financial statements, including
a summary of significant accounting policies.
In our opinion, the accompanying consolidated financial statements, on pages 42 to 71,
present fairly, in all material respects, the consolidated financial position of the Group as at
31 March 2022, and its consolidated financial performance and cash flows for the year then
ended in accordance with New Zealand Equivalents to International Financial Reporting
Standards (‘NZ IFRS’) and International Financial Reporting Standards (‘IFRS’).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (‘ISAs’)
and International Standards on Auditing (New Zealand) (‘ISAs (NZ)’). Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit
of the Consolidated Financial Statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
We are independent of the Group in accordance with Professional and Ethical Standard
1 International Code of Ethics for Assurance Practitioners (including International
Independence Standards) (New Zealand) issued by the New Zealand Auditing and
Assurance Standards Board and the International Ethics Standards Board for Accountants’
International Code of Ethics for Professional Accountants (including International
Independence Standards), and we have fulfilled our other ethical responsibilities in
accordance with these requirements.
Other than in our capacity as auditor and the provision of taxation advice, we have no
relationship with or interests in the Company or any of its subsidiaries. These services have
not impaired our independence as auditor of the Company and Group.
Audit materiality
We consider materiality primarily in terms of the magnitude of misstatement in the financial
statements of the Group that in our judgement would make it probable that the economic
decisions of a reasonably knowledgeable person would be changed or influenced (the
‘quantitative’ materiality). In addition, we also assess whether other matters that come to
our attention during the audit would in our judgement change or influence the decisions of
such a person (the ‘qualitative’ materiality). We use materiality both in planning the scope
of our audit work and in evaluating the results of our work.
We determined materiality for the Group financial statements as a whole to be $1.4 million.
Independent Auditor’s Report
To the Shareholders of AFT Pharmaceuticals Limited

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FINANCIAL STATEMENTS 2021-2022
AFT PHARMACEUTICALS ANNUAL REPORT 2022
41
INDEPENDENT AUDITOR’S REPORT
Other information
The directors are responsible on behalf of the Group for the other information.
The other information comprises the information in the Annual Report that accompanies
the consolidated financial statements and the audit report.
Our opinion on the consolidated financial statements does not cover the other information
and we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and consider whether it is materially
inconsistent with the consolidated financial statements or our knowledge obtained in the
audit or otherwise appears to be materially misstated. If so, we are required to report that
fact. We have nothing to report in this regard.
Key audit matterHow our audit addressed the key audit matter
Recoverability of the Pascomer IP
As disclosed in note 11, the Group has intellectual
property with a carrying value of $12.5m in relation
to the Pascomer product at 31 March 2022.
During the period, while clinical trials are
progressing, the US Food and Drug Administration
(FDA) approved another treatment which will
prevent AFT from filing its Pascomer orphan
indication in the US (a key product market) for
seven years.
The recoverability of the intellectual property
associated with the Pascomer product depends
upon successful clinical trials and product
registration with orphan status. The recoverable
amount of the intellectual property associated
with the Pascomer product is determined
based on fair value less costs of disposal, using
a risk-adjusted net present value model (the
‘valuation’), which takes into account the inherent
uncertainties of both the successful conclusion of
the clinical trials and registration. The valuation
also includes significant unobservable inputs,
including forecast financial performance, discount
rate and growth rates.
We identified this as a key audit matter because
of the significance of the intellectual property
to the Group’s consolidated financial statements
and the judgment involved in determining the
recoverable amount of the Pascomer IP.
We evaluated the Group’s recoverable amount
assessment for the Pascomer IP. In performing our
procedures, we:
• Obtained an understanding of the relevant
controls over the valuation process including
controls around the methodology adopted, the
date used and the setting of key assumptions
• Assessed the independence, objectivity and
competence of the valuer engaged by the Group
• Worked with our internal valuation specialists
to assess whether the valuation method was
appropriate
• Challenged the key assumptions in the valuation by:
o Considering the timing of when successful
clinical trials will be completed and the
product registered by understanding the
milestones achieved to date and the Group’s
progress against plans
o Evaluating and challenging the Group’s cash
flow forecasts based on historical forecasting
accuracy
o Working with our internal valuation specialists
to determine whether the discount rate was
in accordance with an appropriate valuation
methodology, growth rate and assumptions
used were reasonable
• Assessed the sensitivity of the valuation to key
assumption changes and tested the integrity
and mechanical accuracy of the valuation.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit of the consolidated financial statements of the current period.
These matters were addressed in the context of our audit of the consolidated financial
statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
Directors’ responsibilities for the consolidated financial statements
The directors are responsible on behalf of the Group for the preparation and fair
presentation of the consolidated financial statements in accordance with NZ IFRS and
IFRS, and for such internal control as the directors determine is necessary to enable the
preparation of consolidated financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the consolidated financial statements, the directors are responsible on behalf
of the Group for assessing the Group’s ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis of accounting
unless the directors either intend to liquidate the Group or to cease operations, or have no
realistic alternative but to do so.
Auditor’s responsibilities for the audit
of the consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs
and ISAs (NZ) will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on
the basis of these consolidated financial statements.
A further description of our responsibilities for the audit of the consolidated financial
statements is located on the External Reporting Board’s website at:
https://www.xrb.govt.nz/standards-for-assurance-practitioners/auditors-responsibilities/
audit-report-1
This description forms part of our auditor’s report.
Restriction on use
This report is made solely to the Company’s shareholders, as a body. Our audit has been
undertaken so that we might state to the Company’s shareholders those matters we are
required to state to them in an auditor’s 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 audit work, for this report, or for the
opinions we have formed.
Jason Stachurski
Partner
for Deloitte Limited
Auckland, New Zealand
23 May 2022

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FINANCIAL STATEMENTS 2021-2022
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FINANCIAL STATEMENTS 2021-2022
Consolidated Income Statement
For the Year Ended 31 March 2022
2022
$'000
2021
$'000
 Note
Revenue 4130,314113,105
Cost of sales(68,539)(64,364)
Gross profit 61,77548,741
 
Other Income5225626
Selling and distribution expenses(28,330)(27,438)
General and administrative expenses(7,774)(7,784)
Research and development expenses(5,507)(3,437)
Operating profit 20,38910,708
 
Finance income44
Interest costs6(2,435)(3,441)
Other finance gain6727616
Profit before tax 18,6857,887
 
Tax benefit/(expense)121,163(105)
Profit after tax attributable to owners of the parent 19,8487,7 8 2
 
 
Earnings per share 
Basic and diluted earnings per share ($)17$0.19$0.07
The accompanying Notes form an integral part of the Financial Statements.
Consolidated Statement of Comprehensive Income
For the Year Ended 31 March 2022
2022
$’000
2021
$’000
Note
Profit after tax 19,8487,7 8 2
 
Other comprehensive income 
Items that may be subsequently reclassified to profit and loss: 
Foreign exchange difference on translation of foreign operations1329
Other comprehensive income for the year, net of tax 1329
 
Total comprehensive income 19,8617,811
The accompanying Notes form an integral part of the Financial Statements.

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FINANCIAL STATEMENTS 2021-2022
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FINANCIAL STATEMENTS 2021-2022
Consolidated Statement of Changes in Equity
For the Year Ended 31 March 2022
Share
capital
$'000
Redeemable
preference
shares
reserve
$’000
Share
options
reserve
$'000
Foreign
currency
translation
reserve
$’000
Retained
earnings
$'000
Total
equity
$'000
Note
Balance 31 March 2020 63,7461,669763352(49,275)17,255
 
Profit after tax - - - -7,7 8 27,7 8 2
Other comprehensive income - - -29 -29
Total comprehensive income  - - -297,7 8 27,811
Conversion of preference shares161,669(1,669) - - - -
Issue of share capital1612,389 - - - -12,389
Capital raising expenses16(723) - - - -(723)
Movement in share options reserve16116 -(489) -41744
Preference dividends paid - - - -(188)(188)
Balance 31 March 2021 77,197 -274381(41,264)36,588
 
Profit after tax - - - -19,84819,848
Other comprehensive income - - -13 -13
Total comprehensive income  - - -1319,84819,861
Issue of share capital16, 19409 -(113) - -296
Movement in share options reserve - -(1) - -(1)
Balance 31 March 2022 77,606 -160394(21,416)56,744
The accompanying Notes form an integral part of the Financial Statements.
Consolidated Balance Sheet
As at 31 March 2022
2022
$'000
2021
$'000
 Note 
ASSETS 
Current assets 
Inventories933,50033,654
Trade and other receivables836,00231,039
Cash and cash equivalents7,9403,209
Derivative assets22100 -
Total current assets77,54267,902
Non-current assets 
Property, plant and equipment10484305
Intangible assets1138,09332,720
Right of use assets102,8763,481
Deferred income tax assets122,765724
Total non-current assets44,21837,230
Total assets 121,760105,132
 
LIABILITIES 
Current liabilities 
Trade and other payables1419,16021,329
Provisions154,1434,461
Lease liabilities13542614
Current income tax liability844 -
Derivative liabilities22361537
Interest bearing liabilities134,0005,161
Total current liabilities29,05032,102
 
Non-current liabilities 
Lease liabilities132,7663,242
Interest bearing liabilities1333,20033,200
Total non-current liabilities35,96636,442
Total liabilities 65,01668,544
 
EQUITY 
Share capital1677,60677,197
Retained earnings/(losses)(21,416)(41,264)
Share options reserve19160274
Foreign currency translation reserve394381
Total equity 56,74436,588
Total liabilities and equity 121,760105,132
The accompanying Notes form an integral part of the Financial Statements.
On behalf of the Board on the 23 May 2022
David Flacks Dr Hartley Atkinson
Chair Founder and Chief Executive Officer

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FINANCIAL STATEMENTS 2021-2022
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FINANCIAL STATEMENTS 2021-2022
Consolidated Statement of Cash Flows
For the Year Ended 31 March 2022
2022
$'000
2021
$'000
  
CASH FLOWS FROM OPERATING ACTIVITIES
 
Receipts from customers128,702109,823
Payments to suppliers and employees(114,329)(108,903)
Tax paid(221)(170)
Net cash generated from operating activities 14,152750
 
CASH FLOWS FROM INVESTING ACTIVITIES 
Purchases of property, plant and equipment(329)(93)
Purchase of intangible assets(5,256)(6,138)
Net cash used in investing activities (5,585)(6,231)
 
CASH FLOWS FROM FINANCING ACTIVITIES 
Proceeds from issue of share capital29512,396
Repayments of bank overdraft(1,638)1,638
Capital raising cost paid -(723)
Dividends paid -(188)
Payment for lease liabilities(879)(630)
New borrowings5,000 -
Borrowings repaid(4,500)(6,500)
Interest received44
Interest paid on lease liabilities(263)(295)
Interest costs paid on borrowings(1,933)(3,180)
Net cash (used in)/generated from financing activities (3,914)2,522
 
Net increase / (decrease) in cash4,653(2,959)
Impact of foreign exchange on cash and cash equivalents7849
Opening cash and cash equivalents3,2096,119
Closing cash and cash equivalents 7,9403,209
The accompanying Notes form an integral part of the Financial Statements.
Reconciliation of Profit After Tax With Net Cash Flow
From Operating Activities
2022
$'000
2021
$'000
  
Profit after tax19,8487,7 8 2
 
Adjustments for 
Depreciation150103
Depreciation ROU assets634716
Amortisation260285
Impact of foreign exchange on cash and cash equivalents7849
Share options expense1344
Interest on lease liabilities-295
Interest and finance expense2,0843,155
Unrealised (gain)/loss on foreign currency movements(268)(58)
Provision for tax(1,175)19
Interest received -(4)
 
Movement in working capital 
(Increase)/decrease in inventories154(10,920)
(Increase)/decrease in trade and other receivables and derivative assets(4,963)(4,556)
(Increase)/decrease in trade and other payables,
provisions and derivative liabilities
(2,663)3,840
Net cash generated from operating activities 14,152750
The accompanying Notes form an integral part of the Financial Statements.

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FINANCIAL STATEMENTS 2021-2022
1. Reporting Entity
AFT Pharmaceuticals Ltd (the “Company” or
“Parent”) together with its subsidiaries (the “Group”)
is a pharmaceutical distributor and developer of
pharmaceutical intellectual property. The Company
is incorporated and domiciled in New Zealand, it is
registered under the Companies Act 1993. The address of
the Company’s registered office is 129 Hurstmere Road,
Takapuna, New Zealand.
The Company is an FMC reporting entity under the
Financial Markets Conduct Act 2013 and is listed on both
the NZX and ASX.
These consolidated financial statements were approved
for issue by the Board of Directors on 23 May 2022.
2. Basis of Preparation and
Principles of Consolidation
Statement of compliance
These consolidated financial statements of the Group
have been prepared in accordance with the requirements
of the Companies Act 1993, Financial Reporting Act 2013
and the Financial Markets Conduct Act 2013. As Group
consolidated financial statements are prepared and
presented for the Parent and its subsidiaries, separate
financial statements for the Company are not required
to be prepared under the Companies Act 1993.
The consolidated financial statements of the Group have
been prepared in accordance with Generally Accepted
Accounting Practice in New Zealand (NZ GAAP). The
Group is a for-profit entity for the purposes of complying
with NZ GAAP. The consolidated financial statements
comply with New Zealand equivalents to International
Financial Reporting Standards (NZ IFRS), other
New Zealand accounting standards and authoritative
notices that are applicable to entities that apply NZ IFRS.
The consolidated financial statements also comply with
International Financial Reporting Standards (IFRS).
Basis of accounting
These consolidated financial statements have been
prepared under the historical cost convention, as modified
by the revaluation of financial assets and liabilities
(including derivative instruments) at fair value through
profit or loss and/or other comprehensive income.
Functional and presentation currency
The consolidated financial statements are presented
in New Zealand dollars (NZD), which is the Company's
functional currency rounded to the nearest thousand
dollars unless otherwise stated. Items included in the
financial statements of each of the subsidiaries are
measured using the currency of the primary economic
environment in which the entity operates
(“the functional currency”).
Notes to the Financial Statements
For the Year Ended 31 March 2022
Foreign currency transactions and balances
The results and balance sheets of all foreign operations
(none of which has the currency of a hyperinflationary
economy) that have a functional currency different from
New Zealand dollars are translated into the presentation
currency as follows:
• Assets and liabilities for each balance sheet presented
are translated at the closing rate at the date of that
balance sheet.
• Income and expenses for each income statement and
statement of comprehensive income are translated at
average exchange rates, unless this is not a reasonable
approximation of the cumulative effect of the rates
prevailing on the transaction dates, in which case
income and expenses are translated at the dates
of the transactions.
• Exchange differences arising are recognised in other
comprehensive income and accumulated in equity.
Basis of consolidation
The consolidated financial statements incorporate the
assets and liabilities of all subsidiaries of the Group as at
the balance date and the results of all subsidiaries for the
year then ended.
Intercompany transactions, balances and unrealised
gains on transactions between subsidiary companies are
eliminated. Unrealised losses are also eliminated unless
the transaction provides evidence of the impairment of
the asset transferred.
Critical accounting estimates and judgements
In applying the Group’s accounting policies, the directors
are required to make judgements (other than those
involving estimations) that have a significant impact
on the amounts recognised and to make estimates
and assumptions about the carrying amounts of assets
and liabilities that are not readily apparent from other
sources. The estimates and associated assumptions are
based on historical experience and other factors that are
considered to be relevant. Actual results may differ from
these estimates.
The estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimate is
revised if the revision affects only that period, or in the
period of the revision and future periods if the revision
affects both current and future periods.
Significant estimates are disclosed in each of the
applicable notes to the financial statements
and are designated with an E

symbol.
E
Significant accounting policies
Accounting policies are disclosed in each of the
applicable notes to the financial statements
and are designated with an AP symbol.
All mandatory amendments have been adopted
in the current year. None had a material impact
on these financial statements.
Goods and Services Tax (GST)
The income statement and the statement of
comprehensive income have been prepared so that
all components are stated exclusive of New Zealand,
Australian and Malaysian GST. All items in the balance
sheet are stated net of GST, with the exception of
accounts receivable and payable, which include
GST invoiced. All components of the statement of
cash flows are stated exclusive of GST.
4a. Revenue from Operations
2022
$'000
2021
$'000
 
Sale of goods
123,090110,736
Royalty income480244
Licensing Income6,7442,125
Total revenue from operations130,314113,105
3. Significant Transactions and Events
in the Financial Year
On 28 April 2021, the Group announced that it had
licensed Maxigesic IV in the US. The agreement with
Hikma Pharmaceuticals, the US’ third largest supplier
of generic injectable medications by volume, will see
AFT benefit from upfront, regulatory and commercial
milestone payments worth up to US$18.8 million and
a profit share from in-market product sales.
No other significant transactions and events occurred
during the current period.
Revenue is measured based on the consideration to which the Group expects to be entitled
in a contract with a customer and excludes amounts collected on behalf of third parties:
• The sale of goods, which are recognised when control of the product is transferred
to the customer.
• Licensing income, the Group has entered into a number of out-licencing contracts whereby the
Group’s obligations are the provision of territorial rights to the company’s intellectual property
and the provision and support of the documentation required to enable registration of the product
in the territory. The Group typically receives an upfront fee, milestone payments for specific
registration and/or development-based outcomes, and sales-based milestones or royalties as
consideration for the license. Licenses coupled with other services, must be assessed to determine
if the license is distinct (that is, the customer must be able to benefit from the IP on its own or
together with other resources that are readily available to the customer, and the Group’s promise
to transfer the IP must be separately identifiable from other promises in the contract). If the license
is not distinct, then the license is combined with other goods or services into a single performance
obligation. Revenue is then recognised as the Group satisfies the combined performance obligation.
A license will either provide:
• A right to access the entity’s intellectual property throughout the license period, which results
in revenue that is recognised over time;
or
• A right to use the entity’s intellectual property as it exists at the point in time in which the license is
granted, which results in revenue that is recognised at a point in time. For sales- or usage-based
royalties that are attributable to a license of IP, the amount is recognized at the later of:
- when the subsequent sale or usage occurs; and
- the satisfaction or partial satisfaction of the performance obligation to which some
or all of the sales- or usage-based royalty has been allocated.
AP
AP

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51
FINANCIAL STATEMENTS 2021-2022
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Notes to the Financial Statements (Continued)
For the Year Ended 31 March 2022
5. Segment Reporting
Operating Segments
 AustraliaNew ZealandAsia
Rest of
WorldTotal
 
$'000$'000$'000$'000$'000
31 March 2022 
Revenue - Sale of goods76,66935,0725,4875,862123,090
Revenue - Royalties - - -480480
Revenue - Licensing - - -6,7446,744
Total revenue76,66935,0725,48713,086130,314
Other income - - -225225
Depreciation - ROU assets391243 - -634
Depreciation - Other321171 -150
Amortisation -259 - -259
Operating profit15,685(73)6184,15920,389
Finance income -4 - -4
Interest expense - Loans -(2,088)(84) -(2,172)
Interest expense - Lease liabilities(72)(191) - -(263)
Other finance gains/(losses)(258)1,003(18) -727
Profit / (loss) before tax15,355(1,345)5164,15918,685
Total assets41,76467,5501412,432121,760
ROU assets6462,230 - -2,876
Property plant and equipment504331 -484
Pascomer IP - - -12,50012,500
Other intangible assets -- -25,59325,593
Total liabilities5,36257,8381,848(32)65,016
Capital expenditure37292 - -329
4b. Joint Operations
Hyloris Pharmaceuticals SA and AFT have been collaborating in the development of the Maxigesic IV
product. AFT has now licensed the product to a number of partners covering multiple countries. Maxigesic
IV is protected by several granted and pending patent applications. Under the terms of the development
collaboration agreement between Hyloris and AFT, Hyloris is eligible to receive a share on any product-
related revenues, such as license fees, royalties, milestone payments, received by AFT. The arrangement
constitutes a joint operation whereby the Group recognises, in relation to its interest in the joint operation,
its share of assets and liabilities in the consolidated statement of financial position and share of revenue
earned and expenses incurred in the consolidated statement of comprehensive income. The Group accounts
for the assets, liabilities, revenues and expenses relating to its interest in the joint operation in accordance
with the NZ IFRS standards applicable to the particular assets, liabilities, revenues and expenses.
Interests in joint operations:
A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement
have rights to the assets and obligations for the liabilities relating to the arrangement. Joint control is
the contractually agreed sharing of control of an arrangement, which exists only when decisions about
the relevant activities require unanimous consent of the parties sharing control.
AP
Operating Segments
 
AustraliaNew ZealandAsia
Rest of
World Total
 
$'000$'000$'000$'000$'000
31 March 2021 
Revenue - Sale of goods68,26630,5264,4117,533110,736
Revenue - Royalties - - -244244
Revenue - Licensing - - -2,1252,125
Total revenue68,26630,5264,4119,902113,105
Other income -193 -433626
Depreciation - ROU assets424292 - -716
Depreciation - Other25801 -106
Amortisation -285 - -285
Operating profit7,919(69)1,4501,40810,708
Finance income -4 - -4
Interest expense - Loans(656)(2,409)(81) -(3,146)
Interest expense - Lease liabilities(91)(204) - -(295)
Other finance gains/(losses)417411(212) -616
Profit / (loss) before tax7,589(2,267)1,1571,4087,887
Total assets39,52253,0942012,496105,132
ROU assets9602,521 - -3,481
Property plant and equipment462572 -305
Pascomer IP - - -12,50012,500
Other intangible assets -- -20,33720,337
Total liabilities5,85260,8311,861 -68,544
Capital expenditure2765 - -92
Operating segments are reported in a manner consistent with the internal reporting provided to
the chief operating decision maker (CODM). For the purposes of NZ IFRS 8, the CODM is a group
comprising the Board of Directors, together with the Chief Executive Officer, the Chief of Staff,
the Chief Financial Officer and the Director of International Business Development. This has been
determined on the basis that it is this group that determines the allocation of the resources to
segments and assesses their performance.
The Group has four operating segments based on geographical locations reportable under NZ IFRS
8, as described below, which are the Group’s strategic groupings of business units. The following
summary describes the operations in each of the Group’s reporting segments:
• New Zealand – Includes the Head Office function for the Group, supplier relationships and
procurement of all stock for the Group, all regulatory activity, governance, all marketing activity and
all finance activity. The sales and distribution activity principally relate to the New Zealand market.
• Australia – Includes the sales and distribution activity relating to the Australian market.
• Asia – Includes the sales and distribution activity relating to the Asian market.
• Rest of World – Includes the out-licensing of IP developments to markets in which the Group
does not have a presence and the export of products to export markets. The costs of research
and development and new market development activity not specific to the other segments are
expensed to this segment.
Major Customers – Revenues from one customer of the Australian segment (being a licensed
wholesaler) represents approximately NZ$37.9m (2021: NZ$30.3m) and from one customer of the
New Zealand segment (also being a licensed wholesaler) represents approximately NZ$16.1m (2021:
NZ$15.6m) of the Group’s total revenues.

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FINANCIAL STATEMENTS 2021-2022
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Notes to the Financial Statements (Continued)
For the Year Ended 31 March 2022
6. Net Operating Profit
Note
2022
$'000
2021
$'000
Profit before tax18,6857,887
After charging the following specific expenses 
Finished goods materials67,68863,521
Inventory write off851843
Audit fees and review of financial statements7249353
Short term rental expenses - premises137132
Share options expense 1345
 
Short term employee emoluments
1
 
Selling and distribution expenses7,3447,314
General and administration expenses2,8952,499
Research and development expenses2,5291,899
  12,76811,712
Research and development expenses 
Business development1,08874
New market development1,8901,464
  2,9781,538
Depreciation 
Plant and machinery8582
Furniture and fixtures2018
Vehicles453
ROU equipment5556
ROU vehicles246327
ROU buildings333333
  784819
Amortisation 
Patents129156
Software917
Development costs4940
Registration costs7372
  260285
Finance costs 
Interest on borrowings2,1723,146
Interest on ROU liabilities263295
Foreign exchange (gains)(642)(239)
Derivative (gains)(269)(360)
Other financing costs/(gains)184(17)
  1,7082,825
¹ This includes contributions recognised as an expense for defined contributions
583569
Finance income comprises interest income that is recognised on a time-proportion basis using the
effective interest method.
Other income comprises research and development and international growth grants and other income.
Research and development grant
Research and development grant income is recognised when eligible research and development
expenses are incurred and conditions relating to the grant are satisfied.
International growth grant
International growth grant income is recognised when eligible international growth expenses
are incurred and conditions relating to the grant are satisfied.
AP
7. Fees Paid to Auditors
2022
$'000
2021
$'000
Audit of financial statements  
Audit of annual financial statements (NZ)210198
Audit of annual financial statements (AU)-117
Review of interim financial statements3938
Review of Callaghan Grant claim-12
Total fees for audit and review services249365
 
Other services 
Tax due diligence services - Deloitte64
Total fees paid to Deloitte255369

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FINANCIAL STATEMENTS 2021-2022
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Notes to the Financial Statements (Continued)
For the Year Ended 31 March 2022
8. Trade and Other Receivables
2022
$'000
2021
$'000
Trade receivables40,75134,973
Expected credit losses - -
Less provision for customer rebates(10,885)(5,746)
Prepayments & sundry debtors6,1361,812
Total trade and other receivables36,00231,039
Ageing of overdue trade debtors
1-30 Days
$'000
31-60 Days
$'000
61-90 Days
$'000
90+ Days
$'000
Total
$'000
31 March 20223,4326237482595,062
31 March 20215,3001831062655,854
All balances are expected to be settled within the next 12 months.
The expected credit loss (ECL) allowance provision has been determined as follows:
As at 31 March 2022 
Current
$'000
Current to
1 month
$'000
Greater
than
1 month
$'000
Total
$'000
Expected loss rate**0.03% 
Gross carrying amount35,6893,4321,63040,751
As at 31 March 2021 
Expected loss rate**0.03% 
Gross carrying amount29,1195,30055434,973
*Expected credit losses are negligible.
The average credit period on sale of goods is 45 days (2021: 41 days). No interest is charged on
outstanding trade receivables.
The Group always measures the loss allowance for trade receivables at an amount equal to lifetime ECL.
The Group has applied the simplified approach to providing for expected credit losses, which requires
the recognition of a lifetime expected loss provision for trade and other receivables. NZ IFRS 9 requires
the Group to consider future potential credit losses and consider items such as forecasted economic
conditions.
The Group does not expect any significant expected credit losses due to the nature of the distribution
and regulatory licensing structure of the industry.
AP
The expected credit losses on trade receivables are estimated using a provision matrix by reference
to past default experience of the debtor and an analysis of the debtor’s current financial position,
adjusted for factors that are specific to the debtors, general economic conditions of the industry
in which the debtors operate and an assessment of both the current as well as forecast direction
of conditions at the reporting date.
As the Group’s historical credit loss experience does not show significantly different loss patterns for
different customer segments, the provision for loss allowance based on past due status is not further
distinguished between the Group’s different customer base.
Bad debt expense for the current year was nil (2021: nil).
AP
Inventories are stated at the lower of cost and net realisable value. Cost is determined on a weighted
average cost basis. Net realisable value is the estimated selling price in the ordinary course of business
less the estimated costs of completion and the estimated costs necessary to make the sale.
9. Inventories
2022
$'000
2021
$'000
Inventory on hand33,94034,124
Provision for obsolescence(440)(470)
Total inventories33,50033,654
Inventory on hand comprises pharmaceutical goods ready for resale and raw materials.
The value of inventory is transferred to cost of sales in the income statement when sold.
To reduce supply chain risks, the Group purchases from multiple manufacturing sites across
different geographies for its main products such as Maxigesic.

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FINANCIAL STATEMENTS 2021-2022
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Notes to the Financial Statements (Continued)
For the Year Ended 31 March 2022
AP
All plant and equipment is stated at historical cost less depreciation and any impairment losses.
Historical cost includes expenditure that is directly attributable to the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset,
as appropriate, only when it is probable that future economic benefits associated with the item will
flow to the Company and Group and the cost of the item can be measured reliably. All other repairs
and maintenance are charged to the consolidated income statement during the financial period
in which they are incurred.
Depreciation of property, plant and equipment is calculated using the diminishing value method
which apportions the cost of the assets over their useful lives. The Group has the following classes
of property, plant & equipment and depreciation rates:
Category Depreciation rate (%)
Plant and Machinery 21% to 80%
Furniture and fixtures 9% to 60%
Vehicles 26% to 36%
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s
carrying amount is greater than its estimated recoverable amount.
Gains and losses on disposal are determined by comparing proceeds to carrying amounts and are
included in the consolidated income statement.
10. Property, Plant and Equipment
Plant and
machinery
$'000
Furniture
and fixtures
$'000
Vehicles
$'000
ROU
Buildings
$'000
ROU
Vehicles
$'000
ROU
Equipment
$'000
Total
$'000
Cost       
Balance at 01 April 20201,0234331743,4726921865,980
Additions912 -544265578
Disposals - - -(7)(109)(3)(119)
Balance at 31 March 20211,1144351743,5191,0091886,439
Additions4826255(8)81(1)401
Disposals - - - -(43) -(43)
Balance at 31 March 20221,1624614293,5111,0471876,797
 
Accumulated depreciation      
Balance at 01 April 2020(870)(295)(150)(319)(265)(54)(1,953)
Depreciation(82)(18)(3)(333)(327)(56)(819)
Disposals - - -71093119
Balance at 31 March 2021(952)(313)(153)(645)(483)(107)(2,653)
Depreciation(85)(20)(45)(333)(289)(55)(827)
Disposals - - - -43 -43
Balance at 31 March 2022(1,037)(333)(198)(978)(729)(162)(3,437)
 
Carrying amounts       
Balance at 31 March 2021162122212,874526813,786
Balance at 31 March 20221251282312,533318253,360
AP
Lease accounting
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.
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 losses.
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.
See note 13 for interest bearing liability analysis and note 21b for lease maturity analysis.

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FINANCIAL STATEMENTS 2021-2022
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58
Notes to the Financial Statements (Continued)
For the Year Ended 31 March 2022
11. Intangible Assets
Pascomer IP
$'000
Trademarks
$'000
Capitalised
registration
$'000
Capitalised
development
$'000
Patents
$'000
Software
$'000
Total
$'000
Cost 
Balance at 01 April 202012,5007361,8979,7573,01453328,437
Additions -732,7282,994226 -6,021
Disposals - - - - - - -
Balance at 31 March 202112,5008094,62512,7513,24053334,458
Additions -1529393,994551 -5,636
Disposals -(3) - - - -(3)
Reclassification -2 -162(164) - -
Balance at 31 March 202212,5009605,56416,9073,62753340,091
 
Accumulated amortisation 
Balance at 01 April 2020 - -(70)(62)(822)(499)(1,453)
Amortisation - -(72)(40)(156)(17)(285)
Disposals - - - - - - -
Balance at 31 March 2021 - -(142)(102)(978)(516)(1,738)
Amortisation - -(73)(49)(129)(9)(260)
Disposals - - - - - - -
Balance at 31 March 2022 - -(215)(151)(1,107)(525)(1,998)
 
Carrying amounts 
Balance at 31 March 202112,5008094,48312,6492,2621732,720
Balance at 31 March 202212,5009605,34916,7562,520838,093
E
Pascomer IP
The Group acquired the remaining 50% of Dermatology Specialties Limited Partner (“DSLP”) and its
general partner DSGP Limited, from its joint venture partner Tardimed Sciences on 5 July 2019 and
these have been fully consolidated from this date. DSLP was originally formed 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.
As a result of the transaction, the Group retained the rights to the intellectual property, future product
sales and royalties.
The Group also entered into an out-license agreement with Timber Pharmaceuticals LLC, 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.
Considering the inherent uncertainties of both the successful conclusion of clinical trials and the
successful registration with orphan status, the Group has recognised the Pascomer intellectual
property at its fair value of $12.5m in the prior year business combination. It is being assessed
for impairment on an annual basis.
During the period, the Group has assessed the progress of Pascomer and identified that the clinical
trials have been progressing positively and other than for the slow down resulting from Covid19,
the Group remains confident of a successful outcome to these trials, which is expected in mid-2022.
In April the US Food and Drug Administration (FDA) approved a topical treatment indicated for
facial angiofibroma (FA) associated with Tuberous Sclerosis Complex (TSC) developed by Japan’s
Nobelpharma. This means that Nobelpharma will gain exclusivity for a period of seven years in USA
which will prevent AFT filing its Pascomer for this orphan indication with the FDA during this period.
The clinical trial program for non-orphan drug Pascomer indications will continue and the significant
formulation patent for Pascomer has been granted in Australia until November 2040 which will form the
basis of further patent filings around the world.
The Group has assessed the recoverability of Pascomer’s carrying value ($12.5m) by engaging
an independent registered valuer, Edison Investment Research Limited, in April 2022. The recoverable
amount of Pascomer is determined based on the fair value less costs of disposal methodology,
using a risk-adjusted net present value (NPV) based on a series of assumptions on the development
and marketing of the product per below.
a) The period used for the discounted cash flow are broken down for two indications
the drug is aiming to treat, Angiofibromas (AF) and Port Wine Stain (PWS).
- 10 years (Europe) for AF
- 15 years for PWS
b) The discount rate used 12.5%
c) For AF in TSF the addressable market has been taken as 74.5% of 1 in 11,000 in Europe
and 1 in 6,000 in Australia.
d) Growth rates are modelled using a second order differential equation based on current penetration,
distance from peak penetration, and the listed rate constant with peak penetration of 20% for AF i
n TSF and 3.4.
e) For PWS the addressable market has been taken as 1.0 million patients in the USA,
3.15 million in Europe and 0.1 million in Australasia. It is assumed there is no growth
in the patient base and a peak penetration of 2.5% in all markets.
These assumptions also applied in the 2021 evaluation other than for the revised PWS addressable
market, peak penetration and inclusion of Australasia.
This valuation methodology uses significant inputs which are not based on observable market data,
and therefore this valuation technique is classified as level 3 of the fair value hierarchy.
Subject to the successful clinical trials and registration in the US, Europe and Australasia, the valuation
indicates sufficient headroom such that a reasonably possible change to the key assumptions is unlikely
to result in an impairment of the Pascomer intellectual property.

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FINANCIAL STATEMENTS 2021-2022
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60
Notes to the Financial Statements (Continued)
For the Year Ended 31 March 2022
AP
Research and development
Research is the original and planned investigation undertaken with the prospect of gaining new
knowledge and understanding. This includes direct and overhead expenses for research, pre-clinical
trials and costs associated with clinical trial activities. All research costs are expensed when incurred.
Development is the application of research findings to a plan or design for the production of new or
substantially improved processes or products prior to the commencement of commercial production.
When a project reaches the stage where it is reasonably certain that future expenditure can be
recovered through the process or products produced, expenditure that is directly attributable or
reasonably allocated to that project is recognised as a development asset. The asset will be amortised
from the date of commencement of commercial production of the product to which it relates on a
straight-line basis over the life of the relevant patent or period of expected benefit. Development assets
are reviewed annually for any impairment in their carrying value.
Development and registration projects are regularly reviewed throughout the year by a staff committee
comprising the CEO, CFO, GM Development and Financial Controller. The status of each project is
measured against the requirements of NZ IAS 38 and the relevant costs incurred during the financial
year are capitalised where projects meet those criteria. The criteria considered in this assessment are:
a) the technical feasibility of completing the intangible asset so that it will be available for use or sale.
b) the Group’s intention to complete the intangible asset and use or sell it.
c) the Group’s ability to use or sell the intangible asset.
d) how the intangible asset will generate probable future economic benefits. Among other things,
e) the Group can demonstrate the existence of a market for the output of the intangible asset or the
intangible asset itself or, if it is to be used internally, the usefulness of the intangible asset.
f) the availability of adequate technical, financial and other resources to complete the development
and to use or sell the intangible asset.
g) the Group’s ability to measure reliably the expenditure attributable to the intangible asset during
its development.
Finite useful life
Acquired patents, capitalised development costs, capitalised registration costs and software have a
finite life and are carried at cost less accumulated amortisation. Patents are amortised over a useful
economic life of 20 years, capitalised development costs and capitalised registration costs over the
period of expected benefit which is usually between 5 and 10 years, and software over 3 to 4 years.
Indefinite useful life
Acquired trademarks are considered to have indefinite useful lives. They are carried at cost
less accumulated impairment. Indefinite useful life assets are tested for impairment annually
or when impairment indicators exist. The asset’s carrying amount is written down immediately to it’s
recoverable amount if the asset’s carrying amount is greater than it’s estimated recoverable amount.
Impairment
Assets are reviewed for impairment whenever events or changes in circumstances indicate that the
carrying amount may not be recoverable. An impairment loss is recognised for the amount by which
the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of
an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets
are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating
units). Indefinite useful life assets are tested for impairment annually and whenever there are indicators
of impairment while finite useful life assets are tested only when there are indicators of impairment.
12. Income Tax
2022
$'000
2021
$'000
  
a) Tax expense 
Profit before tax 18,6857,887
 
Tax calculated at domestic tax rates applicable5,2602,208
Adjustment due to different tax rates of subsidiaries
operating in different jurisdictions
643,818
Tax on income not assessable - -
Tax on expenses not deductible(137)(241)
Tax on losses recognised(6,496)(5,804)
Non-resident withholding tax146124
Tax expense (1,163)105
 
Comprising 
Current tax844124
Deferred tax (2,007)(19)
 
20222021
$'000$'000
b) Deferred tax balance 
Deferred tax asset2,765724
Deferred tax asset 2,765724
Deferred tax assets relating to unused tax loss carry-forwards and to Deductible temporary differences are recognised
if it is probable that they can be offset against future taxable profits or existing temporary differences. As at 31 March
2022, the Group recognised deferred tax assets on temporary differences totalling $2,765k (2021 $724k) since it was
foreseeable that temporary differences could be offset against future taxable profits. On the basis of the approved
business plans of subsidiaries, the Group considers it probable that temporary differences can be offset against future
taxable profits. There is no expected change in capital structure in the near future which is expected to affect the
recoverability of the recognised deferred tax assets
The movement in deferred tax is:
Provisions
$'000
Recognised
Total
Tax losses
$'000
Total
$'000
 
31 March 2020(210)915705
Movements19 -19
Recognition of losses - - -
31 March 2021(191)915724
Movements2,041 -2,041
Recognition of losses- -  -
31 March 20221,8509152,765
$'000
c) Imputation and franking credit available to use  
NZD   -
AUD  322

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63
FINANCIAL STATEMENTS 2021-2022
WORKING TO IMPROVE YOUR HEALTH
62
Notes to the Financial Statements (Continued)
For the Year Ended 31 March 2022
AP
The amount of tax loss carried forward that is available for future utilization
is $8,565,719 (2021: $24,220,598)
13. Interest Bearing Liabilities
2022
$'000
2021
$'000
Current lease liabilities542614
Non-current lease liabilities2,7663,242
BNZ overdraft -1,661
BNZ Term loans current portion4,0003,500
BNZ Term loans non-current portion33,20033,200
Total40,50842,217
2022
$'000
2021
$'000
Opening balance of BNZ loan at 1 April36,70043,200
BNZ loans drawn down5,000 -
Repayment of principal(4,500)(6,500)
Closing balance at 31 March37,20036,700

In March 2020, the Group entered a loan agreement with BNZ for $43.2m. The BNZ loans have a general
security over the assets of the Group together with a group guarantee. The facility includes a progressive
part reduction in principle over the three-year term which matures in April 2023. During May 2021 the
Group entered a Business Finance Scheme (BFS) loan agreement with BNZ for $5m. Of the $5m BFS
loan, $4.5m was used to fully repay the outstanding amount of the BNZ NZ ECO loan, with the remainder
being used for operational cashflow. The BFS loan attracts a lower interest rate than the NZ ECO loan.
The loan attracts an effective interest rate of 5.2%.
All covenants relating to the BNZ facility have been complied with during the year.
Current and deferred income tax
The income tax expense or revenue for the year is the tax payable on the current period’s taxable
income (based on the national income tax rate for each jurisdiction) adjusted by changes in deferred
tax assets and liabilities attributable to temporary differences between the tax bases of assets and
liabilities and their carrying amounts in the financial statements, and to unused tax losses.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected
to apply when the assets are recovered, or liabilities are settled, based on those tax rates which
are enacted or substantively enacted for each jurisdiction. The relevant tax rates are applied to the
cumulative amounts of deductible and taxable temporary differences to measure the deferred tax asset
or liability. Such assets and liabilities are not recognised if the temporary difference arises from the
initial recognition (other than in a business combination) of other assets and liabilities in a transaction
that affects neither the taxable profit nor the accounting profit. In addition, a deferred tax liability is not
recognised if the temporary difference arises from the initial recognition of goodwill.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it
is probable that future taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax liabilities and assets are not recognised for temporary differences between the carrying
amount and tax bases of investments in controlled entities where the parent entity is able to control
the timing of the reversal of the temporary differences and it is probable that the differences will not
reverse in the foreseeable future.
14. Trade and Other Payables
2022
$'000
2021
$'000
Trade payables12,06814,703
GST payable2,1171,744
Employee entitlements1,8521,414
Other payables and accruals3,1233,468
Total19,16021,329
AP
AP
AP
Cash and cash equivalents include cash on hand, deposits held at call with financial institutions, other
short-term investments with original maturities of three months or less that are readily convertible to
known amounts of cash and which are subject to an insignificant risk of changes in value, and bank
overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the balance sheet.
15. Provisions
 
2022
$'000
2021
$'000
 
Opening balance of supplier rebates at 1 April4,4614195
Provision utilised(4,461)(4,195)
Additional provisions required4,1434,461
Closing balance of supplier rebates at 31 March4,1434,461
The trade payables amount represents liabilities for goods and services provided to the Group prior
to the end of financial period which are unpaid. These amounts are incurred and are usually paid within
30 days of recognition.
Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be
settled within 12 months of the reporting date are recognised in trade payables in respect of employees’
services up to the reporting date and are measured at the amounts expected to be paid when the
liabilities are settled. Liabilities for non-accumulating sick leave are recognised when the leave is taken
and measured at the rates paid or payable. The liability for employee entitlements that are not expected
to be settled within 12 months is carried at the present value of estimated future cash flows.
Supplier rebates are based on profit sharing arrangements with suppliers which are estimated
on achieving expected set margin targets and are expected to be utilised within the next 12 months.
These are included as an expense in cost of sales.

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FINANCIAL STATEMENTS 2021-2022
WORKING TO IMPROVE YOUR HEALTH
64
Notes to the Financial Statements (Continued)
For the Year Ended 31 March 2022
16. Share Capital
Ordinary shares and redeemable preference shares are classified as equity.
2022
Shares
2021
Shares
2022
$'000
2021
$'000
Ordinary share capital104,697,260104,583,87580,77080,359
Less capital raising costs - -(3,164)(3,162)
Total104,697,260104,583,87577,60677,197
2022
Shares
2021
Shares
2022
$'000
2021
$'000
Share capital at beginning of the year104,583,875100,639,01977,19763,746
Issue of ordinary shares for conversion of
redeemable preference shares
-605,856 -1,669
Issue of ordinary shares for exercised
share options
113,385139,000409116
Issue of ordinary shares for new share capital -3,200,000- 11,666
Total104,697,260104,583,87577,60677,197
During the previous period, all 3,300,000 redeemable preference shares issued on 24 March
2017 were converted by the holders into 3,300,000 ordinary shares with an additional
605,856 ordinary shares being issued in respect of accumulated dividends on the redeemable
preference shares. CRG converted their preference shares on 20 May 2020 and Atkinson Family
Trust converted their preference shares on 7 August 2020. The preference shares did not carry
any right to vote except at meetings of an interest group of holders of redeemable shares.
17. Earnings Per Share
2022
$'000
2021
$'000
Earnings used in the calculation of basic and diluted earnings per share  
Profit after tax19,8487,7 8 2
Less Redeemable Preference shares dividend -(188)
Net Profit after tax attributable to Ordinary shareholders19,8487,594
 
Effect of dilutive potential ordinary shares 
Share options vested but not yet exercised- 288
Earnings for the purpose of diluted earnings per share19,8487,306
 
Weighted average number of ordinary shares for the 
purposes of basic and diluted earnings per share104,681,253103,296,562
 
Basic and diluted profit per share ($) $0.19 $0.07
AP
Basic earnings per share is computed by dividing net earnings (after preference dividends) by the
weighted average number of ordinary shares outstanding during each period.
18. Dividends Per Share
No dividends have been declared to the ordinary shareholders during the current or prior year.
19. Staff Share Options
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 from date of issue 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 fair value as calculated independently using the
Black Scholes model.
Movements in the number of share options outstanding and their related weighted average
exercise prices are as follows
20222021
 AverageOptionsAverageOptions
exercise price exercise price
 $ per share $ per share 
Balance at beginning of year2.80465,000 2.801,157,164
Issued2.80- 2.80 -
Forfeited2.80- 2.80 -
Exercised *2.80(113,385)2.80(140,000)
Lapsed **2.80(21,615)2.80(552,164)
Balance at end of year2.80330,000 2.80465,000
* Weighted average share price for options exercised during the period $4.30 (2021: $2.37)
** Of the 330,000 outstanding options, 117,500 are currently exercisable (2021: 232,500)
Share options outstanding at the end of the year have the following expiry dates,
exercise dates and exercise prices:
20222021
ExpiryExercisableExercise  
monthmonthprice  
June-2022March 20192.80 25,00025,000
June-2022March 20202.80 175,000220,000
June-2022March 20222.80 100,000100,000
June-2022Various2.80 30,000120,000
Total share options outstanding  330,000465,000
The weighted average remaining contractual life of options outstanding at the end
of the period was 3 months, (2021 1.2 years)
2022
$'000
2021
$'000
Share options reserve  
Balance at beginning of year(274)(763)
Current year expense(13)(44)
Transferred to ordinary share capital113116
Options lapsed14417
Balance at end of year  (160)(274)
113,385 share options were exercised during the reporting period. The options outstanding
at 31 March 2022 had a weighted average exercise price of $2.80 and a remaining average
contractual life of 0.3 years. No options were granted during the year.

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FINANCIAL STATEMENTS 2021-2022
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66
Notes to the Financial Statements (Continued)
For the Year Ended 31 March 2022
20. Contingent Liabilities
In December 2019, the Company renewed its guarantee of AFT Pharmaceuticals (AU) Pty Limited
for its five-year lease extension contract with Investec Limited for the premises occupied in Sydney,
Australia. A deposit of AUD$84,000 is held with NAB bank as security for this lease.
The Group has provided a guarantee to Robt Jones Investment Holdings Ltd of $100,000 as security over
the leased office premises at 129 Hurstmere Road, Takapuna. Auckland. The Group placed NZD$75,000
on term deposit with BNZ bank as security for a guarantee issued by BNZ in favour of the NZX.
On 28 October 2020, the Company entered into a deed of cross guarantee in respect of liabilities of
its subsidiary AFT Pharmaceuticals (AU) Pty Ltd. The principal purpose being to allow the parties to
take advantage of the financial reporting relief available under the ASIC Corporations (Wholly owned
Companies) Instrument 2016/785. The Directors consider it to be highly unlikely that any amount will
be payable under this guarantee.
The Company has received notice of a potential claim from a former contractor in Southeast Asia.
The Group’s lawyers have advised that they do not consider that the claim has merit, and they have
recommended that it be contested. No provision has been made in these financial statements as the
Group’s management does not consider that there is any probable loss.
AP
The Company has a share option plan for employees of the Group. In accordance with the terms of the
plan, as approved by the directors, employees at the time of the Company’s initial NZX and ASX listing
in December 2015 and again in June 2018 were granted share purchase options.
• Each employee share option converts into one ordinary share of the Company on exercise.
• No amounts are paid or payable by the recipient on receipt of the option.
• The options carry neither rights to dividends nor voting rights.
• Options may be exercised at any time from the date of vesting to the date of their expiry.
• The number of options granted is calculated in accordance with the performance-based formula
approved by the directors at previous board meetings.
The formula rewards employees to the extent of the Group’s and the individual’s achievement judged
against both qualitative and quantitative criteria including the following financial
and operational measures:
• market share
• net profit
• target sales thresholds
• product registration and licensing targets
Staff share options are valued at fair value at the grant date as calculated using the Black Scholes model.
The fair value determined at the grant date of the equity-settled share-based payments is expensed on
a straight-line basis over the vesting period, based on the Group’s estimate of equity instruments that
eventually vest, with a corresponding increase in equity. At the end of each reporting period, the Group
revises its estimate of the number of equity instruments expected to vest. The impact of the revision
of the original estimates, if any, is recognised in profit or loss such that the cumulative expense reflects
the revised estimate, with a corresponding adjustment to the equity- settled employee benefits reserve.
21. Commitments
(a) Capital Commitments
The Group has no capital commitments at 31 March 2022 (2021: nil).
(b) Lease Commitments
Payments for leases with a term less than 12 months or a low value are charged in the income
statement on a straight-line basis over the term of the lease. The maturities of the outstanding lease
payment were as follows
2022
$'000
2021
$'000
Due within one year759871
Due later than one year but within two years594718
Due later than two years but within five years1,2441,459
Due later than five years1,7942,143
 4,3915,191
(c) Other Commitments
The Group has previously entered into contracts to complete clinical trials overseas. The contracts
required payments to be made progressively when those stages or milestones are achieved. All
amounts due under the contracts were paid during the previous year. Amount due at 31 March 2022: nil
(2021: nil).
22. 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 DescriptionDescriptionSensitivity
Currency risk
Exposure to changes in foreign exchange rates on assets and
liabilities of subsidiaries, and USD denominated borrowings
As below
Interest rate riskExposure to changes in interest rates on borrowingsAs below
Other price riskNo commodity securities are bought, sold or tradedNil
• 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 year end and the contract exchange rates, considered level 2 of the fair value hierarchy.
The Group purchases goods and services from overseas suppliers in several currencies, primarily AUD,
USD, EUR and GBP which 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, which allow for up
to 50% forward cover out for twelve months. 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 year net foreign exchange gains totalled $911k (2021: $599k). The balance of gains/losses
are derived from the restatement of monetary balances at the spot rate on the year-end balance date
of 31 March 2022.

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FINANCIAL STATEMENTS 2021-2022
WORKING TO IMPROVE YOUR HEALTH
68
Notes to the Financial Statements (Continued)
For the Year Ended 31 March 2022
In total, the Group had financial assets and liabilities denominated in the following currencies:
FY 2022FY 2021
Assets
NZD$’000Currency
Liabilities
NZD$’000
Assets
NZD$’000Currency
Liabilities
NZD$’000
23,801 AUD4,74018,568AUD4,357
2,315 USD4,7871,436USD3,176
151 MYR2336MYR3
630 SGD2593SGD18
787 EUR2,7162,552EUR3,484
12 GBP1304GBP98
The following forward foreign exchange contracts were held at the end of the 2022 financial year:
Forward Foreign Exchange Contracts
Buy currency
Buy currency
amount ‘000
Sell amount
NZD$’000
Buy amount
NZD$’000
Fair value
NZD$’000
EUR6,75011,30810,981(327)
GBP500980946(34)
USD2,8003,9634,03370
Sell currencySell currency Buy amountSell amountFair value
amount $’000NZD$’000NZD$’000NZD$’000
AUD19,10020,71820,68830
Total asset as at 31 March 2022  100
Total liability as at 31 March 2022 (361)
The following forward foreign exchange contracts were held at the end of the 2021 financial year:
Forward Foreign Exchange Contracts
Buy currency
Buy currency
amount ‘000
Sell amount
NZD$’000
Buy amount
NZD$’000
Fair value
NZD$’000
EUR4,4307,6947,466(227)
GBP35969470713
USD4,9007, 2417,0 2 5(216)
Sell currencySell currency Buy amountSell amountFair value
amount $’000NZD$’00031-Mar-20NZD$’000
AUD12,45013,46913,576(107)
Total liability as at 31 March 2021 (537)

• Interest rate risk
Borrowings are at a mixture of floating base rates plus a margin determined by the group’s performance
against covenant adherence levels, which exposes the Group to cashflow interest rate risk. There are no
specific derivative arrangements to manage this risk.
• Credit risk
Financial instruments, which potentially subject the Group to credit risk, principally consist of accounts
receivable, and cash and cash equivalents. 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 31 March 2022 with the largest debtor
being AU$17.02m (2021: AU$11.5m). There has been no prior 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
2.72% of total assets at the Bank of New Zealand (2021: 2.2%), 3.5% at NAB Bank (2021: 0.9%), 0.5% at
Bank of Ireland (2021: nil). 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:
31 March 2022
< 1 year
$'000
1-2 years
$'000
2-5 years
$'000
> 5 years
$'000
TOTAL
$'000
Trade and other payables(19,160) - - -(19,160)
Borrowings(5,604)(28,758)(5,230) -(39,592)
Derivative instruments (outbound)(36,969) - - -(36,969)
Derivative instruments (inbound)37,0 6 9 - - -37,0 6 9
Total(24,664)(28,758)(5,230) -(58,652)
31 March 2021$'000$'000$'000$'000$'000
Trade and other payables(21,329) - - -(21,329)
Borrowings(7,773)(33,841) - -(41,614)
Derivative instruments (outbound)(29,098) - - -(29,098)
Derivative instruments (inbound)28,561 - - -28,561
Total(29,639)(33,841) - -(63,480)
(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
original amounts by contract.
Borrowings are initially measured at fair value, net of transaction costs. Subsequent to initial
recognition, borrowings are measured at amortised cost using the effective interest rate method
23. Management of Capital
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a
going concern so that it can continue to provide returns to its shareholders and to maintain a strong
capital base to support the development of its business. The Group meets these objectives through
a mix of equity capital and borrowings. The level and mix of capital is determined by the Group’s
internal Corporate Governance Policies.
Under the BNZ facility, there is a covenant requirement that the facility, comprising an overdraft and
letter of credit facility, must not exceed the total of 70% of acceptable debtors plus 50% of acceptable
stock. Additional covenants include a requirement for a minimum principle and interest cover ratio,
a minimum net leverage ratio and a maximum Capex and R&D ratio. Covenant reporting is required
on a quarterly basis. The Group was compliant with all BNZ covenants during the year.

WORKING TO IMPROVE YOUR HEALTH
70
AFT PHARMACEUTICALS ANNUAL REPORT 2022
71
FINANCIAL STATEMENTS 2021-2022
WORKING TO IMPROVE YOUR HEALTH
70
Notes to the Financial Statements (Continued)
For the Year Ended 31 March 2022
The consolidated financial statements incorporate the assets and liabilities and the results of the parent
and its subsidiaries controlled during the period.
Subsidiaries are all entities over which the Group has control. The Group controls an entity when the
Group is exposed to, or has rights to, variable returns from its involvement with the entity and has
the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated
from the date on which control is transferred to the Group. They are deconsolidated from the date that
control ceases.
The acquisition method of accounting is used to account for the subsidiaries of the Group. The cost of
an acquisition is measured as the fair value of the assets given, equity instruments issued and liabilities
incurred or assumed at the date of exchange. Identifiable assets acquired and liabilities and contingent
liabilities assumed in a business combination are measured initially at their fair values at the acquisition
date. The excess of the cost of acquisition over the fair value of the Group’s share of the identifiable net
assets acquired is recorded as goodwill. If the cost of acquisition is less than the Group’s share of the fair
value of the identifiable net assets of the subsidiary acquired, the difference is recognised in profit or loss.
Inter-company transactions, balances and unrealised gains on transactions between subsidiary
companies are eliminated. Unrealised losses are also eliminated unless the transaction provides
evidence of the impairment of the asset transferred.
AP
24. Investment in Subsidiaries
Interest held
2022
%
2021
%
Country of
incorporation
Principal
activities
AFT Pharmaceuticals (AU) Pty
Ltd
100%100%Australia
Distribution of pharmaceuticals
in Australia
AFT Pharmaceuticals Singapore
Pte Ltd
100%100%Singapore
Registration of pharmaceuticals
in Singapore
AFT Pharmaceuticals (S.E. Asia)
Sdn Bhd
100%100%Malaysia
Registration of pharmaceuticals
in Malaysia
AFT Orphan Pharmaceuticals
Limited
65%65%New ZealandNo activity
AFT Limited Partner Limited100%100%New Zealand
Sole partner in Dermatology
Specialties LP
Dermatology Specialties Limited
Partnership
100%100%New ZealandNo activity
DSGP Limited100%100%New Zealand
General partner of Dermatology
Specialties LP
AFT Dermatology Limited100%100%New ZealandDistribution of pharmaceuticals
AFT Pharmaceuticals (EUR)
Limited
100%100%Ireland
Distribution of pharmaceuticals
in Europe
25. Significant Events After Balance Sheet Date
There were no events occurring after balance sheet date that required disclosure at the time these
financial statements were authorized.
26. Related Parties
The Group had related party relationships with the following entities:
Related partyNature of relationship  
Atkinson Family Trust
AFT Chief Executive Officer, Hartley Atkinson, is a Trustee /
Discretionary Beneficiary of Atkinson Family Trust.
AFT Chief of Staff, Marree Atkinson, is a Discretionary
Beneficiary of Atkinson Family Trust
2022
$'000
2021
$'000
Key management compensation
Directors fees 470376
Executive salaries1,3371,190
Short term benefits389293
Options expense14714
Key management compensation2,3431,873
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 the planning, controlling and directing the activities of the business.