Elron Ventures Ltd · TASE:ELRN
Elron Ventures — Elron Electronic Industries — Q3 2013 Earnings Presentation
35 slides from Elron Ventures's earnings presentation, Nov 12, 2013
Slide 1: Investor Presentation / November 2013
Slide 2: Forward-Looking Information
Forward-Looking Information This presentation is for information purposes only. By this presentation, Elron does not intend to solicit offers to purchase its securities and the presentation does not constitute an invitation to receive such offers. Elron may makéimprovements and/or changes in the fea
Slide 3: Q3/13 Highlights
ELRON Q3/13 > HIGHLIGHTS ELRON
Slide 4: Highlights: News
ELRON Q3/13 > HIGHLIGHTS NEWS GIVEN IMAGING: Record sales during Q3/13- Sales amounted to $50m, a 10% increase compared to Q3/12. GIVEN IMAGING is releasing “trapped profit: The PillCam SB 3 received marketing clearance in the U.S. and Japan. Given Imaging expects to begin recognizing sales in Japan
Slide 5: 2010-2013: Back to a Technology Holding Company
ELRON 2010-2013: BACK TO A TECHNOLOGY HOLDING COMPANY ELRON
Slide 6: Focus on Medical Devices
ELRON 2010-2013: BACK TO A TECHNOLOGY HOLDING COMPANY FOCUS ON MEDICAL DEVICES ELRON Our main focus since 2009 has been investing in medical device companies. The value of M&As in this industry in the U.S. and Europe totaled $35b over the last year. We leverage our know-how, expertise, and internati
Slide 7: $180m invested in med-tech companies
ELRON 2010-2013: BACK TO A TECHNOLOGY HOLDING COMPANY FOCUS ON MEDICAL DEVICES $180m invested by Elron in med-tech companies during the last few years Gl WEN’. pocaren Y CartiHeal erainsGate NOTALYISION” Oo kyma ELRON
Slide 8: Since 2009, Elron led exits amounting to $400M
ELRON 2010-2013: BACK TO A TECHNOLOGY HOLDING COMPANY SINCE 2009, ELRON LED EXITS AMOUNTING TO $400M IN THE AGGREGATE INGO aS =o Sale of holdings to Ye ] Discount Investment Corp and Clal industries DV Systems Pyleledata 3 WAVION Sale of company to Enablence for $50m Sale of companyte ‘Alvarion for
Slide 9: Specialty over Diversity
ELRON 2010-2013: BACK TO A TECHNOLOGY HOLDING COMPANY SPECIALTY OVER DIVERSITY = Investments which afford us significant influence and active involvement ™ Early-stage companies, where control or joint control can be acquired at a reasonable value = Flexibility for long-term support and commitment =
Slide 10: Our Strategic Alliance: Rafael
ELRON 2010-2013: BACK TO A TECHNOLOGY HOLDING COMPANY OUR STRATEGIC ALLIANCE RAFAELG) ELRON Strategic partnership between Elron and Rafael, through a jointly owned subsidiary, that has access to state of the art technologies developed by Rafael and exclusive rights to commercialize them in civilian
Slide 11: Our Strategic Alliance
ELRON 2010-2013: BACK TO A TECHNOLOGY HOLDING COMPANY OUR STRATEGIC ALLIANCE Combining Rafael's extensive scientific know-how, Cc advanced R&D capabilities, technological innovation and , resourcefulness with Elron's strong financial base, access to capital markets, management skills and strategic e
Slide 12: From Debt to Dividend Distribution: Current Resources
ELRON 2010-2013/finance FROM DEBT TO DIVIDEND DISTRIBUTION CURRENT RESOURCES $23m cash balance as of Sep. 30, 2013 $25m unutilized credit line from Silicon Valley Bank $13m cash balance at RDC as of Sep. 30, 2013 We continue to seek new investment opportunities in the medical device industry, and ha
Slide 13: Catalysts 2013/4
ELRON 2013/4 > CATALYSTS ELRON
Slide 14: Catalysts: Major Group Holdings
ELRON 2013/4 > CATALYSTS: MAJOR GROUP HOLDINGS [Business ‘Shareholdings Elron'sinvestment GlyEN lworld leader in Gl medical devices and pioneer |30% — lof capsule endoscopy (8.36% by RDC) _|NA ee real-time & automated microbiology 9! laboratory system 41% $27.4m D 7 treatmentoof ischemic stroke in 2
Slide 15: BrainsGate
ELRON 2013/4 > CATALYSTS: @ BrainsGate Elron's holding: 30% Founded: 2000 First investment by Elron: 2005 ~$70m have been invested to date, of which ~$21m by Elron Main partners: Johnson & Johnson, Boston Scientific, Pitango, Cipio Partners Device for treating ischemic stroke in 24 hour window post
Slide 16: BrainsGate: Stroke Burden
ELRON 2013/4 > CATALYSTS BrainsGate The direct and indirect cost of stroke in the U.S. in 2010 was estimated at $73.7b 15 million people suffer a stroke worldwide each year (1) of stroke victims receive treatment 5 Yo in the limited 3-4.5 hour window 15-30% prermanentiydisanied ‘Sources: World Healt
Slide 17: BrainsGate: Why Hours?
CATALYSTS BrainsGate WHY 24 HOURS? tPA (current treatment); SPG stimulation: dissolve clot augment cerebral blood flow + Restores blood flow to the blocked + Electrical stimulation induces blood vessel dilation of cerebral blood vessels, + Due to the temporary interruption in and thus augments blood
Slide 18: BrainsGate: Implant and Implantation Site
ELRON 2013/4 > CATALYSTS BrainsGate IMPLANT AND IMPLANTATION SITE Implant Implantation Implanted patient
Slide 19: BrainsGate Clinical Trial and Catalysts
ELRON 2013/4 > CATALYSTS: ELRON In 2010 BrainsGate completed a clinical trial on approximately 300 patients, whose results strengthened the assessment that BrainsGate's treatment has a considerable clinical effect, which is stronger than the effect found in current treatments. Since June 2011, Brain
Slide 20: Pocared Diagnostics
ELRON 2013/4 > CATALYSTS: POCARED Y Diagnostics 7 » Elron's holding: 41% = Founded: 2004 » First investment by Elron: 2007 = _7$66m have been invested to date, of which ~$27m by Elron = Main partner: SCP Vitalife + Real-time and automated microbiology laboratory system, using optical technology = Th
Slide 21: Pocared: Microbiology Diagnostic Market
ELRON 2013/4 > eri POCARED_Y Diagnostics °F The global microbiology diagnostic market at 2013 is expected to total approximately $4.5b million urine cultures are 125 performed each year in the U.S. of urine cultures return with 70% negative results, after antibiotics have been unnecessarily administ
Slide 22: Pocared: Diagnosis in Under 20 Minutes
ELRON 2013/4 > caravans POCARED Y Diagnostics 7 DIAGNOSIS IN UNDER 20 MINUTES: transfer carousel to optical analyzer module urine sample a complete cartridge cartridge carousel
Slide 23: Pocared: Certification and FDA Trial
exer Began Diagnostics = In December 2011, the company received CE certification. + Pocared is collecting urine samples for a diagnostic trial to prove the efficacy of its system's first application, UTI diagnosis. The trial is expected to support its planned FDA submission. The diagnostic trial is
Slide 24: Given Imaging
ELRON 2013/4 > CATALYSTS: ELRON GlyEN IMAGING Market cap - ~$660m (November 2013) Q3/13 revenues - $50m ;2012 revenues - $181m Cash and financial assets - ~$140m (as of Sept. 30, 2013) In the United States, Given Imaging completed an 885-patient, multi- center pivotal clinical trial with the PillCam
Slide 25: PillCam COLON 2
ELRON 2013/4 > CATALYSTS G ] ve PILLCAM COLON 2: EN vc High Accuracy a at! Ly — | ee . v Low Accuracy Detects Only Cancer & = Direct visualization f= Raciloay,ncrect visual Yon = Init information ‘Sources: http://www guideline.gov/content.aspx?id=14346; http://www.webmd.com/colorectal-cancer/which-t
Slide 26: CartiHeal, Notal Vision, Kyma
ELRON 2015 + CARTIHEAL NOTAL VISION KYMA ELRON
Slide 27: CartiHeal
ELRON 2015+ wy CartiHeal Elron's holding: 32% Founded in 2009; First investment by Elron in 2012. $13m invested in company to date, including $5m by Elron. Other investors include Accelmed (owned by Mot Ventures. rkin) and Access Medical Implants for repairing cartilage and osteochondral defects in
Slide 28: CartiHeal: Post-op Results
ELRON 2015+ ie e€a 1 day post-op: 6 months post-op: ELRON
Slide 29: Notal Vision
ELRON 2015+ NOTAL VISION™ Elron's holding : 22% Founded in 2000; First investment by Elron in 2003. $27m invested in company to date, including $6.5m by Elron. Remote monitoring of patients at risk of vision loss from AMD. AMD destroys sharp, central vision, necessary for common tasks such as facial
Slide 30: Kyma
ELRON 2015+ Oo + Elron's holding (through RDC): 37% Sa + Founded in 2008; First investment by Elron in 2009. 4 q + $10.5m invested in company to date, including $8.5m by RDC. Y 4 . Miniature device for the continuous remote monitoring of chronic heart . failure (CHF) patients, inserted beneath the s
Slide 31: Financials Q3/13
ELRON Q3/13 > FINANCIALS ELRON
Slide 32: Financials: Holdings and Market Value
ELRON Q3/13 > FINANCIALS ELRON Public Holdings! (Market value as of Nov. 8, 2013) Given Imaging Other holdings T joldings Private Holdings? (Book valueas of Sept. 30, 2013) Pocared BrainsGate Jordan Valley Other holdings? Total Private Holdings Financial Assets, net (asof Sept. 30,2013) Debt (as of
Slide 33: Looking ahead, Elron should always understand
ELRON Looking ahead, Elron should always understand that the ever evolving changes in the high tech industry will be exponential, and therefore, success will depend on choosing the right niches in the world market in which it can maintain and improve its relative advantage. Mr. Uzia Galil, Elron's f
Slide 34: The Bottom Line
ELRON ELRON > THE BOTTOM LINE Unique access to Israel's world-class human capital, R&D resources, universities, & scientific institutions An operational holding company with the ability to provide long-term commitment to group companies Strategic alliance with Rafael and access to state of the art m
Slide 35: Visit us at elron.com
visit us at elron.com
Elron Electronic Industries — Q3 2013 Earnings Presentation on 6ix