Slide 1: Investor Presentation Q4 FY22 Update
1 | NASDAQ: SLP Investor Presentation NASDAQ: SLP Q4 FY22 Update
Slide 2: Safe Harbor Statement
2 | NASDAQ: SLP 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
Slide 3: About Us
3 | NASDAQ: SLP About Us Leading provider of modeling and simulation software and services used by major pharmaceutical, biotech, and regulatory agencies worldwide to make better model-informed data-driven decisions (MIDD). 1996 Founded >150 Employees >10 yrs Profit/rev growth >1300 Publications >70
Slide 4: Investment Highlights
4 | NASDAQ: SLP Investment Highlights Leader in software and services for the drug discovery, development, and regulatory approval process Low market penetration + share gain opportunity in large and growing market Double-digit revenue growth with strong operating leverage Accretive M&A Strategy
Slide 5: Our Markets
5 | NASDAQ: SLP Our Markets Key Drivers 1. Acceptance & increasing adoption of MIDD technology by industry & regulators 2. Pharma spend rates continue to grow with large allocation towards Biosimulation 3. Biosimulation growing at 4-5X total R&D spend SLP growing faster than Biosimulation TAM $176B³
Slide 6: Drug Development Challenges
6 | NASDAQ: SLP Drug Development Challenges Avg. cost of $2B and 10+ years to bring a drug to market 1 What candidates? How does the drug move through the body? How is it administered? How is it supposed to work? What is the desired effect? What are the risks? Lead Selection Pharmacology ADMET DMPK
Slide 7: Our Value Proposition
7 | NASDAQ: SLP Our Value Proposition We create value for our customers by accelerating & reducing the cost of R&D through innovative, science-based software & consulting solutions that optimize treatment options and improve patient lives. Outcomes Patient Efficacy Patient Safety Regulatory Approval
Slide 8: How We Help – Software and Services
8 | NASDAQ: SLP How We Help – Software and Services Software Most comprehensive & widely recognized tools for MIDD Ongoing development & reinvestment incorporates latest science & ensures seamless UX Services Operational efficiencies that lead to accurate/timely decision making & regulatory reportin
Slide 9: Solutions Span Drug Development Process
9 | NASDAQ: SLP Consulting Services & Regulatory Interactions QSP/QSTOther Software Pharmacometrics Solutions Span Drug Development Process Guiding the path between M&S and pharma R&D Cheminformatics AI ML PBPK/PBBM
Slide 10: PBPK/PBBM Solutions
10 | NASDAQ: SLP Safety Clinical Efficacy ADMET DMPK Treatment Regimen Lead Selection Pharmacology Services PBPK/PBBM Preclinical Regulatory Consulting Software PBPK Software Solutions and AI Data Mining
Slide 11: QSP/QST Solutions
11 | NASDAQ: SLP QSP/QST Solutions Services QSP Consulting QST Consulting Software Safety Clinical Efficacy ADMET DMPK Treatment Regimen Lead Selection Pharmacology
Slide 12: Pharmacometrics Solutions
12 | NASDAQ: SLP Pharmacometrics Solutions Services Pharmacometrics Clinical Pharmacology Clinical Regulatory Consulting Software Safety Clinical Efficacy ADMET DMPK Treatment Regimen Lead Selection Pharmacology
Slide 13: Product Gaps, Adjacencies & Extensions
13 | NASDAQ: SLP Product Gaps, Adjacencies & Extensions Consolidate Fragmented Market Take Share Low Penetration Rates Growth Opportunities & Capital Allocation ➢ Fill gaps in the current product offerings, expand TAM • R&D - enhance models & develop new tools • M&A - consolidate market, expand into
Slide 14: Environmental, Social, and Governance (ESG)
14 | NASDAQ: SLP Environmental, Social, and Governance (ESG) 14 Strategic priorities that form the foundation of our sustainability framework and highlights
Slide 15: Financials
15 | NASDAQ: SLP Financials 15
Slide 16: Achievements and FY22 Highlights
16 | NASDAQ: SLP16 | NASDAQ: SLP Achievements • Continued scientific leadership in biosimulation market with expanding industry and regulatory partnerships • Accelerating revenue growth and improved profitability • Leveraging software portfolio to enhance growth • Rebuilt service backlog and returne
Slide 17: Q4 and FY22 Revenue
17 | NASDAQ: SLP17 | NASDAQ: SLP Q4 Revenue (in millions) Software RevenueTotal Revenue Services Revenue +16% +18% +13% FY22 Revenue Mix FY22 Mix FY21 Mix (in millions)
Slide 18: FY22 Products & Services Revenue
18 | NASDAQ: SLP 57% 18% 18% 7% FY22 Products & Services Revenue 7% 21% 27% 45% Other PBPK QSP/QST PKPD Software Products Services Types Other
Slide 19: Backlog and FY22 Services Performance Metrics
19 | NASDAQ: SLP19 | NASDAQ: SLP Backlog FY22 Services Performance Metrics Total Projects
Slide 20: FY23 Outlook
20 | NASDAQ: SLP20 | NASDAQ: SLP FY23 Outlook FY23 Guidance: 10% to 15% Total Revenue Growth $59.3M to $62.0M Total Revenue 60% to 65% Software Revenue % of Total Revenue 35% to 40% Service Revenue % of Total Revenue $0.63 to $0.67 Diluted EPS Commentary: • Software business continues to deliver wit
Slide 21: Summary
21 | NASDAQ: SLP Summary Leader in software and services for the drug discovery, development, and regulatory approval process Low market penetration + share gain opportunity in large and growing market Double-digit revenue growth with strong operating leverage Accretive M&A Strategy
Slide 22: Thank you! Investor Relations Contacts
22 | NASDAQ: SLP Thank you! Investor Relations Contacts: Brian Siegel Managing Director Hayden IR +1-346-396-8696 brian@haydenir.com Renee Bouche Simulations Plus +1-661-723-7723 renee@simulations-plus.com Learn More! www.simulations-plus.com
Slide 23: Adjusted EBITDA Reconciliation
23 | NASDAQ: SLP Adjusted EBITDA Reconciliation 2021 2022 2021 2022 (in millions) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY FY Net Income $ 2.5 $ 3.2 $ 3.8 $ 0.3 $ 3.0 $ 4.4 $ 4.1 $ 1.0 $ 9.8 $ 12.5 Excluding: Interest income and expense, net (0.1) — — — (0.1) (0.1) (0.1) (0.4) (0.2) (0.7) Provision for income tax
Slide 24: References
24 | NASDAQ: SLP References 1. Biopharmaceutical Research and Development: The Process Behind New Medicines. www.PhRMA.org, January 2012, Washington, US http://phrma docs.phrma.org/sites/default/files/pdf/rd_brochure_022307.pdf. 2. Brochure: “Biopharmaceutical Research & Development: The Process Beh