Elron Ventures Ltd · TASE:ELRN
Elron Ventures — Elron Electronic Industries — Investor Presentation (April 2012)
34 slides from Elron Ventures's investor presentation, Apr 3, 2012
Slide 1: Form 6-K Elron Electronic Industries Ltd.
FORM 6-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Report of Foreign Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the Month of April 2012 ELRON ELECTRONIC INDUSTRIES LTD. (Translation of Registrant’s Name into English) 3Azrieli Center, Triangle
Slide 2: English translation of investors' presentation filed with Israeli Securities Authority
English Translation of Registrant's Investors' presentation filed with the Israeli Securities Authority.
Slide 3: Signature
SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. ELRON ELECTRONIC INDUSTRIES LTD. By: /s/ Yaron Elad Yaron Elad VP & CFO Dated: April 3, 2012
Slide 4: Elron investor presentation
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Slide 5: 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 make improvements and/or changes in the fe
Slide 6: Established in 1962, med-tech holding company
§ Established in 1962. § Publicly traded technology holding company. § Specializes in med-tech investments. § Proven track record of identifying, building, developing and exiting companies. § Proceeds from exits totaled ~$250 million during the last three years. § Strategic partnership with Rafael (
Slide 7: Major exits 2009-2011 over $400m
MAJOR EXITS > 2009-2011 During the last three years Elron led exits amounting to over $400m in the aggregate Sale of company to Roche for $200m* Sale of holdings to Discount Investment Sale of company to Corp and Clal Enablence for $50m Sale of company to Industries Alvarion for $30m and Investments
Slide 8: U.S. healthcare market spending
ELRON > MED TECH > HEALTHCARE MARKET U.S. health expenditures in 2010 amounted to: 2,594 which translates to Billion US $ 8,402 US dollars per person 17.9 % of the GDP U.S. healthcare constant and significant spending: growth Source: Centers for Medicare & Medicaid Services, Office of the Actuary, N
Slide 9: Annual healthcare spending per person expected to reach $12,000 in 2015
ELRON > MED TECH > HEALTHCARE MARKET Annual healthcare spending per person is expected to increase to $12,000 in 2015 Source: Wells Fargo Insurance Services. Source: Centers for Medicare & Medicaid Services, Office of the Actuary, National Health Statistics Group (“The Nation’s Health Dollar, Calend
Slide 10: The med-tech market
ELRON > MED TECH > HEALTHCARE MARKET THE MED-TECH MARKET TOP FORTUNE 500 COMPANIES 2011: Medical Products & Equipment Source: Fortune magazine: http://money.cnn.com/magazines/fortune/fortune500/2011/industries/ M&As IN THE US AND EUROPE 2007-H1 2011 Source: Ernst & Young and Capital IQ Average deal
Slide 11: US & European M&As by type of buyer
ELRON > MED TECH > HEALTHCARE MARKET THE MED-TECH MARKET US & EUROPEAN M&As BY TYPE OF BUYER 2000-H1 2011 Source: Ernst & Young, Capital IQ, Windhover and BMO Capital Markets
Slide 12: $150m invested in med-tech companies over 5 years
ELRON > MED TECH $150m invested in med-tech companies during the last 5 years
Slide 13: Group companies / med-tech
ELRON > MED TECH GROUP COMPANIES / MED-TECH:
Slide 14: The way we work: identify, focus, active management
THE WAY WE WORK > IDENTIFY OPPORTUNITIES FOCUS ACTIVE MANAGEMENT § Leverage know-how, expertise, and international network to identify and realize opportunities. § Enhance value of group companies by providing assistance in the advancement of their technology, forming & advancing multinational strat
Slide 15: Main investments 2011
M. AIN INVESTMENTS 2011 > Te POCARED Diagnostics Increased holdings from 32% to A1% SMARTWAVE New investment New investment through RDC through RDC @ BrainsGate reased holdings to 29% Inc from 23% & NAVITRIO Elron’s new digital venture BLRQN
Slide 16: Group companies overview
GROUP COMP. S OVERVIEW BERCHY
Slide 17: BrainsGate: ischemic stroke device
§ Elron’s holding: 29% § Device for treating ischemic stroke in 24 hour window post symptom onset, as opposed to treatment with the tPA protein which is only approved for use during 3- 4.5 hour window § Electrical stimulation of SPG (a nerve center located behind the nasal cavity) to increase blood
Slide 18: Direct cost of strokes in the US $73.7 billion in 2010
The direct cost of strokes in the US amounted to $73.7 billion in 2010 Sources: World Health Organization website: http://www.who.int/cardiovascular_diseases/en/cvd_atlas_15_burden_stroke.pdf. American Heart Association: Heart Disease and Stroke Statistics - 2010 Update.
Slide 19: BrainsGate expects to complete clinical trial during 2013
§ BrainsGate conducted a clinical trial that included approximately 300 patients to prove the efficacy of its system, which it voluntarily suspended in order to update the trial protocol. § The trial results strengthen the assessment that BrainsGate’s treatment has a considerable clinical effect, wh
Slide 20: Pocared: infectious disease diagnosis system
§ Innovative real-time and automated system for infectious diseases diagnosis using optical technology § The system’s first application is diagnosis of urinary tract infection (UTI) § The system is designed for use by major microbiological laboratories and hospitals, as an alternative to the current
Slide 21: Global microbiology diagnostic market
The global microbiology diagnostic market is expected to total approximately 3 Billion US $ in 2012 125 million urine cultures are performed each year worldwide of urine cultures return with negative 70% results, after antibiotics have been unnecessarily administered Sources: Venture Planning 2006 A
Slide 22: CE certification received; FDA trial expected to complete 2012
§ The company commenced a diagnostic trial in support of its planned application filing to the FDA at five of the world's leading medical centers. § The object of the trial is to assess the efficacy of the system's first application, diagnosis of UTI. § Currently, the centers are undergoing staff tr
Slide 23: Kyma: remote heart failure monitoring
§ Miniature device under development for the continuous remote monitoring of chronic heart failure (CHF) patients, inserted beneath the skin or attached to the patient’s torso in patch form. § Kyma’s remote monitoring is intended to enable early treatment, and as a result, reduced hospitalization ad
Slide 24: Cost of heart failure in the U.S.
The estimated direct and indirect cost of heart failure in the U.S. in 2009 amounted to 37.2 Billion US $ This amount is expected to increase to $44.6 billion in 2015 and $57.0 billion in 2020. 45% of this amount was spent on hospitalizations. Remote patient monitoring for heart failure has the pote
Slide 25: SmartWave: implantable atrial defibrillator
§ Miniature implantable atrial defibrillator, under development. § The defibrillator immediately and automatically detects and terminates atrial fibrillation (AF) episodes (a type of irregular heartbeat), without the need for hospitalization. § The device delivers electrical pulses to restore the he
Slide 26: Direct cost of AF in the U.S.
The estimated direct cost of AF in the U.S. in 2008 amounted to approximately Billion US $ American Heart Association: Heart Disease and Stroke Statistics - 2012 Update
Slide 27: Navitrio: powerhouse for digital ventures
As part of its plan for growth and entry into new fields, Elron established a POWERHOUSE for investments in technology based digital ventures NAVITRIO invests in the following fields: ELECTRONIC ADD-ONS, CLOUD BASED SOCIAL COMMERCE FEATURES, MANAGEMENT NETWORKS & & APPLICATIONS OPTIMIZATION SYSTEMS
Slide 28: Cloudyn: cloud cost optimization
Entrepreneurs: Dr. Boris Goldberg, Vittaly Tavor & Sharon Wagner NAVITRIO’s holding: 43% (following completion of investment) Launch: February 2012 System for optimization of resources and costs related to the cloud environment that delivers an average of 40% cloud- related cost reductions
Slide 29: Cloudyn results after beta launch
The company launched its beta version at the beginning of February 2012. Approximately four months later, the company achieved impressive results: 150K managed AWS servers 41% cloud related cost reductions on average 400% increase in the 20+ million cloud-managed company’s client base dollars
Slide 30: Strategic partnership between Elron and Rafael
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 Rafael - Advanced Defense Systems develops & manufactures state of the art armaments for the Israel Defe
Slide 31: Elron summary: 2011 and 2012/2013 forecast
ELRON > SUMMARY 2011 § Led exits amounting to ~$55m in the aggregate, of which Elron recorded a profit of ~$31m § Invested ~$37m in group companies (including RDC) § GIVEN IMAGING announced record revenues in the fourth quarter and year 2011 § POCARED commenced FDA trials and received CE certificati
Slide 32: Elron summary
ELRON > SUMMARY § Leading investor with hands-on investment & management capabilities § Focus on medical devices: ~$150m invested by Elron in med-tech over last 5 years § Broad business development platform that encompasses largest global med-tech companies § The way Elron works: identify opportunit
Slide 33: Elron financial data
ELRON > FINANCIAL DATA Effective Public Holdings ($m) (Market value as of March 7, 2012) Given Imaging 152.3 Other holdings 5.5 Total Public Holdings 157.8 Private Holdings (Book value as of December 31, 2011) Pocared 5.0 BrainsGate 0.4 Other holdings 1 22.3 Total Private Holdings 27.7 Financial Ass
Slide 34: info@elron.com
WB SROUP IPA TNT info@elron.com
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