Slide 1: Business Update & H1 2016 Financial Results
For personal use only BUSINESS UPDATE & H1 2016 FINANCIAL RESULTS INVESTOR PRESENTATION 29 FEBRUARY 2016
Slide 2: Cogstate Highlights
For personal use only COGSTATE HIGHLIGHTS • Cogstate is a leader in Cognitive Assessment • Cognitive Assessment and Training Market is projected to grow from USD 2.4 Billion in 2015 to 7.5 Billion by 20201 • 94% of revenue in H1FY16 comes from clinical trials, where revenue is driven by volume and s
Slide 3: For personal use only
For personal use only © 2015 Cogstate Ltd. All rights reserved. 3
Slide 4: Clinical Trials Portfolio of Services for Cognitive Assessment Is the Deepest in the Industry
CLINICAL TRIALS PORTFOLIO OF SERVICES FOR COGNITIVE For personal use only ASSESSMENT IS THE DEEPEST IN THE INDUSTRY “ From well-validated computerised batteries to expert support for traditional paper-and-pencil tests, science, innovation and ” excellence in delivery are at the core of everything we
Slide 5: H1 FY16 Results at a Glance
For personal use only H1 FY16 RESULTS AT A GLANCE Revenue of Gross Margin 57% Record pipeline of EBIT of A$1.1m, A$13.0m (up (within target range contracted future NPAT of A$2.6m, 109% PCP) 57-60%) revenue A$52.1m EPS of $0.024 FY16 H1 FY15 H1 Change A$ millions A$ millions A$ millions Clinical Tria
Slide 6: Continued Financial Improvement
For personal use only CONTINUED FINANCIAL IMPROVEMENT FY16 FY15 FY15 SUMMARY FINANCIAL RESULTS 1ST HALF 2ND HALF 1ST HALF $’000,000 $’000,000 $’000,000 Clinical Trials · Revenue 12.24 9.62 5.57 · Cost of Sales -5.23 -3.78 -2.95 Gross Margin 7.01 5.84 2.62 · Net Recovery of Pass-through Costs 0.01 0.
Slide 7: Driving the Momentum
For personal use only DRIVING THE MOMENTUM 1 EXECUTING COMMERCIAL STRATEGY • • Targeted sales strategy delivering results – a 4x increase in proposals vs PCP Fully resourced commercial team as of Oct 2015 + utilisation of scientific subject matter experts 2 FAVOURABLE INDUSTRY TRENDS • • Expanded re
Slide 8: Driving the Momentum
For personal use only DRIVING THE MOMENTUM 1 EXECUTING COMMERCIAL STRATEGY • • Alzheimer’s/Dementia: Increased trial activity in early stage disease / prevention Major Psychiatric Disorders (SZ, MDD): Increase in research activity 2 FAVOURABLE INDUSTRY TRENDS • • Cognitive Safety Concerns: Regulator
Slide 9: Driving the Momentum
For personal use only DRIVING THE MOMENTUM 1 EXECUTING COMMERCIAL STRATEGY • Breadth of services and expertise in Clinical Trials to provide full service support for computerised or P&P scales Allows Cogstate to deliver cognitive outcome measures regardless of the fit- 2 for-purpose approach selec
Slide 10: Investing in Growth Areas
For personal use only INVESTING IN GROWTH AREAS Cogstate has focused its R&D efforts towards specific indications that are expected to deliver commercial returns • For a number of years, Cogstate has supported academic KOLs (key opinion leaders) and their research in Alzheimer’s disease – Alzheimer’
Slide 11: Contracted Revenue Continues to Grow
For personal use only CONTRACTED REVENUE CONTINUES TO GROW “ Over the last six quarters, the growth in our pipeline of contracted future revenue has outpaced our strong revenue growth. This augurs well for ongoing positive revenue momentum in our business.” © 2015 Cogstate Ltd. All rights reserved.
Slide 12: Sales Momentum Continues to Build
For personal use only SALES MOMENTUM CONTINUES TO BUILD VALUE OF CLINICAL TRIALS CONTRACTS SIGNED 26 24 Record Clinical Trials sales contracts 22 signed in FY15, totaling US$23.7m, 20 an increase of 165% (PCP 18 US$9.0m) US$ Millions 16 14 12 Sales contracts signed FYTD 10 totaling US$20.6m, includi
Slide 13: Driving Future Revenue Growth
For personal use only DRIVING FUTURE REVENUE GROWTH CLINICAL TRIALS CONTRACTED REVENUE 25,000,000 FY16 began with a pipeline of contracted revenue of A$10.9m, 20,000,000 which was significantly ahead of where we started FY15 15,000,000 10,000,000 5,000,000 - FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 F
Slide 14: Driving Future Revenue Growth
For personal use only DRIVING FUTURE REVENUE GROWTH CLINICAL TRIALS CONTRACTED REVENUE 25,000,000 US$20.6m of sales contracts signed since 1 July 2015 has 20,000,000 added A$12.4m to contracted FY16 revenue 15,000,000 10,000,000 5,000,000 - FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21
Slide 15: Driving Future Revenue Growth
For personal use only DRIVING FUTURE REVENUE GROWTH CLINICAL TRIALS CONTRACTED REVENUE 25,000,000 Cogstate now has a pipeline of contracted Clinical Trials revenue 20,000,000 totaling A$15.3m to be recognised in FY17 Contracted revenue for FY17 is 15,000,000 already 40% ahead of where we started FY1
Slide 16: Business Outlook: H2 FY16
For personal use only BUSINESS OUTLOOK: H2 FY16 Maintain prior guidance for a return to positive EBIT in FY16, with positive EBIT also expected in 2H16 Management are targeting Gross Profit margins of 57%-60% Based on contracted revenue position as well as positive market sentiment, management expec
Slide 17: For personal use only
For personal use only
Slide 18: Appendix – Contracted Revenue Pipeline
For personal use only APPENDIX 1 – CONTRACTED REVENUE PIPELINE US$20.6m of new sales contracts signed since 1 July 2015 have added an additional A$12.4m to FY16 contracted revenue. This is in addition to the A$10.9m that was secured at 1 July 2015: As at As at As at 17 Feb 2016 30 June 2015 18 Feb 2
Slide 19: Appendix – Contracts Signed vs. Revenue
For personal use only APPENDIX 2 –CONTRACTS SIGNED VS. REVENUE 14 12 10 8 A$ millions 6 4 2 0 Mar-14 Mar-15 Sep-13 Dec-13 Jun-14 Sep-14 Dec-14 Jun-15 Sep-15 Dec-15 Contracts Signed Revenue Recognised © 2015 Cogstate Ltd. All rights reserved. 19
Slide 20: Appendix – Contracts Signed vs. Revenue
For personal use only APPENDIX 3 –CONTRACTS SIGNED VS. REVENUE New contract signings in QUARTERLY BOOK-TO-BILL RATIO 2Q16 of A$11.4m exceeded 4.50 the A$6.5m of revenue in CONTRACTS / REVENUE 4.00 the same period by 1.77x 3.50 Future Growth 3.00 (Book-to-Bill ratio). This is 2.50 the sixth consecuti
Slide 21: Appendix - Summary Balance Sheet
For personal use only APPENDIX 4 - SUMMARY BALANCE SHEET 31 DEC 2015 30 JUN 2015 A$’000,000 A$’000,000 Assets - Cash and cash equivalents 5.09 5.50 - Trade and other receivables 6.68 4.90 - Other current assets 1.15 0.46 - Property, plant and equipment 1.99 1.12 - Deferred tax assets 3.55 1.94 - Int
Slide 22: Appendix - Board of Directors
For personal use only APPENDIX 5 - BOARD OF DIRECTORS • MARTYN MYER AO - Chairman Founder with long history of supporting neurosciences in Aust. • DAVID DOLBY - Non-Executive Director Director Dolby Laboratories Inc. and Dolby Family Ventures, an early stage venture firm focused on building great te