Aft Pharmaceuticals Ltd. · NZX:AFT
Aft Pharmaceuticals — Shareholder Meeting (August 2022)
42 slides from Aft Pharmaceuticals's shareholder meeting presentation, Aug 5, 2022
Slide 1: Annual Shareholders Meeting
For personal use only ANNUAL SHAREHOLDERS MEETING Milford Cruising Club 5 August 2022
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 2022. 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 For personal use only Chairman and Independent Director AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH 3
Slide 4: Directors
Directors For personal use only AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH 4
Slide 5: Agenda
Agenda For personal use only • Chair's address • Managing Director's address • Shareholder questions • Resolutions & general business • Meeting close AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH 5
Slide 6: AFT is Expanding Globally From a Strong and Growing Australasian Core
AFT is Expanding Globally From a Strong and Growing Australasian Core For personal use only AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH 6
Slide 7: A Skilled, Committed and Diverse Team
A Skilled, Committed and Diverse Team For personal use only 97 Staff based in Australasia, Asia and Europe; 61% are women and 39% men 30 Different cultural backgrounds and 24 birth countries “A global team that punches above its weight.” AFT’’s New Zealand-based team AFT PHARMACEUTICALS WORKING TO I
Slide 8: Board Skills and Succession Planning
Board Skills and Succession Planning For personal use only Dr Doug Wilson • Professional Director, Physician, Academic, Author, Commentator • Appointed to AFT’s Board in 2012 • Associate Professor Auckland University* • Visiting Professor King Saud University* • Boehringer Ingelheim Global Head of M
Slide 9: Focusing on ESG
Focusing on ESG For personal use only Our Mission: Working to Improve Your Health AFT is committed to enhancing the health and wellbeing of people and communities in the markets we serve and operating a sustainable business. AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH 9
Slide 10: Dividend Policy: A Statement of Confidence in Our Future
Dividend Policy: A Statement of Confidence in Our Future For personal use only • The Board expects the company to continue to grow underpinned by a strong defensible and growing core business in Australasia and a growing international business built on our unique IP. • On the basis of these strength
Slide 11: Outlook
Outlook For personal use only • Continue to see considerable opportunities for growth and we have significantly increased both our in- licensing and product and R&D pipeline activities • Expect to see a return to a more normal trading environment as COVID-19 becomes endemic. • Focus areas for the ne
Slide 12: Dr Hartley Atkinson, Co-Founder and Managing Director
Dr Hartley Atkinson For personal use only Co-Founder and Managing Director AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH 12
Slide 13: FY22 Highlights: Building on a Strong Record of Growth
FY22 Highlights: Building on a Strong Record of Growth For personal use only • Annual operating revenue up 15.2% to $130.3 million from $113.1 million with all regions posting double digit growth, underpinned by AFT’s unique IP. • Operating profit $20.4 million up from $10.7 million with stronger se
Slide 14: A Strong Diverse Australasian Brand Presence and Portfolio
A Strong Diverse Australasian Brand Presence and Portfolio For personal use only AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH 14
Slide 15: Australia: New Product Launches Drive Growth
Australia: New Product Launches Drive Growth For personal use only • Australian sales up 12.3% to $76.7 million from $68.3 million – 59% of group operating revenue across 70 products. • Double digit growth across all channels despite Covid-19 restrictions. • Revenue growth assisted by new launches (
Slide 16: New Zealand: Strong Growth as Country Recovers From Covid
New Zealand: Strong Growth as Country Recovers From Covid For personal use only • New Zealand sales up 15.1% to $35.1 million from $30.5 million – 27% of group operating revenue across 130 products. • Revenue growth assisted by an increase in over-the-counter (OTC) sales as Covid restrictions eased
Slide 17: Asia: Sales Lifted by Hospital Channel Growth
Asia: Sales Lifted by Hospital Channel Growth For personal use only • Sales in Asia up 24.7% to $5.5 million from $4.4 million – representing 4% of group operating revenue. • Hospital and prescription channels grew 32% due primarily to strong anti-bacterial sales. • OTC growth now accelerating with
Slide 18: International Maxigesic Roll Out Continues to Drive Revenue
International Maxigesic Roll Out Continues to Drive Revenue For personal use only ROW Revenue Countries where Maxigesic is sold and ordered $14.0 100 90 CAGR 38.1% 90 $12.0 80 $10.0 70 63 $NZ Million 60 Countries $8.0 50 46 43 $6.0 40 28 $4.0 30 20 20 $2.0 7 9 10 2 3 4 $- 0 FY2018 FY2019 FY2020 FY20
Slide 19: Maxigesic Global Update
Maxigesic Global Update A US$59 billion market1 For personal use only 1 www.ex pertmark etres earc h.c om/reports /anal ges i c s-mark et 19
Slide 20: Building the Maxigesic Addressable Market With New Dose Forms
Building the Maxigesic Addressable Market With New Dose Forms For personal use only Maxigesic® family growth Patent Expiry Estimated total Maxigesic® DRY STICK SACHET 2025, 2036 analgesic market size Maxigesic ® COLD & FLU 2025, 2042 US$5.9 billion1 Maxigesic® RAPID 2025, 2039 Maxigesic® HOT DRINK S
Slide 21: New Product Development and International Markets to Drive Growth
New Product Development and International Markets to Drive Growth For personal use only NEW PRODUCT ACROSS ALL CATEGORIES FUTURE PORTFOLIO REVENUE MIX • New product launches expected to be the most PRODUCTS GEOGRAPHY significant growth driver in the coming years (>50% 5% 4% of forecast growth) 5% •
Slide 22: Investing in a Strong Research and Development Pipeline
Investing in a Strong Research and Development Pipeline For personal use only NasoSURF PROJECT KW Ultrasonic nasal mesh nebuliser used for Gastrointestinal medicine the intranasal delivery of medication and • Developing two formulations Research and development treatment of sinus conditions and AFT
Slide 23: Pascomer Shows Promise Despite Loss of US Orphan Market
Pascomer Shows Promise Despite Loss of US Orphan market For personal use only COMMERCIALISATION UPDATE Pascomer is a Treatment of the Facial Angiofibromas of Tuberous Sclerosis • Clinical study completed in July 2022 • The study showed Pascomer delivered statistically significant [p<0.05] benefits a
Slide 24: Solid Operating Profit in a Challenging Year
Solid Operating Profit in a Challenging Year For personal use only Revenue Revenue NZ$'000's year ended 31 March 2022 % 2021 % Revenue 130,314 113,105 • Delivered 15% Revenue growth with margins Gross profit 61,775 47.4% 48,741 43.1% benefiting from Operating expenses and other income (41,386) 31.8%
Slide 25: Cash Flow: AFT Remains Well Funded as Debt Reduction Continues
Cash Flow: AFT Remains Well Funded as Debt Reduction Continues For personal use only NZ$'000’s Year ended 31 March 2022 2021 Net cash from operating activities 14,152 750 • Operating cash flow increases as costs grow at Net cash used in investing activities (5,585) (6,231) a slower rate than revenue
Slide 26: Balance Sheet: Inventory Levels Elevated to Provide Buffer
Balance Sheet: Inventory Levels Elevated to Provide Buffer For personal use only NZ$'000’s Year ended 31 March 2022 2021 • Anticipated elevated inventory during Current assets 69,602 64,693 FY23 to protect against supply Cash 7,940 3,209 disruptions. This approach has Non current assets 44,218 37,23
Slide 27: Outlook: a Strong Pipeline of Products and Opportunities
Outlook: a Strong Pipeline of Products and Opportunities For personal use only • We have a broad portfolio of new products via in-licensing and R&D for our domestic and Asian markets • Maxigesic and its line extensions in international markets and after this, products from our expanded R&D pipeline
Slide 28: Shareholder Questions
For personal use only SHAREHOLDER QUESTIONS
Slide 29: Resolutions
For personal use only RESOLUTIONS
Slide 30: 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 2023 financial year AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH 30
Slide 31: Resolutions: Re-election of Dr Hartley Atkinson
Resolutions For personal use only Resolution 2: That Dr Hartley Atkinson be re-elected as a director of AFT Pharmaceuticals Limited AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH 31
Slide 32: Resolutions: Re-election of Jon Lamb
Resolutions For personal use only Resolution 3: That Jon Lamb be re-elected as a director AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH 32
Slide 33: Proxies for the resolutions
Proxies for the resolutions For personal use only Resolution For Against Discretionary Abstain 1. Auditor fees and expenses 84,075,784 11,972 387,357 0 2. Re-election Dr Hartley Atkinson 84,094,310 0 380,343 460 3. Re-election Jon Lamb 83,998,585 5,112 470,956 460 AFT PHARMACEUTICALS WORKING TO IMPR
Slide 34: Voting
For personal use only VOTING
Slide 35: General Business
For personal use only BUSINESS GENERAL
Slide 36: Meeting Close
For personal use only MEETING CLOSE
Slide 37: www.aftpharm.com
For personal use only www.aftpharm.com
Slide 38: Appendix 1: Australasian Product Portfolio
Appendix 1: Australasian Product Portfolio For personal use only 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: Maxigesic,
Slide 39: Appendix 2: AFT Asian Product Portfolio
Appendix 2: AFT Asian Product Portfolio For personal use only AFT’s Asia portfolio includes a range of proprietary, branded and generic products which address the following therapeutic areas: Pain Maxigesic Ferro-sachets, Lipo VitC, Lipo VitD and Medicated Vitamins expanding pipeline – T Mall Dermat
Slide 40: Appendix 3: AFT Global Product Portfolio
Appendix 3: AFT Global Product Portfolio For personal use only 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, Pascomer, NasoSURF, Crystaw
Slide 41: Appendix 4: History of AFT Pharmaceuticals
Appendix 4: History of AFT Pharmaceuticals For personal use only 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
Slide 42: For More Information
For personal use only www.aftpharm.com FOR MORE INFORMATION Dr Hartley Atkinson Managing Director Email: [email protected] Malcolm Tubby Chief Financial Officer Email: [email protected] AFT Pharmaceuticals Limited Level 1, 129 Hurstmere Road Takapuna, Auckland 0622 New Zealand
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