AFT Pharmaceuticals Limited/Announcement

AFT extends growth investment as sales surge

Half Year Results23 November 2022AFTHealthcare

AFT Pharmaceuticals Limited,
Level 1, 129 Hurstmere Road, Takapuna, Auckland 0622, New Zealand
Incorporated in New Zealand ARBN:
ARBN 609 017 969 investor.relations@aftpharm.com

24 NOVEMBER 2022
FINANCIAL RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER 2022
AFT extends growth investment as sales surge
HIGHLIGHTS
• Half-year operating revenue up 18.4% to $65.8 million, lifted by a 30% growth in
product sales and royalties; growth rate was diluted by lower licensing income
• Gross profit increased by 7% to $28.7 million, with gross profit from product sales
and royalties up 31% to $28.6 million.
• Operating profit down to $3.5 million from $5.5 million in the prior year due to
lower licensing income and increased Australasian investment to capitalise on
growth opportunities.
• Net profit after tax decreased to $1.5 million from $4.2 million
• Net debt at $29.4 million in line with $29.3 million at the end of March 2022
• Targeting near term annual revenue of $200 million, underpinned by strong
ongoing demand, product launches and the ongoing Maxigesic
commercialisation programme
• Near term growth target supported by $10 million incremental investment in
selling and distribution in the Australasian markets.
• New guidance for the FY23 operating profit of $18 million to $23 million down
from May guidance of $27 million to $32 million, due to growth investments and
deferred license income due to the delay in Maxigesic IV US registration.
• AFT continues to expect to declare a dividend for the year to the end of March
2023
AFT Pharmaceuticals (NZX: AFT, ASX:AFP) today reports financial results for the six
months to the end of September 2023 showing the company benefitting from growing
demand for its portfolio of medicines, the easing of COVID pressures in most markets
and new product launches.
The company also announces it is increasing its investment in growth as it drives
towards an annual revenue target of $200 million in the near future. This investment,
an incremental $10 million selling and distribution spend in the current financial year,
will be used to support new product launches in Australia and New Zealand and a
new sales force focused on Australian General Practitioners.
As a direct result of this investment and the delay to the US commercialisation of
Maxigesic IV, the intravenous form of the company’s pain relief medicine, AFT is today
updating its earnings guidance.

AFT Pharmaceuticals Limited,
Level 1, 129 Hurstmere Road, Takapuna, Auckland 0622, New Zealand
Incorporated in New Zealand ARBN:
ARBN 609 017 969 investor.relations@aftpharm.com

AFT now expects operating profits for the year to 31 March 2023 to range between
$18 million to $23 million, lower than the $27 million to $32 million flagged at the start
of the financial year.
The sale of existing products, the launch of new products and product royalties are
expected to contribute $17.5 million and $21.0 million to this result, while the less
predictable and lumpy licensing income is now expected to contribute between $0.5
million and $2.0 million.
AFT Pharmaceuticals Chair David Flacks said: “We are seeing strong growth in
demand for our products and we have a broad range of opportunities to extend our
portfolio in Australasian markets.
“Faced with these opportunities we believe it is appropriate to accelerate our growth
with new investment. In the short term this comes at the expense of earnings, but in
the longer term we believe shareholders will benefit.”
AFT Pharmaceuticals Managing Director Dr Hartley Atkinson said: “Over the last six
months we have continued to build on the momentum achieved in the second half
of the prior financial year.
“With the easing of COVID pressures in most geographies and the launch of new
products we have seen strong organic growth in our business, particularly in our broad
portfolio of over-the-counter medicines. The time is right to accelerate our growth
plans.”
Financial results
Revenue for the six months to the end of September rose to $65.8 million, a strong 18%
improvement on the $55.5 million posted in the same period a year ago. Revenue
from product sales and royalty income was up 30%, or nearly $15 million, but growth
was diluted by lower and traditionally lumpy licensing income
The Australasian business made the biggest contribution to growth, adding $12.3
million in incremental revenue. The combined markets, presently AFT’s largest, grew
revenue by 27.4% to $57.4 million, further demonstrating their strength and ongoing
growth potential.
The international business – which is currently focused on the commercialisation of the
Maxigesic family of pain relief medicines – grew strongly with revenue from product
sales and royalties rising 68% from $2.8 million to $4.7 million. Total international revenue
was down on the prior year’s $7.6 million, which was boosted by $4.8 million of
licensing revenue.
Dose forms of Maxigesic are now sold in 51 countries up from 46 at the end of March
2022 and 43 at the same time last year and the company continues to advance the
commercialisation of line extensions.
The Asian business meanwhile has seen strong growth in the OTC business as the new
partnership with the ASX-listed McPherson’s to distribute our products in Singapore
delivers on its promise.

AFT Pharmaceuticals Limited,
Level 1, 129 Hurstmere Road, Takapuna, Auckland 0622, New Zealand
Incorporated in New Zealand ARBN:
ARBN 609 017 969 investor.relations@aftpharm.com

It also benefited from strong sales of Maxigesic in Malaysia and Hong Kong. The newly
launched OTC products on our T-Mall site have started to contribute, but this is
presently hampered by ongoing COVID restrictions in Mainland China.
Gross profit grew 7% to $28.7 million from $26.7 million. The gross profit margin decline
of 4.5 percentage points to 43.6% is due to the lower license income.
Gross profit from product sales and royalties grew 31% to $28.6 million from $21.9
million. The margin improved by 0.5 percentage points to 43.6%, despite incurring the
additional expense of airfreighting product in order to expedite product launches.
Selling and distribution expenses rose to $17.3 million from $14.2 million, at 26% of
operating revenue. This increase arises from the marketing spend behind the new
product launches and the move to a dedicated Australian GP sales force.
Operating profit decreased to $3.5 million from $5.5 million due to lower license
income. Operating profit excluding the licensing income increased to $3.4 million from
$0.7 million. Net Profit after tax decreased to $1.5 million from $4.2 million, again due
to lower licensing income.
Further detail on the performance of AFT’s individual markets is contained in our
interim report also released to the NZX and ASX today and available at the following
link: https://investors.aftpharm.com/Investors/
Research and development
Research and development expenditure in the half year period was $2.8 million,
largely flat on the $2.8 million in the same period of the prior year and it remains in line
with guidance for full year.
Constraints on the availability of growth capital that have emerged from the shift in
global capital market sentiment has played into the hands of cash generative
companies such as AFT.
Competition for medicine development projects has eased considerably and
consequently AFT has seized this opportunity to secure rights to medicines that offer
promising long-term potential for the business.
New product development pipeline
AFT has a full portfolio of product launches for our Australasian business. Since the end
of March 2022, the company has launched 5 OTC products including Maxigesic hot
drink sachets, and 6 hospital products.
“In the second half of the year, we are launching a further 14 OTC and 1 Prescription
products. By the end of FY2025 we expect to have launched a total of 76 products
since the start of FY2023,” Dr Atkinson said.
“Of these, we expect 51% will be launched into the OTC channel, 37% in the hospital
channel and the remaining 12% in the prescription channel, with the intellectual
property coming from either in-licensing or our own drug development programs.”

AFT Pharmaceuticals Limited,
Level 1, 129 Hurstmere Road, Takapuna, Auckland 0622, New Zealand
Incorporated in New Zealand ARBN:
ARBN 609 017 969 investor.relations@aftpharm.com

Balance sheet
AFT remains well funded. Net debt at the end of the half year was $29.4 million in line
with the $29.3 million at the end of March 2022.
“Inventory levels remain higher than normal as a buffer against disruptions in global
supply chains. There has been some easing in global transportation, particularly on
the main routes and we expect this to slowly filter through to Australia and New
Zealand,” Dr Atkinson said.
Outlook
Dr Atkinson said the company expected a stronger second half.
“If anything, we expect the result for the full year to be even more skewed to the
second half than normal, due to the high number of planned launches.
“Strong growth in all existing markets will continue to drive overall sales and we expect
our in-licensing and research and development pipeline to make a growing
contribution to revenue and earnings over time.
“We also continue to expect to declare a maiden dividend for the 2023 financial year.
We look forward to providing a further update in the New Year.”
For and on behalf of AFT Pharmaceuticals Limited by Malcolm Tubby, Chief Financial
Officer.
For more information:
Investors Media
Dr Hartley Atkinson Richard Inder
Managing Director The Project
AFT Pharmaceuticals Tel: +64 21 645 643
Tel: +64 9488 0232

About AFT Pharmaceuticals
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 which are distributed across all major pharmaceutical
distribution channels: over the counter (OTC), prescription and hospital. Our product
portfolio comprises both proprietary and in-licensed products, and includes patented,
branded, and generic drugs. Our business model is to develop and in-license products
for sale by our own dedicated sales teams in our home markets of Australia and New
Zealand and to out-license / distribute our products to local licensees and distributors
to over 125 countries around the world. For more information about the company, visit
our website: www.aftpharm.com.

---

Results for announcement to the market
AFT Pharmaceuticals Limited
Reporting Period 6 months to September 30 2022
Previous Reporting Period 6 months to September 30 2021
Currency NZ$
Amount (000s) Percentage change
Revenue from continuing
operations
$65,750 Up 18%
Total Revenue $65,750 Up 18%
Net operating profit/(loss) from
continuing operations
$3,457 Down 37%
Total operating net profit/(loss) $3,457 Down 37%
Interim/Final Dividend
Quoted Equity Securities:
Amount per Quoted Equity
Security
No dividends have been paid on ordinary shares and it is
currently not proposed to pay dividends.
Imputed amount per Quoted
Equity Security
Not Applicable
Record Date Not Applicable
Dividend Payment Date Not Applicable
Unquoted Equity Securities:
Amount per Unquoted
Redeemable Preference Share
Not Applicable
Imputed Amount per Unquoted
Redeemable Preference Share
Not Applicable
Record Dates Not Applicable
Dividend Payment Dates Not Applicable
Current period Prior comparable period
Net tangible assets per Quoted
Equity Security
$0.15 $0.05
A brief explanation of any of the
figures above necessary to
enable the figures to be
understood
Accompanying this announcement are the Group’s unaudited
consolidated financial statements for the six months ended
30 September 2022. These financial statements and the half
year results commentary dated 24 November 2022 provide
the balance of information requirements in accordance with
NZX Listing Rule 3.5 and Appendix 2.
Pursuant to ASX listing rule 1.15.3 AFT Pharmaceuticals
Limited confirms that it continues to comply with the rules of
its home exchange (NZX Main Board).

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

Authority for this announcement
Name of person

authorised to
make this announcement
Malcolm Tubby
Contact person for this
announcement
Malcolm Tubby, Chief Financial Officer,
AFT Pharmaceuticals Ltd
Contact phone number +64 9 488 0232
Contact email address malcolm@aftpharm.com
Date of release through MAP

24 November 2022

Unaudited financial statements accompany this announcement.

---

2023
INTERIM
REPORT
Results for the half year
to 30 September 2022

Contents
At a Glance 2-3
Chairman and CEO’s Report 4-6
Regional Performance Detail 7-11
Financial Statements 13-33
Directory 34
This report provides a summary review of AFT’s
operational and financial performance for the six
months to 30 September 2022 and should be read
in conjunction with the company’s financial
statements on pages 16 to 33 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 reviewed by Deloitte Limited.
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 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.

Delivering Strong Organic Growth
1H FY2023 Highlights
$3.5 million
Operating profits down from $5.5
million due to lower licensing income
$1.5 million
Net profit after tax was down
from $4.2 million
$65.8 million
Half-year operating revenue grew
by 18.4% from $55.5 million
$29.4 million
In line with March 2022
net debt of $29.3 million
Strong growth outlook supported
by a full pipeline of product launches
WORKING TO IMPROVE YOUR HEALTH
2

AT A GLANCE
Regional Performance. A Global Presence.
AUSTRALIA
Sales $36.1 million
GROWTH 24%
Operating profit
$3.1 million down
from $3.6 million
Key drivers:
Organic growth and new
product launches
NEW ZEALAND
Sales $21.3 million
GROWTH 34.7%
Operating profit
1

$0.1 million up
from ($1.8) million
Key drivers:
Organic growth
ASIA
Sales $3.7 million
GROWTH 26.1%
Operating profit
$0.5 million up
from $0.4 million
Key drivers:
Sales partnership with
McPherson’s, and Maxigesic
sales growth
INTERNATIONAL
Sales $4.7 million
GROWTH -37.8%
Operating profit
($0.3) million down
from $3.3 million
Key drivers:
Organic growth offset
by lower licence income
FY22H1 Operating RevenueFY23H1 Operating Revenue
Australia 53%
New Zealand 28%
Rest of world 14%
Asia 5%
Australia 55%
New Zealand 32%
Rest of world 7%
Asia 6%
A Consistent Record of Growth
1 Excluding head office costs
All comparisons are against the same half year period in the prior year.
$140
$120
$100
$80
$60
$40
$20
$-
NZ$ MILLION
AFT Operating Revenue
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1H2023
FINANCIAL YEAR (

1H)
$12
$8
$66
$17
$80
$69
$64
$56
$49
$40
$34
$33
$28
$26
$23
$106
$85
$130
$113
AFT PHARMACEUTICALS INTERIM REPORT 2023
3

Dear shareholders,
AFT Pharmaceuticals over the last six months
has continued to build on the momentum
achieved in the second half of the prior financial
year. Trading has benefited from the easing
of COVID pressures in most geographies, while
the launch of new products has bolstered
the already strong growth in demand for
the company’s portfolio of medicines.
WORKING TO IMPROVE YOUR HEALTH
4
Innovation
Driving Growth
We expect the result for the full
year to be even more skewed to the
second half than normal, due to the
high number of planned launches.
Financial Results
Revenue for the six months to the end of
September rose to $65.8 million, a strong 18%
improvement on the $55.5 million posted in the
same period a year ago. Revenue from product
sales and royalty income was up 30%, or nearly
$15 million, but growth was diluted by lower
and traditionally lumpy licensing income.
Our Australasian business made the biggest
contribution to growth, adding $12.3 million in
incremental revenue. The combined markets,
presently our largest, grew revenue by 27.4%
to $57.4 million, further demonstrating their
strength and ongoing growth potential.
Our international business – which is currently focused
on the commercialisation of the Maxigesic family of
pain relief medicines – grew strongly with revenue
from product sales and royalties rising 68% from
$2.8 million to $4.7 million. Total international revenue
was down on the prior year’s $7.6 million, which
was boosted by $4.8 million of licensing revenue.
Dose forms of Maxigesic are now sold in 51 countries
up from 46 at the end of March 2022 and 43 at the
same time last year and we continue to advance
the commercialisation of line extensions.
Our Asian business meanwhile has seen strong
growth in the OTC business as the new partnership
with the ASX-listed McPherson’s to distribute our
products in Singapore delivers on its promise. It also
benefited from strong sales of Maxigesic in Malaysia
and Hong Kong. The newly launched OTC products
on our T-Mall site have started to contribute, but
this is presently hampered by ongoing COVID
restrictions in Mainland China.
Gross profit grew 7% to $28.7 million from $26.7 million.
The gross profit margin decline of 4.5 percentage
points to 43.6% is due to the lower license income.
Gross profit from product sales and royalties grew 31%
to $28.6 million from $21.9million. The margin improved
by 0.5 percentage points to 43.6%. This is in spite
of incurring the additional expense of airfreighting
product in order to expedite product launches.
Selling and distribution expenses rose to $17.3
million from $14.2 million, at 26% of operating
revenue. This increase arises from the marketing
spend behind the new product launches and the
move to a dedicated GP sales force, both of which
we expect to drive additional sales.
Operating profit decreased to $3.5 million from
$5.5 million due to lower license income. Operating
profit excluding the licensing income increased to
$3.4 million from $0.7 million. Net Profit after tax
decreased to $1.5 million from $4.2 million, again
due to the lower licensing income.

CHAIRMAN AND CEO’S REPORT
Researchers at the Gillies McIndoe Research Institute
AFT PHARMACEUTICALS INTERIM REPORT 2023
5
New Product Development Pipeline
We have a full portfolio of product launches for
our Australasian business. During 1HFY23 we have
launched five OTC products including Maxigesic
hot drink sachets, and six hospital products.
In the second half of the year, we are launching
a further 14 OTC products, and 1 prescription product.
By the end of FY2025 we expect to have launched
a total of 76 products since the start of FY2023.
Of these, we expect 51% will be launched into
the OTC channel, 37% in the hospital channel
and the remaining 12% in the prescription channel,
with the intellectual property coming from either
in-licensing or our own drug development programs.
We are investing an additional $10 million in sales
and distribution in the current financial year to
support new product launches in Australia and
New Zealand and to support a sales force focused
on Australian General Practitioners.
Year1H FY232H FY231H FY242H FY24FY25
Planned
Launches
1115161123
Balance Sheet
AFT remains well funded. Net debt at the end of
the half year was $29.4 million in line with the $29.3
million at the end of March 2022 and lower than the
$32.6 million at the same time a year ago.
We have continued to retain higher than normal
inventory levels as a buffer against disruptions in
global supply chains. There has been some easing
in global transportation, particularly on the main
routes and we expect this to slowly filter through
to Australia and New Zealand.
The current BNZ facility matures in April next year
and we have signed an agreed term sheet which will
renew this through to April 2026 on similar terms.
Research and Development
Constraints on the availability of growth capital
that have emerged from the shift in global
capital market sentiment has played into the
hands of cash generative companies such as AFT.
Competition for medicine development projects has
eased considerably and consequently we have seized
this opportunity to secure rights to medicines that
offer promising long-term potential for the business.
As highlighted in early September we have teamed up
with the Gillies McIndoe Research Institute and Massey
Ventures to develop a topical treatment for strawberry
birthmarks (infantile haemangiomas) in children.
This medicine seeks to combine two well-known
blood pressure medicines (beta blockers and
angiotensin-converting enzyme inhibitors)
with AFT’s expertise in stabilising medicines
in a topical treatment.
Footnote 1. Actual Launch
If the development is successful, it has the
potential to open up a significant global market.
It is a project that is emblematic of the company’s
medicine development portfolio, which in total
has the potential to open up significant new
markets over the long term.
Research and development expenditure in the half
year period was $2.8 million, largely flat on the
$2.8 million in the same period of the prior year
and it remains well in line with our guidance for full
year spend (expensed and capitalised) of $12 million.

.|
“Our Australasian business made
the biggest contribution to
growth, adding $12.3 million
in incremental revenue.”
WORKING TO IMPROVE YOUR HEALTH
6
Outlook
We see a stronger second half. If anything,
we expect the result for the full year to be even
more skewed to the second half than normal,
due to the high number of planned launches.
Strong growth in all existing markets will
continue to drive overall sales and we expect
our in-licensing and research and development
pipeline to make a growing contribution to
revenue and earnings over time.
We now expect to generate an operating profit
for the year to 31 March 2023 of $18 million
to $23 million.
Product sales and royalties are expected to
contribute $17.5 million to $21 million to operating
profit, while licensing income is expected to
contribute between $0.5 million and $2.0 million
This result is lower than the guidance given in
May 2022 and reflects increased investment in
sales and distribution to capitalise on the growth
opportunities we see and lower than expected
licensing income following ongoing delays to the
commercialisation of Maxigesic IV in the US.
Our target is to exceed $200 million of annual
sales in the near future.
We remain confident of securing previously
budgeted licensing revenue, seeing it as delayed
by regulatory process.
We also continue to expect to declare a maiden
dividend for the 2023 financial year after we
release our results at the end of May 2023.
We look forward to providing a further update
in the New Year.
David Flacks Dr Hartley Atkinson
Chair Managing Director

Sales in Australia accelerated to $36.1 million
rising 24% from the $29.2 million in the same
period in the prior year. The OTC channel was
the standout performer growing 36.9% to
$23.6 million with the hospital and prescription
channels delivering steady single digit growth.
Sales benefited from the normalisation of trading
to pre-COVID levels and 11 product launches.
Our Maxigesic hot drink sachets - a product that
we plan to roll out across our global markets -
performed particularly well.
We expect momentum to accelerate in the second
half of the year lifted by a number of significant
new product launches that occurred late in the
six-month period and the 14 new products planned
to launch in the second half of the year.
Revenue also benefitted from price increases as
the company was able to pass on increasing supply
and operating costs to customers.
Operating profit declined slightly to $3.1 million
from $3.6 million in the prior year, as we increased
investment in total selling and distribution by
$3.3 million. However, given the significant number
of new launches, we consider this investment
to be important in order to secure successful
product launches.
1H FY23 AUSTRALASIA SNAPSHOT
DISTRIBUTION
6,800
PHARMACIES
PRODUCTS
150+
across seven therapeutic areas:
pain, eyecare, medicated vitamins,
allergy, gastrointestinal health,
dermatology, and hospital
AUSTRALIAN REVENUE
$36.1m
Momentum Building
New Zealand Sees Broad
Based Growth
Revenue in New Zealand grew across all channels
rising to $21.3 million, a 35% increase on the
$15.8 million in the prior year.
The New Zealand OTC business grew sales
by 28.5% or $2.4 million to $11.0 million lifted
by strong post Covid organic product growth
and a strong contribution from the allergy
and pain-relief categories.
We also saw strong growth in the prescription
and hospital business of 56.9% and 16.5%
respectively. Operating profits (excluding
Head Office costs) rose from $2.0 million
to $4.9 million as we were able to hold total
selling and distribution expenses steady.
REGIONAL PERFORMANCE DETAIL
NEW ZEALAND REVENUE
$21.3m
AFT PHARMACEUTICALS INTERIM REPORT 2023
7

McPherson’s lifts Asian Sales
Sales in Asia rose to $3.7 million up 26.1%
from the $2.9 million achieved in the same
period in the prior year.
The result was lifted by a more than doubling
(115%) of sales in the OTC business, a direct result
of the agreement struck with the ASX-listed
McPherson’s to drive OTC sales in Singapore.
McPherson’s is distributing and marketing the
tablet form of Maxigesic, our premium Liposomal
Nutritional Supplements as well as a number
of other pharmaceuticals.
We saw strong growth in sales of Maxigesic in
Malaysia and Hong Kong.
Meanwhile, OTC sales through our new Tmall Global
site, ‘Kiwi Health’ directly into China under the Cross
Border E-Commerce regime, are still in their infancy,
but we continue to see strong potential for direct
sales into the Chinese mainland with the site.
1H FY23 ASIA SNAPSHOT
DISTRIBUTION
Direct, agreements
McPherson’s and online
via T-Mall
REVENUE
$3.7m
The launch of Maxigesic IV in Panama, where it is branded Combofusiv.
.|
Our Asian hospital business also grew strongly
(44.1%) building on the momentum of the second
half of the prior financial year. Operating profits
improved from $0.4 million to $0.5 million.
WORKING TO IMPROVE YOUR HEALTH
8

Strong Organic International Growth
International sales fell by 37.8% to $4.7 million from $7.6 million at the same time a year ago due mainly
to the absence of licensing income, which by its nature is lumpy and unpredictable. Revenue from
product sales and royalties meanwhile grew by a very strong 67.5% to $4.6 million from $2.8 million.
We continued to progress the commercialisation
of our family of Maxigesic pain relief medicines.
A version of the medicine is now sold in 51 countries,
up from 46 at the end of March and we remain on
track to have launched the medicine in 63 countries
by the end of this financial year.
Over the last half year period, the intravenous form of
Maxigesic IV was licensed in Canada, Iraq, Kurdistan,
Columbia, Peru, and Chile and registered in Pakistan.
It was meanwhile launched in Ireland, Germany, and
Indonesia and Panama. The new Maxigesic hot-drink
sachet, a unique product, has been launched in
Australia in two strengths.
These gains were offset by the disappointment of
delays to the registration of Maxigesic IV in the US.
As we announced in July, the US Food and Drug
administration has requested more information on
the packaging of the product, and this has delayed
the receipt of expected licensing income in the
current year.
Product
Maxigesic
Tablet
Maxigesic IV
Maxigesic
Oral Solution
Maxigesic
Hot Drink
Territories
30 Sept
2022
31 March
2022
30 Sept
2022
31 March
2022
30 Sept
2022
31 March
2022
30 Sept
2022
31 March
2022
Licensed100+100+100+100+100+100+100+100+
Registered635241372221
Sold in47461070011
We expect a slower than anticipated roll out of
Maxigesic in all its dose forms in FY24 due to our
withdrawal from Russia and related regulatory
delays in other regions in the trading block and
a slower roll out in Africa. We are now targeting
to be selling the medicine in 73 countries, down
from our earlier target of 90.
1H FY23 INTERNATIONAL SNAPSHOT
100+
REVENUE
$4.7m
51
COUNTRIES WHERE OUR
PRODUCTS ARE SOLD
COUNTRIES WITH
DISTRIBUTION AGREEMENTS
REGIONAL PERFORMANCE DETAIL
AFT PHARMACEUTICALS INTERIM REPORT 2023
9

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
IV licensed
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 launched
Switzerland - Tablets launched 2021
Brazil - licensing
negotiations underway
Columbia, Peru & Chile -
distributor appointed Orals
IV licensed
Mexico - Tablets launched 2021
IV licensed
CACM - Tablets launched
IV launched
USA - IV licensed
Canada -
Tablets launched 2021
IV licensed
Singapore & Brunei - Tablets launched
Russia -
on hold
China - licensing negotiations underway
Taiwan - Tablets licensed
Korea - IV launched 2022
Japan-licensing
discussions
areunderway
Indonesia - IV launched
Pakistan -
IV registered
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 launched
Poland - IV and Orals licensed
NZ - Maxigesic, Maxigesic PE,
Maxigesic IV launched
Maxigesic Hot Drink launched 2022
Launched
Launch Pending
Available
AFT PHARMACEUTICALS INTERIM REPORT 2023
11

AFT Pharmaceuticals Limited
Condensed Consolidated Interim
Financial Statements
For the Six Months Ended 30 September 2022
Financial Statements Contents
Independent Auditor’s Report 14-15
Consolidated Income Statement 16
Consolidated Statement
of Comprehensive Income 17
Consolidated Statement
of Changes in Equity 18
Consolidated Balance Sheet 19
Consolidated Statement of Cash Flows 20
Reconciliation of Profit After Tax With
Net Cash Flow From Operating Activities 21
Notes to the Financial Statements 22-33

Conclusion
We have reviewed the condensed consolidated interim financial statements (‘interim
financial statements’) of AFT Pharmaceuticals Limited and its subsidiaries (‘the Group’)
which comprise the consolidated balance sheet as at 30 September 2022, the consolidated
income statement, consolidated statement of comprehensive income, consolidated
statement of changes in equity and consolidated statement of cash flows for the six months
ended on that date, and a summary of significant accounting policies and other explanatory
information on pages 16 to 33.
Based on our review, nothing has come to our attention that causes us to believe that
the interim financial statements of the Group do not present fairly, in all material respects,
the financial position of the Group as at 30 September 2022 and its financial performance
and cash flows for the six months ended on that date in accordance with NZ IAS 34
Interim Financial Reporting and IAS 34 Interim Financial Reporting.
Basis for Conclusion
We conducted our review in accordance with NZ SRE 2410 (Revised) Review of Financial
Statements Performed by the Independent Auditor of the Entity (‘NZ SRE 2410 (Revised)’).
Our responsibilities are further described in the Auditor’s Responsibilities for the Review
of the Interim Financial Statements section of our report.
We are independent of the Group in accordance with the relevant ethical requirements
in New Zealand relating to the audit of the annual financial statements, 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 AFT Pharmaceuticals Limited or its subsidiaries. These
services have not impaired our independence as auditor of the Company and Group.
Directors’ responsibilities for the interim financial statements
The directors are responsible on behalf of the Group for the preparation and fair
presentation of the interim financial statements in accordance with NZ IAS 34 Interim
Financial Reporting and IAS 34 Interim Financial Reporting and for such internal control
as the directors determine is necessary to enable the preparation and fair presentation
of the interim financial statements that are free from material misstatement, whether
due to fraud or error.
Auditor’s responsibilities for the review of the interim financial statements
Our responsibility is to express a conclusion on the interim financial statements based
on our review. NZ SRE 2410 (Revised) requires us to conclude whether anything has come
to our attention that causes us to believe that the interim financial statements, taken as
a whole, are not prepared, in all material respects, in accordance with NZ IAS 34
Interim Financial Reporting and IAS 34 Interim Financial Reporting.
Independent Auditor’s Review Report
To the Shareholders of AFT Pharmaceuticals Limited
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14
WORKING TO IMPROVE YOUR HEALTH
14

A review of the interim financial statements in accordance with NZ SRE 2410 (Revised)
is a limited assurance engagement. We perform procedures, primarily consisting of making
enquiries, primarily of persons responsible for financial and accounting matters, and
applying analytical and other review procedures. The procedures performed in a review
are substantially less than those performed in an audit conducted in accordance with
International Standards on Auditing (New Zealand) and consequently do not enable
us to obtain assurance that we might identify in an audit. Accordingly we do not express
an audit opinion on the interim financial statements.
Restriction on use
This report is made solely to the company’s shareholders, as a body. Our review has been
undertaken so that we might state to the company’s shareholders those matters we
are required to state to them in a review report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone other than
the company’s shareholders as a body, for our engagement, for this report, or for the
conclusions we have formed.
Bryce Henderson, Partner
for Deloitte Limited
Auckland, New Zealand
24 November 2022
This review report relates to the unaudited condensed consolidated interim financial statements of AFT Pharmaceuticals
Limited for the six months ended 30 September 2022 included on AFT Pharmaceuticals Limited’s website. The Board
of Directors is responsible for the maintenance and integrity of AFT Pharmaceuticals Limited’s website. We have not
been engaged to report on the integrity of AFT Pharmaceuticals Limited’s website. We accept no responsibility for
any changes that may have occurred to the unaudited condensed consolidated interim financial statements since they
were initially presented on the website. The review report refers only to the unaudited condensed consolidated interim
financial statements named above. It does not provide an opinion on any other information which may have been
hyperlinked to/from these unaudited condensed consolidated interim financial statements. If readers of this report
are concerned with the inherent risks arising from electronic data communication they should refer to the published
hard copy of the unaudited condensed consolidated interim financial statements and related review report dated
24 November 2022 to confirm the information included in the unaudited condensed consolidated interim financial
statements presented on this website. Legislation in New Zealand governing the preparation and dissemination
of financial statements may differ from legislation in other jurisdictions.
AFT PHARMACEUTICALS INTERIM REPORT 2022
15
AFT PHARMACEUTICALS INTERIM REPORT 2023
15
INDEPENDENT AUDITOR’S REPORT

Consolidated Income Statement
For the Six Months Ended 30 September 2022
Unaudited
6 Months
Ended
30 Sep 2022
$'000
Unaudited
6 Months
Ended
30 Sep 2021
$'000

Note
Revenue 465,75055,513
Cost of sales(37,071)(28,808)
Gross profit 28,67926,705

Other Income -123
Selling and distribution expenses(17,312)(14,237)
General and administrative expenses(5,127)(4,269)
Research and development expenses(2,783)(2,831)
Operating profit 3,4575,491

Finance income14
Interest costs(1,395)(1,240)
Other finance gain59177
Profit before tax 2,1224,432

Income tax expense(670)(189)
Profit after tax attributable to owners of the parent 1,4524,243

Earnings per share
Basic and diluted earnings per share ($) $0.01$0.04
The accompanying Notes form an integral part of the condensed consolidated interim financial statements.
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16
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16

Consolidated Statement of Comprehensive Income
For the Six Months Ended 30 September 2022
Unaudited
6 Months
Ended
30 Sep 2022
$'000
Unaudited
6 Months
Ended
30 Sep 2021
$'000Note
Profit after tax 1,4524,243

Other comprehensive income
Items that may be subsequently reclassified to profit and loss:
Foreign exchange difference on translation of foreign operations(283)(34)
Other comprehensive loss for the year, net of tax (283)(34)

Total comprehensive income 1,1694,209
The accompanying Notes form an integral part of the condensed consolidated interim financial statements.
AFT PHARMACEUTICALS INTERIM REPORT 2022
17
AFT PHARMACEUTICALS INTERIM REPORT 2023
17
INTERIM FINANCIAL STATEMENTS 2023

Consolidated Statement of Changes in Equity
For the Six Months Ended 30 September 2022
Note
Share
capital
$'000
Share

options

reserve
$'000
Foreign

currency

translation

reserve
$’000
Retained

earnings
$'000
Total
equity
$'000
Balance 31 March 2021 77,197 274381 (41,264)36,588

Unaudited
Six months to 30 September 2021
Profit after tax - --4,2434,243
Other comprehensive income - -(34) -(34)
Total comprehensive income - -(34)4,2434,209
Issue of share capital294 ---294
Capital raising expenses(2) ---(2)
Movement in share options reserve - 7--7
Balance 30 September 2021 77,489281347 (37,021)41,096

Audited
Year ended 31 March 2022
Profit after tax - - -19,84819,848
Other comprehensive income - -13 -13
Total comprehensive income - -1319,84819,861
Issue of share capital8409(113) - -296
Movement in share options reserve -(1) - -(1)
Balance 31 March 2022 77,606160394 (21,416)56,744

Unaudited
Six months to 30 September 2022
Profit after tax - - -1,4521,452
Other comprehensive income - -(283) -(283)
Total comprehensive income - -(283)1,4521,169
Issue of share capital8634(161) - -473
Movement in share options reserve -1 -3435
Balance 30 September 2022 78,240 -111(19,930)58,421
The accompanying Notes form an integral part of the condensed consolidated interim financial statements.
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18
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18

Consolidated Balance Sheet
As at 30 September 2022
Note
Unaudited
as at
30 Sep 2022
$'000
Audited
as at
31 Mar 2022
$'000
Unaudited
as at
30 Sep 2021
$’000

ASSETS
Current assets
Inventories 39,70733,50034,129
Trade and other receivables 28,18036,00225,705
Cash and cash equivalents 8,7957,9405,907
Derivative assets 471100446
Total current assets 77,15377,54266,187

Non-current assets
Property, plant and equipment518484463
Intangible assets42,23638,09335,235
Right of use assets2,6412,8763,173
Deferred income tax assets 3,7552,765650
Total non-current assets49,15044,21839,521
Total assets 126,303121,760105,708

LIABILITIES
Current liabilities
Trade and other payables20,77119,16016,431
Provisions2,8064,1435,972
Lease liabilities7514542578
Current income tax liability2,318844101
Derivative liabilities1368136141
Interest bearing liabilities733,2004,0002,299
Total current liabilities60,29029,05025,422

Non-current liabilities
Lease liabilities72,5922,7662,990
Interest bearing liabilities75,00033,20036,200
Total non-current liabilities7, 5 9 235,96639,190
Total liabilities 67,88265,01664,612

EQUITY
Share capital8 78,24077,60677,489
Retained earnings/(losses)(19,930) (21,416) (37,021)
Share options reserve8 -160281
Foreign currency translation reserve111394347
Total equity 58,42156,74441,096
Total liabilities and equity 126,303121,760105,708
The accompanying Notes form an integral part of the condensed consolidated interim financial statements.

On behalf of the Board on 24 November 2022
David Flacks Dr Hartley Atkinson
Chair Founder and Chief Executive Officer
AFT PHARMACEUTICALS INTERIM REPORT 2022
19
AFT PHARMACEUTICALS INTERIM REPORT 2023
19
INTERIM FINANCIAL STATEMENTS 2023

Consolidated Statement of Cash Flows
For the Six Months Ended 30 September 2022

Unaudited
6 Months
Ended
30 Sep 2022
$’000
Restated*
Unaudited
6 Months
Ended
30 Sep 2021
$’000

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers74,08166,764
Payments to suppliers and employees (67,850) (59,741)
Interest received14
Tax paid (249) (201)
Net cash generated from operating activities

5,9836,826

CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment (115) (220)
Purchase of intangible assets (4,738) (2,550)
Net cash used in investing activities

(4,853) (2,770)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of share capital473262
Payment for lease liabilities (302) (321)
New borrowings -6,000
Borrowings repaid (2,000) (4,500)
Interest paid on lease liabilities (116) (140)
Interest costs paid on borrowings (1,104) (1,288)
Net cash used in financing activities (3,049)13

Net increase in cash(1,919)4,069
Impact of foreign exchange on cash and cash equivalents (226)(9)
Opening cash and cash equivalents7,9401,548
Closing cash and cash equivalents 5,7955,608
*The Group has determined that, for the purposes of the Statement of Cash Flows, the bank overdraft
should be classified as cash and cash equivalents because it forms an integral part of the Group’s cash
management. Movements in the bank overdraft will therefore not be shown as a financing cashflows.
The prior period has been restated to conform with this presentation. As a result, net cashflows from
financing activities for the six months ended 30 September 2021 have increased by $1,339k.
Cash and cash equivalents comprise of cash at bank, net of outstanding bank overdrafts
(30 Sept 2022: $3,000k, 30 Sept 2021: $299k).
The accompanying Notes form an integral part of the condensed consolidated interim financial statements.
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Reconciliation of Profit After Tax With Net Cash Flow
From Operating Activities
For the Six Months Ended 30 September 2022
Unaudited
6 Months
Ended
30 Sep 2022
$'000

Unaudited
6 Months
Ended
30 Sep 2021
$'000

Profit after tax1,4524,243

Non-cash items and items classified as financing activities
Depreciation 8062
Depreciation ROU assets 344341
Amortisation 595152
Impact of foreign exchange on cash and cash equivalents (51) (32)
Share options expense -7
Interest on lease liabilities116140
Interest and finance expense1,1041,288
Unrealised (gain)/loss on foreign currency movements(165) (45)
Provision for tax670140
Interest received - -

Movement in working capital
(Increase) in inventories (6,207) (475)
Decrease in trade and other receivables and derivative assets 7,4514,888
Increase/(decrease) in trade and other payables,
provisions and derivative liabilities
594 (3,883)
Net cash generated from operating activities 5,9836,826
The accompanying Notes form an integral part of the condensed consolidated interim financial statements.
AFT PHARMACEUTICALS INTERIM REPORT 2022
21
AFT PHARMACEUTICALS INTERIM REPORT 2023
21
INTERIM FINANCIAL STATEMENTS 2023

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 condensed consolidated interim financial statements were approved by the Directors on 24
November 2022 and are not audited but have been reviewed by Deloitte Limited in accordance with
the New Zealand Standard on Review Engagements 2410.
2. BASIS OF PREPARATION AND PRINCIPLES OF CONSOLIDATION
Statement of compliance
These general-purpose financial statements for the six months to 30 September 2022 have been
prepared in accordance with New Zealand Generally Accepted Accounting Practice (NZ GAAP).
They comply with NZ IAS 34 and IAS 34, Interim Financial Reporting. The Group is a for-profit
entity for the purposes of complying with NZ GAAP.
These condensed consolidated interim financial statements do not include all the notes normally
included in an annual financial report. Accordingly, this report should be read in conjunction with
the audited financial statements for the year ended 31 March 2022, which have been prepared
in accordance with the New Zealand equivalents to International Financial Reporting Standards
(NZ IFRS) and International Financial Reporting Standards (IFRS).
The same accounting policies and methods of computation are followed in the condensed
consolidated interim financial statements as compared to the audited financial statements
for the year ended 31 March 2022, as described in those annual financial statements.
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).
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, and
• Exchange differences arising are recognised in other comprehensive income and accumulated in equity.
Notes to the Financial Statements
For the Six Months Ended 30 September 2022
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22
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22

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 six-month period 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.
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.
The accounting policies applied by the Group in the preparation of the condensed consolidated interim
financial statements are the same as those applied by the Group in the preparation of its consolidated
financial report for the year ended 31 March 2022. The accounting policies have been applied
consistently throughout the Group for the purposes of this interim report.
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 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.
3. SIGNIFICANT TRANSACTIONS AND EVENTS IN THE CURRENT PERIOD
No significant transactions and events occurred during the current period.
4. REVENUE FROM OPERATIONS
Unaudited
6 Months
Ended 30 Sep
2022
$’000
Unaudited
6 Months
Ended 30 Sep
2021
$’000

Sale of goods
65,41950,481
Royalty income273225
Licensing Income584,807
Total revenue from operations65,75055,513
AFT PHARMACEUTICALS INTERIM REPORT 2022
23
AFT PHARMACEUTICALS INTERIM REPORT 2023
23
INTERIM FINANCIAL STATEMENTS 2023

Notes to the Financial Statements (Continued)
For the Six Months Ended 30 September 2022
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.
5. 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 income
statement. 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
AP
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6. SEGMENT REPORTING
Operating Segments
Australia
New
ZealandAsia
Rest of
WorldTotal
Unaudited 6 months to
$'000$'000$'000$'000$'000
30 September 2022
Revenue - Sale of goods 36,068 21,295 3,664 4,392 65,419
Revenue - Royalties - - - 273 273
Revenue - Licensing - - - 58 58
Total revenue 36,068 21,295 3,664 4,723 65,750
Other income - - - - -
Depreciation - ROU assets 207 137 - - 344
Depreciation - Other 11 69 - - 80
Amortisation - 595 - - 595
Operating profit 3,101 142 532 (318) 3,457
Finance income - 1 - - 1
Interest expense - Loans - (1,279) - - (1,279)
Interest expense - Lease liabilities (25) (91) - - (116)
Other finance gains/(losses) (2) 61 - - 59
Profit / (loss) before tax 3,074 (1,166) 532 (318) 2,122
Total assets 41,11972,671 4 12,509126,303
ROU assets 505 2,136 - - 2,641
Property plant and equipment 51 466 1 - 518
Pascomer IP - - - 12,500 12,500
Other intangible assets - - - 29,736 29,736
Total liabilities1,97063,594 1,882 43667,882
Capital expenditure * 10 4,843 - - 4,853
* Capital expenditure includes both intangible and tangible asset additions.
AFT PHARMACEUTICALS INTERIM REPORT 2022
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AFT PHARMACEUTICALS INTERIM REPORT 2023
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INTERIM FINANCIAL STATEMENTS 2023

Notes to the Financial Statements (Continued)
For the Six Months Ended 30 September 2022
* Capital expenditure includes both intangible and tangible asset additions.
Operating Segments
Australia
New
ZealandAsia
Rest of
WorldTotal
Unaudited 6 months to
$'000$'000$'000$'000$'000
30 September 2021
Revenue - Sale of goods 29,201 15,815 2,905 2,560 50,481
Revenue - Royalties - - - 225 225
Revenue - Licensing - - - 4,807 4,807
Total revenue 29,201 15,815 2,905 7, 5 9 2 55,513
Other income - 130 - (7) 123
Depreciation - ROU assets 196 145 - - 341
Depreciation - Other 15 47 - - 62
Amortisation - 152 - - 152
Operating profit 3,620 (1,807) 416 3,2625,491
Finance income - 4 - - 4
Interest expense - Loans - (1,100) - - (1,100)
Interest expense - Lease liabilities (41) (99) - - (140)
Other finance gains/(losses) 238 (76) 15 - 177
Profit/(loss) before tax 3,817 (3,078) 431 3,262 4,432
Total assets 43,874 49,320 18 12,496 105,708
ROU assets 802 2,371 - - 3,173
Property plant and equipment 34 427 2 - 463
Pascomer IP - - - 12,500 12,500
Other intangible assets - - - 22,735 22,735
Total liabilities 4,667 58,136 1,809 - 64,612
Capital expenditure * 5 2,765 - - 2,770
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.
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WORKING TO IMPROVE YOUR HEALTH
26

• 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$15.9m (6 Months to 30 September 2021: NZ$13.0m)
and from one customer of the New Zealand segment (also being a licensed wholesaler) represents
approximately NZ$10.8m (6 months to 30 September 2021: NZ$8.1m) of the Group’s total revenues.
Finance income comprises interest income that is recognised on a time-proportion basis using the
effective interest method.
Other income comprises international growth grants and other income.
International growth grant:
International growth grant income is recognised when eligible international growth expenses are
incurred and conditions relating to the grant are satisfied.
7. INTEREST BEARING LIABILITIES
Unaudited
as at
30 Sep 2022
$'000
Audited
as at
31 Mar 2022
$'000
Unaudited
as at
30 Sep 2021
$’000
Current lease liabilities514542578
Non-current lease liabilities2,5922,7662,990
BNZ overdraft3,000 -299
BNZ Term loans current portion30,2004,0002,000
BNZ Term loans non-current portion5,00033,20036,200
Total41,30640,50842,067
Opening balance of BNZ loan37,20036,70036,700
BNZ loans drawn down-5,0001,000
BNZ business finance scheme loan drawn down- -5,000
Repayment of principal(2,000)(4,500)(4,500)
Closing balance35,20037,20038,200
AP
AFT PHARMACEUTICALS INTERIM REPORT 2022
27
AFT PHARMACEUTICALS INTERIM REPORT 2023
27
INTERIM FINANCIAL STATEMENTS 2023

Notes to the Financial Statements (Continued)
For the Six Months Ended 30 September 2022
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 principal over a three-year term.
Documentation for the renewal of the BNZ facility is in the process of being finalized and expected
to be fully executed during November 2022. The renewal facility retains the term loan, working capital
facility, overdraft and Business Finance Scheme Loan (BFS).
The maturity date for the new main facility is expected to be late April 2026 and the maturity date
for the $5m Business Finance Scheme Loan (BFS) remains at mid May 2026. The maturity date for
the existing facility is late April 2023 and the maturity date for the $5m Business Finance Scheme
Loan (BFS) mid May 2026.
All covenants relating to the BNZ facility have been complied with for the six months ending
30 September 2022.
Cash and cash equivalents include cash on hand, deposits held at call with financial institutions
and 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.
8. SHARE CAPITAL
Ordinary shares are classified as equity.
AP
Unaudited
as at
30 Sep 2022
Shares
Audited
as at
31 Mar 2022
Shares
Unaudited
as at
30 Sep 2022
$’000
Audited
as at
31 Mar 2022
$’000
Ordinary share capital104,866,260104,697,260 81,406 80,770
Less capital raising costs - - (3,166) (3,164)
Total104,866,260104,697,260 78,240 77,606
Unaudited
6 months
ended
30 Sep 2022
Shares
Audited
12 months
ended
31 Mar 2022
Shares
Unaudited
6 months
ended
30 Sep 2022
$'000
Audited
12 months
ended
31 Mar 2022
$'000
Share capital at beginning of the year104,697,260104,583,87577,60677,197
Issue of ordinary shares for exercised share options169,000113,385634409
Total104,866,260104,697,26078,24077,606
WORKING TO IMPROVE YOUR HEALTH
28
WORKING TO IMPROVE YOUR HEALTH
28

Ordinary shares
169,000 exercised staff share options detailed below were the only shares issued during the current period.
Staff share options
Staff share options were 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 was 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.
During the period 169,000 staff share options were exercised, raising $473k (In the six-month period
to 30 September 2021, 105,000 staff share options were exercised, raising $294k).
All remaining staff share options lapsed on 30 June 2022. No staff share options exist at the period end.
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 financial and non financial criteria including the following financial
and operational measures:
• Market share
• Net profit
• Target sales thresholds; and
• 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.
AP
9. DIVIDENDS PER SHARE
No dividends have been declared to the ordinary shareholders during the current or prior year.
10. CONTINGENT ASSET
In April 2022, the Australian High Court turned down the application by UK based Reckitt Benckiser
to appeal a judgement that found AFT was justified in making a series of claims in relation to the
efficiency of its pain relief tablets. AFT has costs orders in its favour. The costs are in the process of
being recovered. The inflow of economic benefits is probable, but not virtually certain and cannot be
quantified at this time.
AFT PHARMACEUTICALS INTERIM REPORT 2022
29
AFT PHARMACEUTICALS INTERIM REPORT 2023
29
INTERIM FINANCIAL STATEMENTS 2023

Notes to the Financial Statements (Continued)
For the Six Months Ended 30 September 2022
11. 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.
The Company is defending the High Court case brought by a former contractor in Southeast Asia,
which is currently in progress. The substance of the claim is that AFT Orphan Pharmaceuticals (of
which the former contractor is a 35% shareholder) rather than AFT, should have had the opportunity
to pursue the drug development opportunity in respect of Pascomer. See the NZX/ASX Release 5 June
2020. The Group’s lawyers advise that they consider that the claim lacks merit. No provision has been
made in these financial statements as the Group does not consider that there is any probable loss. The
Group is aware that there are inherent uncertainties in litigation. Given that the case is still in progress
the Group’s lawyers have advised that any public statements by the Group in addition to those already
provided, could seriously prejudice the Group’s position at this time. This is the basis for restricted
disclosure under “NZ IAS 37 Provisions, Contingent Liabilities and Contingent Assets”.
12. COMMITMENTS
Capital Commitments
The Group has no capital commitments at 30 September 2022 (31 March 2022: nil, 30 September 2021: nil).
13. FINANCIAL RISK MANAGEMENT
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 riskExposure to changes in foreign exchange rates on
assets, liabilities, revenue and expenses
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 sells and purchases goods and services to and from overseas customers and 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 an increasing natural hedge against costs.
In the current period for the six months to 30 September 2022, net foreign exchange gains totalled
$58k (2021: $365k). The balance of gains/losses are derived from the restatement of monetary
balances at the spot rate on the period-end balance date of 30 September 2022 and settlement
of transactions throughout the period.
WORKING TO IMPROVE YOUR HEALTH
30
WORKING TO IMPROVE YOUR HEALTH
30

In total, the Group had financial assets and liabilities denominated in the following currencies:

Currency
unaudited 30 Sep 2022audited 31 Mar 2022unaudited 30 Sep 2021
Assets
NZD$’000
Liabilities
NZD$’000
Assets
NZD$’000
Liabilities
NZD$’000
Assets
NZD$’000
Liabilities
NZD$’000
AUD20,1964,65723,8014,74012,2642,138
USD6,9083,9932,3154,7875,5301,341
MYR591 -15123947
SGD8851063026633
EUR1,0944,5267872,7167773,688
GBP111611213024
HKD -1 - - - -
The following forward foreign exchange contracts were held at 30 Sep 2022:
Forward Foreign Exchange Contracts
Buy currencyBuy currency
amount ‘000
Sell amount
NZD$’000
Buy amount
NZD$’000
Fair value
NZD$’000
EUR5,0408,3958,717322
GBP4959589591
USD6009011,049148
Sell currencySell currency
amount $’000
Buy amount
NZD$’000
Sell amount
NZD$’000
Fair value
NZD$’000
AUD18,35020,17820,860(681)
Total asset as at 30 September 2022471
Total liability as at 30 September 2022 (681)

The following forward foreign exchange contracts were held at 31 Mar 2022:
Forward Foreign Exchange Contracts
Buy currencyBuy 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
amount $’000
Buy amount
NZD$’000
Sell amount
NZD$’000
Fair value
NZD$’000
AUD19,10020,71820,68830
Total asset as at 31 March 2022100
Total liability as at 31 March 2022(361)

The following forward foreign exchange contracts were held at 30 Sep 2021:
Forward Foreign Exchange Contracts
Buy currencyBuy currency
amount ‘000
Sell amount
NZD$’000
Buy amount
NZD$’000
Fair value
NZD$’000
EUR4,5757,7977,75 6(41)
GBP4298348406
USD4,2005,9346,117183
Sell currencySell currency
amount $’000
Buy amount
NZD$’000
Sell amount
NZD$’000
Fair value
NZD$’000
AUD7,9608,6048,347257
Total asset as at 30 September 2021446
Total liability as at 30 September 2021(41)
AFT PHARMACEUTICALS INTERIM REPORT 2022
31
AFT PHARMACEUTICALS INTERIM REPORT 2023
31
INTERIM FINANCIAL STATEMENTS 2023

Notes to the Financial Statements (Continued)
For the Six Months Ended 30 September 2022
• 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 cash flow
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. Regular monitoring is undertaken to ensure that the credit exposure remains within the
Group’s normal terms of trade.
The Group has one significant concentration of credit risk at 30 September 2022, with the largest
debtor being AU$4.65m (31 March 2022: AU$17.02m). There has been no past experience of default
and no indications of default in relation to this debtor.
The Group’s cash and short-term deposits are placed with high credit quality financial institutions.
Accordingly, the Group has no significant concentration of credit risk other than bank deposits.
At balance date, bank deposits at each financial institution as a percentage of total assets were
as follows: Bank of New Zealand nil due to overdrawn position (31 March 2022: 2.72%), and 5.3%
at NAB Bank (31 March 2022: 3.5%). The carrying value of financial assets represents the maximum
exposure to credit risk.
• Liquidity risk
Liquidity risk is the risk that the Group may encounter difficulty in raising funds at short notice to meet
its commitments and arises from the need to borrow funds for working capital. The directors monitor
the risk on a regular basis and actively manage the cash available to ensure the net exposure to
liquidity risk is minimised.
The liquidity/maturity profile of the liabilities is as follows:

30 September 2022 (unaudited)
< 1 year
$’000
1-2 years
$’000
2-5 years
$’000
> 5 years
$’000
TOTAL
$’000
Trade and other payables(20,771) - - -(20,771)
Borrowings(35,253)(115)(5,172) -(40,541)
Lease liabilities(809)(654)(1,261)(1,620)(4,344)
Derivative instruments (outbound)(30,432) - - -(30,432)
Derivative instruments (inbound)30,222 - - -30,222
Total(57,043)(769)(6,433)(1,620)(65,866)
31 March 2022 (audited)$’000$’000$’000$’000$’000
Trade and other payables(19,160) - - -(19,160)
Borrowings(5,604)(28,758)(5,230)-(39,592)
Lease liabilities(803)(651)(1,339)(1,795)(4,588)
Derivative instruments (outbound)(36,969) - - -(36,969)
Derivative instruments (inbound) *36,708 - - -36,708
Total(25,828)(29,409)(6,569)(1,795)(63,601)
* the comparative information has been restated to align with current period presentation.
Fair Values
The carrying values of trade receivables, trade payables and borrowings approximate their fair values
because of their short terms to maturity or interest reset dates. Trade receivables are valued net of
provision and trade payables are valued at their original amounts by contract.

WORKING TO IMPROVE YOUR HEALTH
32
WORKING TO IMPROVE YOUR HEALTH
32

14. 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 are 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 principal and interest cover ratio, a
minimum net leverage ratio and a maximum capital expenditure (capex) and research and development
(R&D) ratio. Covenant reporting is required on a quarterly basis. The Group was compliant with all BNZ
covenants during the period.
15. SIGNIFICANT EVENTS AFTER BALANCE SHEET DATE
There were no significant events after balance sheet date
16. RELATED PARTIES
The Group had related party relationships with the following entities:
Related partyNature of relationship
Atkinson Family TrustAFT 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
Unaudited
6 months ended
30 Sep 2022
Audited
12 months ended
31 Mar 2022
Unaudited
6 months ended
30 Sep 2021
Key management compensation$’000$’000$’000
Directors fees 254470295
Executive salaries7051,337676
Short term benefits221389389
Options expense -1477
Key management compensation1,1802,3431,367
Key management includes external directors, the Chief Executive Officer, the Chief of Staff, the Chief
Financial Officer and the Director of International Business Development. These positions are mainly
responsible for planning, controlling and directing the activities of the business.
AFT PHARMACEUTICALS INTERIM REPORT 2022
33
AFT PHARMACEUTICALS INTERIM REPORT 2023
33
INTERIM FINANCIAL STATEMENTS 2023

AFT Pharmaceuticals Directory
AFT is a company incorporated with limited liability under the New Zealand Companies Act 1993
(Companies Office registration number 873005).
Registered Offices
Level 1, 129 Hurstmere Road, Takapuna
Auckland 0622, New Zealand.
+64 9 488 0232
www.aftpharm.com
Mertons, Level 7, 330 Collins Street, Melbourne,
Victoria 3000, Australia.
+61 3 8689 999
Principal Administration Offices
Level 1, 129 Hurstmere Road, Takapuna
Auckland 0622, New Zealand.
+64 9 488 0232
www.aftpharm.com
113 Wicks Road, North Ryde NSW 2113, Australia.
+61 2 9420 0420
ARBN: 609 017 969
Directors
(As at date of this Interim Report)
David Flacks (Chair)
Dr Hartley Atkinson
Marree Atkinson
Anita Baldauf
Jon Lamb
Dr Ted Witek
Share Registrar
Computershare Investor Services Limited
Level 2, 159 Hurstmere Road, Takapuna,
Auckland 0622, New Zealand
+64 9 488 8777
enquiry@computershare.co.nz
Computershare Investor Services Pty Limited,
Yarra Falls, 452 Johnston Street,
Abbotsford VIC 3001, Australia
+61 3 9415 4083
mailto: enquiry@computershare.co.nz
Auditor
Deloitte Limited, Deloitte Centre, 80 Queen Street,
Auckland 1140, New Zealand.
+64 9 303 0700
Legal Counsel
Harmos Horton Lusk
Level 33, Vero Centre, 48 Shortland St,
Auckland, 1140 New Zealand.
+64 9 921 4300
Financial Calendar
Financial year end
31 March 2023
Full year results announcement
May 2023
WORKING TO IMPROVE YOUR HEALTH
34

Level 1, 129 Hurstmere Road
Takapuna
Auckland 0622
New Zealand
+64 9 488 0232
www.aftpharm.com

---

INVESTOR
PRESENTATION
1H FY2023
24 NOVEMBER 2022

Important Notice
AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH2
This presentation has been prepared by AFT Pharmaceuticals Limited (“AFT”), to provide a general overview of the performance of AFT for the half year to 30 September 2022. It is
not prepared for any other purpose and must not be provided to any person other than the intended recipient.
This presentation should be read in conjunction with AFT’s interim financial statements, market releases and other periodic and continuous disclosure announcements, which are
available at www.nzx.com and www.asx.com.au.
All amounts are disclosed in New Zealand dollars (NZ$) unless otherwise indicated.
All references to financial years appearing in this presentation are for the period ending 31 March, unless otherwise indicated.This presentation is not a recommendation, offer or
invitation to acquire AFT’s securities or other form of financial advice or disclosure document.
While reasonable care has been taken in compiling this presentation, none of AFT nor its subsidiaries, directors, employees, agents or advisers (to the maximum extent permitted by
law) gives any warranty or representation (express or implied) of the accuracy, completeness or reliability of the information contained in it nor takes any responsibility for it.
The information in this presentation has not been and will not be independently verified or audited. This presentation may contain certain forward-looking statements and comments
about future events, including with respect to the financial condition, results, operations and business of AFT.
These statements are based on management’s current expectations, which may involve significant elements of subjective judgement and assumptions as to future events which may
or may not be correct, and the actual events or results may differ materially and adversely from these statements. Past performance information given in this presentation is given for
illustrative purposes only and should not be relied upon (and is not) an indication of future performance.

Growing Globally From a Strong Australasian Core
AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH3
Australasia:150+ products
across seven therapeutic areas
distributed via 6,800
pharmacies
Asia:A broad range of products
sold
Rest of the World: AFT
developed IP commercialised in
51 countries (including ANZ)
and agreements in more than
100 territories
In the first half of FY2023 AFT delivered revenue growth of 18% lifted by organic growth, the launch of 11 new products in
Australasia and continued international expansion with our patented family of Maxigesicpain relief medicines.
$8
$12
$17
$23
$26
$28
$33
$34
$40
$49
$56
$64
$69
$80
$66
$-
$20
$40
$60
$80
$100
$120
$140
FY2005FY2006FY2007FY2008FY2009FY2010FY2011FY2012FY2013FY2014FY2015FY2016FY2017FY2018FY2019FY2020FY2021FY20221H 2023
$NZM
AFT OPERATING REVENUE
$85
$113
$130
$106

$5.5
$3.5
$6.1
$11.4
$10.8
$14.9
0
5
10
15
20
25
FY2019FY2020FY 2021FY2022FY2023
$M
$20.4
•Half-year operating revenue $65.8 million, up 18.4% from $55.5 million lifted by new products launches
and organic growth –with revenue from product sales and royalty income up 30%.
•Operating profits $3.5 million, down from $5.5 milliondue to lower licensing income.
•Net profit after tax $1.5 million,down from $4.2 million.
New ZealandAustraliaAsiaRest of world
1H FY2023 Highlights: Delivering Strong Organic Growth
AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH4
*
FY20 normalisedto exclude $9.8m gain on de-recognition of equity accounted investment and recognition of net assets acquired at fair value in a step acquisition
$2.9
$3.7
$7.6
$4.7
$15.8
$21.3
$29.2
$36.1
0
10
20
30
40
50
60
70
80
90
AsiaROWNew ZealandAustralia
$NZM
REVENUE BY REGION
53%
55%
28%
6%
32%
7%
14%
5%
REVENUE BY TERRITORY
AFT GROUP OPERATING PROFIT
1H FY22
1H FY23
*
$76.7
$35.1
$13.1
$5.5
1H FY22 2H FY22 1H FY23

Australia: Sales Accelerating Following Recent Product Launches
AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH5
•Sales in Australia accelerated to $36.1 million, up 24%from $29.2 million, benefiting from normalisation of trading
to pre-COVID levels and 11 product launches.
•OTC channelthe standout performer, up 36.9%to $23.5 million; hospital and prescriptionchannels delivering
steady growth.
59%
12%
29%
66%
10%
24%
OTCPrescriptionHospital
$49.2
$50.3
$61.4
$68.3
$29.2
$36.1
$47.5
0
10
20
30
40
50
60
70
80
90
FY2018FY2019FY2020FY2021FY2022FY2023
$NZM
$76.7
AUSTRALIA CHANNEL
AUSTRALIAN REVENUE
1H FY22
1H FY23

New Zealand: Strong Organic Growth Across All Channels
AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH6
•Revenue in New Zealand grew across all channels rising to $21.3 million, up 35% from $15.8 million.
•Revenue growth lifted by strong post Covid organic product growth, a 28.5% increase in the OTC business and a strong
contribution from the allergy and pain-relief categories.
$27.1
$26.8
$30.1
$30.5
$15.8
$21.3
$19.3
0
5
10
15
20
25
30
35
40
FY2018FY2019FY2020FY2021FY 2022FY2023
$NZM
$35.1
NEW ZEALAND REVENUE
54.2%
28.9%
16.9%
51.7%
33.7%
14.6%
OTCPrescriptionHospital
NEW ZEALAND CHANNEL
1H FY22
1H FY23

Driving Australasian Growth With New Products and Salesforce Investment
AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH7
•Portfolio of product launches for our Australasian business.
•During1H FY23, 5 OTC products, including Maxigesic hot drink sachets, launched,
and 6 hospital products
•During 2H FY23, an additional 14 OTC products and 1 Rx product will be launched.
•By end of FY2025,expect to have launched a total of76 products since the start of FY2023.
•Investing an additional NZ$10 million (Forecast FY23 vs FY22 Actual) in sales and distribution
to support new product launches for AU-NZ and dedicated GP sales force for AU
Year1H FY232H FY231H FY242H FY24FY25
Planned launches1115161123
Australasian product launch pipeline

Asia: McPherson’s Distribution Partnership Lifts Asian Sales
AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH8
•Sales in Asia rose to $3.7 million, up 26.1% from$2.9 million, driven by a more than doubling (115%) of
sales in the OTC business, a result of the agreement with ASX-listed McPherson's to drive OTC sales in
Singapore and strong Maxigesicsales growth in Malaysia and Hong Kong.
•Asian hospital business also grew strongly(44.1%) building on the momentum of the second halfof FY22.
8%
22%
70%
15%
6%
79%
OTCPrescriptionHospital
$1.3
$2.1
$4.9
$4.4
$2.9
$2.60
0
1
2
3
4
5
6
FY2018FY2019FY2020FY2021FY 2022FY2023
$NZM
ASIAN REVENUE ASIA CHANNEL
$5.5
1H FY22
1H FY23
$3.7

9
International: Strong Organic Growth Offset by Lower LicenceIncome
ProductMaxigesicTabletMaxigesicIVMaxigesicOralMaxigesicHot Drink
Territories
30Sept
2022
31 March
2022
30 Sept
2022
31 March
2022
30 Sept
2022
31 March
2022
30Sept
2022
31 March
2022
Licensed100+100+100+100+100+100+100+100+
Registered635241372221
Soldin47461070011
•Product sales and royalties of $4.6 million grew 68% (PY$2.8 million).
•As advised, Maxigesic IV in the US has been delayed as FDA seeks
more information on one item, delaying expected licensing income in
the current year.
•Slower anticipated rolloutof Maxigesic inall its dose forms in FY24
(targeting 73 countries, down from90) due to withdrawal from Russia
and related regulatorydelays and a slowerrollout in Africa.
$3.6
$5.9
$9.1
$9.9
$7.6
$4.7
$5.5
0
2
4
6
8
10
12
14
FY2018FY2019FY2020FY2021FY 2022FY2023
$NZM
INTERNATIONAL REVENUE
2
3
4
7
9
20
28
43
46
63
73
0
10
20
30
40
50
60
70
80
FY2014FY2015FY2016FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
COUNTRIES
COUNTRIES WHERE MAXIGESIC IS SOLD AND ORDERED
$13.1

10
Maxigesic Global Update
A US$59 billion market
1
1
www.expertmarketresearch.com/reports/analgesics- market

11
Investing in a Strong Research and Development Pipeline
NasoSURF
Ultrasonic nasal mesh nebuliserused for the
intranasal delivery of medication and treatment
of sinus conditions
•Pharmacokinetic proof of concept underway,
completiondue during FY23
•Addressable market, initial application ~
US$1 billion
1
PROJECT HS
Analgesicmedicine
•Dossier in preparation
•Addressable market US$30 million
1
PROJECT BT
Gastrointestinal medicine
•Dossier ready to be filed in ex-ANZ in FY23
•Addressable market US$200 million
1
STRAWBERRY BIRTHMARKS
•Agreement finalized with the Gillies McIndoe
Research Institute and Massey Ventures
•Topical treatment in development
1
Company estimate
PROJECT KW
Gastrointestinal medicine
•Developing two formulations
and AFT IP position
•First dossier targeted during FY24
•Addressable market in excess
of US$700 million
1
PROJECT SD
Dermatology medicine
•Looking to develop and license in new
territories
•Low development risk
•Dossier filed ex-ANZ end2022
•Addressable market US$200 million
1
MEDICINAL CBD
Application confidential
•Partner Setek
•Ongoing product development work
•Addressable market US$3 billion
1
AFT’s positive cashflows position the company well to undertake and secure
research and development projects either alone or in partnership with others.
•R&D expenditure in the half year period was $2.8 million, largely flat
on the $2.7 million in the same period of the prior year
•Remains well in line with our guidance for full year spend of $12
million.

NZ$'000's for the six months to 30 September2022
Revenue
%
2021
Revenue
%
Revenue65,75055,513
Gross profit28,67943.6%26,70548.1%
Operating expenses and other income(25,222)38.4%(21,214)38.2%
Operating profit3,4575,491
Finance expenses and other income(1,335)(1,059)
Ta x(670)(189)
Profit after tax1,4524,243
Revenue from product sales and royalties65,69250,706
Gross profit from product sales and royalties28,62143.6%21,89843.2%
Operating Profit Lower on Reduced License Income
AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH12
•Excluding licensing income, operating
profit increased to $3.4m from $0.7m.
•Gross profit margin decline of 4.5
percentage points to 43.6% is due to
lower licence income.
•Gross profit margin from product
sales and royalties steady
•Future additional sales expected from
increased sales and distribution
expenses to support new product
launches and dedicated GP sales
force

Cash Flow: AFT Remains Well Funded as Debt Reduction Continues
AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH13
•High inventory day levels
maintained and new launch
inventory
•Ongoing investment on R&D and
Intellectual Property
•Cash balance maintained as debt
is repaid
NZ$'000's period ended 30 September
2022 2021
Net cash from operating activities
5,983 6,826
Net cash used in investing activities(4,853) (2,770)
Net cash (used) / generated from financing activities(3,049) 13
Net increase / (decrease) in cash(1,919) 4,069
Impact of foreign exchange on cash and cash equivalents
(226) (9)
Opening cash and cash equivalents7,940 1,548
Closing cash and cash equivalents5,795 5,608

Balance Sheet: Well Funded, Net Debt Within Range
AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH14
•Net debt of $29.3m reduced from
$32.6m a year ago
•Net debt at half year ahead of 1X
EBITDA target but expect strong cash
generation during 2H FY23
•Higher than normal inventory levels
maintained as buffer against disruptions
in global supply chains.
•Easing in globaltransportation bottle-
necks, expect slow easingof this to
Australia and New Zealand.
NZ$'000's period ended 30 September2022 2021
Current assets68,358 60,280
Cash8,795 5,907
Non-current assets49,150 39,521
Total assets126,303 105,708
Current liabilities27,090 23,123
Current interest bearing liabilities33,200 2,299
Non-current liabilities2,592 2,990
Non-current interest bearing liabilities5,000 36,200
Total liabilities67,882 64,612
Total equity58,421 41,096

AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH15
Outlook: product launches to support continued growth
•We see a stronger second half. We expect the result for the full year to be even more skewed to the second half than
normal, due to the high number of planned launches in 2H FY23.
•Due to our higher investment in Sales & Distribution and delayed licensing income our May 2022 guidance for total
operating profit for the year to 31 March 2023 is lowered to $18 million to $23 million.
•For the FY2023 year we now expect the sale of existing products, the launch of new products and product royalties to
generate operating profits between $17.5 million and$21.0 million.
•Meanwhile, licensing income, which is by its nature less predictable and lumpy, is now expected to contribute between
$0.5 million and $2.0million to operating profit, with the final outcome linked to ongoing negotiations and the conclusion
of agreements in new territories.
•Our target is to exceed $200 million of annual sales in the near future.
•We remain confident of securing previously budgeted licensing revenue, seeing it as delayed by regulatory process.
•Wealso continue to expect to declare a maiden dividend for the 2023 financial year.

QUESTIONS

www.aftpharm.com

Appendix 1: Australasian Product Portfolio
AFT has the #1 selling product (Maxigesic) in the Australian para-ibu
1
combo pain relief. AFT’s portfolio includes a
combination of over 150 proprietary, branded and generic products which address the following therapeutic areas:
PainMaxigesic, ParaOsteo, ZoRub OA/HP, Fenpaed,
Combolieve Day/Night
EyecareHylo, Novatears, CromoFresh,
Opti-soothe Wipes/Mask, VitAPOS
VitaminsFerro-liquid, FerroTab, Ferro-F, Ferro-sachets,
Lipo VitC, Lipo VitD, CalciTab
AllergyLoraclear, Histaclear, Fexaclear, Levoclear,
Allersoothe, Lorapaed, Becloclear, Steroclear
GastrointestinalGastrosoothe/Forte, LaxTab, Micolette,
Nausicalm, DiaRelieve
DermatologyCrystaderm, Crystawash Hand Sanitizer, Crystasoothe,
ZoRub anti-chafing, Decazol, MycoNail
HospitalMaxigesic IV, Injectables
1
Paracetamol and Ibuprofen

Appendix 2: AFT Global Product Portfolio
AFT is building the global presence of its proprietary and patented products through its network of licensees and distributors.
It continues the development of its portfolio of repurposed medicines: Maxigesic
1
, Pascomer, NasoSURF, Crystawash Extend and Crystaderm
PainMaxigesic oral dose forms
-Tablets
-Solution
-Hot drink sachet
-Rapid
-Cold and Flu
HospitalMaxigesic IV (intravenous)
NasoSurf – nasal nebuliser drug delivery
DermatologyPascomer – Europe & ANZ
Crystawash extend – selected territories such as
Canada and Middle East
Crystaderm – selected territories
1
Paracetamol and Ibuprofen

AFT was founded 23 years ago by Dr Hartley and Marree Atkinson. Since then AFT has remained an Atkinson-family
controlled business and has grown organically into Australia and internationally
The 2015 IPO raised funds to pursue a more aggressive (and loss-making) R&D-led growth strategy.
AFT has now returned to profitability as intended, as the company was prior to IPO
Appendix 3: History of AFT Pharmaceuticals
19972004200520092013201420152020
AFT founded by
Dr Hartley and
Marree Atkinson
Development of
Maxigesic
commences
First sales into
Australia
Maxigesic registered
in New Zealand and
sales commence
Maxigesic
registered in
Australia
AFT launches the sale
of products into the
SE Asian market
$33m IPO to fund new
R&D development
programmes for
Maxigesic and other
proprietary products
2019
AFT returns to profitability
following a significant
investment period funded
by the 2015 IPO
In FY20 AFT delivers
over $100m of revenue
and operating profit
growth of 87%
Maxigesic sales
commence in
Australia

Appendix 4: ESG Focusing on What Matters
AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH21
AFT is committed to
enhancing the health
and wellbeing of people
and communities in
the markets we serve
and operating a
sustainable business.
Our Mission:
Working to
Improve Your Health

www.aftpharm.com
FORMOREINFORMATION
DrHartleyAtkinson
ManagingDirector
Email: hartley@aftpharm.com
Malcolm Tubby
Chief Financial Officer
Email: malcolm@aftpharm.com
AFT Pharmaceuticals Limited
Level 1, 129 HurstmereRoad
Takapuna, Auckland 0622
New Zealand

AFT to announce half year interim results on Nov 24 2023 New Year letter to investors

Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.