AFT Pharmaceuticals Ltd. · NZX:AFT
AFT Pharmaceuticals — Shareholder Meeting (August 2021)
49 slides from AFT Pharmaceuticals's shareholder meeting presentation, Aug 6, 2021
Slide 1: Annual Shareholders Meeting
For personal use only Working to improve your health Annual Shareholders Meeting Milford Cruising Club 6 August 2021 Page 1
Slide 2: Important notice
Important notice For personal use only This presentation has been prepared by AFT Pharmaceuticals Limited (“AFT”), to provide a general overview of the performance of AFT for the financial year ended 31 March 2021. It is not prepared for any other purpose and must not be provided to any person other
Slide 3: David Flacks, Chairman and Independent Director
David Flacks CHAIRMAN AND INDEPENDENT DIRECTOR For personal use only Page 3
Slide 4: Directors
Directors For personal use only David Flacks Hartley Atkinson Marree Atkinson Anita Baldauf CHAIRMAN AND INDEPENDENT FOUNDER, EXECUTIVE DIRECTOR AND EXECUTIVE DIRECTOR AND CHIEF OF INDEPENDENT DIRECTOR DIRECTOR CHIEF EXECUTIVE OFFICER STAFF Dr Douglas (Doug) WIlson Jon Lamb Dr James (Jim) Burns Dr T
Slide 5: Agenda
Agenda • Chair address For personal use only • Managing Director’s address • Shareholder questions • General business • Meeting close Page 5
Slide 6: AFT extended its growth record despite Covid-19
AFT extended its growth record despite Covid-19 120 For personal use only 10 year operating CAGR of 13% 113 100 106 Operating Revenue ( NZ$M) 80 85 80 69 60 64 56 49 40 40 33 34 28 20 23 26 17 12 8 - '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 Financial year ended 31 March Op
Slide 7: AFT improved its financial strength and reduced debt
AFT improved its financial strength and reduced debt For personal use only $120.0 $105.1 $100.0 $87.1 FY2020 FY2021 $80.0 NZ$M $60.0 $37.1 $35.2 $36.6 $40.0 $17.3 $20.0 $- Total assets Net debt Shareholders equity 21% -5% 112% • Growth in assets follows inventory expansion to manage Covid-19 supply
Slide 8: Governance evolving as AFT extends its global reach
Governance evolving as AFT extends its global New directors reach For personal use only Anita Baldauf INDEPENDENT DIRECTOR Dr Ted Witek INDEPENDENT DIRECTOR Retiring director Dr James (Jim) Burns Page 8 INDEPENDENT DIRECTOR
Slide 9: Retirement speech of Jim Burns
Retirement speech of Jim Burns For personal use only • Corporate Governance Statement • Ethics • Whistleblowing • Tax transparency • Relationships with regulators and regulation • Sustainability framework and reporting Page 9
Slide 10: Retirement speech of Jim Burns
Retirement speech of Jim Burns For personal use only Page 10
Slide 11: Governance evolving as AFT extends its global reach
Governance evolving as AFT extends its global New directors reach For personal use only Anita Baldauf INDEPENDENT DIRECTOR Dr Ted Witek INDEPENDENT DIRECTOR Retiring director Dr James (Jim) Burns Page 11 INDEPENDENT DIRECTOR
Slide 12: Outlook – adapting to a post pandemic environment
Outlook – adapting to a post pandemic environment For personal use only • We continue to monitor the economic and financial impacts of the pandemic • Supply constraints remain for the foreseeable future necessitating increased inventory • New Covid-19 variants, low vaccination rates and vaccination
Slide 13: Dr Hartley Atkinson, Founder and Managing Director
Dr Hartley Atkinson FOUNDER AND MANAGING DIRECTOR For personal use only Page 13
Slide 14: Building on strengths to drive growth
Building on strengths to drive growth Our strategy: Develop and distribute clinically-proven solutions to improve health outcomes in our markets For personal use only OUR STRENGTHS OUR ACHIEVEMENTS IN FY2021 Broad product portfolio of • Supported the registration of new Maxigesic dose patented, prop
Slide 15: Leveraging our global networks to extend our reach
Leveraging our global networks to extend our reach Our strategy: Develop and distribute clinically-proven solutions to improve health outcomes in our markets For personal use only OUR STRENGTHS OUR ACHIEVEMENTS IN FY2021 • Completed pivotal Maxigesic IV study in NZ and USA (225 patients) Strong R&D
Slide 16: Australia benefits from product and channel diversity
Australia benefits from product and AUSTRALIAN SNAPSHOT channel diversity Sales of $68.3M represent 60.4% of total FY21 sales For personal use only AUSTRALIAN REVENUE $80.0 Revenue CAGR of 11.6% $68.3 since 2018 $70.0 $61.4 $60.0 Branded proprietary and $49.2 $50.3 generic products focussed NZ$M $50
Slide 17: New Zealand sales growth slows due to Covid-19
New Zealand sales growth slows due NEW ZEALAND SNAPSHOT to Covid-19 Sales of $30.5M represent 27.0% of total FY21 sales For personal use only NEW ZEALAND REVENUE Revenue CAGR of 4% since $31.0 $30.5 2018 $30.1 $30.0 Branded proprietary and $29.0 generic products focussed on NZ$M $28.0 seven pillars
Slide 18: Asian sales fall as forecast but margins improve
Asian sales fall as forecast but margins ASIAN SNAPSHOT improve Sales of $4.4M represent 3.9% of total FY21 sales For personal use only ASIAN REVENUE Revenue CAGR of 50.1% $6.0 since 2018 $4.9 $5.0 $4.4 Branded proprietary and $4.0 generic products focussed NZ$M $3.0 on four therapeutic areas: $2.1
Slide 19: Maxigesic drives international licensing and sales revenue
Maxigesic drives international licensing INTERNATIONAL SNAPSHOT and sales revenue Sales of $9.9M represent 8.8% of total FY21 sales For personal use only INTERNATIONAL REVENUE Revenue CAGR of 40.1% since $12.0 2018 $9.9 $10.0 $9.1 Branded proprietary products $8.0 focussed on three therapeutic $5.9
Slide 20: Maxigesic Global Update
MAXIGESIC GLOBAL UPDATE Ire la n d – Tablets launched IV licensed [Oral Dose Forms & IV] U n ite d K in g d o m – Tablets la u n c h e d IV licensed Russia – Orals licensed Netherlands – IV licensed S in g a p o re & B ru n e i – Tablets la u n c h e d Austria – IV licensed & launched 2021 China - l
Slide 21: Maxigesic roll out continues across the world
Maxigesic roll out continues across the world TARGETED MAXIGESIC FY 2022-2023 For personal use only FY 2022 progress to date: MAXIGESIC COUNTRIES SOLD AND ORDERED • Tablets: Launched in 90 85 Switzerland and CACM 80 70 54 • Maxigesic IV: launched in 60 Germany and Austria in July Countries 50 43 40
Slide 22: Maxigesic dose forms extend the addressable market
For personal use only Maxigesic dose forms extend the addressable market Maxigesic® family growth Maxigesic® DRY STICK SACHET Maxigesic® COLD & FLU Maxigesic® RAPID Revenue Maxigesic® HOT DRINK SACHET Maxigesic® JUNIOR ORAL LIQUID Maxigesic® IV Maxigesic® TABLETS Time • Estimated total analgesic mar
Slide 23: R&D investment lays foundation for future growth
R&D investment lays foundation for future growth For personal use only AFT R&D EXPENDITURE $14.0 $12.0 $2.5 $10.0 $8.0 NZ$M $6.0 $6.0 $7.2 $9.5 $1.5 $4.0 $2.0 $4.1 $3.4 $2.0 $- FY2018 FY2019 FY2020 FY2021 Expensed R&D costs Capitalised R&D costs • Maxigesic dose forms: • Maxigesic Cold & Flu final s
Slide 24: Underlying profit rises – higher sales, lower interest costs
Underlying profit rises – higher sales, lower interest costs For personal use only NZ$'000's year ended 31 March 2021 % of 2020 % of revenue revenue Revenue 113,105 105,597 Gross Profit 48,741 43.1% 48,265 45.7% Underlying Operating Expenses and Other Income (38,033) 33.6% (36,843) 34.9% Underlying
Slide 25: Working capital expands mitigating supply disruptions
Working capital expands mitigating supply disruptions For personal use only NZ$'000's year ended 31 March 2021 2020 Current assets 64,693 49,217 Cash 3,209 6,119 Non-current assets 37,237 31,716 Total assets 105,139 87,052 Current liabilities 26,941 23,102 Current interest bearing liabilities 5,161
Slide 26: Operating cashflow invested in inventory
Operating cashflow invested in inventory For personal use only NZ$'000's year ended 31 March 2021 2020 Net cash from operating activities 757 14,878 Net cash used in investing activities (6,231) (6,562) Net cash (used) / generated from financing activities 2,515 (9,118) Net increase / (decrease) in
Slide 27: A challenging year but growth potential remains strong
A challenging year but growth potential remains strong For personal use only Positive achievements across all our key markets • Continued growth in key Australian market • Significant growth in product sales to Rest of the World • Significant margin improvement in Asia on forecast lower FY21 revenue
Slide 28: Summary and outlook
Summary and outlook For personal use only Further drive international sales Accelerate number of new countries in which Maxigesic is launched such as Russia Growing sales in newly launched markets such as Canada, Germany, Switzerland Launch new line extensions – Maxigesic IV and Maxigesic Oral
Slide 29: Shareholder questions
Shareholder questions For personal use only Page 29
Slide 30: Resolutions
For personal use only Resolutions Page 30
Slide 31: Resolutions: Auditor fees
Resolutions For personal use only Resolution 1: That the directors are authorised to fix the fees and expenses of Deloitte as auditor for the 2022 financial year. Page 31
Slide 32: Resolutions: Re-election of David Flacks
Resolutions For personal use only Resolution 2: That Mr David Flacks be re-elected as a director of AFT Pharmaceuticals Limited. Page 32
Slide 33: Resolutions: Election of Anita Baldauf
Resolutions For personal use only Resolution 3: That Ms Anita Baldauf be elected as a director of AFT Pharmaceuticals Limited. Page 33
Slide 34: Anita Baldauf
For personal use only Anita Baldauf Page 34
Slide 35: Resolutions: Election of Anita Baldauf
Resolutions For personal use only Resolution 3: That Ms Anita Baldauf be elected as a director of AFT Pharmaceuticals Limited. Page 35
Slide 36: Resolutions: Election of Dr Ted Witek
Resolutions For personal use only Resolution 4: That Dr Ted Witek be elected as a director of AFT Pharmaceuticals Limited Page 36
Slide 37: Dr Ted Witek
For personal use only Dr Ted Witek Page 37
Slide 38: Resolutions: Election of Dr Ted Witek
Resolutions For personal use only Resolution 4: That Dr Ted Witek be elected as a director of AFT Pharmaceuticals Limited Page 38
Slide 39: Proxies for the resolutions
Proxies for the resolutions For personal use only Resolution For Against Discretionary Abstain 1. Auditor fees and expenses 84,488,629 11,972 458,363 20 2. Re-election David Flacks 84,495,521 3,900 459,563 0 3. Election Anita Baldauf 84,486,696 1,351 470,917 20 4. Election Dr Ted Witek 84,495,747 0
Slide 40: Voting
For personal use only Voting Page 40
Slide 41: General business
General business For personal use only Page 41
Slide 42: Meeting close
For personal use only Meeting close Page 42
Slide 43: Working to improve your health
For personal use only Working to improve your health Page 43
Slide 44: APPENDIX 1: Australasian product portfolio
APPENDIX 1: Australasian product portfolio AFT has the #1 selling product (Maxigesic) in the Australian para-ibu1 combo pain relief. AFT’s portfolio includes a combination of 125 proprietary, branded and generic products which address the following therapeutic areas: For personal use only Maxigesic,
Slide 45: APPENDIX 2: AFT Asian product portfolio
APPENDIX 2: AFT Asian product portfolio AFT’s Asia portfolio includes a range of proprietary, branded and generic products which address the following therapeutic areas: For personal use only Pain Maxigesic Medicated Ferro-sachets, Lipo VitC, Lipo VitD and expanding pipeline – Vitamins T Mall Dermat
Slide 46: APPENDIX 3: AFT Global product portfolio
APPENDIX 3: AFT Global product portfolio AFT is building the global presence of its proprietary and patented products through its network of licensees and distributors. For personal use only It continues the development of its portfolio of repurposed medicines: Maxigesic, Pascomer, NasoSURF, Crystaw
Slide 47: APPENDIX 4: History of AFT Pharmaceuticals
APPENDIX 4: History of AFT Pharmaceuticals 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 For personal use only The 2015 IPO raised funds to pursue a more
Slide 48: APPENDIX 5: GAAP to Non-GAAP Reconciliation
APPENDIX 5: GAAP TO NON-GAAP RECONCILIATION For personal use only AFT has used non-GAAP measures when discussing financial performance in this document including underlying profit after tax and underlying operating profit. The directors and management believe that these measures provide useful infor
Slide 49: Working to improve your health
For personal use only Working to improve your health Page 49
AFT Pharmaceuticals — Shareholder Meeting (August 2021) on 6ix