Trendlines Group Ltd. · SGX:42T
Trendlines — The Trendlines Group — Investor Presentation (February 2016)
41 slides from Trendlines's investor presentation, Feb 25, 2016
Slide 1: SGX Full Yearly Results Announcement
Financial Statements and Related Announcements::Full Yearly Results Issuer & Securities Issuer/ Manager THE TRENDLINES GROUP LTD. Securities THE TRENDLINES GROUP LTD. - IL0011328858 - 42T Stapled Security No Announcement Details Announcement Title Unaudited Financial Results Announcement Date & Time
Slide 2: Creating & Developing Companies To Improve the Human Condition
Creating & Developing Companies To Improve the Human Condition Todd Dollinger and Steve Rhodes Chairmen and CEOs February 2016
Slide 3: Legal Disclaimer
Legal Disclaimer IMPORTANT NOTICE This presentation is for informational purposes only and does not constitute or form any part of any offer for sale or subscription of, or solicitation of, any offer to buy or subscribe for any securities of The Trendlines Group Ltd. (“Company”) or any of its portfo
Slide 4: I. Overview & Business Model
Creating & developing companies to improve the human condition ' ie Medical - Agtech - Labs
Slide 5: The Trendlines Incubators: Innovation Commercialization
The Trendlines Incubators: Innovation Commercialization The Trendlines Group discovers, invests in, incubates and provide services to life science companies in the fields of medical and agricultural technologies. Israeli Government-Franchised Incubators Invest in life sciences companies Internal Inn
Slide 6: Innovation Management According to Trendlines
Innovation Management According to Trendlines 5
Slide 7: The Trendlines Group at a Glance
The Trendlines Group at a Glance 2007: Established in Israel 2 Best Incubator Awards 2015: Listed on SGX Catalist Ticker: 42T Outstanding Start-Up of the Year Early-Stage Investors in 5 Awards • Medical technologies • Agriculture and food technologies 508,741,749 shares outstanding Avg. daily volume
Slide 8: Financial Overview
Financial Overview Portfolio Value + Exit Proceeds US$ 000 100,000 90,000 80,000 70,000 60,000 50,000 Cumulative Exit Proceeds Portfolio Value 40,000 30,000 20,000 10,000 0 31.12.07 31.12.08 31.12.09 31.12.10 31.12.11 31.12.12 31.12.13 31.12.14 31.12.15 Summary P&L US$ 000 2012 2013 2014 31.12.2015
Slide 9: Consistently Building Value
Consistently Building Value US$ 000 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 - 31.12.12 31.12.13 31.12.14 31.12.15 Portfolio Value Cumulative Exit Proceeds 8
Slide 10: Innovation Management: A Unique Business Model
Innovation Management: A Unique Business Model The Trendlines Group is an early-stage investor – we start companies. • We are not a venture capital firm • No management fees • No carried interest • Cash investment + substantial in-kind investment • Deeply involved in all aspects of our companies 9
Slide 11: Sourcing Opportunities
Sourcing Opportunities ~500 deals reviewed annually Sources of Deal Flow Israel, United States; expanding to Singapore, China, and more • Entrepreneurs • Inventors • Universities and research institutions • Needs identified by industry partners Our Advantages • Successes = strong reputation in the m
Slide 12: Government Leverage Mitigates Risk
The Trendlines Group: Government Leverage Mitigates Risk Government funding leverages our capital. Israeli Government Grants • No equity to Government Israeli government typical new company grant: • No government rights to intellectual Agtech: NIS 2.125 million (~US$ 543,000) property Medical: NIS 2
Slide 13: Trendlines Labs: Our Internal Innovation Center
Trendlines Labs: Our Internal Innovation Center Strategic Partnering: 3-Stage Process Trendlines Labs’ Portfolio – Overview Field Invention Dev. Status 1. Partnerships target unmet needs Urology Reduced infection-risk Foley catheter Prototype Gloves to improve hand hygiene Infection Control complian
Slide 14: Trendlines' Expertise: Birth to Success at High Speed
Trendlines’ Expertise: Birth to Success at High Speed Year 3 and Beyond • Path to Exit Year 2 • Governance • Follow-on funding • Follow-On Funding • Business Ideation Due Diligence Year 1 • Preclinical / clinical development • Proof of Concept trials • Commercialization • Physicians • R&D to prototy
Slide 15: II. Strengths
Creating & developing companies to improve the human condition Medical - Agtech - Labs
Slide 16: Trendlines' Strengths
Trendlines’ Strengths Strong Management Team and Track Record • Our team understands global markets and bridges cultures to build businesses • Track record to executing exit strategies for portfolio companies Extensive Network of Relationships • Quality deal flow • Strategic partnerships • Investor
Slide 17: Trendlines' Founders: Decades of Company-Building Experience
Trendlines’ Founders: Decades of Company-Building Experience 1991 Managed Israeli medical device start-up 1993 Established business development consultancy Founded The Trendlines Group 2007 Acquired two incubators Portfolio companies ETView and FlowSense go 2010 public on the Tel-Aviv Stock Exchange
Slide 18: Trendlines' Management Team: Experienced and Entrepreneurial
Trendlines’ Management Team: Experienced and Entrepreneurial Eran Feldhay, M.D. Nitza Kardish, Ph.D. Yosi Hazan CEO, Trendlines CEO, Trendlines CEO, Trendlines Medical Agtech Labs Former GM, Former CEO, Former GM, McKesson Israel Clal Life Sciences Biosense Webster (J&J company) Moshe Katzenelson Ga
Slide 19: Strategic Partners
Strategic Partners B. BRAUN B. BRAUN Invested S$ 7.1 million in IPO German privately held company founded 1839 Proposed Collaboration Global sales : €5.43 billion Establishing mutual deal flow 54,000 employees in 62 locations Identifying potential new investments Establishment of acceler
Slide 20: Strong Reputation and Brand
Strong Reputation and Brand • Two portfolio companies, FlowSense and ETView, taken public on the TASE • Five portfolio companies (including FlowSense) acquired by or sold assets to multinational corporations Existing Portfolio Companies* Invested in Trendlines 46 $53 Million Exits 6 Outstanding Star
Slide 21: III. Portfolio & Financial Highlights
III. Portfolio & Financial Highlights
Slide 22: Building Value Over Time
Building Value Over Time One of our 10 most valuable portfolio companies as of 31 December 2015 List of companies as at 31 December 2015; 17 written-off portfolio companies and 2 companies established before September 2007 not listed. IPO indicates reverse mergers into public companies. 21
Slide 23: Most Valuable Portfolio Companies
Most Valuable Portfolio Companies Total estimated fair market value of our 10 most valuable portfolio companies: approximately US$59.6*million, representing 69.5% of total portfolio value of approximately US$85.8*million as of 31 December 2015. Company Name Initial Investment % Owned (Fully Diluted)
Slide 24: The Trendlines Group: Exit Transactions
The Trendlines Group: Exit Transactions Estimated Year Company Description Acquirer Return (1) Trade sale; company was 2011 PolyTouch Ltd. three years old at time of Covidien 6.7X sale Trade sale; company was 2013 Innolap Surgical Ltd. eight months old at time of Teleflex 3.2X sale Trade sale; compa
Slide 25: Exit Transactions: Valuation Comparables
The Trendlines Group: Exit Transactions • Jefferies Equity Research: “We value ALM on a Fair Market Value (FMV) basis.” (30 October 2014) • Four LSE-traded companies Price to Portfolio (FMV)* • Allied Minds (LSE:ALM) 2.21 • Imperial Innovations (LSE:IVO) 1.82 • IP Group (LSE:IPO) 2.96 • PureTech Hea
Slide 26: The Trendlines Group: Financial Highlights
The Trendlines Group: Financial Highlights (US$ 000) 2013 2014 2015 (audited) (audited) (unaudited) Total Portfolio Fair Value* 74,639 77,494 85,776 2012 2013 2014 2015 (audited) (audited) (audited) (unaudited) Total Income 13,768 29,707 8,553 9,939 Total Expenses before Non-recurring, Non-cash 5,15
Slide 27: Consistently Building Value
Consistently Building Value US$ 000 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 31.12.07 31.12.08 31.12.09 31.12.10 31.12.11 31.12.12 31.12.13 31.12.14 31.12.15 Portfolio Value Cumulative Exit Proceeds 26
Slide 28: Consistently Building Value
Consistently Building Value US$ 000 2,100 50 45 1,900 40 1,700 35 1,500 30 1,300 25 20 1,100 15 900 10 700 5 500 0 31.12.12 31.12.13 31.12.14 31.12.15 Average Value Per Company # of Portfolio Companies 27
Slide 29: IV. Growth Drivers & Strategy
IV. Growth Drivers & Strategy
Slide 30: Medical & Agricultural Business Drivers
Medical & Agricultural Business Drivers Health and Agriculture • Tremendous growth prospects Medical Technologies Growing global population Aging global population Growth of emerging markets: an increase in health awareness/demand for medical services Agricultural Technologies Increasing glo
Slide 31: Business Strategies and Future Plans
The Trendlines Group: Business Strategies and Future Plans Follow-on Investments in Portfolio Companies Accelerate portfolio company development Demonstrate support and confidence Limit dilution Expansion into New Markets Exploring international opportunities, including in Singapore and Chin
Slide 32: V. Selected Portfolio Companies
V. Selected Portfolio Companies
Slide 33: Improved Quality of Life for Ostomates: Stimatix GI
Trendlines’ Portfolio: Improved Quality of Life for Ostomates Stimatix GI Ideation Trendlines identified surgeon-inventor Investment & Intense Support • Active guidance in market research, business development, investment banking, governance, marketing • Trendlines recruited company CEO • Company ch
Slide 34: Natural, Nontoxic Bio-Insecticide: EdenShield
Trendlines’ Portfolio: Natural, Nontoxic Bio-Insecticide EdenShield Ideation Trendlines identified inventor Investment & Intense Support Active guidance in marketing, business development, investment banking Achievements • Independent tests show substantial reduction in insect damage in treated gree
Slide 35: Incremental Scoliosis Treatment System: ApiFix
Trendlines Portfolio Trendlines’ Portfolio: Incremental Scoliosis Treatment System ApiFix Ideation Identified serial entrepreneur-spine expert Investment & Intense Support • Company chairman is a Trendlines’ board member • Raised $3.5 million in two rounds Achievements • Completed over 65 successful
Slide 36: Water Treatment System for Aquaculture: BioFishency
Trendlines’ Portfolio: Water Treatment System for Aquaculture BioFishency Ideation Trendlines identified inventor Investment & Intense Support • Active guidance in marketing, business development, investment banking • Connected with potential partners in target markets • Prepared for investor meetin
Slide 37: Visualization of the Upper Airway: ETView
Trendlines’ Portfolio: Visualization of the Upper Airway ETView Investment & Intense Support • Trendlines’ CEO serves as company chairman • Located in Trendlines’ facilities Achievements • Sales in United States, South America, Europe, China • Public company (Tel Aviv Stock Exchange) • U.S. (FDA), E
Slide 38: Membranes for Cost-Effective Water Filtration: Advanced Mem-Tech
Trendlines’ Portfolio: Membranes for Cost-Effective Water Filtration Advanced Mem-Tech Ideation Technion-Israel Institute of Technology Investment & Intense Support • The Trendlines Group • Private investors • SEB Alliance Achievements • Commercial pilots for reverse osmosis pretreatment with Mekoro
Slide 39: VI. Stock Information
Creating & developing companies to improve the human condition ' ie Medical - Agtech - Labs
Slide 40: Opportunity
Opportunity SGD Last price * 0.225 IPO price 0.330 52wk high 0.395 52wk low 0.133 Market Cap 114.5 million * As of Feb 22, 2016 Shares outstanding 508.8 million Free float 365.8 million Price to Portfolio (FMV)* • Allied Minds (LSE:ALM) 2.21 • Imperial Innovations (LSE:IVO) 1.82 • IP Group (LSE:IPO)
Slide 41: Trendlines Shareholder Contact
“...Trendlines is now Israel’s leading seed-stage investor in the medical device and agritech sectors.” OurCrowd, September 2013 Trendlines Shareholder 25 Feb 2016 Todd Dollinger, Chairman & CEO Steve Rhodes, Chairman & CEO www.trendlines.com todd@trendlines.com steve@trendlines.com +972.72.260.7000
The Trendlines Group — Investor Presentation (February 2016) on 6ix