New Zealand Professional Investment Services Firm

Forsyth Barr

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

<ul><li>AFT Pharmaceuticals (AFT) reported an operating FY23 result in-line with guidance and slightly ahead of our expectations with EBIT ex licensing income of NZ$18.8m (FB; NZ$17.7m, guidance mid-point; NZ$19.3m) – up +38% versus FY22</li><li>Key positives are (1) strong ANZ revenue growth (the core business driver) – up ~+25% YoY, (2) strong underlying ROW sales (ex licensing income), up +70% YoY, and (3) strong gross margins – a record interim result.</li><li>Key negatives are (1) slightly weaker Asia sales, and (2) higher tax/interest costs which drove an NPAT miss relative to expectations.</li></ul>

AFT Pharmaceuticals (AFT) reported an operating FY23 result in-line with guidance and slightly ahead of our expectations with EBIT ex licensing income of NZ$18.8m (FB; NZ$17.7m, guidance mid-point; NZ$19.3m) – up +38% versus FY22Key positives are (1) strong ANZ revenue growth (the core business driver) – up ~+25% YoY, (2) strong underlying ROW sales (ex licensing income), up +70% YoY, and (3) strong gross margins – a record interim result.Key negatives are (1) slightly weaker Asia sales, and (2) higher tax/interest costs which drove an NPAT miss relative to expectations.

AFT Pharmaceuticals (AFT): FY23 Result – First Impressions