#1AFT pharmaceuticals Working to improve your health 1H FY2022 Investor presentation 18 November 2021#2Important notice This presentation has been prepared by AFT Pharmaceuticals Limited ("AFT"), to provide a general overview of the performance of AFT for the half year ended 30 September 2021. 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$) unless otherwise indicated. All references to financial years appearing in this presentation are for the period ending 31 March, unless otherwise indicated. This presentation is not a recommendation, offer or invitation to acquire AFT's securities or other form of financial advice or disclosure document. While reasonable care has been taken in compiling this presentation, none of AFT nor its subsidiaries, directors, employees, agents or advisers (to the maximum extent permitted by law) gives any warranty or representation (express or implied) of the accuracy, completeness or reliability of the information contained in it nor takes any responsibility for it. The information in this presentation has not been and will not be independently verified or audited. This presentation may contain certain forward-looking statements and comments about future events, including with respect to the financial condition, results, operations and business of AFT. These statements are based on management's current expectations, which may involve significant elements of subjective judgement and assumptions as to future events which may or may not be correct, and the actual events or results may differ materially and adversely from these statements. Past performance information given in this presentation is given for illustrative purposes only and should not be relied upon (and is not) an indication of future performance. AFTpharmaceuticals Page 2#3NZ$ Million Delivering growth in a COVID-19 headwind Total revenue from operations NZ$ Millions $120.0 $100.0 ■1H $113.1 $105.6 $85.1 $80.0 $80.0 $64.0 $69.0 $60.0 $40.0 $55.5 $48.8 $20.0 $0.0 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 1H 2022 Operating profit Net profit before tax $12.0 $11.4 $10.0 1H $10.7 $7.9 $8.0 $10.0 $8.0 $6.0 $6.1 $6.0 $4.0 NZ$Million $4.0 $3.1 $2.0 $2.0 $5.5 $2.4 $4.2 $1.2 $0.0 $0.0 -$2.0 FY2019 FY2020* FY2021 1H 2022 $(2.3) -$4.0 FY2019 FY2020* FY2021 1H 2022 AFTpharmaceuticals *FY2020 operating profit and net profit before tax exclude one-off non-cash $9.8 revaluation gain on the revaluation of Pascomer assets. For further detail see page 34 of AFT Pharmaceuticals' FY2021 annual report. 1H Page 3#4Extending the foundations for AFT's future growth PRESCRIPTION ONLY MEDICINE KEEP OUT OF REACH OF CHILDREN maxigesiC IV Paracetamol 1000 mg and ibuprofen (as sodium dihydrate) 300 mg in 100 mL Solution For Infusion Ta P MEDICINE Exigesic 10x100 als 000000000 AF Tosyanditures fur V Core Australasian markets supported by new product launches and consolidation of leadership position across therapeutic focus areas. MaxigesicⓇ commercialisation momentum continues - Sustained market leadership in Australia Maxigesic IVⓇ licenses extend including the landmark licensing deal with Hikma in the US and registrations now in 29 countries. Tablets now sold in 46 countries with Switzerland, Greece and Lithuania added. Accelerating Asia and E-Commerce Development portfolio expands with trials for a new application of Pascomer and ongoing development of Maxigesic dose forms and NasoSurf CRYSTAWASH EXTEI Sanitising Spr CRYSTAWASH maxigesiCIV WASH TEND EXTEND Sanitiser Foaming Hand Sanitiser 0:00 17 os Ladack AFTpharmaceuticals 99.99 HYLO- PORTE HYLO FRESH NOVATEARS TO HAND, PULL HERE EYE DRC VITAMIN C LIPO-SACHETS VITAMIN C LIPO-SACHETS LIPOSHELL Page 4#5Strategic and operational update#6NZ$ Million Australia grows despite lockdowns Australia total revenue Australia channel $80.0 1H $68.3 $70.0 $61.4 $60.0 $49.2 $50.3 $50.0 $40.0 29% 30% 1H 2021 59% 59% $30.0 $20.0 $10.0 11% 12% $28.5 $29.2 2% $0.0 FY2018 FY 2019 FY2020 FY2021 1H FY22 ■ OTC ■ Prescription ■ Hospital • Maxigesic and eyecare ranges lead growth and drive a positive half year outcome • OTC revenue growth hindered by COVID-19 particularly the Eastern states • Product launches delayed in the first half planned for the second half of the year • 30new product launches planned between now and the end of FY23 AFTpharmaceuticals 1H 2022 Page 6#7NZ$ Millions New Zealand benefits from fewer restrictions New Zealand total revenue $35.0 $30.1 $30.5 1H $30.0 $27.1 $26.8 $25.0 $20.0 $15.0 $10.0 $5.0 $0.0 $15.8 15% $13.7 FY2018 FY 2019 FY2020 FY2021 1H FY22 New Zealand channel 17% 16% 29% 29% 1H 2021 55% 54% ■ ОТС Prescription ■ Hospital 1H 2022 • Growth led by the OTC channel (up 13%) and reflects a period of more normal trading, with Vitamin C Liposachets and Maxigesic leading growth • The hospital channel grew 23% lifted by antibiotic sales • The prescription channel grew 15% with the return to a period of more normal activity AFTpharmaceuticals Page 7#8NZ$ Million Hospital/Rx channel underpins Asian result Asia total revenue $6.0 $5.0 $4.0 $3.0 $2.1 $2.0 $1.3 $1.0 $0.0 $4.9 $4.4 Asia channel 1H 9% 10% 22% 28% 1H 2021 1H 2022 62% 32% 70% $2.9 $2.2 FY2018 FY 2019 FY2020 FY2021 1H FY22 - OTC ■Prescription ■ Hospital • Hospital/Rx sales rise 32% due to strong anti-bacterial sales • TMall store, aimed at reaching into China and building brand recognition, making a growing contribution to OTC sales. To be extended • Growth diluted by weaker sales to Singapore of Maxigesic, which stockpiled the medicine in the prior year. • ASX-listed McPherson's to pick up OTC distribution in Singapore AFTpharmaceuticals Page 8#9Maxigesic drives international licensing and sales revenue $NZ Millions International total revenue $12.0 $10.0 $8.0 $6.0 $5.9 $4.0 $3.6 $2.0 $0.0 1H $9.9 $9.1 International channel 3% 39% 1H 2021 1H 2022 74% 61% $7.6 97% $4.4 FY2018 FY 2019 FY2020 FY2021 1H FY22 ■ ОТС ■ Hospital • Maxigesic IV licensing income drives strong total revenue growth • Product sales down 35% to $2.6 million as the prior year benefited from stock pipeline fills. • Sales improving as markets move to living with COVID-19. • Royalties more than doubled AFTpharmaceuticals Page 9#10MAXIGESIC GLOBAL UPDATE [Oral Dose Forms & IV] Canada Tablets launched 2021 Ireland Tablets launched IV licensed United Kingdom - Tablets launched IV licensed Netherlands - IV licensed Austria IV licensed & launched 2021 Nordics Tablets launched IV licensed Poland - IV and orals licensed Eastern Europe & Balkans -Tablets launched Eastern Europe IV- Licensed Iraq Kurdistan launched Russia Orals licensed Singapore & Brunei - Tablets launched China licensing negotiations underway Taiwan Tablets Licensed Korea IV licensed USA- IV Licensed IV Submitted for Registration Tablets submitted for registration and licensing discussions underway Mexico - Tablets launched 2021 IV Licensed CACM - Tablets launched IV licensed Pakistan - distributor appointed for IV Launched Launch Pending Available Columbia, Peru, Chile - distributor appointed Orals IV Licensed 2021 Brazil licensing negotiations underway United Arab Emirates - Tablet sales strong Greece Orals and IV licensed Italy Tablet sales growing Germany IV Licensed Orals Launched 2020 Germany IV Launched 2021 Switzerland Tablets licensed 2019, launched 2021 Belgium, Luxembourg- Tablets launching 2021 IV licensed July 2021 France Tablets launching 2021 IV Licensed Spain & Portugal - Tablets launched IV licensed 4444 444 Japan licensing discussions are underway Indonesia distributor appointed for IV NZ - Maxigesic, Maxigesic PE, Maxigesic IV launched Australia - No. # 1 Para-Ibu Combo. Growing market share Maxigesic IV launched Philippines - AFT to sell post registration via distributor Malaysia Tablets launched Thailand - IV licensed Vietnam distributor appointed for IV and Orals#11Countries Maxigesic roll out continues across the world TARGETED MAXIGESIC FY 2022-2023 Maxigesic countries sold and ordered* 90 80 70 60 50 40 30 20 10 28 20 7 9 3 4 43 53 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 84 FY 2022 progress to date: • Tablets: Launched in Switzerland, Greece and Lithuania • • Maxigesic IV: launched in Germany and Austria Oral Liquid: Registered in Italy and Malta. Product Maxigesic Tablets Maxigesic IV Maxigesic Oral Solution Territories 31 Oct 2021 31 March 2021 31 Oct 2021 31 March 2021 31 Oct 2021 31 March 2021 Licensed 100+ 100+ 100+ 100+ 100+ 100+ Registered 51 49 29 21 2 0 3 Sold in 46 43 50 3 0 0 AFTpharmaceuticals Page 11#12• . • R&D investment lays foundation for future growth Research and development expenditure* $NZ Million $14.0 $12.0 $2.5 $10.0 $8.0 $6.0 $6.0 SALINE $7.2 20 $9.5 $1.5 $4.0 $2.4 $2.0 $4.1 $3.4 $2.0 $2.8 $- FY2018 FY2019 FY2020 FY2021 1H 2022 Expensed R&D costs Capitalised R&D costs Maxigesic dose forms: - Maxigesic Cold & Flu final studies underway this year Pascomer: Treatment of facial angiofibromas - Licensed for North America to Timber Pharmaceuticals and Europe to Desitin Global Phase II/III study patient enrolment closed now despite the pandemic NasoSURF: Intranasal drug delivery instead of an injection - Clinical studies of the first dose form to commence in FY22 Other products: Other products in development: Medicinal Cannabis, Crystawash Extend, Crystaderm AFTpharmaceuticals *Research and development costs also include new market development costs. CRYSTAWASH EXTEND CRYSTAWASH Hand Sanitiser EXTEND Hand Sanitiser Sanitises and protects against 99.99% of germs Lasts for up to 24 hrs 500 Page 12#13Financial performance#14Licensing income lifts earnings; investments for growth Change 2021 2020 Six months to 30 September NZ$ (000) NZ$ (000) (%) Total revenue from operations $55,513 $48,821 13.7% Gross profit $26,705 $20,332 31.3% Gross profit/revenue 48.1% 41.6% Operating expenses and other income $(21,214) $(17,910) 18.4% Operating profit $5,491 $2,422 126.7% Operating profit/revenue (%) 9.9% 5.0% Net finance expense $(1,059) $(1,193) (11.2)% Finance expense/revenue (%) (1.9)% (2.4)% Tax (expense) Net profit after tax $(250) $(37) $4,182 1,192 250.8% Revenue from product sales and royalties Gross profit from product sales and royalties $50,706 $48,524 4.5% $21,898 $20,035 9.3% Gross profit from product sales and royalties/revenue 43.2% 41.3% Gross profit margins improve due to higher license income and price increases • Selling and distribution expenses expand with investment into Australasian brands, expected to remain steady as a percentage of Australasian sales going forward R&D expenditure rises with investment in NasoSURF development and Australasian in-licensing costs Corporate costs also higher due to investing in increased personnel for growth AFTpharmaceuticals Page 14#15Balance sheet highlights: debt reduces and cash and equity rise NZ$ (000) Inventories Unaudited 30 Sept '21 Audited 31 March '21 Unaudited 30 Sept '20 $34,129 $33,654 $35,995 Cash and cash equivalents $5,907 $3,209 $5,870 Net debt Total assets • Total equity $32,592 $35,152 $34,277 $105,708 $105,132 $93,983 $41,096 $36,588 $29,866 Inventories remain elevated to protect the company against supply disruptions • Cash position building AFTpharmaceuticals Page 15#16Cash flow highlights 2021 2020 Six months to 30 September Net cash from/ (used in) operating activities NZ$ (000) NZ$ (000) $6,826 $(2,740) Net cash used in investing activities $(2,770) $(3,889) Net cash from/ (used in) financing activities $(1,326) $6,704 Net increase/(decrease) in cash $2,731 $75 Impact of forex movements on cash and cash equivalents $(33) $(324) Opening cash and cash equivalents $3,209 $6,119 Closing cash and cash equivalents $5,907 $5,870 AFTpharmaceuticals Page 16#17Summary and outlook#18A challenging half year but growth potential remains strong Positive achievements across all our key markets Good growth in New Zealand, Asia . Good progress commercialising Maxigesic • Landmark licensing agreements with Hikma for Maxigesic IV in the US and FDA acceptance of the New Drug Application Covid-19 has impeded our progress Supply disruptions delay product launches COLD & FLU RELIEF • Delays to product launches and regulatory approvals continue • Lockdowns, travel restrictions and government- imposed limits to patient access disrupts OTC medicine sales O T AFTpharmaceuticals Natural Skin Care зиф TRA ти Page 18#19Focus for the remainder of FY22 and outlook $ AFTpharmaceuticals Further drive international sales ■ ◉ Accelerate number of new countries in which Maxigesic is launched Growing sales in newly launched markets such as Canada, Germany, Switzerland Launch new line extensions - Maxigesic IV, Hot Drink, Oral Liquid Extend international licensing ■ Finalise Maxigesic licensing agreement discussions in Brazil, China and Japan Drive Australia and New Zealand sales ◉ Drive Maxigesic sales and line extensions in AU & NZ such as hot drink Ongoing in-licensing to expand ANZ business ■ Targeting the launch of circa 30 products before the end of FY23 Financial outlook Guidance for FY22 operating profit of $18 million to $23 million reaffirmed for the year to 31 March 2022, assuming the maintenance of margins and targeted sales outlook Dividend policy remains on the agenda as we progress debt reduction to the target of $25 million to $30 million and linked to underlying earnings progress Page 19#20AFTpharmaceuticals Working to improve your health#21Appendix 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: Pain Eyecare Vitamins Allergy Gastrointestinal Maxigesic, ParaOsteo, ZoRub OA/HP, Fenpaed, Combolieve Day/Night PHOUT OF REACH OF CHR maxigesic Y MEDICINE Paracetamol 500mg ibuprofen 180mg DOUBLE ACTION 30 Film Coated Tablets Hylo, Novatears, CromoFresh, Opti-soothe Wipes/Mask, VitAPOS Ferro-liquid, FerroTab, Ferro-F, Ferro-sachets, Lip VitC, CalciTab HYLO- HYLO FORTE FRIGH NOVATEARS EYE DRC Ferro-liquid ferro-sachets fern-tab Terra-1-tab Zo-RubOA ZoRubHP MASSACRETS VITAMIN C LIPO-SACHETS LIPCSHELL Loraclear, Histaclear, Fexaclear, Levoclear, Allersoothe, Lorapaed, Becloclear, Steroclear Gastrosoothe/Forte, LaxTab, Micolette, Nausicalm, Dia Relieve PHARMACY MEDICINE KEEP OUT OF REACH OF CHILDREN gastro soothe Hyoscine Butylbromide Table PHARMACY MEDICINE KEEP OUT OF REACH OF CHILDREN gastro-soothe Hyscine Butybromide FORTE or the relief of stomach ashe PHARMACY MEDICINE KEEP OUT OF REACH OF CHILDREN Histaclear Non-Drowsy Allergy Relief ayerHchy' eyes AFTM nd pain due to cramp or AFT 10 tablets PHARMACY MEDICINE BEEP OUT ON ACH OF CO Loraclear Hayfever Relief Non-drowsy antihistamine for rapid allergy rele AFT cal 30 Tablets Dermatology Crystaderm, Crystawash Hand Sanitizer, Crystasoothe, ZoRub anti-chafing, Decazol, MycoNail, Restora Nail Acne: Cuts Burns School Sores Skin Infections Grazes BSTANSION GRYSTAWAS CRYSTADERM® First Aid Cream Han Rom we Bum Go und Wish S 159 Hospital 1 Paracetamol and Ibuprofen AFT pharmaceuticals Maxigesic IV, Injectables maxigesic/V PRESCRIPTION ONLY MEDICINE KEEP CUT OF REACH OF CHILDREN maxigesiCIV Solutioforsion Paracetamol 1000 ng and buprofanas sadum diydere 300 mg in 100 mL 10x1000000000000 APT axigesic band tupelmadused CRYSTAWASH Sensing Hand G TO HANG PULL HERE Page 21#22Appendix 2: AFT Asian product portfolio AFT's Asia portfolio includes a range of proprietary, branded and generic products which address the following therapeutic areas: Pain Maxigesic PHARMACIST ONLY MEDICINE REIP OUT OF BEN OF CHILETION maxigesic Paracetamol 500mg+uprafen 150m DOUBLE ACTION AST #21 30 Film Coated Tablets VITAMIN D LIPO-SACHETS Ferro-liquid ferro-sachets SACHETS Medicated Vitamins Ferro-sachets, Lipo VitC, Lipo VitD and expanding pipeline - T Mall ferro-tab ferra-tab Dermatology Crystawash Extend Hand Sanitizer, Hemptuary Hospital Maxigesic IV, Injectables AFTpharmaceuticals CRYSTAWAS EXTE WASH TEND EXTEND Sanitser Saritising Spr CRYSTAWASI Foming Hand Sanitiser Star 1. maxigesic د فرع حل Hemptuary bepiderm Hemp infused Moisturiser WITH A RENKACIL Hemptuary сохани Hemp Nourishing CBS Body Dil Hemptuary Hemp Scath topidern Body Bain PRESCRIPTION ONLY MEDICINE KEEP CUT OF REACH CHILDREN maxigesiC IV Paracetamol 1000 ng and huprofen ja sadumdydate 300 mg in 100 ml Selv for design s ESCRIPTION ENLY MEDICHT 10x1000000 FT Exigesic TO HANI, FULL HERE VITAMIN C LIPO-SACHETS LIPOSHELL Page 22#23Appendix 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: Maxigesic, Pascomer, NasoSURF, Crystawash Extend and Crystaderm Pain Maxigesic oral dose forms – tablets, solution, hot drink sachet, rapid, cold and flu Maxigesic IV (intravenous) Hospital NasoSurf nasal nebuliser drug delivery Dermatology 1 Paracetamol and Ibuprofen AFTpharmaceuticals Pascomer - primarily North America & Europe Crystawash extend - selected territories such as Canada & Middle East Crystaderm - selected territories such as Canada PHARMACIST ONLY MEDICINE KRIP OUT OF BEAN OF CHILDREN maxigesiC 1500mg+buprafen 180mg pain and f DOUBLE ACTION NAST #218705 maxigesiCIV 30 Film Coated Tablets CUT OF REACH OF CHILDREN PRESCRIPTION ONLY MEDICINE maxigesIC IV Paraceland 1001 my and buarakan (as sodiun dhytrase) 500mg in 100 mp 100 mL Solution for Infusion Forinated 10 x10) m. Valg AFT CRYSTAWASI EXTE NASH TEND Sanitising Spr.CRYSTAWASH EXTEND Sanitiser Sarities end prod 09.90% of Long-sorg formu Foaming Hand Sanitiser Sarees underco 27395 24 PRESCRIPTION ONLY MEDICI maxigesic belastun 10 HAND PULL HERE Page 23#24Appendix 4: Maxigesic dose forms extend the market Revenue MaxigesicⓇ family growth Maxigesic® IV Maxigesic® TABLETS MaxigesicⓇ DRY STICK SACHET MaxigesicⓇ COLD & FLU MaxigesicⓇ RAPID MaxigesicⓇ HOT DRINK SACHET MaxigesicⓇ ORAL LIQUID maxigesIC Junior Pomsel 180mg/5ml Ibuprofen 4 mg/5 ml. Ordi Suspersion For children 2-12 years OCUBLE ACTION RELIER PAIN & FEVER Strawberry flavour Alohathenger to himpin ding yang 200 m maxiqesiCNV PHARMACIST ONLY MEDICINE maxigesic 20 Cated • Estimated total analgesic market size $6.2 billion, oral dose forms US5.4 billion and injectable forms US724 million** Maxigesic tablets are patent protected out to 2025-2028, beyond which the brand name is expected to cement Maxigesic's OTC position in the market Time AFT is now leveraging the brand goodwill into Maxigesic variants, including: - Maxigesic PE (2034 patent) - Maxigesic Hot Drink Sachet (2025, 2028 patent) - Maxigesic Dry Stick Sachet (2036 patent) Maxigesic IV (2034 [AU] 2031, 2035, 2037 [Global] patents) ― - Maxigesic Oral Liquid (2025, 2028 patents) Maxigesic Cold & Flu (2025, 2028 patents) Maxigesic Rapid (2039 patents) AFT pharmaceuticals *Maxigesic IV is a prescription product for hospital use *Management estimates Page 24#25Appendix 5: Detailed balance sheet NZ$ (000) Current assets Unaudited 30 Sept '21 Audited 31 March '21 Unaudited 30 Sept '20 $66,187 $67,902 $58,549 Non-current assets $39,521 $37,230 $35,434 Total assets $105,708 $105,132 $93,983 Current liabilities $25,422 $32,102 $25,948 Non-current liabilities $39,190 $36,442 $38,149 Total liabilities $64,612 $68,544 $64,097 Total equity $41,096 $36,588 $29,866 Total liabilities and equity $105,708 $105,132 $93,983 AFTpharmaceuticals Page 25#26Appendix 6: 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 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 Development of Maxigesic commences Maxigesic registered in New Zealand and sales commence AFT launches the sale of products into the SE Asian market AFT returns to profitability following a significant investment period funded by the 2015 IPO AFT completes licensing Maxigesic IV to Hikma for USA FDA accepts Maxigesic IV Registration 1997 2004 2005 2009 2013 2014 2015 2019 2020 2021 AFT founded by Dr Hartley and Marree Atkinson First sales into Australia AFTpharmaceuticals Maxigesic registered in Australia Maxigesic sales commence in Australia $33m IPO to fund new R&D development programmes for Maxigesic and other proprietary products In FY20 AFT delivers over $100m of revenue and operating profit growth of 87% Page 26#27AFTpharmaceuticals Working to improve your health