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INVESTOR PRESENTATION FY 2025 | 22 MAY 2025 Dr Hartley Atkinson Managing Director Malcolm Tubby Chief Financial Officer
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Important Notice AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH 2 This presentation has been prepared by AFT Pharmaceuticals Limited (“AFT”), to provide a general overview of the performance of AFT. 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.
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AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH 33 Agenda • Key Highlights • Strategic Initiatives and Pipeline • Financial Results • FY26 and LT Outlook • Questions and Answers Dr Hartley Atkinson Managing Director Malcolm Tubby Chief Financial Officer
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CONTINUED STRENGTH IN ESTABLISHED ANZ BUSINESS • FY 25 Total Sales $208.0M (5yr CAGR 14%) • ANZ Sales $180.9m • Growth focus with FY 27 $300m Turnover Target AFT GLOBAL DISTRIBUTION PARTNERSHIPS • Agreements in 100+ countries • Sales in nearly 80 countries PRODUCT LAUNCHES DRIVING COMMERCIAL TRACTION • 5 R&D programs currently being commercialised in multiple countries • Significant number of agreements in negotiation DEVELOPING INNOVATIVE THERAPIES WITH R&D • Active R&D pipeline of 8 patented products • Progression of 24+ off-patent injectables • Significant Global Market Opportunities EXPANDING GLOBAL FOOTPRINT • Europe: UK & EU • North America: USA & Canada • Asia: China, Singapore, Malaysia & Hong Kong • Africa: South Africa Building the Foundation for the Next Phase of Growth Fortifying AFT’s Global Network to Address Un-met Need
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Strategic Efforts Continue to Drive Underlying Momentum AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH 5 KEY HIGHLIGHTS • FY26 revenues reach a new record of $208.0 million up 6% over FY 24 following the neutralization of 1H 25 disruption • Double digit growth of product sales and royalty income of $207.4; despite lower license income ($0.7 million vs. $8.5 million in FY 24) • Strong Australian sales growth of 17% offset destocking and Korean doctors’ strike in 1H 25; • Operating profit of $17.6 million down from $24.2 million with lower license income, 1H 25 disruptions and strategic investments • Targeting $300 million revenue milestone by the end of FY 27 5 1 EBITDA is a non-GAAP measure of financial performance and is defined and reconciled to NZ GAAP on page 23 of this presentation. * FY20 Normalised to exclude $9.8m gain on de-recognition of equity accounted investment. $83.6 $86.7 111.8 121.3 $64.0 $69.0 $80.0 $85.0 $106.0 $113.1 $130.3 $156.6 $195.4 $208.0 $- $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 $160.0 $180.0 $200.0 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY 2023 FY 2024 FY2025 NZ$M AFT GROUP REVENUE -10.8 -16.4 -$10.1 $6.1 $11.4 $10.7 $20.4 $19.7 $24.2 $17.6 -20 -15 -10 -5 0 5 10 15 20 25 FY 2016 FY2017 FY2018 FY2019 FY2020* FY 2021 FY2022 FY2023 FY 2024 FY 2025 AFT GROUP OPERATING PROFIT* Operating profit ex license income License income
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• AFT continues to invest in its product pipeline and commercialization to fuel future commercial market traction and overall growth • Despite continued investment, shareholder equity has grown steadily since FY19 • Net debt as a proportion of equity has consistently declined since FY 19; $14.5 million in FY 25 from $16.2 million at the end of FY 24 • FY 25 dividend of 1.8cps, an increase from 1.6cps in FY 24 • The inflection is a reflection of AFT’s strengthening financial position and commitment to optimize growth and shareholder return Inflection Yields a Balance of Growth and Attractive Shareholder Return AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH 66 -10,000 10,000 30,000 50,000 70,000 90,000 110,000 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 NZ$000 EQUITY AND NET DEBT Equity Debt 1.0 1.6 1.8 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 FY 2023 FY 2024 FY 2025 CENTS/SHARE DIVIDEND
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AFT’s Global Reach 7AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH Our medicines are now available in nearly 80 countries around the world
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Australia: Improved Market Traction with Product and Sales Investments AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH • Revenues in Australia grew 17% to $127.1 million from $108.2 million in FY 24, led by eyecare, pain relief, iron supplements, and the broad portfolio of injectables and prescription. • Growth is primarily driven by increasing market traction of existing products, supplemented by new product launches complementing. • Australian operating profit increased to $25.5 million up from $15.5 million in FY 24. The notable increased profitability was attributable to the significant FY 24 investment in new product promotion and the doctor field force. 8 $42.7 $50.8 $65.5 $76.3 $68.3 $76.7 $94.1 $108.2 $127.1 $- $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 FY2021 FY2022 FY2023 FY 2024 FY2025 NZ$M REVENUE $4.0 $21.5 $19.3 $15.5 $25.5 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 FY 2023 FY 2024 FY 2025 NZ$M OPERATING PROFT
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New Zealand: Growth led by the Pain, Eyecare, Skincare Categories AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH • Revenues in New Zealand grew 10% to $53.8 million, up from $48.7 million in FY 24, led by strength in eyecare, pain relief, dermatology, and the broad portfolio of injectables and prescription. • Operating profit improved to $8.8 million, up from $7.3 million in FY 24, driven by the revenue growth. 9 $3.7 $5.1 $8.3 $7.3 $8.8 $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 $10.0 FY 2023 FY 2024 FY 2025 NZ$M NZ OPERATING PROFT $22.7 $26.0 $26.0 $27.8 $30.5 $35.1 $44.2 $48.7 $53.8 $(5.0) $5.0 $15.0 $25.0 $35.0 $45.0 $55.0 FY2021 FY 2022 FY2023 FY 2024 FY 2025 NEW ZEALAND REVENUE
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Asia: Emerging Inroads into China AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH • Revenues in Asia increased to $11.1 million, up from $10.7 million in FY 24. 1H 25 disruptions to Maxigesic IV sales following the Korean doctors’ strike masks the strong performance in the region. 2H 25 revenue of $6.7 million, up 52% (1H 25 of $4.4 million). • Revenues in mainland China benefitted from strength of cross border e-commerce sales of iron and vitamin supplements and the launch of Crystaderm. • Operating profit declined to $1.8 million from $2.5 million in FY 24 with increased marketing and business development spend. $3.7 10 * Includes license income $0.5 $1.3 $0.8 $2.5 $1.8 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 FY 2023 FY 2024 FY 2025 NZ$M ASIA OPERATING PROFT $5.4 $4.4 $5.3 $6.7 $4.4 $5.5 $6.8 $10.7 $11.1 $(1.0) $1.0 $3.0 $5.0 $7.0 $9.0 $11.0 $13.0 $15.0 FY2021 FY 2022 FY2023 FY 2024 FY 2025 ASIA REVENUE
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International Expansion – Investing for Long Term Growth in New Markets AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH 11 • International revenue from product sales and royalties of $15.4 million declined from $19.3 million in FY 24, with unplanned customer destocking. This temporary disruption was resolved and the supply chain outlook continues to improve. Product sales and royalties in 2H 25 of $9.9 million increased 86% from 1H 25. • Licensing income of $0.7m declined from $8.5 million in the prior year, which included a $6.0 million milestone payment following the launch of Maxigesic IV in the US. • Operating loss of $(7.4) million compared to an $8.5 million profit in FY 24 was largely attributable to lower license payments, 1H25 disruption and growth investments. 2 3 4 7 9 20 28 43 46 61 73 80 0 10 20 30 40 50 60 70 80 90 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY 2024 FY 2025 COUNTRIES COUNTRIES WHERE MAXIGESIC IS SOLD AND ORDERED 7.8 6.4 10.8 19.3 15.4 $9.9 $13.1 $11.7 $27.8 $16.0 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 FY2021 FY 2022 FY2023 FY 2024 FY2025 NZ$M INTERNATIONAL REVENUE Licensing Product sales and royalties
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Expanding AFT’s Global Footprint and Scale AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH 12 AFT PHARM USA • Selected OTC launches and coordinate licensees and distributors AFT PHARM UK (70% AFT) • Launched Combogesic tablets and IV. Launching multiple products • A significantly expanding pipeline of new products AFT PHARM EUROPE • Purchased a number of product licenses from bankrupt German company. • Launches underway and significantly expanding pipeline of new products AFT PHARM CANADA (70% AFT) • To launch Combogesic IV alongside selected OTC offerings • A significantly expanding pipeline of new products AFT PHARM SOUTH AFRICA (70% AFT) • Acquired an existing SAHPRA license (saves 2 years) • Launch in private hospital market starting FY26 • Secured significant pipeline AFT PHARM SINGAPORE/AFT PHARM HONG KONG • Launching further selected AFT products • A significantly expanding pipeline of new products New markets for our proprietary IP and in-licensed new products are approaching breakeven
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Progressing Research and Development Investments AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH 13 Several programs have exited development and are moving to revenue generation COMMERCIALISATION EFFORTS A significant number of licensing agreement discussions underway Maxigesic – nine dose forms protected by patents. • Tablets, Oral Liquid, Hot drink & Dry Stick • Rapid Dissolving Tablet (Patent 2039). • Intravenous (Patent 2031, 2035) Crystaderm – antibacterial and anti-acne cream, a proprietary formulation Micolette – micro-enema for bowel obstruction Kiwisoothe – tablets and sachets for gut discomfort and constipation Capsaicin – cream in two strengths for Osteoarthritis (low) and Neuropathic pain (high) *Expensed and capitalised $7.0 $8.9 $5.4 $6.1 $9.1 $10.4 $11.9 $12.4 $15.0 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 NZ$M RESEARCH AND DEVELOPMENT EXPENSES
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A Strong Research and Development Pipeline AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH 14 AFT’s positive cashflows have positioned the company well to undertake and secure research and development projects either alone or in partnership with others. PROJECT1 PATENT PARTNERSHIP / APPLICATION Hospital injectables Targeted range of 24 injectables N/A Edge Pharmaceuticals. Injectables offer strong opportunities. (AFT affiliates alone - AU, NZ, SG, MY, HK, ZA, CA, UK- offer a target market of US$450M) Antibiotic Eye Drop 2037 & 2044 For drug resistant infections: - Conjunctivitis, Keratitis, Post Kpro prophylaxis Iron Infusion Injectable 2032 + TBC Late-stage development with Hyloris Pharmaceuticals targeting a US$7.4B global market 2 Pascomer 2040/2044 Port Wine Stains (AFT) & Facial Angiofibroma (Partner) Strawberry Birthmarks 2041 & 2044 Gillies McIndoe & Massey Ventures Burning Mouth Syndrome TBC Hyloris Pharmaceuticals Vulvar Lichen Sclerosis TBC Hyloris Pharmaceuticals Keloid Scars, topical scars 2041 Gillies McIndoe and Massey Ventures NasoSURF for Conscious Sedation 2036 Multiple potential applications 1In order of maturity 2. https://www.biospace.com/intravenous-iron-drugs-market-size-to-worth-around-us-7-41-billion-by-2033
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Year to 31 March 2025 $000 Revenue % 2024 $000 Revenue % ∆% Revenue 208,021 195,411 6% Gross profit 91,713 44.1% 88,272 45.2% Operating expenses and other income (74,065) 35.6% (64,037) 32.8% Operating / profit 17,648 8.5% 24,235 12.4% (155)% Finance expenses and other income (1,614) (2,216) Tax (4,634) (6,410) Profit after tax 11,400 15,609 (27)% Revenue from product sales and royalties 207,354 186,872 11% Gross profit from product sales and royalties 91,046 43.9% 79,733 42.7% 14% Operating Profit excluding license income 16,981 8.2% 15,696 8.4% 8% Gross Margin and Operating Profit Offset by Mix Changes and Investment AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH 15 • Gross Margin on product sales and royalties of 43.9% improved by 1 point, driven by the revenue growth in the higher margin products. • The overall Gross Margin which includes license income reduced to 44% from 45%. • Operating expenses increased by $10 million over FY 24 due to • Start-up funding for the new business hubs in North America, the United Kingdom, and South Africa; • Marketing for new products and markets; and an • Increase in research and development expenditure
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Year to 31 March 2025 $000 2024 $000 ∆% Current assets (excluding cash) 97,232 93,687 Cash 11,110 12,040 Non current assets 61,473 59,530 Total assets 169.815 165,257 2.5% Current liabilities (excluding interest-bearing liabilities) 43,256 46,068 Current interest-bearing liabilities - - Non current liabilities (excluding interest-bearing liabilities) 3,882 3,194 Non-current interest-bearing liabilities 25,600 28,200 Total liabilities 72,738 77,462 (4.9)% Total equity 97,077 87,795 Total liabilities and equity 169,815 165,257 3.3% AFT is Well Funded – Well Positioned to Fund Growth Investments AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH • Net debt at the end of March 2025 was $14.5 million down from $16.2 million at the end of FY 24. • Dividend of 1.8 cents per share, up from 1.6 cents a share in FY 24. • The dividend recognizes the strong outlook and normalization of one-off events in 1H25. 16
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Year to 31 March 2025 $000 2024 $000 ∆% Net cash generated from operating activities 13,178 28,861 (54.3)% Net cash used in investing activities (6,953) (9,527) (27.0)% Net cash (used)/generated from financing activities (6,811) (10,633) (35.9)% Net increase/(decrease) in cash (586) 8,701 Impact of foreign exchange on cash and cash equivalents (344) 48 Opening cash and cash equivalents 12,040 3,291 Closing cash and cash equivalents 11,110 12,040 (7.7)% Growth Investment Underpinned by Ongoing Strong Cashflow AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH 17 • Continued investment into research and development projects to fuel long term growth • End period cash holdings of $11.1 million • Net Debts reduces to $14.5 million
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AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH Outlook: Positioned to Drive Future Growth in Both Revenue and Earnings • AFT is expecting to extend its growth record in FY 26 and is well positioned to achieve its revenue target of $300 million by the end of FY 27. • Operations scaled and benefitted from the expanding geographical reach and increasing product diversification. • We have a strong program of new products in our core Australasian markets and see continued opportunities for growth across the existing portfolio. • Growth will also be supported by product launches especially in international markets further building momentum in our new business hubs and improved profitability with the commercialisation of products now in development . • FY 26 operating profits are anticipated to range from $20 million to $24 million. 18
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QUESTIONS AND ANSWERS
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AFT was founded over 25 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 long term profitability as intended, as the company was prior to IPO and its growth and global reach is now accelerating Appendix 1: History of AFT Pharmaceuticals 1997 2004 2005 2009 2013 2014 2015 2020 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 20 2024 Revenue reaches ~$200m, AFT products are sold in reaches 77 countries and it sets a target for $300m
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Appendix 2: 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 over 150 proprietary, branded and generic products which address the following therapeutic areas: Pain Maxigesic, ParaOsteo, ZoRub OA/HP, Fenpaed, Combolieve Day/Night Eyecare Hylo, Novatears, CromoFresh, Opti-soothe Wipes/Mask, VitAPOS Vitamins Ferro-liquid, FerroTab, Ferro-F, Ferro-sachets, Lipo VitC, Lipo VitD, CalciTab Allergy Loraclear, Histaclear, Fexaclear, Levoclear, Allersoothe, Lorapaed, Becloclear, Steroclear Gastrointestinal Gastrosoothe/Forte, LaxTab, Micolette, Nausicalm, DiaRelieve Dermatology Crystaderm, Crystasoothe, Topiderm range, Decazol, MycoNail Hospital Maxigesic IV, Injectables 1 Paracetamol and Ibuprofen 21
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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. It continues the development of its portfolio of repurposed medicines: Maxigesic1, Pascomer, NasoSURF, and Crystaderm Pain Maxigesic oral dose forms - Tablets - Solution - Hot drink sachet - Rapid tablets - Cold and Flu - Day& Night ZoRub Osteo and HP Hospital Maxigesic IV (intravenous) NasoSurf – nasal nebuliser drug delivery Dermatology Crystaderm – selected territories Gastroenterology Kiwisoothe Micolette 1 Paracetamol and Ibuprofen 22
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Appendix 4: Reconciliation of EBITDA to GAAP AFTs standard profit measure prepared under New Zealand GAAP is net profit after tax. AFT has used the non-GAAP profit measure of EBITDA when discussing financial performance in this document. AFT directors and management believe that this measure provides useful information as it is used internally to evaluate performance of business units, to establish operational goals and to allocate resources. Non-GAAP profit measures are not prepared in accordance with NZ IFRS (New Zealand International Financial Reporting Standards) and are not uniformly defined, therefore the non-GAAP profit measures reported in this document may not be comparable with those that other companies report and should not be viewed in isolation or considered as a substitute for measures reported by AFT in accordance with NZ IFRS. 23 Year to 31 March 2025 $000 2024 $000 Net profit after tax attributable to the owners of the parent 11,962 15,609 Less: Finance income (25) (66) Add back: Interest costs 2,821 3,686 Add back other finance loss/(gain) (1,182) (1,404) Add back: Depreciation 994 (1,003) Add back: Amortisation 1,675 (1,010) Add back: Income tax expense/(benefit) 4,634 6,410 EBITDA 20,879 26,248
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FOR MORE INFORMATION Dr Hartley Atkinson Managing Director Email: hartley.atkinson@aftpharm.com Malcolm Tubby Chief Financial Officer Email: malcolm.tubby@aftpharm.com AFT Pharmaceuticals Limited Level 1, 129 Hurstmere Road Takapuna, Auckland 0622 New Zealand www.aftpharm.com