Slide 1: ASX Announcement: Cogstate Investor Presentation
ASX Announcement 26 August 2020 For personal use only Cogstate Investor Presentation Cogstate (ASX.CGS) has today released an investor presentation that provides a summary of the financial results for the year ended 30 June 2020 and also provides commentary in respect of business and financial outlo
Slide 2: Investor Presentation FY20 Financial Results
For personal use only Investor Presentation FY20 Financial Results 26 August 2020 Brad O’Connor Cogstate CEO © 2020 Cogstate Ltd. All rights reserved.
Slide 3: Themes for the Presentation
For personal use only Themes for the Presentation Clinical Trials Healthcare 2nd Half: Profit Before Tax Sales growth delivering revenue Revenue growth without cost Improved Clinical Trial result driving growth significant growth return to profit for the half year 2nd HALF REVENUE AND GROSS FIRST EV
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: What Sets Cogstate Apart
For personal use only Proven ability to commercialize highly sensitive What Sets computerised cognitive assessments backed by science and carefully designed for the rigor of clinical research Cogstate Apart Inclusion of our computerised endpoint in major longitudinal and natural history studies, est
Slide 6: Revenue Streams
For personal use only Revenue Streams Clinical Trials Healthcare Growing strongly on a project revenue model Subscription based software revenue model that provides great visibility and predictability sold through strategic partners who have of revenue other revenue tied to adoption of the software
Slide 7: Summary Financial Results, by Segment
For personal use only Summary Financial Results, by Segment FY20: $2m loss for the year but significant improvement in 2H20 (profit $0.8m) 2nd half revenue increase of $4.3m delivered improvement in profit before tax of $3.7m Other expenditure consistent for the last 3 financial years (excludes dire
Slide 8: Clinical Trials Revenue & Contribution
For personal use only Clinical Trials Revenue & Contribution Revenue increase in 2H20 produced an increase in segment contribution • 2H20 revenue and contribution almost identical to 1H18 • Direct costs consistent across 6 x half-year periods All results presented in US$ million 1H18 2H18 1H19 2H19
Slide 9: Healthcare Revenue & Contribution
For personal use only Healthcare Revenue & Contribution FY20 = First positive contribution by Healthcare segment • Changes to strategy executed during 1H19 has delivered positive result • Revenue via commercial partnership (Eisai, Japan) • Substantial cost reduction (reduced headcount in 1H19) • Sof
Slide 10: Fundamentals in Place for Earnings Growth
For personal use only Fundamentals in Place for Earnings Growth • Clinical Trials: growth in sales = revenue growth = improved contribution • Recovered from the 3 quarters (1H19 – 1H20) impacted by study cancellations in 2018 • Healthcare: strategic partnership = revenue growth without the cost base
Slide 11: Clinical Trials Growth Prospects
For personal use only Clinical Trials Growth Prospects 11
Slide 12: Clinical Trials Revenue Recognition
For personal use only Clinical Trials Revenue Recognition SALES CONTRACTS REVENUE REVENUE BACKLOG 1 Clinical Trial = 1 Sales Contract Recognised over length of trial as The amount contracted in prior software is released or as services periods that has not yet been Value from $0.1m to $10m+ performe
Slide 13: FY20 Clinical Trials Sales Contracts
For personal use only FY20 Clinical Trials Sales Contracts • Industry-wide increase in Alzheimer’s R&D positively impacting Cogstate • Expansion into additional disease areas by Cogstate All results presented in US$ million Clinical Trial Sales Contracts Executed 50 45 Q4 40 35 Q4 Q3 US$ million 30
Slide 14: Record-High Revenue Backlog
For personal use only Record-High Revenue Backlog Revenue backlog at 30 June 2020 was $39.4 million • Over $15m expected to be recognised in FY21 • 42% improvement on prior year All results presented in US$ million Contracted Clinical Trials Revenue - Expected Run-Off and Historical Comparison 45 40
Slide 15: Clinical Trials Growth – Key Sources
For personal use only 1. Core business is strong Clinical Trials • July 2020: 75% increase in sales deliverables (statement of work, proposals, request for information) compared to Jul-19 Growth – Key • $6.5 million Clinical Trials sales contracts executed quarter-to- date (01 July 2020 – 25 August
Slide 16: Healthcare Growth Prospects
For personal use only Healthcare Growth Prospects 16
Slide 17: Eisai Partnership nouknow.jp
For personal use only Eisai Partnership nouknow.jp NouKNOW ™ means “know your brain” in Japan • Cogstate tests embedded within the website • In conjunction with Eisai, launch of awareness campaign in Japan • Feedback includes meaningful intervention such as diet, exercise, and physician consultation
Slide 18: Easiit Digital Brain Performance Application
For personal use only Easiit Digital Brain Performance Application Eisai has launched Easiit application, a key element of the digital platform demonstrating their commitment to both Cogstate and to establishing a broader dementia care ecosystem 18
Slide 19: Easiit Digital Brain Performance Application
For personal use only Easiit Digital Brain www.easiit.com • Leveraging experience gained from development and marketing of Performance Aricept® (symptomatic treatment for Alzheimer’s disease) • The planned ecosystem will deliver benefits to patients by collaborating Application with partners such as
Slide 20: Potential Alzheimer's Treatment – Aducanumab
For personal use only Potential If approved, the first disease modifying therapy for early Alzheimer’s disease Alzheimer’s Co-developed and marketed by Biogen and Eisai Treatment – • Submitted Biologics License Application in July 2020 to the U.S. Food & Drug Administration (FDA) Aducanumab • Grante
Slide 21: Continued Innovation and Development
For personal use only Continued Innovation and Development 21
Slide 22: Lila: smartphone voice-based self assessment tool
For personal use only Lila TM Lila will enable home-based self-assessment Cogstate is using the scientifically validated test paradigm developing a smart- Based on Cogstate’s International Shopping List Test phone, voice-based, (ISLT®) self assessment • • Proprietary adaptation of a verbal list lear
Slide 23: Cogstate is Supporting COVID-19 Research
For personal use only Characterization of neurocognitive consequences Cogstate is post COVID-19 Data suggest that COVID-19 may cause a postinfectious neurocognitive Supporting syndrome, demanding a systematic study of neurocognition in these patients. COVID-19 Study 1: European Neurocognitive assess
Slide 24: Business & Financial Outlook
For personal use only Business & Financial Outlook 24
Slide 25: Business & Financial Outlook
For personal use only Clinical Trials Business & • $15m contracted FY21 revenue as at 01 July 2020 (40% Financial Outlook • more than PCP) New sales contracts: $6.5m executed since 01 July 2020 but risk associated with COVID-19 remains • Hopeful that ERT relationship will provide additional sales op
Slide 26: For personal use only
For personal use only