Seach Medical Group Ltd. · TASE:SEMG
Seach Medical — Investor Presentation (April 2021)
33 slides from Seach Medical's investor presentation, April 2021
Slide 1: We Are Seach
WE ARE SEACH Pioneers of the Israeli Medical Cannabis Industry Investors Deck – Financial Statements of 2020 April 2021 1
Slide 2: Legal Disclaimer
Legal Clarification: This Company’s Investors Deck (the "Presentation") includes general and partial information only, and should be read in conjunction with the Company's immediate and periodic reports published from time to time (the "Company's Reports "), including its Disclaimer financial statem
Slide 3: About Seach
2020 financial overview Technological and R&D leader 2020 Revenues reached NIS 37 Execution of clinical trials to develop Million the next generation of medical 2020 Profit and Adjusted Profit* Cannabis products amounted to NIS 12 Million and 18 Investments in various technological Million, Respecti
Slide 4: Pioneering the medical Cannabis field since 2002
Pioneering the medical Cannabis field since 2002 IMC-GAP Strategic certification Joint-Ventures Beginning of First sales First commercial actual cultivation at pharmacies' export from Israel 2008 2018 2020 2002 2009- 2019 2017 Global GAP Commercial certification Merger into public cultivation Greenh
Slide 5: Management
Management Yogev Sarid Founder & CEO Shay Avraham Sarid Founder & CTO Amichay Rab CFO Ofir Sarid Founder & COO Dr. Iris Nesher Nitzan Lotringer Hagai Zachor Shira Sitton-Dvorachek Chief Scientist Master Grower Biz-Dev Manager HR Manager 5
Slide 6: Board of Directors
Nir Zichlinskey Chairman Board of Directors Owner and CEO of SRI GLOBAL GROUP, served as second to the CEO of Arison investment, CPA – previously served as a senior partner at BDO Ziv Haft. Yaakov Amidror Itamar Elitzur Director Independent Director General in reserves, previously head of the nation
Slide 7: Main Holdings
Main Holdings Seach Israel Seach International Medical Group Seach Technologies 100% Seach Sarid Ltd. 40% 52.5% ~6.9% ~39.5% PlantArc Bio Ltd. (TA:PLNT) 41.6% 52.3% 42.3% Netherlands Greece TrichomeShell Ltd. Targene Advanced Eybna Technologies Green ElementB.V Sarrio Hellas S.A Agriculture Ltd. Ltd
Slide 8: The Israeli Cannabis market
The Israeli Cannabis market Number of patients holding active medical Cannabis licenses in Israel Source: Medical Cannabis unit - the Ministry of health 90,000 85,074 February 2021 80,000 80,306 70,000 60,000 57,333 50,000 40,000 30,000 31,941 26,204 20,000 19,932 15,897 12,883 10,000 10,516 8,026 5
Slide 9: Increasing production capacity
Increasing production capacity Increasing production Strategic agreements with Import of top-quality capacity by upgrading sub-farms to increase Cannabis inflorescences the greenhouses with production capabilities from leading companies modular cultivation while receiving royalties worldwide systems
Slide 10: Brands & Products
Seach’s Brands • Over the course of a decade unique strains have been developed in accordance with medical standards and patients needs Brands & • Products and brands are widely sold to licensed pharmacies in Israel • New products are under development and will enter the market in accordance with re
Slide 11: Focused on building powerful brands
Focused on building powerful brands 11
Slide 12: Brands & Products
Illustration Co-brand collaboration with Co-brand collaboration with Rafa & Panaxia Hadassah • Collaboration for production and sale • Collaboration for production and sale of Brands & of Axiban Cannabis oils between mutual Cannabis oils brand between Seach, Panaxia and Rafa which Seach and Hadassah
Slide 13: Research & Clinical Trial based Products
Research & Clinical Trial based Products • Execution of clinical trials for development of innovative products based on Seach’s formulations • Potential clinical trials include diabetic neuropathy, autism in young people, pain, Alzheimer's and more • Nitzan Spectrum Cannabis oil is based on a design
Slide 14: Our Data Base
For over a decade we have created a genetic bank with more than 500 strains. In Addition, Our Data Base during 14 years of direct work with our patients, we created extensive database comprised of medical indications, strains consumed by our patients, strains efficacy on various diseases and more. O
Slide 15: Demand and Supply
The Israeli medical Cannabis market is expected to reach 140,000 patients in 2022 Demand Sales in Israel and export to several designated countries Dozens of pharmacies in Israel Supply Worldwide customers Tens of tons of Cannabis in the upcoming years Seach’s facilities in Israel Joint ventures wit
Slide 16: November 2020 March 2021
November 2020 For the first time in the history of Israel, Seach executed commercial export of medical Cannabis from Israel March 2021 Execution of the largest-scale commercial export by an Israeli company - 120 kg of inflorescences to Australia * According to the company’s knowledge Seach is the fi
Slide 17: Commercial export
Commercial export First commercial export of medical Cannabis in the history of Israel November 2020 - EXECUTED December 2020 - EXECUTED March 2021 (120 kg of Inflorescences) - EXECUTED December 2020 - EXECUTED March 2021 - EXECUTED Planed during 2021 Seach cultivation facility is GACP certified The
Slide 18: Seach International
Seach International Main holdings Medical Group STRATEGIC JOINT VENTURES 100% USA Harmony Foundation Seach Sarid Canada GMPC 40% 52.5% Green Element B.V Sarrio Hellas S.A Netherlands Greece 18
Slide 19: Seach International: Sarrio Hellas S.A Greece
Sarrio Hellas S.A Greece • Seach holds 52.5% of Sarrio Hellas S.A shares, together with Israeli and Greek partners • In January 2020 Sarrio received an initial license for cultivation, manufacturing, marketing and selling of medical Cannabis in Greece and export to European countries • Sarrio owns 6
Slide 20: Seach International: Why Greece?
Sarrio Hellas S.A Greece Why Greece? • Relatively developed Cannabis regulations in comparison to other European countries • The Greece government has declared the Cannabis industry as a strategic growth engine • Greece is a gate to the EU • Relatively low operational costs (labor and resources) • I
Slide 21: Seach International: Green Element BV Netherlands
Green Element BV Netherlands • The company engages in manufacturing, marketing and selling of CBD-products in Europe • The company operates, inter-alia, in the field home-pets’ products, based on a network of local veterinary clinics • The company has signed several commercial agreements for the pro
Slide 22: Seach International: GMPC and Harmony Foundation
GMPC Canada Seach has entered into a long-term agreement with GMPC (Global Medical Cannabis Producers Corporation) to grant exclusive right of use in Canada to GMPC for the cultivation, marketing and sales of products based on Seach’s specific formulations and strains in Canada in exchange for royal
Slide 23: Holdings in innovative technology companies
Holdings in innovative technology companies Medical Group ~6.9% ~39.5% PlantArc Bio Ltd. Eybna (TA:PLNT) Technologies Ltd. 41.6% 52.3% 42.3% 100% Targene Advanced Eybna TrichomeShell Ltd. Technologies Ltd. Pharma Ltd. 23
Slide 24: Seach Technologies: Eybna Technologies
Seach Technologies Terpenes Technology Eybna Technologies Activity - 39.5% • An R&D company which conducts research on the medical • Analysis of terpene profiles of Seach’s varieties and activity of phytochemicals found in Cannabis with a strong development of terpene formulations to enrich Cannabis
Slide 25: Seach Technologies: TrichomeShell
Seach Technologies Innovative Consumption Products TrichomeShell Activity – 41.6% • Develops consumer products which are characterized by full repeatability per unit of product, while controlling the composition and dosage of the active ingredients. • Patent (PCT) on the manufacturing methods and th
Slide 26: Seach Technologies: Targene
Seach Technologies Advanced Cultivation Technologies Targene Activity – 52.3% Producing active ingredients at scale • Production of Cannabinoids (single molecule) and Cannabis cells (full spectrum) using breakthrough technology by using a liquid medium environment (bioreactor) for pharma- grade prod
Slide 27: Seach Technologies: PlantArc Bio
Seach Technologies Advanced Cultivation Technologies PlantArc Bio Activity – 6.9% (TA:PLNT) Genes discovery for the global seeds industry • Innovative patented technology (DIP© - Direct In Plant) for the discovery of genes that has positive effects on plants • To date, the company found genes for yi
Slide 28: Financial Highlights
Financial Highlights A . > = Ns w ’ be) Pr o- > > a id See Te e \ os = * sa ZA P iy aaa * < , a \ ~~ - on va a ae ‘ al elem ¥ ‘ — > € < — _— > 28
Slide 29: 2020 Revenues reached NIS 37 Million, up 28% on 2019
2020 Revenues reached NIS 37 Million - an increase of 28% compared to 2019 2017-2020 Revenue (NIS Million) 2020 Quarterly Revenues (NIS Million) 40 16 36.8 35 30 12 25 20 8 36.8 15 28.8 11.6 11.0 10 4 7.7 18.5 6.6 5 12.3 0 0 2017 2018 2019 2020 2020 Q1 2020 Q2 2020 Q3 2020 Q4 Revenues (NIS Million)
Slide 30: Gross margin in 2020 of 57% compared to 48% in 2019
Gross margin* in 2020 of 57% - compared to 48% in 2019 25 • The gross profit in 2020 was approx. NIS 57% 60% 20 49% 48% 21.1 Million and reflects an increase of approx. 52% compared to 2019. 15 30% • The gross margin in 2020 was 57% 10 21.1 13.9 compared to 48% in 2019. 5 9.2 0 0% 2018 2019 2020 Gro
Slide 31: Adjusted profit in 2020 reached NIS 18 Million, up 95%
Adjusted profit* in 2020 reached NIS 18 Million - an increase of 95% compared to 2019 20.0 55% 49% 18.0 50% • Adjusted profit in 2020 was approx. NIS 16.0 45% 18.1 Million and reflects an increase of 95% 14.0 40% 12.0 32% 35% compared to 2019. 10.0 30% 25% 18.1 • Adjusted profit margin in 2020 is ap
Slide 32: Building diverse revenue streams
Building diverse revenue streams Revenues from Revenues from export Revenues from Cannabis products of Cannabis products royalties from sub- in Israel worldwide farms and international collaborations Expanding to Value overflow from additional sections Seach’s subsidiaries within the Cannabis value
Slide 33: Thank you!
Thank you! Seach Medical Group www.seach.co.il officemgr@seach.co.il 33
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