Announcement PDF Cogstate Limited ABN 80 090 975 723 Appendix 4E For the year ended 30 June 2023 (previous corresponding year: 30 June 2022) Lodged with the ASX under Listing Rule 4.3A. This information should be read in conjunction with the Annual Report, lodged this same day. Results for announcement to the market Movement 30 June 2023 US$ 30 June 2022 US$ US$ % Total revenue from ordinary activities 40,451,123 44,980,356 (4,529,233) (10.1%) - Clinical Trials revenue 35,729,909 40,328,147 (4,598,238) (11.4%) - Healthcare revenue 4,400,970 4,456,700 (55,730) (1.3%) - Research revenue 320,244 195,509 124,735 63.8% 3,025,111 10,692,600 (7,667,489) (71.7%) Profit before income tax - Profit before income tax (First Half Year) 405 6,115,564 (6,115,159) (100.0%) - Profit before income tax (Second Half Year) 3,024,706 4,577,036 (1,552,330) (33.9%) Net profit after tax (from ordinary activities) for the period attributable to members 3,567,733 7,519,734 (3,952,001) (52.6%) Dividend Information No dividend was paid during the year and the Directors do not recommend a dividend be paid in respect of the year ended 30 June 2023 (30 June 2022: nil). 30 June 2023 Cents 30 June 2022 Cents Net tangible asset backing (per share) 13.54 10.34 Earnings per share 2.06 4.35 Operating Results for the Year A summary of revenue and results are set out below. More detail and commentary on the operations and the results from those operations are set out in the Annual Report to members that has been lodged with the ASX. Cogstate Ltd Appendix 4E 2023 i Cogstate Limited ABN 80 090 975 723 Explanation of results Net profit from principal activities - summary For the 30 June 2023 financial year, the Group recorded a profit before tax of $2.7m (2022 profit: $10.7m). Half Year 31 December 2022 US$ Half Year 30 June 2023 US$ Full Year 2023 US$ Full Year 2022 US$ Total Revenue 19,544,710 20,906,413 40,451,123 44,980,356 Clinical Trials Revenue 17,134,599 18,595,310 35,729,909 40,328,147 - Direct costs (excluding direct depreciation) (7,130,854) (6,860,704) (13,991,558) (13,059,409) - SG&A costs (2,040,724) (1,466,385) (3,507,109) (3,143,519) Clinical Trials Contribution 7,963,021 10,268,221 18,231,242 24,125,219 46% 55% 51% 60% 2,218,651 2,182,319 4,400,970 4,456,700 Contribution % Healthcare Revenue - Direct costs (886,330) (399,543) (1,285,873) (1,214,266) Healthcare Contribution 1,332,321 1,782,776 3,115,097 3,242,434 60% 82% 71% 73% Contribution % Research Revenue 191,460 128,784 320,244 195,509 - Direct costs (397,840) (421,767) (819,607) (883,470) Research Contribution (206,380) (292,983) (499,363) (687,961) (2,650,587) (2,794,194) (5,444,781) (4,962,007) 566,718 359,591 926,309 2,005,846 Operating Expenses - Total product development & engineering - Less capitalised software development costs - Less product development costs reimbursed - 225,004 225,004 596,670 (2,083,869) (2,209,599) (4,293,468) (2,359,491) Computer costs (882,359) (956,727) (1,839,086) (1,652,827) Insurance (458,092) (391,713) (849,805) (768,133) Professional fees (615,433) (1,093,309) (1,708,742) (1,411,047) Marketing (32,154) (41,393) (73,547) (38,541) Office & facilities (39,349) (178,309) (217,658) (248,371) Net product development & engineering Travel (241,440) (161,433) (402,873) (30,435) Other admininstration costs (3,700,266) (2,960,254) (6,660,520) (7,161,646) Total Operating Expenses (8,052,962) (7,992,737) (16,045,699) (13,670,491) EBITDA 1,036,000 3,765,277 4,801,277 13,009,201 Depreciation and amortisation (1,271,183) (1,323,759) (2,594,942) (2,324,175) EBIT (235,183) 2,441,518 2,206,335 10,685,026 Net interest 235,588 430,452 666,040 7,574 - 152,736 152,736 - 405 3,024,706 3,025,111 10,692,600 Other Income Net profit before tax Cogstate Ltd Appendix 4E 2023 ii Cogstate Limited ABN 80 090 975 723 Proforma profit and loss excluding non-recurring costs Half Year 31 December 2022 US$ Half Year 30 June 2023 US$ Full Year 2023 US$ Full Year 2022 US$ Total Revenue 19,544,710 20,906,413 40,451,123 44,980,356 Clinical Trials Revenue 17,134,599 18,595,310 35,729,909 40,328,147 - Direct costs (excluding direct depreciation) (7,130,854) (6,591,218) (13,722,072) (13,059,409) - SG&A costs (2,040,724) (1,423,313) (3,464,037) (3,143,519) Clinical Trials Contribution 7,963,021 10,580,779 18,543,800 24,125,219 46% 57% 52% 60% Healthcare Revenue 2,218,651 2,182,319 4,400,970 4,456,700 - Direct costs (886,330) (367,729) (1,254,059) (1,214,266) Healthcare Contribution 1,332,321 1,814,590 3,146,911 3,242,434 60% 83% 72% 73% Contribution % Contribution % Research Revenue 191,460 128,784 320,244 195,509 - Direct costs (397,840) (421,767) (819,607) (883,470) Research Contribution (206,380) (257,295) (463,675) (687,961) Operating Expenses - Total product development & engineering (2,650,587) (2,719,592) (5,370,179) (4,962,007) - Less capitalised software development costs 566,718 359,591 926,309 2,005,846 - Less product development costs reimbursed - 225,004 225,004 596,670 Net product development & engineering (2,083,869) (2,134,997) (4,218,866) (2,359,491) Computer costs (882,359) (956,727) (1,839,086) (1,652,827) Insurance (458,092) (391,713) (849,805) (768,133) Professional fees (615,433) (1,093,309) (1,708,742) (1,411,047) Marketing (32,154) (41,393) (73,547) (38,541) Office & facilities (39,349) (178,309) (217,658) (248,371) Travel (241,440) (161,433) (402,873) (30,435) Other admininstration costs (3,700,266) (2,924,396) (6,624,662) (7,161,646) Total Operating Expenses (8,052,962) (7,882,277) (15,935,239) (13,670,491) EBITDA 1,036,000 4,255,797 5,291,797 13,009,201 Depreciation and amortisation (1,271,183) (1,323,759) (2,594,942) (2,324,175) EBIT (235,183) 2,932,038 2,696,855 10,685,026 Net interest 235,588 430,452 666,040 7,574 - 152,736 152,736 - 405 3,515,226 3,515,631 10,692,600 Non-recurring resructuring charges - (490,520) (490,520) - Net profit before tax - 3,024,706 3,025,111 10,692,600 Other Income Net profit before tax before non-recurring resructuring charges Cogstate Ltd Appendix 4E 2023 iii Cogstate Limited ABN 80 090 975 723 Clinical Trials Contracted Revenue Clinical Trials revenue recognised during the year is a function of: 1. Revenue recognised from sales contracts on hand at the beginning of the financial year; and 2. Revenue recognised from sales contracts executed during the year. Cogstate enters into a contract with the customer for the provision of technology and services for each study. The contract value will differ for each contract, depending upon the scope of the technology and services provided as well as the complexity and length of the study. Revenue from clinical trials contracts is recognised over the life of the contract. The length of a clinical trial can vary from 9 months for a phase 1 study up to 4-5 years for a phase 3 study. Revenue is recognised based upon achievement of pre-determined milestones. At 1 July 2022, Cogstate had $100.2 million of contracted clinical trials revenue that would be recognised in future periods, up 72% on the amount of future revenue contracted at 1 July 2021. During the year to 30 June 2023, Cogstate executed $34 million of new sales contracts, a 59% decrease from the prior year. After recognising $35.7 million of revenue from those contracts during the year, Cogstate had, at 30 June 2023, $98 million of contracted clinical trials revenue expected to be recognised in future periods. See table below for more analysis. Clinical Trials revenue contracted at 1 July 30 June 2023 US$ 30 June 2022 US$ 100,242,981 58,424,721 Contracts signed during the period 34,007,854 82,470,405 Revenue recognised (35,729,908) (40,328,147) Adjustment for contract reconciliations and FX movements Contracted future Clinical Trial revenue at 30 June (569,213) (323,998) 97,951,714 100,242,981 Healthcare Contracted Revenue Eisai revenue is being recognised over the term of the contracts. The reduction in contracted revenue since 30 June 2023 is due to the revenue recognised on these contracts this year. Group Contracted Future Revenue Total contracted future revenue decreased by 5% to $132.6m as at 30 June 2023, compared to $139.1m at 30 June 2022. The revenue backlog for both the Clinical Trials and Healthcare segments are highlighted in the table below: 30 June 2023 US$ 30 June 2022 US$ Contracted Clinical Trials Revenue 97,951,714 100,242,981 Eisai License - Global (commercial years 1-10) 34,035,590 38,123,444 Eisai License - Japan (10 year licence) Contracted future Group revenue at 30 June 615,658 715,576 132,602,962 139,082,001 Cogstate Ltd Appendix 4E 2023 iv Cogstate Limited ABN 80 090 975 723 Results - Expenses 1. Employment expenses Full Time Equivalent (FTE) employees totalled 162.3 at 30 June 2023, broken down as follows: Business Unit FTE at 30 June 2023 FTE at 30 June 2022 Clinical Trials 75.5 93.1 Business Development 18.5 19.4 Healthcare 4.0 6.7 Research and Development 6.6 9.0 Product Development 37.5 40.5 Administration 20.3 22.5 Total 162.4 191.1 2. Total employment expenses Half Year 31 December 2022 US$ Half Year 30 June 2023 US$ Full Year 2023 US$ Full Year 2022 US$ Employment expenses, directly attributable to segment revenue (8,204,010) (7,161,991) (15,366,001) (14,930,750) Other employment expenses (5,484,850) (4,810,118) (10,294,968) (9,910,429) Total employment expenses (13,688,860) (11,972,109) (25,660,969) (24,841,179) 566,718 359,591 926,309 2,005,846 Less capitalisation of software development costs Less product development costs reimbursed Share based payments expense Total - 225,004 225,004 596,670 (13,122,142) (11,387,514) (24,509,656) (22,238,663) (776,864) (808,026) (1,584,890) (2,210,773) (13,899,006) (12,195,540) (26,094,546) (24,449,436) Audit The financial report has been audited. The audit has been completed. The financial report contains an independent audit report that is not subject to a modified opinion, emphasis of matter or other matter paragraph. Cogstate Ltd Appendix 4E 2023 v