Cogstate Ltd · ASX:CGS
Cogstate — Shareholder Meeting (October 2019)
30 slides from Cogstate's shareholder meeting presentation, Oct 21, 2019
Slide 1: Annual General Meeting
For personal use only Annual General Meeting 21 October 2019 © 2019 Cogstate Ltd. All rights reserved.
Slide 2: Board of Directors
Board of Directors For personal use only Audit, Risk Remuneration & Compliance & Nomination Committee Committee Martyn Myer Non-Exec Chairman Yes Chair Founding Director and substantial shareholder Brad O’Connor Chief Executive Officer N/A N/A CEO since December 2005 David Dolby Non-Exec Director No
Slide 3: Themes for this meeting
Themes for this meeting For personal use only Eisai Partnership Capital Position Financial Results - Cognigram opportunity in Japan, - Raised almost A$11m through - Q1FY20 results improving with upfront revenue a series of transactions - FY20 business outlook FIRST SIGNIFICANT WORKING CAPITAL POSITI
Slide 4: Founding Vision
For personal use only Founding Vision To develop an assessment of brain health that could be used anywhere for any purpose 4
Slide 5: Proprietary computerised tests that deliver heightened sensitivity
Proprietary Automated administration by a non-psychologist, eliminates errors related to scoring and data entry For personal use only • computerised Paper and pencil tests require that raters compute total scores or analyse performance, increasing the potential for error or variance tests that deliv
Slide 6: Science, technology and operational expertise to quantify cognitive change
Cogstate combines core capabilities of science, technology and operational expertise to better quantify cognitive change in: For personal use only Clinical Trials Clinical Practice Academic Research Services and solutions to accelerate Regulatory cleared medical Solutions for researchers studying dr
Slide 7: CEO Brad O'Connor
For personal use only CEO Brad O’Connor 7
Slide 8: Exclusive in Japan
Exclusive in Japan Exclusive license of Cogstate technology in Japan For personal use only - Cognigram and associated offering, excludes clinical trials - 10 year term with performance criteria at years 5 & 8 Joint Venture Upfront royalty payment US$1m royalty payment made by Eisai to Cogstate Eisai
Slide 9: Summary of Capital Raising Events
Summary of Capital Raising Events Approx. A$10.86m to be raised through a series of transactions For personal use only including the Entitlement Offer 1 2 3 4 Placement to Aust Placement to Eisai Placement to Eisai Fully Underwritten institutional investor Tranche 1 Tranche 2 Entitlement Offer July
Slide 10: Entitlement Offer Overview
Entitlement Offer Entitlement Offer Offer to raise approx. A$4 million by way of a fully-underwritten, Overview For personal use only accelerated, 1 for 10 pro-rata, non-renounceable entitlement offer of new fully paid ordinary shares (New Shares) to eligible existing shareholders (Entitlement Offer
Slide 11: Entitlement Offer Overview: Pre-commitments
Entitlement Offer Pre-commitments All entities associated with Cogstate Chairman, Martyn Myer, who holds Overview For personal use only approximately 14.4% of shares on issue, have committed to take up their full allocation under the Entitlement Offer (continued) Dagmar Dolby as trustee for the Dagm
Slide 12: Entitlement Offer Overview: Fully Underwritten
Entitlement Offer Fully Underwritten The Entitlement Offer is fully underwritten by Taylor Collison Overview For personal use only A summary of the underwriting and sub-underwriting arrangements is set out below (continued) Terms of sub-underwriting agreement Underwriting arrangements Cogstate and T
Slide 13: Use of funds raised under the Entitlement Offer
Use of funds raised under the Entitlement Offer For personal use only Use of Funds A$ % Explore further commercial opportunities for Cogstate technology in the healthcare segment (general practice medicine and on-line direct-to-consumer assessment) that will enable Cogstate to replicate opportunitie
Slide 14: Entitlement Offer Timetable
Entitlement Offer Timetable For personal use only Announcement of Entitlement Offer 21 Oct 2019 Institutional Entitlement Offer Close 21 Oct 2019 CGS Shares begin to trade on an “ex‐entitlement” basis 22 Oct 2019 Record Date for determining Eligible Shareholders under the Retail Entitlement Offer 23
Slide 15: FY19 Results
For personal use only FY19 Results 15
Slide 16: Financial Analysis
Full Year Ended 30-Jun-18 30-Jun-19 Revenue from operations 28,956,884 21,834,374 Financial Analysis Clinical Trials For personal use only All results presented in US$ Revenue 28,080,187 21,353,341 Cost of sales (excluding dep'n) (8,548,455) (8,371,688) Gross Margin 19,531,732 12,981,653 • Clinical
Slide 17: Analysis of financial results
Analysis of financial results For personal use only • ↓ Revenue Book | The failure of a series of AD trials dramatically reduced Cogstate’s contracted future revenue, thereby reducing FY19 revenue from already contracted studies by approx. $7m • ↓ Sales Contracts | Uncertainty in respect of AD scien
Slide 18: Clinical Trials Revenue Generation
Clinical Trials Revenue Generation For personal use only Clinical Trials revenue recognised during the year is a function of: 1. Revenue recognised from the revenue book (contracts on hand at the beginning of the year); and 2. Revenue recognised from sales contracts executed during the year. Clinica
Slide 19: Business & Financial Outlook – Previously Provided
Business & Financial Outlook – Previously Provided For personal use only • ↓ Revenue Book | $20.3m contracted future revenue at beginning of FY20 (compared to $28.4m at beginning of FY19) • ↑ Sales Contracts | FY20 Budgeting for more than 50% growth in clinical trial sales contracts (compared to FY1
Slide 20: Q1 FY20 Business Update
Q1 FY20 Business Update For personal use only • ↑ Sales Contracts | $7.7m Clinical Trial sales contracts executed (PCP $5.4m) • ↑ Revenue Book | $23.9m contracted future revenue at beginning of FY20 (compared to $20.3m at 1 July 2019) • ↓ Revenue | Clinical Trials revenue $3.82m (PCP $6.33m) • ↑ Cas
Slide 21: For personal use only
B Cogstate Ajuo asn feuosied 105
Slide 22: Formal Resolutions
For personal use only Formal Resolutions 22
Slide 23: Resolution: Adoption of the Remuneration Report
Resolution 2 For personal use only Adoption of the Remuneration Report (Non-binding Vote) For 50,945,463 Against 3,591,804 Abstain 8,325 84,337 open votes are held by the Chairman 23
Slide 24: Resolution: Election of Ingrid Player
Resolution 3 For personal use only Election of Ingrid Player For 101,577,949 Against 3,685 Abstain 1,250 84,337 open votes are held by the Chairman 24
Slide 25: Resolution: Re-election of Richard Mohs
Resolution 4 For personal use only Re-election of Richard Mohs For 101,573,949 Against 3,685 Abstain 5,250 84,337 open votes are held by the Chairman 25
Slide 26: Resolution: Issue of Options to CEO
Resolution 5 For personal use only Issue of Options to CEO For 96,499,504 Against 896,348 Abstain 4,187,032 84,337 open votes are held by the Chairman 26
Slide 27: Resolution: Ratification of Prior Issue – Australian Ethical Placement
Resolution 6 For personal use only Ratification of Prior Issue – Australian Ethical Investment Placement For 78,048,208 Against 24,732 Abstain 13,565 84,337 open votes are held by the Chairman 27
Slide 28: Resolution: Approval to Issue Shares – Eisai Placement
Resolution 7 For personal use only Approval to Issue Shares – Eisai Placement For 101,538,282 Against 29,732 Abstain 14,870 84,337 open votes are held by the Chairman 28
Slide 29: Light refreshments invitation
For personal use only Members are invited to join the directors and staff for light refreshments. 29
Slide 30: For personal use only
B Cogstate Ajuo asn feuosied 105