Trendlines Group Ltd. · SGX:42T
Trendlines — The Trendlines Group — Investor Presentation (March 2016)
37 slides from Trendlines's investor presentation, March 2016
Slide 1: SGX General Announcement: Trendlines Investor Presentation March 2016
Issuer/Manager THE TRENDLINES GROUP LTD. Securities THE TRENDLINES GROUP LTD. – IL0011328858 – 42T Stapled Security No Announcement Title General Announcement Date & Time of Broadcast 14-Mar-2016 07:00:19 Status New Announcement Subtitle Trendlines Investor Presentation - March 2016 Announcement Ref
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 March 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 Medical - Agtech - Labs
Slide 5: Innovation Commercialization
Trendlines: Innovation Commercialization The Trendlines Group invents, discovers, invests in, and incubates, life science companies in the fields of medical and agricultural technologies. Israeli Government-Franchised Incubators Invest in life sciences companies Internal Innovation Center Invents an
Slide 6: Deal Flow to Exit
Trendlines: Deal Flow to Exit 5
Slide 7: Unique Innovation Management
Trendlines: Unique Innovation Management The Trendlines Group is an early-stage innovation investor. We create and develop companies. • Cash investment + substantial in-kind investment • Deeply involved in all aspects of our companies We are not a venture capital firm. • No management fees • No carr
Slide 8: Trendlines at a Glance
Trendlines at a Glance 2007: Established in Israel 2015: Listed on SGX Catalist (42T) 508 million shares outstanding 46 portfolio companies (31 Dec 2015) Avg. daily volume (last 90 days, 8 Mar 2016) 2.56 million shares Market cap (8 Mar 2016) Portfolio value: US$85.8 million (31 Dec 2015) US$79 mill
Slide 9: Financial Overview
Trendlines: Financial Overview Portfolio Value (US$ 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 Summary P&L (US$ 000) 2012 2013 2014 2015 Total Income 13,768 29,707 8,553 9,939 Total Ex
Slide 10: Value Creation
Trendlines: Value Creation US$000 Portfolio Value 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 9
Slide 11: More Than 500 Opportunities Reviewed Annually
Trendlines: More Than 500 Opportunities Reviewed Annually Sources of Deal Flow Israel, United States; expanding to Singapore, Germany, China • Entrepreneurs • Inventors • Universities and research institutions • Needs identified by industry partners We Look For • Leaders with passion and commitment
Slide 12: Capital Leverage
Trendlines: Capital Leverage Risk mitigation Israeli Government Grants Israeli government typical new company grant: • No equity Agtech: ~US$543,000 • No rights to intellectual property Medical: ~US$652,000 • Grants directly to portfolio companies • Sales royalty = grant plus interest • Additional p
Slide 13: Trendlines Labs: Partnering for Success
Trendlines Labs: Partnering for Success A Strategic Partnering Process Overview: Trendlines Labs’ Portfolio Field Invention Dev. Status Partners Reduced infection-risk Foley identify unmet Urology catheter Prototype needs Gloves to improve hand hygiene Infection Control Prototype compliance Neurolog
Slide 14: From Seed to Success at High Speed
Trendlines: From Seed to Success at High Speed Year 3 and Beyond Path to Exit Year 2 Governance Follow-on funding Follow-On Funding Year 1 Business development Ideation Due Diligence Preclinical / clinical trials Proof of Concept Commercialization Regulatory submission Investment banking Physicians
Slide 15: II. Our Strengths
Creating & developing companies to improve the human condition Medical - Agtech - Labs
Slide 16: Core Strengths: Team, Network & Reputation
Trendlines’ Core Strengths: Team, Network & Reputation Strong Management Team and Track Record • We understand global markets and bridge cultures to build companies • A track record in building companies and executing exit strategies Extensive Network of Relationships/Strong Reputation • Quality dea
Slide 17: 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: Entrepreneurial Expertise
Trendlines: Entrepreneurial Expertise 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 Gabi Heller Yossi Ron Hea
Slide 19: Partnering with International Industry Leaders
Trendlines: Partnering with International Industry Leaders B. Braun B. Braun Melsungen AG German privately held company Invested S$7.1 million in IPO founded 1839 Collaboration Agreement Global sales: €5.43 billion Establishing mutual deal flow Identifying potential new investments 54,000
Slide 20: III. Portfolio & Financial Highlights
III. Portfolio & Financial Highlights
Slide 21: Building Value Over Time
Trendlines: Building Value Over Time One of our 10 most valuable portfolio companies as at 31 December 2015 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. 20
Slide 22: 10 Most Valuable Portfolio Companies
Trendlines: 10 Most Valuable Portfolio Companies Total estimated fair market value of our 10 most valuable portfolio companies: ~US$59.6*million, representing 69.5% of total portfolio value of ~US$85.8*million as at 31 December 2015. Initial % Owned Company Name Investment (Fully Diluted) ApiFix 201
Slide 23: Mergers & Acquisitions
Trendlines: Mergers & Acquisitions Estimated Year Company Description Acquirer Return (1) Trade sale; three years 2011 PolyTouch Covidien 6.7x old at time of sale Trade sale; eight months 2013 Innolap Surgical Teleflex 3.2x old at time of sale Trade sale; four years old 2013 FlowSense Baxter Interna
Slide 24: Traded Peer Group & Industry Comparables
Trendlines: Traded Peer Group & Industry Comparables Price to Portfolio (FMV)* Allied Minds (LSE:ALM) 2.32 Imperial Innovations (AIM:IVO) 1.94 IP Group (LSE:IPO) 1.79 PureTech Health (LSE:PRTC) 2.40 Average Price to Portfolio 2.11 Trendlines Price to Portfolio 0.92 *Based on market cap at 8 Mar 2016
Slide 25: Audited Financial Highlights
Trendlines: Audited Financial Highlights (US$ 000) 2013 2014 2015 Total Portfolio Fair Value* 74,639 77,494 85,776 2012 2013 2014 2015 Total Income 13,768 29,707 8,553 9,939 Non-GAAP Total Expenses before non- 5,158 6,798 11,408 7,938 recurring, non-cash item Non-GAAP Income/(Loss) before income 8,6
Slide 26: Consistently Building Value
Trendlines: Consistently Building Value US$ 000 Portfolio Value 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 25
Slide 27: IV. Stock Information
Creating & developing companies to improve the human condition Medical - Agtech - Labs
Slide 28: Peers & Stock Market Overview
Trendlines: Peers & Stock Market Overview As at 8 March 2016 SGD Last price 0.215 IPO price 0.330 52wk high 0.395 52wk low 0.133 Market cap 109.38 million Shares outstanding 508.8 million Free float 365.8 million Price to Portfolio (FMV)* Allied Minds (LSE:ALM) 2.32 Imperial Innovations (AIM:IVO) 1.
Slide 29: V. Growth Drivers & Strategies
V. Growth Drivers & Strategies
Slide 30: Our Business Strategies
Our Business Strategies Follow-on Investments in Portfolio Companies Accelerate portfolio company development Demonstrate support and confidence Limit dilution Growing Portfolio Value • Exits of 17 revenue-stage companies Expansion into New Markets Exploring international opportunities, incl
Slide 31: VI. Selected Portfolio Companies
VI. Selected Portfolio Companies
Slide 32: 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 33: Incremental Scoliosis Treatment System: ApiFix
Trendlines Portfolio Trendlines’ Portfolio: Incremental Scoliosis Treatment System ApiFix Ideation Identified serial entrepreneur-spine expert Investment & Intense Support • Raised $3.5 million in two rounds Achievements • Completed over 70 successful surgeries • Some patients more than 3 years post
Slide 34: 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 35: Visualization of the Upper Airway: E.T.View Medical
Trendlines’ Portfolio: Visualization of the Upper Airway E.T.View Medical Investment & Intense Support • Trendlines’ CEO serves as company chairman • Trendlines took company public • Located in Trendlines’ facilities Achievements • Sales in United States, South America, Europe, China • Public compan
Slide 36: 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 37: Creating & Developing Companies To Improve the Human Condition
Creating & Developing Companies To Improve the Human Condition 8 March 2016 Todd Dollinger, Chairman & CEO Steve Rhodes, Chairman & CEO todd@trendlines.com steve@trendlines.com www.trendlines.com +972.72.260.7000
The Trendlines Group — Investor Presentation (March 2016) on 6ix