Slide 1: Discover. Innovation
DISCOVER. INNOVATION
Slide 2: Disclaimer
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 make improvements and/or changes in the features or content presented
Slide 3: Seeking to Change the Face of Healthcare
SEEKING TO CHANGE THE FACE OF HEALTHCARE
Slide 4: News
NEWS $110m dividend distributed Pocared estimates it will complete the FDA trial by the $269m exit proceeds end of April 2015 The American Academy of $166m cash balance Ophthalmology recommends early detection of wet AMD $94m profit using Notal Vision’s technology $16m investments 4 Results in
Slide 5: Snapshot
SNAPSHOT ~$573m in exit proceeds since POCARED 2009 MICROBIOLOGY 50% invested (Elron) invested (total) ~$200m invested in med-tech BRAINSGATE companies in recent years STROKE CARE 30% invested (Elron) invested (total) 1-9/2014 profit: ~$94m NOTAL VISION Cash balance of $166m AMD 21% invested
Slide 6: Elron. Results
ELRON. RESULTS
Slide 7: Results: Exits since 2009
RESULTS Value of exits since 2009: ~$1.4b ~$573m in exit proceeds since 2009 June 2009 Oct. 2009 May 2010 June 2010 Sept. 2011 Nov. 2011 Nov. 2012 Feb. 2014 7
Slide 8: Results: Cumulative profit
RESULTS The cumulative profit since 2010: $174m 2010 2011 2012 2013 1-9/2014 8
Slide 9: Results: Cash flow and dividends
RESULTS 1-9/2014: positive cash flow of ~$190m $110m dividend distributed in 2014 $15m dividend distributed in 2012 No debt 31.12.10 31.12.11 31.12.12 31.12.13 30.9.14 9
Slide 10: Partnership
PARTNERSHIP
Slide 11: Asset: RDC and Rafael
ASSET RDC: jointly held by Elron (50.1%) & Rafael (49.9%) The Rafael-Elron agreement is exclusive and indefinite The agreement is in effect as long as Elron maintains a holding in RDC 2nd largest government-owned defense company in Israel $75m invested by RDC in companies since 2009 2013 net
Slide 12: The Case of Given Imaging
ASSET THE CASE OF GIVEN IMAGING Given Imaging was established in 1993 by RDC RDC’s total investment in the company: $6.1m Q1/14: the company’s acquisition by Covidien for $30 per share in cash The consideration represents a $1b valuation Our share in the consideration: Elron- $204m, RDC- $
Slide 13: Elron. Promise
ELRON. PROMISE
Slide 14: BrainsGate: stroke treatment
INNOVATION Elron’s holding: 30% Founded: 2000 Treatment of ischemic stroke in a 24 hour window post symptom onset First investment: 2005 Total investment: $70m ($21m Current treatment (tPA protein) is approved for use during by Elron) a 3-4.5 hour window only Main partners: Johnson & Johnson, Boston
Slide 15: BrainsGate: clinical trial
INNOVATION $95b is the estimated cost of stroke in the U.S. projected for In 2010 BrainsGate completed a clinical trial on 300 patients 2015 whose results strengthened the assessment that the 15m people suffer a stroke treatment is effective and safe worldwide each year 5% of stroke victims receive
Slide 16: BrainsGate: how treatment works
INNOVATION Restores blood flow to the Electrical stimulation induces blocked blood vessel dilation of cerebral blood vessels, and thus augments Due to the temporary blood flow interruption in blood flow, the blood vessel becomes The stimulation avoids brittle manipulating the blood clot, and treats
Slide 17: Pocared: infectious disease diagnosis
INNOVATION Elron’s holding: 50% Founded: 2004 Real-time and automated system for infectious disease diagnosis, based on optical technology First investment: 2007 Total investment: $77m ($37m Designed for use by major microbiological laboratories by Elron) and hospitals Main partner: SCP Vitalife Mea
Slide 18: Pocared: FDA trial
INNOVATION 125m urine cultures are performed each year in the U.S. The system is CE certified since December 2011 70% of urine cultures return negative, after antibiotics have Pocared is conducting a trial to test the efficacy of the system's been unnecessarily administered 1st application, UTI diag
Slide 19: Pocared system
INNOVATION a complete cartridge transfer carousel to urine sample cartridge carousel optical analyzer module results… 19
Slide 20: Notal Vision: AMD monitoring
INNOVATION Elron’s holding: 21% Founded: 2000 Remote monitoring of patients at risk of vision loss from AMD First investment: 2003 Total investment: $37m ($8.5m AMD destroys sharp, central vision, necessary for by Elron) common tasks such as facial recognition, driving, reading, Main partners: Everg
Slide 21: Notal Vision: ForeseeHome marketing
INNOVATION AMD is a leading cause of severe vision loss and blindness in Notal Vision began marketing the ForeseeHome in the U.S. adults over age 60, and affects ~9.1m individuals in the U.S. The ForeseeHome was granted a CPT code, effective 2015 The American Academy of Ophthalmology (AAO) adopted a
Slide 22: ForeseeHome device
INNOVATION The device detects even The Data Monitoring Center small changes in vision alerts patient & doctor 22 Notal Vision website: http://www.notalvision.com/
Slide 23: CartiHeal: cartilage implant
INNOVATION Elron’s holding: 32% Founded: 2009 Implant for repairing cartilage and osteochondral defects in loadbearing joints, such as the knee First investment: 2012 Total investment: $13m ($5m by The implant has a unique structure, comprising of marine Elron) aragonite with biological modification
Slide 24: CartiHeal: clinical trials
INNOVATION ~35m people in the U.S. alone suffer from cartilage injuries The implant is CE certified since April 2011 The cartilage repair market is expected to exceed $3b Preclinical studies demonstrated cartilage & bone regeneration at the implantation site A series of clinical trials are underway
Slide 25: Implant results post-op
INNOVATION 1 day post-op: 6 months post-op: 25
Slide 26: Kyma: heart failure monitoring
INNOVATION Elron’s holding: 29% Founded: 2008 A system for continuous remote monitoring of CHF patients First investment: 2009 Total investment: $11.5m The system is built around a non-invasive and very small ($9.5m by RDC) sensor attached to the patient Main partner: Ganot Based on unique radar tec
Slide 27: Kyma: trials and FDA submission
INNOVATION ~4.3m people suffer from CHF in the U.S. The device is CE certified for hospital use since October 2013 $24b is the estimated cost of CHF in the U.S. projected for The company is conducting a series of clinical trials in diverse 2015 treatment settings (ICUs, CHF units, nursing homes, & o
Slide 28: Value
VALUE Elron’s market value is similar Holdings in companies 1 Book value at Amount invested to its cash balance Sep. 30, 2014 ($m) ($m) Associates and consolidated companies: Book value of associates & Pocared 3.7 37.4 consolidated companies: BrainsGate (0.5) 21.2 generally represents the Others
Slide 29: Opportunity
OPPORTUNITY Proven expertise in identifying opportunities, building technology leaders, and exiting holdings Operational holding company with the flexibility to provide its group companies with long-term commitment Strategic partnership with Rafael – access to state-of-the- art military technologies
Slide 30: Legacy
LEGACY “ 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’
Slide 31: Elron. Opportunity. Thank you.
ELRON. OPPORTUNITY Thank you.