Slide 1: Annual Shareholders' Meeting February 24, 2015
Copyright (c) 2015 Simulations Plus, Inc. Simulations Plus, Inc. (NASDAQ:SLP) Annual Shareholders’ Meeting February 24, 2015
Slide 2: Agenda
Copyright (c) 2015 Simulations Plus, Inc. • Welcome and Introductions • Discussion of Voting Issues • Chairman’s Remarks • Financial presentation • Products and Services • Questions & Answers • Adjournment of Official Meeting Agenda
Slide 3: Safe Harbor Statement
Copyright (c) 2015 Simulations Plus, Inc. 3 With the exception of historical information, the matters discussed in this presentation are forward - looking statements that involve a number of risks and uncertainties . The actual results of the Company could differ significantly from those statements
Slide 4: Management & Directors
Copyright (c) 2015 Simulations Plus, Inc. Management & Directors • Board of Directors: – David Z. D’Argenio, Ph.D., Director • Professor, Biomedical Engineering, USC • Director, Co - Director, Biological Simulation Resource Center, USC since 1985 – Thaddeus H. “Ted” Grasela, Ph.D., Director and Pres
Slide 5: Independent Auditors and Counsel
Copyright (c) 2015 Simulations Plus, Inc. • Registered Independent Auditors • Rose, Snyder & Jacobs, Encino, CA • Tax Specialists • Rose, Snyder & Jacobs, Encino, CA • Legal Counsel • Procopio, Cory, Hargreaves & Savitch LLP Outside Counsels
Slide 6: Voting Issues/Proxy Proposals
Copyright (c) 2015 Simulations Plus, Inc. 6 • Through this morning 89.73% of outstanding share votes have been cast • Proposal 1: Election of Directors ‒ Result: All elected with 99+% voting for • Proposal 2: Ratify Rose, Snyder & Jacobs CPA’s as Independent Registered Public Accounts ‒ Result: Rati
Slide 7: Simulations Plus, Inc. Overview
Copyright (c) 2015 Simulations Plus, Inc. 7 • Major software provider for pharmaceutical research and development • Consulting services for problem drugs and formulations • Expertise and software tools span from earliest drug discovery through clinical trials and beyond patent life to supporting gen
Slide 8: Financial Presentation
Copyright (c) 2015 Simulations Plus, Inc. 8 • Year ended August 31, 2014 vs 2013 • Fiscal Quarter Ended November 30, 2014 vs 2013 • Fiscal Quarter Ended November 30, 2014 by division(Simulations Plus/Cognigen) • Financial Charts FINANCIAL PRESENTATION
Slide 9: SLP FY14 Highlights
Copyright (c) 2015 Simulations Plus, Inc. • FY14 compared to FY13: – Sales increased by $1.4 million or 13.8% to $11.5 million from $10.1 million to set a new fiscal year record – Cost of sales as a percentage of sales decreased 1.3% or $ 17,000 to 14.2% from 16.3% in FY13 • Decrease was attributabl
Slide 10: SLP FY14 Highlights (continued)
Copyright (c) 2015 Simulations Plus, Inc. • FY14 compared to FY13 ( con’t ) – R&D expense increased 18.7% to $953,000 from $802,000 the prior year • Increase was due to an increase in life science staffing and included R&D expenditures for the COX2 /COX1 NCE project of approximately $50,000 – Net In
Slide 11: Income Statement FY14 vs FY13
Copyright (c) 2015 Simulations Plus, Inc. Income Statement FY14 vs FY13 ($ millions) FY14 FY13 Net sales 11.461 10.071 Gross profit 9.831 8.424 Gross profit margin 85.8% 83.7% SG&A 4.440 3.550 R&D 0.952 0.802 Total operating expenses 5.392 4.352 Income from operations 4.439 4.257 Other income .074 0
Slide 12: Selected Balance Sheet Items
Copyright (c) 2015 Simulations Plus, Inc. Selected Balance Sheet Items ($ millions) August 31, 2014 August 31, 2013 Cash and cash equivalents $8.614 $10.179 Cash per share 0.52 0.62 Total current assets 11.533 12.972 Total assets 20.981 16.063 Total current liabilities 1.391 0.626 Total liabilities
Slide 13: Summary FQY15.1
Copyright (c) 2015 Simulations Plus, Inc. 13 • FQY15.1 - Revenues and earnings continued seven - year - plus profitable trend - Cognigen acquisition increases revenues, expands offerings into clinical pharmacology - Earnings for quarter lower due to one - time charges associated with the Cognigen ac
Slide 14: FQY15.1 Highlights
Copyright (c) 2015 Simulations Plus, Inc. 14 • FQY15.1 compared to FQY14.1 • Sales increased by $1.5 million to $4.1 million from $ 2.6 million ‒ Cognigen revenues were $1.1 million ‒ Simulation Plus revenue increased $310,000 or 11.7% in FQY15.1 vs. FQY 14.1 • Cost of revenues increased by $537,000
Slide 15: FQY15.1 Highlights (continued)
Copyright (c) 2015 Simulations Plus, Inc. 15 • FQY15.1 compared to FQY14.1(Con’t) • SG&A increased $1.0 million to $2.1 million from $1.1 million the prior year ‒ $538,000 of the increase is from Cognigen ‒ Approximately $410,000 in one - time costs associated with the Cognigen acquisition • R&D exp
Slide 16: Income Statement FQY15.1 vs FQY14.1
Copyright (c) 2015 Simulations Plus, Inc. 16 Income Statement FQY15.1 versus QY14.1 ($ millions) FQY15.1 FQY14.1 Net sales 4.086 2.641 Gross profit 3.088 2.193 Gross profit margin 75.6% 83.0% SG&A 2.079 1.071 R&D 0.260 0.162 Total operating expenses 2.339 1.233 Income from operations 0.749 0.959 Oth
Slide 17: Income Statement FQY15.1 by Division
Copyright (c) 2015 Simulations Plus, Inc. 17 Income Statement FQY15.1 by division ($ millions) SLP Cognigen Eliminations FQY15.1 Net sales 2.951 1.135 0.00 4.086 Gross profit 2.488 0.600 0.00 3.088 Gross profit margin 84.3% 52.9% 0.00 75.6% SG&A 1.541 0.537 0.00 2.079 R&D 0.260 0.000 0.00 0.260 Tota
Slide 18: Selected Balance Sheet Items
Copyright (c) 2015 Simulations Plus, Inc. 18 Selected Balance Sheet Items ($ millions) November 30, 2014 November 30, 2013 Cash and cash equivale nts* $5.791 $10.555 Cash per share 0.34 0.64 Total current assets 10.686 13.136 Total assets 27.108 16.405 Total current liabilities 1.784 0.791 Total lia
Slide 19: Revenues by Fiscal Year
Copyright (c) 2015 Simulations Plus, Inc. 19 $3.2 $5.7 $6.1 $6.3 $7.6 $8.7 $9.5 $10.1 $11.5 2006 2007 2008 2009 2010 2011 2012 2013 2014 $ Millions Revenues by Fiscal Year - SimPlus (pro forma prior to 2012)
Slide 20: Revenues by Quarter
Copyright (c) 2015 Simulations Plus, Inc. 20 Revenues by Quarter (pro forma prior to 2012) $1.4 $1.8 $2.0 $1.1 $1.7 $2.2 $2.3 $1.3 $2.1 $2.6 $2.6 $1.4 $2.2 $2.8 $2.8 $1.6 $2.3 $3.1 $3.1 $1.6 $2.6 $3.1 $2.0 Q1 Q2 Q3 Q4 2009 2010 2011 2012 2013 2014 2015 $3.7 $4.01 Included $1.135 million from Cognige
Slide 21: Net Income by Quarter
Copyright (c) 2015 Simulations Plus, Inc. 21 Net Income by Quarter (pro forma prior to 2012) $ 0.33 $ 0.47 $ 0.53 $ 0.17 $ 0.44 $ 0.85 $ 0.74 $ 0.21 $ 0.56 $ 0.91 $ 1.05 $ 0.17 $ 0.76 $ 0.84 $ 0.87 $ 0.35 $ 0.59 $ 1.06 $ 0.99 $ 0.24 $ 0.69 $ 0.81 $ 1.31 $ 0.22 $ 0.53 Q1 Q2 Q3 Q4 2009 2010 2011 2012
Slide 22: Returning Cash to Shareholders
Returnin Cash to Shareholders $12.66” $12.8%12.70 tas of 212372015 $5.80 $5.90 Cash paid S2.5MTSRL $ Millions See $2.1M for Cognigen Mi TSRL Ww Fle ee EEE EE E & ‘Simulations Plus-"""; go HPP TOKE ASS HOCH ee a Copyright(c} 2015 Simulations Plus, Inc. 2
Slide 23: Products & Services
Copyright (c) 2015 Simulations Plus, Inc. 23 Products & Services
Slide 24: Overview of Products and Services
Copyright (c) 2015 Simulations Plus, Inc. 24 Simulations Plus, Inc. Overview of Products and Services 24 N H O OH O CH 3 CH 3 CH 3 ADMET Predictor ™ GastroPlus ™ Population PK/PD Modeling & Simulations Regulatory Submission MedChem Studio ™ MedChem Designer™ DDDPlus ™ MembranePlus ™ Consulting Servi
Slide 25: The Science Behind the Software: Swallowing a Pill
Copyright (c) 2015 Simulations Plus, Inc. 25 The Science Behind the Software What happens when I swallow a pill? GI Tract Chemical Degradation Dissolution
Slide 26: The Science Behind the Software: After Absorption
Copyright (c) 2015 Simulations Plus, Inc. 26 The Science Behind the Software What happens after the medicine is absorbed?
Slide 27: Software Products and Services
Copyright (c) 2015 Simulations Plus, Inc. Products and Services • Modeling and Simulation Software • Related consulting services Technology • Molecule design • QSAR • PBPK/PD Markets • Pharmaceutical and Bio Tech Research (pre - clinical and clinical) • [Aerospace, Healthcare ] Users • Chemists • Ph
Slide 28: Simulations Plus Software Product News
Copyright (c) 2015 Simulations Plus, Inc. Simulations Plus Software Product News • Version 8.6 was released in August 2014; Version 9.0 slated for March 2015 release • Populations simulations linked with Drug - Drug Interaction (DDI) predictions • New animal PBPK models • Tighter integration with AD
Slide 29: PBPK Modeling Becoming More Common in Regulatory Submissions
Copyright (c) 2015 Simulations Plus, Inc. PBPK Modeling and Simulation is Becoming More Common in Regulatory Submissions Figure 1. The number of PBPK applications contained in IND/NDA submissions or developed by US FDA reviewers from 2008 to 2012. Huang, Shiew - Mei, et al, The utility of modeling a
Slide 30: Modeler Overview
Copyright (c) 2015 Simulations Plus, Inc. 30 Application of artificial neural network ensemble (ANNE) technology used to build predictive models from complex input data for various industries • ADMET Modeler ™ (embedded in ADMET Predictor ™) • Predicts large number of important drug properties witho
Slide 31: Strong Relationships with Regulators and Pharma Companies
Copyright (c) 2015 Simulations Plus, Inc. 31 • FDA Center for Food Safety and Applied Nutrition (modeling of toxicity endpoints) • FDA Office of Testing and Research (mechanistic absorption and IVIVCs) • NIEHS National Toxicology Program (screening of the Tox21 database using QSAR and PBPK modeling)
Slide 32: Cognigen Division - Overview
Copyright (c) 2015 Simulations Plus, Inc. 32 • Provides modeling & simulation support for Pharma and Biotech companies • Primary focus on pharmacokinetic, biomarker, and outcome data from preclinical and clinical studies • 30 - 40 drugs per year; >100 different compounds over the last 5 years • Trac
Slide 33: SLP – Customers Highlights
Copyright (c) 2015 Simulations Plus, Inc. 33 SLP – Customers Highlights • FY14 Renewal rates (in line with historical performance): • Accounts = 91% • Fees = 96% • Over 600 license “units” in FY14: • 18% increase vs. FY13 • Over 200 organizations licensing the technology, including 19 of the top 20
Slide 34: Additional Growth Opportunities
Copyright (c) 2015 Simulations Plus, Inc. 34 • Of 2,500 companies registered with FDA, both foreign and domestic, we have ~10% penetration with Simulations Plus products • http://www.fda.gov/Drugs/NewsEvents/ucm339912.htm • Continued enhancement of current software products to expand application spa
Slide 35: Marketing and Sales Program
Copyright (c) 2015 Simulations Plus, Inc. 35 • Conferences/scientific meetings continue to be primary source of leads • In 4Q14, we presented at our first aerospace conference • In 1Q15 we presented at our first MRI conference • Trainings and workshops • Strategic digital marketing initiatives • Act
Slide 36: Summary
Copyright (c) 2015 Simulations Plus, Inc. 36 Summary • For FY2014: - Financial performance continues our 7 - year profitable trend - Cognigen acquisition one - time charges = investment in the future - Buyout of TSRL agreement reduces expenses • Continuing to Expand our team : - 3 new employees adde
Slide 37: @ Simulations Plus."
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