Simulations Plus, Inc. · NASDAQ:SLP

Simulations Plus — Shareholder Meeting (February 2020)

23 slides from Simulations Plus's shareholder meeting presentation, Feb 24, 2020

  1. Slide 1: Annual Shareholders' Meeting February 21, 2020

    (NASDAQ:SLP) Annual Shareholders’ Meeting February 21, 2020

  2. Slide 2: Agenda

    • Chairman: Walt Woltosz • Welcome and Introductions • Chief Executive Officer: Shawn O’Connor • Company Update • Chief Financial Officer: John Kneisel • Discussion of Voting Issues • Financial Overview • Questions & Answers • Adjournment of Official Meeting Agenda 2

  3. Slide 3: Safe Harbor Statement

    3 Safe Harbor Statement 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 . Factors that could

  4. Slide 4: Management & Directors

    Management & Directors • Board of Directors: – Walter S. Woltosz, M.S., M.A.S., Chairman • Co - founder, Simulations Plus, Inc. – John K. Paglia Ph.D., CPA, CFA, Director • Senior Associate Dean; Professor of Finance, Pepperdine University – David Ralph, Ph.D., Director • Special assistant to the De

  5. Slide 5: Auditors, Tax Specialists and Legal Counsel

    • Registered Independent Auditors • Rose, Snyder & Jacobs LLP, Encino, CA • Tax Specialists • Rose, Snyder & Jacobs LLP, Encino, CA • Legal Counsel • Procopio, Cory, Hargreaves & Savitch LLP Outside Counsels 5

  6. Slide 6: Shawn O'Connor, Chief Executive Officer

    6 Company Update Shawn O’Connor Chief Executive Officer

  7. Slide 7: Operating Divisions, Customers and Market

    Operating Divisions • Simulations Plus, Inc. -- Lancaster, CA • Cognigen – Buffalo, NY – Acquired 2014 • DILIsym – Raleigh, NC – Acquired 2017 Customers and Market • Pharmaceutical and biotech companies ranging from the largest in the world to medium - sized and smaller companies in the U.S., Europe

  8. Slide 8: Serving All Stages of the Development Process

    Serving All Stages of the Development Process Software Product Portfolio • Physiologically - based pharmacokinetic (PBPK) modeling platform • Predicts 140+ properties of chemical formulations • Quantitative Systems Toxicology (QST) and Quantitative Systems Pharmacology (QSP) for analyzing certain bi

  9. Slide 9: Highlights

    Highlights • Key initiatives – Progress in each area – Increased investment in sales and marketing resources – Increased consulting service resources to support demand - driven growth – Increased international opportunities • Strong revenue growth momentum build in FY19 and into FY20 – 15% growth fo

  10. Slide 10: Steady and Consistent Revenue Growth

    Steady and Consistent Revenue Growth Key Highlights Q4 FY2019 Financial Highlights Revenue up 20% for the quarter; 15% for full year Gross profit 71.5% Q4FY19 vs 68.3% Q4FY18 Net income before taxes 24.8% Q4FY19 vs 27.5% Q4FY18 EPS $0.11 Q4FY19 vs $0.08 Q4FY18 Cash generated from operations during t

  11. Slide 11: Proxy Resolutions and Results; Financial Overview

    11 PROXY Resolutions and Results Financial Overview John Kneisel Chief Financial Officer

  12. Slide 12: Voting Issues/Proxy Proposals

    12 • Three Proposals - through this morning , ~91 % of outstanding share votes have been cast – Proposal 1 : Election of Directors • Result: All elected – Proposal 2 : Ratify selection of Rose, Snyder & Jacobs LLP as the Company’s Independent Registered Public Accounting Firm • Result: Ratified with

  13. Slide 13: Financial Overview

    13 • Sales Trends & Geography • FY2019 vs. FY2018 • Balance Sheet Highlights • Financial Metrics • 1QFY2020 vs. 1QFY2019 Financial Overview

  14. Slide 14: Revenues by Fiscal Year

    Revenues by Fiscal Year - 10 Year History Simulations Plus, Inc. (pro forma prior to 2012) 7.6 8.7 9.5 10 11.5 13.1 14.4 15.6 17.5 19.6 5.2 5.6 7.3 7.9 9.3 1.2 4.3 5.1 18.3 20 24.1 29.7 34 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Lancaster Buffalo No Carolina 14 ▪ Cognigen(Buffalo) acquired

  15. Slide 15: Revenue by Region

    Revenue by Region – YTD 2019 15 Europe 18 % Americas 65 % Asia 18 % Japan = 55% India = 17% China = 17% Other = 11% A global and diversified base of revenue

  16. Slide 16: Income Statement: FY19 Versus FY18

    16 Income Statement: FY19 Versus FY18 (in millions) CONSOLIDATED FY19 FY18 Diff % chg Net sales $ 34.0 $ 29.7 $ 4.3 14.5% Gross profit 24.9 21.7 3.3 15.1% Gross profit margin 73.4% 73.1% 0.3% 0.5% SG&A $ 11.8 9.6 $ 2.2 23.1% R&D 2.5 1.8 0.7 39.6% Total operating expenses 14.3 11.4 2.9 25.7% Income f

  17. Slide 17: Consolidated Diluted Earnings Per Share

    17 Consolidated Diluted Earnings Per Share $0.18 $0.23 $0.29 $0.33 $0.50 $0.48 $- $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 FY14 FY15 FY16 FY17 FY18 FY19 ▪ FY18 Includes $1.5M one - time Deferred tax benefit due to tax law change, approx. $0.08 per share $0.42

  18. Slide 18: Consolidated Annual EBITDA

    18 Consolidated Annual EBITDA (in millions) $7.7 $9.2 $10.4 $13.0 $13.4 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 FY15 FY16 FY17 FY18 FY19

  19. Slide 19: Selected Consolidated Balance Sheet Items

    19 Selected Consolidated Balance Sheet Items (in millions, except where indicated) August 31, 2019 August 31, 2018 Cash and cash equivalents $ 11.4* $ 9.4* Cash per share ( in Dollars ) $ 0.65 $ 0.54 Total current assets 21.2 17.8 Total assets 45.2 43.3 Total current liabilities 4.8 4.8 Total liabil

  20. Slide 20: Cash Position Excellent

    20 Cash Position Excellent (in millions) Accumulating Cash while funding Acquisitions and Dividends $0.9 $0.9 $0.9 $0.9 $1.0 $1.0 $1.0 $1.1 $1.1 $1.1 $1.1 $1.1 $1.1 $1.0 $5.0 $1.6 $1.0 $1.7 $8.8 $7.4 $8.2 $6.2 $7.0 $7.5 $7.2 $9.4 $9.4 $9.9 $10.3 $11.4 $12.6 $11.5 17.1 17.2 17.3 17.4 18.1 18.2 18.3 1

  21. Slide 21: Income Statement: 1QFY20 Versus 1QFY19

    21 Income Statement: 1QFY20 Versus 1QFY19 (in millions) 1Q20 1Q19 Diff % chg Net sales $ 9.4 $ 7.5 $ 1.9 24.8% Gross profit $ 6.8 $ 5.3 $ 1.4 26.7% Gross profit margin 71.9% 70.8% 1.1% 1.5% SG&A $ 3.5 $ 2.7 $ 0.8 29.2% R&D 0.5 $ 0.5 (0.0) - 0.6% Total operating expenses 4.0 $ 3.2 0.8 24.3% Income fr

  22. Slide 22: Summary & Wrap-up

    Summary & Wrap-up 2 © SimutationsPlus SDENDE “SOFTWARE-SUCESS

  23. Slide 23: Thank you. Questions?

    23 Thank you for your kind attention… Questions?

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